Office spaces saw rent prices down in Q1 2020

Singapore saw rents and prices of office spaces drop in the first quarter of 2020 as businesses contend with the economic fallout from the Covid-19 outbreak.

The rental index of private office spaces within the central region fell at a gradual space at 0.8% compared with the 3.2% drop in the previous quarter.

This could be due partly to companies seeking cash flow protection measures and choosing renewals rather than new leases, which require large fit-out costs upfront.

Island-wide, the vacancy rate has risen to 11% in 1Q2020, from 10.5% in 4Q2019.

The rise in vacancy rates and weaker absorption has to do with an increase in office completions. In the quarter, there were 106,375 sq m of office space injected into the market-led primarily by the completion of works at Oxley @ Raffles and Woods Square. Other projects completed include HD 139, and the asset enhancement works at 55 Market Street.

 

Here's the link to download our Q1 2020 Office Space Statistics.