Monday, July 13, 2009

CBRE revises rental forecasts lower


Source : Channel NewsAsia – 13 Jul 2009

Property consultancy CB Richard Ellis (CBRE) is revising its rental forecasts for 2009, given better-than-expected average rentals in the second quarter.

The firm now expects Orchard Road rents to fall between 10 and 12 per cent this year, a less drastic decrease than its earlier estimate of 15 to 20 per cent.

Suburban mall rents are likely to contract between 5 and 6 per cent, down from its earlier estimate of 10 to 15 per cent. CBRE said Prime Orchard Road rents averaged S$33.90 per square foot in the second quarter, down 7.8 per cent year-on-year.

For the first half of this year, prime Orchard Road rents have fallen 6 per cent. The consultancy said prime suburban rents remained unchanged in the quarter averaging S$28.30 per square foot, supported by the limited pipeline supply in the suburbs.

Going forward, CBRE said there is a high level of anticipation with many new malls in Orchard Road on schedule to be opened in the second half of the year, including ION Orchard, Orchard Central and 313@ Somerset.


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