Singapore markets closed
  • Straits Times Index

    -6.36 (-0.20%)
  • Nikkei

    -34.36 (-0.13%)
  • Hang Seng

    -133.96 (-0.67%)
  • FTSE 100

    -94.15 (-1.26%)
  • Bitcoin USD

    -84.13 (-0.31%)
  • CMC Crypto 200

    -21.06 (-3.41%)
  • S&P 500

    +22.27 (+0.56%)
  • Dow

    +132.28 (+0.41%)
  • Nasdaq

    +36.56 (+0.31%)
  • Gold

    -14.90 (-0.75%)
  • Crude Oil

    -0.76 (-1.09%)
  • 10-Yr Bond

    -0.0260 (-0.76%)
  • FTSE Bursa Malaysia

    -11.28 (-0.80%)
  • Jakarta Composite Index

    +70.64 (+1.06%)
  • PSE Index

    +65.81 (+1.01%)

Singapore office rents post sixth consecutive quarter of growth

Office leasing market here is tracking expectations with Singapore office rents climbing for the sixth consecutive quarter in 3Q18, JLL’s research show. Specifically, the gross effective Singapore office rents of Grade A office space in the CBD edged up 2.3 per cent quarter-on-quarter (q-o-q) in 3Q18 to average SGD 9.93 per sq ft per month.

Growth of Singapore office rents in 3Q18 was broad-based across all submarkets.

Average monthly gross Singapore office rent for Grade A office space in the CBD





Average monthly gross rent

SGD 9.17

SGD 9.45

SGD 9.71

SGD 9.93

Q-o-q change





Total recovery to-date (1Q17 to 3Q18)


Source: JLL Research

Singapore office rents
Singapore office rents

Image credit: Pixabay

Mr Chris Archibold, Head of Leasing, JLL Singapore, commented: “Occupier demand has been firm, coming from a wide spectrum of industries, although co-working operators remained the single most active space seekers given their expansion spree as they race to gain market share. On the other hand, good quality office space in the CBD is limited as most new builds are enjoying near full occupancy or commitment rates, while space vacated or to be vacated by relocating tenants has mostly secured replacements. This has continued to put upward pressure on rents.”

By the end of 3Q18, CBD Grade A Singapore office rents had climbed a steep 18.0 per cent over six quarters and are a mere 6.0 per cent below the 1Q15 peak of SGD 10.56 per sq ft per month. It is not surprising, therefore, for rent growth to moderate. In fact, JLL’s research indicates that the pace of CBD Grade A rent growth has been decelerating for three consecutive quarters, from a recent high of 4.2 per cent q-o-q in 4Q17, to 2.3 per cent q-o-q in 3Q18.

Ms Tay Huey Ying, Head of Research and Consultancy for JLL Singapore, opined: “The slowing down of rent growth is a positive, as it makes for a more sustainable growth trajectory. Steady, as against volatile, rent growth will support Singapore’s attractiveness as a corporate location as well as an investment destination for investors seeking stable returns.”

Ms Tay added, “Singapore’s CBD Grade A Singapore office rent is well-positioned for sustainable steady growth in the near and mid-term. The demand and supply dynamics of Grade A office space in the CBD is supportive of continued rent growth, but the availability of good grade office space outside the CBD during this period should keep growth in check and sustainable.”

Following the addition of more than two million sq ft net lettable area of office space in 2017 arising from the completion of Marina One and UIC Building, new completions in the CBD will taper down sharply to circa 0.8 million sq ft in 2018 (Frasers Tower and 18 Robinson).

With about 70 per cent of these two projects already committed/pre-committed as of 3Q18, the squeeze for space in the CBD is expected to reach a peak in 2019 when the withdrawal of Chevron House for refurbishment will shrink the leasing stock at a time when the market is void of new completions. However, the completion of the redevelopment of Park Mall and Funan located outside the CBD in 2019 could help to relieve some upward pressure on Grade A CBD rents.

The next wave of new supply will enter the market from 2020 onwards. ASB Tower and Afro-Asia I-Mark are due to complete in 2020, and this will be followed by the scheduled completion of CapitaSpring and the redevelopment of Hub Synergy Point in 2021. In 2022, IOI Properties’ development in Marina Bay and GuocoLand’s development on Beach Road should complete.

Hence, over the next four years (2019-2022), the CBD will see an average annual new supply of 0.8 million sq ft, slightly under the ten-year historical average net take-up of 0.9 million sq ft. The potential withdrawal of ageing assets for redevelopment will further tip the balance in favour of demand, and support rents. According to URA Space, the written permission for the redevelopment of Keppel Towers on Hoe Chiang Road was renewed in April 2018. Several other owners are understood to be mulling over redevelopment plans for their ageing assets.

Ms Tay concluded: “A government land sales programme that places greater emphasis on office land supply outside the CBD will complement today’s demand and supply dynamics to bring about steady and sustainable CBD office rent growth, encourage a market-led urban rejuvenation and drive decentralization.”

JLL said that the market here is well-positioned for steady and sustainable growth in Singapore office rents.

How to Secure a Commercial Loan Quickly

Are planning to capitalise on Singapore office rents by investing in commercial properties but unsure of funding? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.

Alternatively you can read more about the Best Commercial Loans in Singapore before deciding. Our brokers have close links with the best lenders in the industry and can help you compare Singapore commercial loans and settle for a package that is tailored and best suited your commercial purchase needs.

Whether you are looking for a new commercial loan or to refinance, our brokers can help you get everything you need, right from calculating mortgage repayment, comparing interest rates all through to securing the loan. And the good thing is that all our services are free of charge. So, it is all worth it to secure a bank loan through us.

For advice on a new commercial loan or Personal Finance advice.

To speak to our distinguished Panel of Property agents.

For refinancing advice on your properties.

The post Singapore office rents post sixth consecutive quarter of growth appeared first on iCompareLoan Resources.