DBS Vickers ran a report Sep 2016 on a review of the Office REIT sector. The stabilization of prices looks to be in place.
The first positive sign DBS highlight is that the office REIT looks to be
protecting their tenants well. Not many were poached.
The reason could be that, like what Keppel REIT like to remind us, their
properties are rather new. And in this case , you do see the advantage, as a company you need to keep up with appearances.
Office Future Supply Snapshot
Majority of the supply coming online will be in 2016 and 2017.
The big ones are Guoco Tower in 2016 and Marina One in 2017.
The last office property to come online will be Frasers Tower by FCL in 2018.
Guoco Tower:
- Jan 10% pre-commited
- Sep 70% pre-commited
- Effective rent reported: $7.50 (near grade B rent) to >$10 psf per month
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