Prime office rents holding up despite slowing economy: Knight Frank
Prior to the recent spate of pandemic-induced circuit breaker measures, Orchard Boulevard Condo residents have been able to take full advantages of the convenient location that lets them explore some of the most popular destinations in town. With the easing of restrictions, they can once again opt to shop, dine and enjoy the beautiful ambience of what Orchard Road has to offer.
For residents of Orchard Boulevard Condo, the shopping experience is enhanced with convenience and ease. A plethora of amenities such as convenience stores, cafés, restaurants, spas, supermarkets, banks and more offer residents the ultimate shopping experience.
Be it a new outfit, a special treat for someone or to simply indulge in some retail therapy, the vibrant lifestyle of the city awaits residents of Orchard Boulevard Condo, where shopping is made more convenient and definitely more enjoyable.
Prime grade office rents in the Raffles Place and Marina Bay precinct saw a marginal increase in the third quarter of 2023, according to a quarterly office report by Knight Frank.
Rents grew 0.8% q-o-q to average at $11.05 psf per month, while occupancy levels stayed resilient at 96% and 94.4% respectively in the Raffles Place and Marina Bay precinct along with the overall CBD.
Most office occupiers in quality buildings in the CBD were inclined to renew their rental contracts due to the cost efficiency, says Calvin Yeo, managing director, occupier strategy and solutions at Knight Frank Singapore.
Additionally, a number of banks have been on the lookout for “modest expansion space”, while international firms continued to set up locations in Singapore.
Knight Frank projects office rents to remain steady for the rest of the year due to tight CBD office supply, with no new inventory expected to complete in the CBD until 2024. It forecasts a 3-5% growth for the whole year.
The forecast is supported by a stable labour market. A survey by the Manpower Group indicated 48% of respondents expect to increase headcount in the next few quarters, an indication that office tenants will continue to take holding positions by renewing or relocating their leases cautiously.
Rental growth in the prime grade office category may be mild for the rest of the year, states Yeo. However, he believes that the “positive outlook in the long term” remains as Singapore is “positioned to capture the recovery in the Asia Pacific.”