In the first quarter of 2024, office rents in Singapore reached their highest level in 15 years, reflecting a robust demand for commercial real estate. Data released on March 27 by Jones Lang LaSalle (JLL) indicated that gross effective monthly rents for premium office space in the city’s central business district rose to S$11.42 per square foot. This marks a significant increase and reverses a previous decline of 0.5% over the last two quarters.

Unlike many major financial hubs experiencing a commercial property slump, Singapore has avoided a major downturn, supported by a widespread return-to-office initiative and a boom in private wealth.

Andrew Tangye, head of office leasing and advisory for JLL Singapore, noted that inquiry levels are increasing, particularly from firms in the professional and financial services sectors, as well as consumer goods companies.

Vacancy Rates and Future Outlook
Vacancy rates for prime office space have reached a post-pandemic low of 5.3%, down from 5.5% in the previous quarter. However, most leasing activity is attributed to small-to-mid-sized tenants, while demand from larger occupiers remains subdued. For instance, Meta Platforms is expected to reduce its office space in Singapore in the latter half of the year.

JLL estimates indicate that over 1.5 million square feet of office space expected to come online in 2024 and 2025 remains without secured tenants. This year alone, more than three million square feet of office space is projected to be completed, a figure more than three times the amount that entered the market last year, as reported by the Urban Redevelopment Authority.