M
The Economy
Meanwhile, the commercial and industrial property markets remained lacklustre in 2016, despite some relative firm-up in the latter part of the year. For the year as a whole, the number of sale and purchase agreements for non-residential property dropped 9 per cent to 18,300, and total consideration fell 21 per cent to $104.8 billion. Prices and rentals generally showed modest performance.
Sale prices of retail shop space were little changed between December 2015 and December 2016, while rentals fell 1 per cent (chart 13). For office space, overall prices fell 2 per cent. Prices of grade A office space stayed virtually unchanged, while prices of grade B and C office space both dropped 3 per cent. Overall office rentals rose 2 per cent, with those of grade A, B and C. office space all recording an increase of 2 per cent (chart 13). Prices and rentals of flatted factory space increased 4 per cent and 5 per cent respectively.
Chart 13
Prices and Rentals of Retail Shop Space and Office Space (Jan 2012-100)
Retail shop space
Office space
Index
Index
170
160
Feb 2013
Feb 2013
155
Price index
Price index
160
150
145
150
140
135
140
130
125
130
120
Rental index
Rental index
115
120
110
105
110
100
100
95
55
Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul
Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul
| 2012 | 2013 | 2014 | 2015 | 2016 |
| 2012 | 2013 | 2014 | 2015 | 2016 |
Prices and rentals of retail shop space and office space generally showed modest performance in 2016.
As to demand-supply balance, the vacancy rates of retail shop space, office space and flatted factory space rose from 7.7 per cent, 8 per cent and 5 per cent at end-2015 to 9 per cent, 8.2 per cent and 5.8 per cent respectively at end-2016. Their respective long-term averages over 1996-2015 were 8.8 per cent, 10 per cent and 8 per cent.
Price Movements
Consumer price inflation eased further in 2016, as domestic price pressures remained benign and imported inflation was largely absent. Headline consumer price inflation, which is under the influence of the government's one-off relief measures, moderated to 2.4 per cent in 2016 from 3 per cent in 2015. Netting out the effects of the government's one-off relief measures,
49
No comments yet.
Private notes are available after approval.