Chart of the Day: Office supply glut expected to subside starting next year

Around 1.7m sq ft of space will be available in 2018.

There is currently a supply glut in the office market, forcing and pressuring rents to go down. However, the oversupply is expected to slowly fade starting 2018, a report from RHB said.

For this year, the total space available sits around 3.1m sq ft, with 2.4m sq ft of space situated in the core CBD whilst 0.6m sq ft is decentralised.

For 2018, supply will go down to only 1.7m sq ft, with only 0.8m sq ft available in the core CBD.

It will further go down to 1.1m sq ft in 2019, with 0.6m sq ft of space located in the fringes of the CBD.

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