Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank
The rental fee growth was sustained by resumptions, keeping occupancy status tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the total CBD. Calvin Yeo, running administrator of occupant approach and answers at Knight Frank Singapore, adds in that the renewals were completed at somewhat higher rental fees as business chose to stay put as opposed to moving or broadening to avoid capital expenditure.
At the same time, Yeo anticipates that businesses ought to approach this year with “careful confidence,” considered that geopolitical stress cause a substantial danger to organization growth and procedures. He likewise assumes inhabitance levels to stay firm at superior office complex that can control a premium, supported by Singapore’s minimal jobless level and the city-state’s position as a premier operation area. Knight Frank estimates rents to increase reasonably in between 1% and 3% in 2024.
A new supply of prime offices is also expected to be finished this year, boosting the remaining supply. This includes IOI Central Blvd Towers at 2 Central Boulevard, that is anticipated to bring in 1.26 million sq ft of workplace, and 33-storey Keppel South Central along Hoe Chiang Road in Tanjong Pagar.
Yeo notes that the need for prime office remains steep because Singapore continues to entice international corporations. This is because of the large pool of talent, tax obligation rewards, a diversified market and modern-day facilities.
However, he believes office space rents may flatten out in 2H2024 as tech companies and international banks lay off staff and settle company operations, which could lead to parts of workplace being returned upon contract expiration.
Prime office rental fees in the Raffles Area and Marina Bay district went up to around $11.20 psf each month (pm) in 1Q2024, a 0.6% increase q-o-q, according to a statement by Knight Frank Singapore published on March 25.
