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Q2 2017 CBD Premium and Grade A officen rents have continued to decline, albeit at a slower rate, and vacancy has risen under the weight of the large new completions. The first half of 2017 has seen relatively strong pre-commitments in the new developments as "flight to quality" continues. In H2, Colliers expects the staggered return of secondary space to the market and new completions to increase average vacancy further and lead to a modest rent decline by end-2017. The pace of new CBD supply would slow down in 2018-2020, and we expect the market to pick up steadily if occupier demand keeps up with the GDP growth forecast.
Keywords: Colliers International, Market Conditions, Singapore, Q2 2017
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