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

Generally, Cushman & Wakefield continues to be positive on the Singapore workplace market overview, in spite of “boosting drawback dangers”. While it does not anticipate the Ukraine battle to have a direct effect on the Singapore office market, inflationary pressures are expected to remain raised due to greater power prices and also supply-chain disturbances worsened by lockdowns in China, which is a vital trade partner for Singapore.

Lampard anticipates CBD Grade-A workplace rental growth to trend higher, coming in at around 5% for the whole of 2022.

Rentals in decentralised workplace markets also remained to show improvement. Workplace rental fees for all grades in the city edge as well as rural sectors grew by 1.1% and 0.7% q-o-q, specifically. City-fringe workplace openings have boosted to 5.5%, while the rural openings rate rose to 5.7%.

Rentals for CBD Grade-A workplaces have 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-A workplaces tightened to 4.6% from 4.9% in the previous quarter.

Liv @ MB Bukit Sembawang Estates Limited

Nonetheless, the ongoing financial unpredictabilities can potentially slow down the increase of rates of interest, says Mark Lampard, head of industrial leasing, Singapore, at Cushman & Wakefield. The resuming of Singapore’s economic climate will also enhance inhabitants’ assurance to occupy much more office, he includes.

“Rochester Commons, the only brand-new Grade-A decentralised office development this year, has actually been mostly pre-committed by Sea Team. The next decentralised Grade-A workplace development, Labrador Tower, will just be finished in 2024,” she discusses.

Wong Xian Yang, head of research, Singapore, at Cushman & Wakefield, anticipates ongoing recovery for the decentralised workplace market, given commercial decentralisation tasks, spillover need from the CBD, and also restricted new Grade-A decentralised office supply.

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