Singapore Office Rents

Singapore Office Rents To Grow Modestly In 2024


SINGAPORE – Real estate consultancies expect rents of Grade A office properties in the city-state’s central business district (CBD) would increase marginally for the whole of 2024, reported The Business Times on Thursday evening (28 December, SGT).

In particular, Cushman & Wakefield (C&W) is forecasting rents to edge up by up to 2 percent next year for its basket of CBD Grade A office buildings following a 3 percent uptick in 2023 and a 6.5 percent increase in 2022.

Comparatively, Knight Frank is projecting that rents would rise by 1 to 3 percent in 2024 after a 4.1 percent growth in 2023. In 2022, CBD Grade A office rents tracked by the property consultancy rose by 5.5 percent on an annual basis.

This softer outlook comes amidst cautious business sentiment and a large amount of new office completions across Singapore to the tune of almost 3 million sq ft.

“In the near term, market power may shift away from landlords as more options are at hand for tenants. Vacancy and rents may come under further pressure from the increasing amount of available space,” commented Colliers Head of tenant representation, June Chua.

“In an uncertain environment, tenants are more likely to consider consolidation and renewals than expansion or relocation,” she added.

Tricia Song, the Research Head for Singapore and Southeast Asia at CBRE’s said that there could be a weakening of sentiment next year due to the slew of office supply arising from the delayed completion of IOI Central Boulevard Towers in the core CBD, and Keppel South Central in the fringe CBD, as well as Paya Lebar Green and Labrador Tower in decentralised areas. In total, around 2.9 million sq ft of new office stock will enter the market, surpassing the 10-year average from 2014 to 2023 of 1.23 million sq ft.

Meanwhile, Jones Lang LaSalle’s Research Head in Singapore Tay Huey Ying is expecting muted tenant sentiment in the first half of 2024, keeping CBD Grade A office rent depressed. “However, pent-up demand could be unleashed by H2 2024, should economic prospects brighten to lift business confidence and spur occupiers to revive expansion plans.”


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