Marina Bay will account for most of its stock.
This chart from Edmund Tie & Co. (ET&Co) shows that the office supply pipeline in the CBD area will amount to 3.3 million sqft from Q3 2019 to 2022, with Marina Bay accounting for most of its stock.
The figure is about 50% lower than the three and five-year average net supply of 2.1m sq ft and 1.7m sqft respectively. In a separate report from Colliers, grade A office stock in the CBD totalled 25.1 million sqft in Q1.
In addition, ET&Co stated that rents in CBD have also went up. This is led by Marina Bay where average monthly gross office rents of grade A+ rose 2% QoQ to $13.10 psf. Raffles Place saw its grade A office rents climb 1% to $11.35 psf. Grades A+, A and B rents in Shenton Way/Robinson Road and Tanjong Pajar edged up 1%, 0.5% and 0.5% respectively.
The report added that rental rates are expected to rise by 5% to 9% in 2019.
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