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cbd office rental singapore

Following the 1.2% quarter-on-quarter (q-o-q) growth in 2Q21 that ended five straight quarters of declines, the average monthly gross effective rents of Grade A CBD office space are estimated to have inched up another 1.5% q-o-q to SGD 10.05 per sq ft in 3Q21, from SGD 9.91 psf in 2Q21. Rent growth was broad-based across all four CBD submarkets tracked by JLL.

JLL is optimistic that demand for office will remain healthy, anchored on its integral role as the primary place of work. Additionally, Singapore remains a safe place to live and operate amid the pandemic, drawing technology firms, wealth management and family offices amongst others, to set up offices in the city.

Ms Michelle Tee, Director, Research & Consultancy, JLL Singapore, adds: Singapore’s economic growth continues to spur business expansion in growth sectors such as fintech, asset management and healthcare. This would also translate to a rise in demand for office spaces as businesses would need to increase hiring and accommodate the rising headcount to cope with expansion.”

Affirming that Singapore’s office leasing market is on the mend, CBD Grade A office rents rose a second consecutive quarter in 3Q21 and at a slightly accelerated pace than the second quarter, as JLL’s preliminary estimates showed.

Ms Tee explains: “Market sentiment had generally stayed positive in 3Q21 despite another round of Phase 2 (Heightened Alert) from 22 July to 18 August 2021 where work-from-home returned as the default work mode. Businesses are generally optimistic about the prospects of a successful transit for Singapore to live with endemic COVID-19 given the steady climb in the vaccination rate to above 80% by September 2021.”

Ms Tay concludes: “Grade A CBD office rents have already risen by 2.4% in the first three quarters of 2021. With no signs of slowing rent growth, we have upgraded our full-year rent forecast marginally, from 2-3%, to 3-4%. Underpinned by strong demand drivers, this also gives us much reason to believe that Singapore’s office rents will continue to make a good upward run in the near to medium-term.”

The research report addresses common questions about the relevance of offices in a post-pandemic world and discusses new drivers of demand for Singapore’s office space. It also reveals that CBD Grade A office stock is reaching a steady state, with growth likely to lag behind demand in the medium- to long-term.

Cbd office rental singapore

Some new expats rely on their residential agents for office search. There are many aspects of practices and market knowledge is essential. Speciality is always recommended, We assisted a few new setups/flagships in Singapore.

The majority of the CBD buildings are wholly owned/single entity. Generally you only need one contact point for each building. We provide a centralised proposal, manage appointments and navigate the leasing process with you.

We work with, and learn from industrial partners. Our experience in leasing offers advantages of helping buyer to navigate and assess investment values, future rentability and positioning in the post-sale market.

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