With average CBD Grade A rents declining 2.1% in Q4 2020 with forecasts to grow 5.5% by the end of 2021, Colliers recommends occupiers to leverage on current market weakness to lock in leases, and landlords to redevelop older properties into mixed-used developments to unlock value.
- CBD Grade A rents saw a decline of 2.1% quarter-on-quarter (QOQ) to S$9.57 psf, while vacancy rates rose to 5.2%.
- New demand for office space will be supported by the technology sector and an overall business recovery. The recent award of digital bank licenses could also further support this demand.
- Although transaction volumes of office investment fell 61% YOY, the long-term attractiveness of Singapore to investors continue to hold firm.
Despite the decline of CBD Grade A rents, we forecast rents to grow 5.5% by the end of 2021, on an eventual economic rebound and benign supply.
Download Colliers' latest quarterly report on the office market as we examine the shifting trends and outlook, with expert recommendations for office occupiers and investors.
Read the press release here.