Singapore Office Rents To Rise 4.6% to 5% In 2022
SINGAPORE – The Urban Land Institute (ULI) forecasted that office rents in Singapore would rise by 4.6 percent to 5 percent in the next 2 years, reported The Edge on Friday afternoon (26 November, SGT).
According to the non-profit research institute’s latest semi-annual Real Estate Economic Forecast, office rental returns in the city-state could increase by 9.65 percent in 2022 – the highest in the Asia Pacific (APAC) region, before moderating to 6.75 percent come 2023.
In comparison, Hong Kong and Tokyo are projected to witness office rental returns of 5.4 percent and 6.28 percent respectively in 2023, after marginal gains in 2022.
ULI also forecasted that Singapore’s office occupancy level would likely increase over the next 2 years, while that in Tokyo, Shanghai, and Hong Kong would see a slightly drop in occupancy.
Nonetheless, the non-profit research institute believes that the property markets of Singapore, Hong Kong, China, and Japan would quickly rebound in the next 3 years.
“The Asia Pacific real estate industry is well primed for a resurgence in 2022 and we believe it will gather further momentum in 2023. This is demonstrated by strong economic prospects supported by a likely resumption of cross-border business activities amid a more widespread re-opening of borders,” commented ULI Asia Pacific’s President David Faulkner.
