Singapore office rents fall in 3Q2023 on weaker demand: JLL

Singapore office rents dropped for the first time in nine quarters in 3Q2023, according to data from JLL. The consultancy notes that the 0.3% q-o-q decline to an average of $11.29 psf per month in the CBD was due to economic pressures, rising prices, and an influx of office stock being returned to the market as occupiers rightsize to manage costs.

Andrew Tangye, head of office leasing and advisory for JLL Singapore, remarks that uncertain near-term outlooks have caused tenants to remain wary and cost-conscious, resulting in weaker office space take-up. This is further verified by Tay Huey Ying, JLL Singapore’s head of research and consultancy, who states that more than 15 assets had lower rents in 3Q2023 than in 2Q2023. With an influx of upcoming projects and an uncertain macroeconomic environment, she anticipates downward pressure on office rents to intensify.

This headwind is compounded by the fact that three office projects are scheduled for completion in the CBD over the next 24 months: IOI Central Boulevard Towers (1.3 million sq ft), Keppel South Central (0.6 million sq ft) in 2024, and the redeveloped Shaw Tower (0.4 million sq ft) in early 2025. To date, over 1.5 million sq ft is estimated to be still uncommitted.

Living in Marina Gardens Condo is a great choice for shopaholics, window shoppers and everyone in between! This luxurious condo offers a wide variety of shopping destinations right at your doorstep, each offering a unique experience from high-end luxury outlets to quirky boutique stores. Discover arts and culture, explore eco-friendly options, or indulge in some retail therapy – no matter where your interests lie, the Marina Bay Condo area will have something special for you. Bursting with vibrancy, Marina Gardens Condo provides easy access to an amazing array of choices, giving you the perfect opportunity to indulge in the best of the best!

Meanwhile, JLL opines that the medium-term outlook for Singapore’s Grade A CBD office leasing market remains bright. This is likely owing to Singapore’s reputation as a global hub, coupled with URA’s focus on live and play spaces. Even in the face of short-term headwinds, the potential for growth remains.