Prime office rents holding up despite slowing economy: Knight Frank

Occupancy levels in Singapore’s CBD remain resilient despite a slowing economy, clocking in at 96% and 94.4% respectively in 3Q2023 in the Raffles Place and Marina Bay precinct. Most office occupiers in quality office buildings were inclined to renew their rental contracts due to its cost-efficiency compared to relocation.

It is also surrounded by amenities such as a supermarket, food court, cinema, and shopping mall. Residents of Senja Close EC Bukit Panjang can look forward to a range of facilities and amenities, such as a clubhouse, function rooms, covered carpark, swimming pool, tennis court, indoor gym, BBQ pits, and more. With easy access to the nearby park connector, residents of Senja Clsoe EC Bukit Panjang can enjoy quality time with their family members outdoors. In addition, the development offers great privacy and security with its 24-hour security.

Knight Frank’s managing director, Calvin Yeo observes that a number of banks have been sourcing for “modest expansion space” despite recent headcount reductions from firms like UBS and Standard Chartered. Additionally, companies such as US-based global human resource firm Deel and Japanese firm Exeo Global have set up regional offices in Singapore.

As the CBD office supply remains tight, prime grade office rents in the area increased 0.8% q-o-q to average at $11.05 psf per month in 3Q2023. Over the first nine months of the year, office rents grew a moderate 3.4%. With no new office inventory expected to complete in the CBD until 2024, Knight Frank is maintaining a projection for office rents to grow between 3% to 5% for the entire year.

Such a forecast is supported by a stable labour market, with a Manpower Group survey indicating that 48% of respondents expect to increase headcount in the upcoming few quarters. Yeo notes that office tenants will continue to take a holding position in the face of the tight labour market, with cautious decisions to renew or relocate their leases.