Strong demand for State properties

Record bids for rental of commercial properties

Rising office rentals in the central business districts have sparked strong bids for state properties put up for lease.

The Singapore Land Authority (SLA) received bids ranging from 10% – 70% above rental guides for some of the nine buildings since February.

The Urban Redevelopment Authority (URA) said last month it plans to build temporary offices available for short leases as a stop-gap measure against rising office rents.

Prime occupancy costs in Raffles Place have risen by 28% in the first quarter this year to $10.90 per ft (psf) on average.

Sources:

• “Strong interest in rental of state properties”, The Business Times, 8 Jun 2007
• “Demand for state properties rises on tight office supply”, The Straits Times, 8 June 2007