Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank
A new source of prime business offices is even anticipated to be finished this year, increasing the existing supply. This consists of IOI Central Boulevard Towers at 2 Central Blvd, that is anticipated to produce 1.26 million sq ft of workplace, and 33-storey Keppel South Central around Hoe Chiang Road in Tanjong Pagar.
Meanwhile, Yeo prepares for that organizations need to close in this year with “mindful optimism,” given that geopolitical stress cause a considerable risk to company growth and operations. He likewise anticipates inhabitance levels to stay strict at top-notch office buildings that can command a premium, reared by Singapore’s low lack of employment rate and the city-state’s position as a premier business enterprise place. Knight Frank approximates rental fees to grow reasonably between 1% and 3% in 2024.
However, he believes workplace leas may straighten out in 2H2024 as tech companies and international financial institutions lay off team and combine service functions, which might lead to sections of office being moved back upon contract expiry.
Yeo notes that the demand for prime workplace remains high due to the fact that Singapore continues to entice international corporations. This results from the wide pool of expertise, tax rewards, a varied economy and contemporary facilities.
The rent growth was sustained by resumptions, maintaining term status close at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the total CBD. Calvin Yeo, managing executive of occupier strategy and solutions at Knight Frank Singapore, adds that the revivals were completed at slightly higher rents as companies preferred to stay as opposed to transferring or broadening to prevent capital expenditure.
Prime office rents in the Raffles Area and Marina Bay district rose to an average of $11.20 psf per month (pm) in 1Q2024, a 0.6% raise q-o-q, according to a record by Knight Frank Singapore released on March 25.
