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Singapore office spaces ranked 14th most expensive in the world, CBRE Research’s Global Prime Office Occupancy Costs report revealed.
As at Q3 2014, occupancy costs in the Republic increased to US$113 (S$150) per sq ft, recording a 16.5 percent rise from Q1 of the same year – the fifth largest increase globally.
However, Singapore’s office prices remain relatively affordable compared to its Asian counterparts such as Hong Kong Central’s, ranked second most expensive at US$250 (S$ 333) per sq ft, and Beijing’s finance street and central business district, ranked third and fourth at US$197 (S$262) per sq ft and US$189 (S$252) per sq ft, respectively.
Notably, Asia accounted for seven of the top ten most expensive markets. Other Asian markets include New Delhi’s Connaught Place – CBD in India at US$158 (S$211) per sq ft, and Tokyo’s Marunouchi Otemachi in Japan at US$136 (S$181) per sq ft.
“Notwithstanding Singapore’s strong rental growth last year at (up 14.7 percent), the city’s current office occupation cost does not appear out of step with comparable global business centres,” Moray Armstrong, Executive Director, Office Services at CBRE said, adding that the city-state’s office sector performed within expectations last year with rental levels advancing off low prevailing vacancy rates.
“Looking ahead, limited availability of office space will continue through 2015 with relief to occupiers only when the next wave of major new supply arrives in H2 2016. In these circumstances we anticipate further rental growth particularly in the early part of the year. The pace of rental growth may slacken later in 2015 and going into 2016 as the impact of sizeable future supply becomes apparent,” he added.
CBRE Research’s Global Prime Office Occupancy Costs report is a biannual survey that tracks office occupancy costs for prime office spaces in 126 cities worldwide.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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