CBD premium rents rise 0.1% in Q4 2024

Vacancy also eased from 5.9% to 5.2%.

Core CBD Premium and Grade A office rents rose marginally by 0.1% quarter-on-quarter (QoQ) to $11.68 per sq ft in Q4 2024, Colliers reported.

For FY2024, this represents a growth of 1.7% year-on-year (YoY) from 0.8% in 2023.

According to Colliers, vacancy has also eased from 5.9% to 5.2% in the same quarter as new CBD office supply has been gradually absorbed.

Meanwhile, vacancy has spiked in certain buildings within the CBD due to cost efficiency and flight to quality, but a downturn is not expected due to the calibrated supply.
 
“Nevertheless, Singapore could benefit from some spillover as some firms relocate in view of rising geopolitical changes. In addition, interest rates easing may relieve the financial pressure on certain companies, while the ongoing return to office momentum may lead to higher office attendance and space requirements,” Colliers said.

For 2025, rental growth is forecasted to stay between a range of 0 to 2%.

“As corporate occupiers continue to calibrate the optimal strategy for their real estate requirements, landlords' flexibility, and adaptability in meeting these demands will be crucial in helping the Singapore office market weather uncertainties in the short to medium term,” Tridiana Ong, executive director and head of Office Services Singapore at Colliers said.