Demand for office space will continue to be high until at least 2022.
Jeffries Survey has reported that 75% of workers in Asia would opt to return to office-based work immediately, if permitted.
Of this same study, 61% of respondents were most likely to be back full time in the office, whilst 13% were expecting to be full time working from home. The remaining 25% of the respondents foresaw a hybrid model involving both working styles.
Although the survey was not specific to Singapore, Jeffries Survey said that the sentiment was similar for the country’s local office sector. They said that employers may consider this as one of the many factors in selecting real estate options post-pandemic.
From its report, it was also said that authorities have allowed 75% of employees to be back in office premises starting this month.
This is following the further relaxation of social-distancing norms, which will positively impact central business district and city fringe landlords of commercial and convention spaces.
The annual supply in 2021 and 2022 in Singapore of 0.8 sq ft. is recorded to be below the annual demand over the last decade which is 1m sq ft.
Jeffries said that demand will improve as GDP growth is expected. Added to this, room for rental squeeze is seen in 2022 as older buildings totaling 1.5m sq ft. are out for redevelopment.
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