Positive Signs Spotted In Office Market Despite Tightened Restrictions
SINGAPORE – Despite the return of work from home (WFH) as the default work arrangement here, real estate consultancy CBRE witnessed “positive signs” in the city-state’s office market in Q3 2021, reported the Singapore Business Review (SBR) on Thursday morning (14 October, SGT).
One of the bright spots seen is the completion of CapitaSpring’s office component and the robust demand for office space there. In fact, the highly anticipated development’s office component contributed 0.21 million sq ft of overall office net absorption during the period under review.
According to market watchers and real estate experts another positive sign is the continued low vacancy level in the city-state’s Grade A office market.
“The outlook for the office market looks positive as the sector is underpinned by tight vacancy,” noted CBRE.
Besides that, the real estate consultancy highlighted that rental growth in the Grade A office space sector gained momentum, with monthly office rent rising by 1.4 percent to S$10.65 psf during the third quarter of this year.
Furthermore, property experts project that tech firms and non-banking financial services providers will continue to drive leasing activity in Singapore’s office market.
“Coupled with the limited number of options over the next 3 years, and the rapid expansion in demand from the technology sector, CBRE Research expects further rental growth in the mid-term,” added the property consultancy.