Prices and Rentals

Prices of office space decreased by 2.7% in 1st Quarter 2021, compared with the 3.1% decrease in the previous quarter (see Annex A-1). Rentals of office space increased by 3.3% in 1st Quarter 2021, compared with the 3.5% decrease in the previous quarter (see Annexes A-3 & A-5).

Property Price Index of office space in Central Region

Rental Index of office space in Central Region

Supply in the Pipeline

As at the end of 1st Quarter 2021, there was a total supply of about 761,000 sq m GFA of office space in the pipeline, compared with the 770,000 sq m GFA of office space in the pipeline in the previous quarter (see Annexes E-1 & E-2).

Pipeline supply of office space

Stock and Vacancy

The amount of occupied office space decreased by 19,000 sq m (nett) in 1st Quarter 2021, compared with the increase of 2,000 sq m (nett) in the previous quarter. The stock of office space decreased by 9,000 sq m (nett) in 1st Quarter 2021, compared with the decrease of 13,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space increased to 11.9% as at the end of 1st Quarter 2021, from 11.8% as at the end of the previous quarter (see Annexes A-5 & E-1).

Stock and vacancy of office space

Statistics released 23 Apr 2021. Source of statistics and charts: URA

Our Conclusion

Office rentals in the Central region are bouncing back up from the consecutive 3 quarters of decline in 2020. We expect to see a gradual recovery of the Singapore Office Market, especially after the announcement by the government that work from home (WFH) is no longer a default mode, and up to 75% of staff can return to the workplace at any one time from 5 April onwards.

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