SINGAPORE: The city state’s office rental rate has plummeted from the ninth most expensive in the world a year ago to 32nd spot, according to a CB Richard Ellis (CBRE) report.

General rental rates have also dropped significantly, from an annual $135.13 (RM459.44) to $663.89 psf – down 53.4%. Singapore’s office rental drop was the largest among leading Asia-Pacific cities.

Tokyo (Inner Central) was Asia’s most expensive market with an occupancy cost of US$172 psf, while Hong Kong’s CBD was US$138. London’s West End was the world’s most expensive space for office, at an average of US$184.85 psf.

“While there are signs that commercial real estate values are stabilising in some markets in Asia and parts of London, underlying property fundamentals are still weak,” states Dr Raymond Torto, CBRE’s global chief economist.

“However, the office market may be on the cusp of moving from intensive care to the stabilisation state – the first step to getting back to good health.” – The Edge Singapore