Our Colliers Experts discuss and give us their update on the Singapore office market, its 2021 outlook and prospects. See what could be!
Listening time: 7 minutes
Colliers Singapore Property Insights podcast is our podcast series where Colliers Experts comment on the latest real estate news and provide their advice on how to maximise the potential of property.
We have recently published our Q2 2021 office quarterly report sharing our key market data and outlook on the sector. We have seen further stabilisation of CBD Grade A office rents, with rents declining only very marginally at 0.1% sequentially, while vacancy crept up 60bps to 5.6%. In fact, at this juncture, many people are having mixed views on the office sector. On one end, we’re likely to see strong consensus economic growth of 6.5% this year and Technology sector spurring office demand with many setting up headquarters in Singapore, while on the other end, we also see concerns of shadow space arising from space rationalisation of inter alia financial institutions and recent Covid restrictions.
In this episode, June Chua, Executive Director, Head of Tenant Representation and Bastiaan van Beijsterveldt, Executive Director, Head of Occupiers with us, to give us some colour on what’s happening on the ground.
Key highlights:
- Office demand to continue being driven by the Technology sector and key flexible workplace operators continue their expansion at a moderate modest pace.
- Over the last two quarters, Colliers has witnessed an increasing number of office tenants reassessing their office space and in particular, their workplace strategy.
- Over 90% of the tenants want to assess their space usage and the way it is utilised. Many tenants are assessing if their current office space can provide the type of environment required in a post-COVID-19 environment.
- A trend of decentralization is expected to continue as CBD Office rents are forecasted to go up over the next three years, and companies will continue to assess the best geographic location for each department.
Listen to the full Colliers Singapore Property Insights podcast – episode 4 | Office market: turning around below.
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