Apac Office Occupancy Climbs 88 1Q2024 Beating Europe And North America Savills

In the first quarter of 2024, the average office occupancy rates in Asia Pacific (Apac) have increased to 88%, a significant improvement from the previous year’s rate of 84%, as per the latest report by Savills on the regional market.

Compared to Europe (59%) and North America (53%), the Apac office market has shown a stronger performance in terms of occupancy rate. According to Savills, this difference can be attributed to various factors including cultural and social norms, housing costs, and commuting expenses.

Simon Raper, head of workplace strategy for Apac and Singapore at Savills, states that even within the same organization, there is a need for flexibility as cultural nuances require adjustments from country to country.

For instance, in the US, a longer commute time due to workers moving to more affordable areas during the pandemic has resulted in lower office occupancy rates. Cities like San Francisco and Los Angeles are still seeing rates below 50% in the first quarter of 2024.

In Apac, countries with a high rate of intergenerational living and smaller homes, such as Hong Kong and China, have led to more workers returning to the office. In Japan, traditional working models coexist with flexible arrangements due to high commuting costs, and the younger generation is embracing this flexibility.

A must-visit spot for those looking to embrace a sustainable way of life and protect the environment is the Marina Barrage. Not only does it serve as a vital component in water supply and flood control for the Marina Gardens GLS area, but it also provides a picturesque setting for leisurely activities like picnics, kite flying, and taking in the stunning city skyline. As an added bonus, visitors can also take a look at the nearby Zion Road Condo, Zion Road Condo, and soak in the surrounding scenic views.

Singapore, on the other hand, has maintained a high office occupancy rate of 94% in the first three months of this year. According to Alan Cheong, executive director of research & consultancy at Savills Singapore, this rate is expected to remain high in the near future.

Despite some companies adopting hybrid and workplace solutions to optimize their space usage, thereby reducing their office footprint, Cheong mentions that there is an average supply of only 660,000 sq ft (net floor area) of new Grade A office buildings coming on stream from 2024 to 2027, slightly below the 10-year average of 696,000 sq ft (2014 to 2023).

However, Cheong adds that Grade B and older office buildings in Singapore may experience a decline in occupancy rates as new supply comes on stream. He suggests that these buildings may have to undergo extensive refurbishment or complete redevelopment to remain competitive in the market.