Chart of the Day: CBD office supply to fall to 700,000 sqft between 2018-2020

This is expected to boost occupancy amidst a strong economic outlook.

This chart from Maybank Kim Eng shows that Singapore’s office market is on a recovery path as it approaches the tail end of a supply glut.

Average annual supply of office space in the CBD is expected to fall to just 700,000 sqft between 2018 to 2020. This is lower than the average annual supply of 1.2 million sqft and absorption of 1.3 million sqft since 2010.

In the core CBD, about 1.9 million sqft of space from the redevelopment of Golden Shoe and Central Boulevard is expected to arrive in 2021.

"With limited supply and better demand from a strengthening economic outlook, we expect vacancy rates to fall and upside for rents," said Maybank KE analyst Neel Sinha.