Facing Some Undercurrents | Q4 2022 & Outlook for 2023 Office Market Report

Core CBD Premium & Grade A rents extended its growth to S$11.40 per sq ft, supported by healthy demand and tight vacancy.

Report highlights:

In Q4 2022, Core CBD Premium & Grade A rents extended its growth to S$11.40 per sq ft, supported by healthy demand and tight vacancy. However, beneath this continued rise, the office rental market could be facing some undercurrents which might go against this momentum.
On the investment front, average capital values of this segment increased by 1.7% QoQ, to S$3,050 per sq foot, due to the healthy rental growth and tight occupancy at Grade A core CBD office assets.
Occupiers are advised to start their search early; especially with some firms looking to reduce their office footprints and seeking replacement tenants, some nicely fitted out options will be made available.
With demand expected to weaken, we recommend landlords focus on occupancy levels by retaining and attracting tenants, especially those who signed on at lower rents during the pandemic.

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Facing Some Undercurrents | Q4 2022 & Outlook for 2023 Office Market Report

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Related Experts

Catherine He

Head of Research

Research

Singapore

+65 6531 8563

Catherine started her career as an Investment Analyst at IFC, the investment arm of the World Bank group, where she participated in the screening, due diligence, financial modelling, and execution of debt and equity investments. She also managed a portfolio of investments through financial analysis and the preparation of quarterly and annual reports. After completing her MBA at INSEAD, she joined Standard Chartered Bank as a Management Associate before starting her own company in Real Estate valuation and forecasting using Machine Learning. Catherine then joined Colliers from CBRE Research.

Catherine brings to Colliers more than 15 years of experience, primarily in real estate and investments. She has worked with market data and brokers to develop consolidated views of the real estate markets in Asia Pacific, with a focus on Singapore. She was responsible for producing key market and economic updates, forecasts, and thought-leadership papers, contributing to business development initiatives, investment advisory proposals and client presentations.

In addition, she has drafted feasibility studies and investment recommendations for top clients which include major developers, REITs, financial institutions, family offices, and funds, as well as presented research findings in client meetings and events. As a real estate research specialist with extensive experience, she looks forward to maximising the potential of property through data driven insights.

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Bastiaan VB

Managing Director | Singapore

MD's Office

Singapore

+65 6531 8630

+65 9163 0494

Bastiaan is the Managing Director for Colliers in Singapore. His responsibilities include the strategic direction of the Singapore office, to lead the growth and diversification initiatives, ensure superior service delivery and develop market leading teams. He oversees all business lines including Capital Markets, Investment Sales, Occupier Services, Valuations & Advisory, Industrial Services, Hotel Advisory, Research, as well as Marketing & Communications and the Human Resources and Finance Teams.

Pertinent to this assignment Bastiaan was the Head of Occupier Services in Singapore and has led complex transaction projects for diverse global multinationals and investors throughout the entire Asia-Pacific region.

In Asia - Pacific, Bastiaan lived and worked in; Singapore, Hong Kong, South Korea, Malaysia and Australia.

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