Singapore CBD Office Rental Growth

Singapore CBD Office Rental Growth May Slow Down In 2024

SINGAPORE – Real estate consultancy Cushman & Wakefield (C&W) expects Grade A office space in the city-state’s central business district (CBD) to record weaker office rental growth next year, according to a report from the Singapore Business Review (SBR) that was published last week.

For the whole of 2024, the property consultancy is forecasting that office rents of Grade A office space in Singapore’s CBD could remain unchanged, or see a slower growth of 2 percent because of higher office stock.

The projected figure could be lower than the expected office rental growth of 2.5 percent to 3 percent for the whole of 2023. In turn, this year’s figure could be sharply lower than the 6.5 percent office rental growth registered for the entirety of 2022.

“With more options in the market, occupiers with expiring leases in 2024/2025 should take this opportunity to negotiate their leases,” noted Cushman & Wakefield.

However, this window of opportunity could be fleeting as Singapore’s office market is expected to return to a tight supply situation after 2024, added the real estate consultancy.

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