Office

Office: Sector likely in focus after DTZ highlight that rents continued to climb in 2Q , with office rentals, +5.4% qoq, while HarbourFront, +4.3% qoq, despite 3m sqft of supply coming into mkt this yr. Going forward, DTZ said avg rents in Raffles Place likely to rise by 15-18% this yr.....

Separately, CBRE highlights that Grade A office rents rose +2.9% qoq, while prime office rents rose +2.3% qoq, noting that 8.4m sqft of office space will be completed from 2H11 to 2015 and could moderate pace of rental growth….

BNP Paribas also has property report. House initiates Coverage on City Dev with Buy Call and $13.00 TP, while house has New Buys for Keppel Land (Top Pick and Buy at $4.60) and Capital Land (TP $3.40) Cite that concerns about supply and policy in SG real estate sector overdone and recommends investing in well-capitalized cos. with proven delivery ability….

Separately we note that other beneficiaries of rising office rental rates include OUE, UOL, K-REIT, Suntec REIT and Capital Commercial Trust.