Office, retail rents to rise in coming years

M&G Real Estate expects office rents in Singapore to rise by six percent per annum over the next three years – or its strongest overall growth, reported the Business Times.The increase comes on the back of a medium-term Grade A supply drought, it said.The global property investor also expects retail rents in Singapore to grow by around 1.5 percent per annum, as both domestic consumer sentiment and tourism spending improve in 2018.“In addition, the positive effects of residential en bloc sales may boost further consumer spending, as sellers cash out and redeploy this money elsewhere.”However, a potential increase in goods and services tax in 2018 or 2019, which is estimated by analysts to stand at nine percent, could initially restrain spending as consumers adjust to the new level, it said.Source: ComemrcialGuru, 8 Feb 2018