Singapore’s Coworking Sector Will Continue To Expand
SINGAPORE – Real estate consultancy Cushman & Wakefield (C&W) expects the coworking space industry here will continue to thrive and grow, reported The Straits Times on Tuesday evening (6 September, SGT).
“Co-working spaces will continue to expand in Singapore,” said Wong Xian Yang, Research Head at Cushman & Wakefield.
“A shortage of Grade A office space coupled with a need to redesign offices due to hybrid work would also bolster coworking space demand. Occupiers can utilise co-working spaces as interim swing spaces as they search for a suitable office space or wait for their permanent office to be renovated,” he explained.
Wong’s comments come after the opening of WeWork’s 21 Collyer Quay coworking centre, which is not only the biggest coworking centre in Singapore, but also the company’s largest outlet in Australia, South Korea, and Southeast Asia.
Measuring about 220,000 sq ft, the newest coworking centre of WeWork is three times bigger than the average floor size of its usual coworking outlets and occupies 17 levels at the 21-storey office building. The commercial property features amenities like a rooftop bar, gym and cafe.
According to a research published by C&W in December 2021, the flagship coworking centre is expected to widen the gap between market leader WeWork and its coworking rivals in Singapore.
Based on last year’s data, WeWork led the Singapore market with a 19 percent share, followed by IWG (18 percent) and JustGroup (16 percent), according to Cushman & Wakefield’s report.
Aside from that, 21 Collyer Quay alone will increase the overall supply of coworking space in Singapore by six percent this year.
Notably, the city-state is among WeWork’s fastest-growing markets. As a matter of fact, the company’s revenue here climbed 30 percent year-on-year in Q2 2022, while the occupancy rate here rose by 25 percent.