Office Market Outlook for Q1 2021
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
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
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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