CBD Grade-A office rents up by 2.1% q-o-q in 1Q2022: Cushman & Wakefield

In general, Cushman & Wakefield stays upbeat on the Singapore workplace market overview, despite “increasing downside dangers”. While it does not anticipate the Ukraine battle to have a direct effect on the Singapore workplace market, inflationary pressures are expected to continue to be elevated as a result of higher power rates as well as supply-chain disturbances exacerbated by lockdowns in China, which is an essential business companion for Singapore.

Rental fees in decentralised office markets also continued to show improvement. Workplace rentals for all grades in the city edge and suburban sectors grew by 1.1% as well as 0.7% q-o-q, specifically. City-fringe office vacancies have enhanced to 5.5%, while the country openings price equaled 5.7%.

Rentals for CBD Grade-An offices have actually climbed by 2.1% in 1Q2022, higher than the 1.7% growth in the previous quarter, according to a record by Cushman & Wakefield on April 6. This comes as openings prices for CBD Grade-An offices tightened to 4.6% from 4.9% in the previous quarter.

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“Rochester Commons, the only new Grade-A decentralised office growth this year, has been primarily pre-committed by Sea Group. The following decentralised Grade-A workplace development, Labrador Tower, will just be completed in 2024,” she explains.

Nevertheless, the recurring financial unpredictabilities could potentially slow the surge of rates of interest, says Mark Lampard, head of commercial leasing, Singapore, at Cushman & Wakefield. The resuming of Singapore’s economy will additionally increase occupiers’ assurance to occupy much more office, he includes.

Wong Xian Yang, head of study, Singapore, at Cushman & Wakefield, forecasts ongoing healing for the decentralised office market, provided industrial decentralisation activities, spillover need from the CBD, as well as limited new Grade-A decentralised office supply.

Lampard prepares for CBD Grade-An office rental growth to trend higher, reaching at around 5% for the whole of 2022.