Advertisement
Singapore office rents rebound as tenants from law firms to finance companies snap up space in main business zones
- Rents rose 0.7 per cent on a quarterly basis to S$11.57 in the first three months of the year, shaking off two consecutive quarters of declines, according to Colliers
- Savills, meanwhile, said premium office rents in the first quarter were unchanged at S$9.65 per sq ft compared to the preceding three months
Reading Time:2 minutes
Why you can trust SCMP
Rents in Singapore’s office market rose in the first three months of the year, shaking off two consecutive quarters of declines as some tenants snapped up limited premium spaces and others renewed their leases instead of relocating owing to cost considerations, according to Colliers.
Advertisement
In the January-to-March period, premium and central office rents in Southeast Asia’s main financial hub rose 0.7 per cent on a quarterly basis to S$11.57 (US$8.58) per square foot, the property consultancy said in a report on Thursday.
From a year ago, they were higher by 1 per cent. Vacancy rates remained steady at 2.6 per cent, it added.
“Singapore office rents have displayed their mettle with a rebound this quarter,” said Bastiaan van Beijsterveldt, managing director, Singapore, at Colliers. “Given that office footprints have remained largely unchanged or that occupiers have [down-sized], relocation and expansion moves could gradually pick up, especially towards the end of the year, when the economy is poised to rebound and cost concerns recede.”
The increase in rents was largely driven by leases in main business zones such as Raffles Place and the New Downtown area.
02:13
Abandoned mall becomes rare space for self-expression in Singapore
Abandoned mall becomes rare space for self-expression in Singapore
Advertisement