Office market records 420,000 sq ft net absorption in Q4 2024

The CBD area accounted for 415,000 sq ft of net lettable area.

In Q4 2024, overall net absorption of office space across Singapore registered 420,000 sq ft with the Central Business District (CBD) area accounting for approximately 415,000 sq ft of net lettable area (NLA), ETC Research reported.

Non-CBD and decentralised areas recorded 27,000 sq ft NLA and negative 22,000 sq ft NLA in net absorption, respectively.

Meanwhile, island-wide occupancy rates rose by 0.5 percentage points, ending the year at 95.0%. This is mainly due to a 1.1% quarter-on-quarter (QoQ) rise in occupancy in the CBD area in Q4 2024.

Occupancy rates in the non-CBD and decentralised areas remained relatively unchanged in 4Q 2024 at 96.0% and 95.6%, respectively.

Rental rates in the central region also declined 0.9% QoQ in Q4 2024 but remained unchanged on a YoY basis at 13.3% since Q4 2023.

“In 2025, the increase in supply is likely to put downward pressure on rental rates for existing office spaces. However, with IOI Central Boulevard and Keppel South Central nearing full occupancy, demand for CBD Premium and Grade A offices may drive rental rates higher,” ETC Research said.