The real quantifiable fact is that demand for office space is slacking off, and sooner or later that is going to be reflected in rents. A 2.6 percent reduction in rentals is a BIG drop (http://www.channelnewsasia.com/news/sin ... 04780.html), and it's only going to continue.zzm9980 wrote:Is that a quantifiable fact? I have a friend in commercial real estate who tells me otherwise.AndrewV wrote: what you say maybe true, but how do you explain the fact that Singapore is eternally short of office space (even with so many new developments coming on board)?
What you have seen is just the beginning. It's happening in spades in the USA right now. Sure, IT managed services was the first to succumb, what with remote access and the ability to replace onsite techs with delivery boys.Wd40 wrote:In my opinion, all those jobs that had to move have already moved. i.e. low hanging fruits. Those global companies which have multiple offices. Especially in low cost centres like India.
What you have remaining now are essentially local companies that are hesitant to outsourcing or some of the stronger MNCs. My experience is primarily with banks. So I know for a fact that some of the weaker global banks like Credit Suisse, UBS, SC, Barclays have already cut their meat of staff. Now essentially the bank jobs available these days are DBS, OCBC and the stronger global banks like Citi and JP Morgan.
But then just look at the model followed in these 4 banks. Essentially they follow the managed services model. i.e. they outsource it to Indian software houses like TCS, Infy, Wipro etc which have their own development centres in Singapore and they bring truck load of Indians here to work on their projects.
So there are only 2 choices either jobs go to India or Indians come here to work. There is no other way.
Yes, This is true. In the Marina bay area so many new developments are coming on stream like the Capita Green and attracting tenants from existing companies with lower rents.Strong Eagle wrote:The real quantifiable fact is that demand for office space is slacking off, and sooner or later that is going to be reflected in rents. A 2.6 percent reduction in rentals is a BIG drop (http://www.channelnewsasia.com/news/sin ... 04780.html), and it's only going to continue.zzm9980 wrote:Is that a quantifiable fact? I have a friend in commercial real estate who tells me otherwise.AndrewV wrote: what you say maybe true, but how do you explain the fact that Singapore is eternally short of office space (even with so many new developments coming on board)?
From Today Online article: "Singapore prime office rents posted a 14 per cent gain in 2014, the strongest in Asia...". Do landlords really think companies can sustain this kind of endless increase in rent?Wd40 wrote:Yes, This is true. In the Marina bay area so many new developments are coming on stream like the Capita Green and attracting tenants from existing companies with lower rents.
http://www.todayonline.com/business/bhp ... bay-source
Also Marina one construction is in full swing:
http://sbr.com.sg/commercial-property/n ... lable-2015
Everyone likes new offices. Some of the older offices in the Raffles place area are going to fall out of favor.
Incorrect......it's a sign of the 10yr COE cycle, whereby in 2004-2007 there was a bucket load of COEs introduced to the market through bad planning and an incorrect formula.Wd40 wrote:COE for cars have come off a lot.
http://www.onemotoring.com.sg/1m/coe/coeDetail.html
More evidence that Singapore is slowing.
oh, you deserve d drink for thisStrong Eagle wrote:
We've got a population with an entitlement complex and workers who want to be managers, and by "manager" they mean they want to hand work off to someone else, so you end up with a giant circle jerk of everyone trying to hand off everything to everyone else. It takes FOREVER to get shit done in a Singapore office... even worse in KL.
first, i bet they do think the companies will pay (otherwise, why would they still build office and industrial space when there are currently so many vacancies?).Strong Eagle wrote:
From Today Online article: "Singapore prime office rents posted a 14 per cent gain in 2014, the strongest in Asia...". Do landlords really think companies can sustain this kind of endless increase in rent?
S$12 to S$13 per month for prime space is USD 8.75 to 9.50. Compare this to USD 5 per month for prime Manhattan office space in New York and $1 to $3 for prime office space in Houston.
komatineni wrote:We've got a population with an entitlement complex and workers who want to be managers, and by "manager" they mean they want to hand work off to someone else, so you end up with a giant circle jerk of everyone trying to hand off everything to everyone else.
This is the real challenge. In addition the culture makes a huge role with 'titles' too. So engineer after 5 years is not a good thing. Everyone wants to be a manager, director. That's how driver becoming captain, cleaner changing to CGA (clean & green ambassador)
I was hired in to clean up a managed services problem for a major SE Asia MNC. Service was absolutely atrocious. New hires had to wait 2 weeks to get their PC's installed, your standard service ticket had an average open time of 30 days.calugaruvaxile wrote:oh, you deserve d drink for this!!
Between jobs I was attached to a consulting company ...Strong Eagle wrote: I was hired in to clean up a managed services problem for a major SE Asia MNC. Service was absolutely atrocious. New hires had to wait 2 weeks to get their PC's installed, your standard service ticket had an average open time of 30 days..
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