Singapore’s Q3 office rents have surpassed pre-pandemic peaks, experts say

Grade A office rents in the CBD reached SGD11.06 (USD7.72) per sq ft per month in Q3

According to Staffing Industry Analysts, 87 percent of CFOs Singapore agree that hybrid working will save them money while 80 percent believe it will boost productivity and efficiency.

Singapore Business Review reports that business services firms in the Asia Pacific region have been relocating their headquarters to Singapore. Tech startups, private equity companies, and family offices have also set up shop in the Lion City.

Despite geopolitical tensions, companies are still making the move because of Singapore’s “established sophisticated financial infrastructure and political stability.”

“Hybrid working helps businesses stay competitive and resilient, especially in times of economic uncertainty. With economic pressures mounting, research shows that CFOs and business leaders are adopting hybrid working for many reasons,” said Mark Dixon, founder and CEO of IWG. 

“Independent studies have shown that businesses can save more than SGD13,000 (USD 8,983) per employee working in the hybrid model,” he added.

Meanwhile, Q3 office rents have surpassed pre-pandemic peak, recording a near 14-year high, reported the Business Times. 

More: Singapore’s office & hospitality sectors recover in Q2 2022

Central business district (CBD) Grade A office rents reached SGD11.06 (USD7.72) per sq ft per month in Q3, only taking 18 months to recover the grounds lost due to the pandemic. Gross effective rent for CBD Grade A office space rose 2.9 percent QoQ in Q3, from SGD10.74 (USD7.50) per sq ft per month in Q2, surpassing the SGD10.81 (USD7.55) per sq ft per month peak recorded in Q4 2019.

Andrew Tangye, head of office leasing and advisory at JLL, says the leasing market is still riding the tailwind of the economy’s reopening despite global economic headwinds.

He also noted that hybrid work has increased the importance of physical offices for building corporate values and fostering cross-team collaboration, as well as instilling a sense of belonging in employees.

The Property Report editors wrote this article. For more information, email: [email protected].