CBD Grade A office rents demand up by 0.4% in Q2 22
Net demand for offices amounted to 136,00 square feet.
As office supply is still low, Central Business District Grade A office rents went up by 0.4% quarter-on-quarter to $9.47 per square foot (psf) in the second quarter (Q2) of 2022, Savills said.
In its research, the net demand for such office spaces amounted to 136,000 square feet (sq. ft) in Q2 2022, which is a 130.5% growth from 59,000 in the past quarter.
City Hall micro-market registered the largest quarterly rental growth of 1.3% to $9.82 psf.
Savills said there is still high demand for office properties even if there are challenges such as geopolitical uncertainties and higher interest rates.
To be specific, Savills said there is tight supply and demand balance whilst the inflationary pressures are forcing landlords to increase gross rents.
Alan Cheong, executive director of research at Savills Singapore said, “Although there are economic challenges, with low levels of new supply, rents have been able to rise to offset inflation and future environmental related expenditures."