SINGAPORE (THE BUSINESS TIMES) – Grade A office rents in Singapore’s Central Business District (CBD) continued their steady upward climb for the fifth straight quarter to recover to 0.6 per cent below the pre-pandemic peak of $10.81 per square foot (psf) per month in the fourth quarter of 2019, according to JLL Singapore.
Based on figures provided by the firm on Wednesday (June 29), CBD Grade A office rents rose 2.7 per cent to $10.74 psf per month in the April to June quarter from $10.46 in Q1 2022.
Notably, Marina Bay experienced the sharpest quarter-on-quarter rent growth at 3.4 per cent, among the four CBD submarkets tracked by JLL, due to its “relatively new and good quality” office developments.
Ms Tay Huey Ying, JLL Singapore’s head of research and consultancy, attributes the latest quarter’s growth to an increase in business confidence arising from the relaxation of safe management measures, which allowed for all employees to return to workplaces from April 26, 2022.
She added that expansions and new set-ups also “far overshadowed” workplace downsizing, leading to Q2 2022 net absorption of CBD Grade A office space reaching the highest in 17 quarters.
While Ms Tay noted that geopolitical and economic uncertainties could temper business confidence and dampen occupier demand for office space in H2 2022, the availability of space in the CBD still remains tight.
“Upward pressure on rents should persist and CBD Grade A office rents should breach the pre-pandemic…