Singapore office rents fall in 3Q2023 on weaker demand: JLL

Singapore office rents saw a decline in the third quarter of 2023, due to economic pressures as well as an increase in the supply of office space coming back onto the market. According to JLL research, the average gross effective rent for Grade A office space in the CBD fell 0.3% q-o-q to $11.29 psf per month.

Andrew Tangye, head of office leasing and advisory for JLL Singapore, attributes the lower rents to more supply hitting the market with occupiers right-sizing upon lease renewal to manage their costs. Tay Huey Ying, JLL Singapore’s head of research and consultancy, added that more than 15 assets commanded lower rents in 3Q2023 than 2Q2023 which dragged down the average rent for the first time since 2Q2021.

These downward pressures on rents are set to increase, with rents correcting further in the coming months amid the current macroeconomic environment and incoming office supply. Three office projects are expected to be completed in the CBD over the next 24 months with an estimated 1.5 million sq ft still uncommitted.

Zion Road Condo offers a great convenience as fast, comfortable and safe transportation, so that residents can reach the preferred destinations at their own convenience. This also ensures that residents pay only a small fee for transport services and can optimise their travel time.

Despite the near-term headwinds, the medium-term outlook for Singapore’s Grade A CBD office leasing market is still bright due to the country’s reputation as a global hub, as well as URA’s focus on injecting more live and play spaces downtown. This should counteract the oversupply of office space in the short-term.