Office Spaces For Rent Singapore

In the third quarter of 2023, office rents in Singapore's Central Region increased by 4.9%, surpassing the 2.3% growth in the previous quarter. Notably, the Central Area experienced a more significant rise of 5.2%, outpacing the 2.7% growth in Fringe Area office rents. This upward trend is attributed to Grade A offices, as landlords maintained rental expectations despite low vacancy rates and growing operating costs.

During Q3 2023, Category 1 office rentals decreased by 2.3%, and Category 2 office rents dropped by 4.5%. This could be influenced by distinct characteristics of transacted office spaces and a mean reversion effect following a substantial 6.7% increase in Q2 2023. Despite this, Category 1 office vacancy rates tightened to 8.0%, and Category 2 rates slightly tightened to 10.9%.

The Central Area's office vacancy rates reached a nearly 2.5-year low at 10.2%, driven by robust net demand in the Downtown Core. The financial and professional service sectors remained dominant in office demand, contributing to 58% of new leases in Q3 2023 YTD, a significant increase from 26% in the entire 2022. Singapore's status as a regional wealth hub has fueled expansion demand from asset management, financial services, and legal sectors. Additionally, there are ongoing pockets of demand from tech companies looking to expand in the region.