Although many people are still working from home, the office rental market in the Central Business District (CBD) of Singapore is expected to grow.
During the third quarter, net demand for office space in the Grade A category of CBD reached 215,000 sq. ft. Note that the net demands during the third quarter of this year are approaching 283,000 sq. ft in comparison to 183,000 sq. ft. during the same period of the year 2020.
But at the same time, the net supply for available space is also getting higher while contributing to a 5.8% vacancy rate in the third quarter of this year, which is 4.6% higher as compared to the previous quarter.
A massive range of vacant spaces under Grade A are currently in the phase of negotiation, and they are expected to snap up during the next few months.
The positive rise in the economic outlook of the country and the higher recovery rate of the global economy is influenced by accelerated vaccination drive. It will further permit the reopening and rise of key advanced economies. These aspects are expected to support the open economy in Singapore while helping the business sector to grow again.
The CBD-based office space in Grade A category presented a considerable rise in the rental amount for the second quarter, and it is further increasing by 0.5% during the third quarter. The improvements were further influenced by Shenton Way, Raffles Place, and Marina Bay.
Reports reveal that rental growth for office spaces in the Grade B category of CBD also presented positive outcomes in the same quarter while expanding by almost 0.1% consecutively for the fourth quarter.
Market recoveries in this area are historically characterized by Grade A recovery which is further followed by office rents and Grade B recovery.
The experts believe that country is now being recognized as a top-rated business destination among tech firms, financial service providers, family officers, Chinese companies, and other growth sectors, including life sciences and healthcare. These sectors may further work as key drivers for the rising demands of office spaces in the country in the coming months and the next year as well.
The property owners at the Singapore business hubs are now looking for the best sales offers to make profits from the improved real estate market. Not just the office spaces, even mixed-use developments are receiving great attention from financial investors and buyers. As Singapore appears one of the safest places to live and grow after pandemic led conditions, people are shifting to this location with a hope to lead an optimistic life.
The rise of tech companies and finance firms in the country will soon make it a primary workplace for enthusiasts around the world. This economic growth in Singapore is expected to promise better healthcare management and asset recovery while ensuring unrestricted growth of the business sector. Forecasts reveal a continuous rise in the Singapore office rents and sale prices for the coming year as well.