Office Market Outlook Q3 2020

Table of Contents
Prices and Rentals
Prices of office space increased by 0.2% in 3rd Quarter 2020, compared with the 4.3% decrease in the previous quarter (see Annex A-1). Rentals of office space decreased by 4.5% in 3rd Quarter 2020, after remaining unchanged 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 3rd Quarter 2020, compared with the decrease of 55,000 sq m (nett) in the previous quarter. The stock of office space decreased by 33,000 sq m (nett) in 3rd Quarter 2020, compared with the increase of 43,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space decreased to 12.0% as at the end of 3rd Quarter 2020, from 12.1% as at the end of the previous quarter (see Annexes A-5 & E-1).
Stock and vacancy of office space

Source of statistics and charts: URA
Our Conclusion
Despite the recession, we expect that office rents will likely continue to maintain near current rates for Q4 2020 as office vacancies are not on the rise.