Prices and Rentals

Prices of office space decreased by 3.1% in 4th Quarter 2020, compared with the 0.2% increase in the previous quarter (see Annexes A-1a & A-1b). Rentals of office space decreased by 3.5% in 4th Quarter 2020, compared with the 4.5% decrease in the previous quarter. For the whole of 2020, prices of office space decreased by 10.7%, compared with the decrease of 0.6% in 2019, while rentals of office space decreased by 8.5%, compared with the decrease of 3.1% in 2019 (see Annexes A-3a, A-3b & 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 4th Quarter 2020, there was a total supply of about 770,000 sq m GFA of office space in the pipeline, compared with the 767,000 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 increased by 2,000 sq m (nett) in 4th Quarter 2020, compared with the decrease of 19,000 sq m (nett) in the previous quarter. The stock of office space decreased by 13,000 sq m (nett) in 4th Quarter 2020, compared with the decrease of 33,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space decreased to 11.8% as at the end of 4th Quarter 2020, from 12% as at the end of the previous quarter (see Annexes A-5 & E-1).

Stock and vacancy of office space

Statistics released 22 Jan 2021. Source of statistics and charts: URA

Our Conclusion

Office prices and rents have decreased slightly in the 4th quarter of 2020, and might continue to do so as COVID-19 continues to impact the economy and the way companies work.