Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank
A new supply of prime office spaces is also anticipated to be finished this year, boosting the occurring amount. This consists of IOI Central Blvd Towers at 2 Central Boulevard, which is expected to bring in 1.26 million sq ft of office, and 33-storey Keppel South Central along Hoe Chiang Road in Tanjong Pagar.
Nevertheless, he believes workplace rents might smooth out in 2H2024 as technology companies and international financial institutions lay off team and settle company operations, which could cause sections of office space being reverted upon contract expiry.
Meanwhile, Yeo anticipates that organizations should approach this year with “mindful positive outlook,” considered that geopolitical stress cause a substantial threat to company development and operations. He likewise anticipates occupancy degrees to stay strict at top-notch office complex that can command a premium, supported by Singapore’s low jobless level and the city-state’s setting as a premier business location. Knight Frank estimates rents to expand reasonably in between 1% and 3% in 2024.
Prime office rents in the Raffles Place and Marina Bay precinct rose to an average of $11.20 psf monthly (pm) in 1Q2024, a 0.6% surge q-o-q, according to a report by Knight Frank Singapore launched on March 25.
Yeo indicates that the interest for prime office stays steep because Singapore continues to entice international companies. This is due to the wide pool of talent, tax rewards, a diversified market and modern infrastructure.
The rental fee increase was maintained by renewals, maintaining occupancy levels close at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the general CBD. Calvin Yeo, running executive of tenant approach and solutions at Knight Frank Singapore, includes that the revivals were accomplished at somewhat greater rents as companies decided to remain instead of moving or developing to prevent capital expenditure.
