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The portion of decentralised offices increased from 17 percent of total island-wide stock in 1998 to around 24 percent in 2018.
While the Singapore government has tirelessly pushed for decentralisation, the implementation and execution of the decentralisation strategy has been slow but steady.
In fact, total decentralised office stock grew 1.5 times from 5.9 million sq ft in 1998 to 14.4 million sq ft in 2018, revealed a CBRE report.
In contrast, office stock within the central business district (CBD) rose 0.6 times over the same period.
With this, the portion of decentralised offices increased from 17 percent of total island-wide stock in 1998 to around 24 percent in 2018.
CBRE expects the figure to increase to 30 percent by 2030.
This comes as companies have been receptive towards decentralised offices, with big corporations like Great Eastern, Procter & Gamble and SMRT setting up offices in Buona Vista and Paya Lebar Central.
“With Jurong Lake District (JLD) hailed as the nation’s second CBD, and the emergence of new growth areas, the CBD will not be the only centre of Singapore’s commercial activities,” said the report.
But while the government is focused on decentralisation, “a revitalisation of the CBD is in the works” also.
The CBD Incentive Scheme, which was introduced under the Draft Master Plan 2019, aimed to create a vibrant round-the-clock environment.
“Subject to stipulations concerning building age and site area, the five-year scheme encourages the conversion of use for older office buildings in Anson, Shenton Way and Tanjong Pagar to incorporate more varied uses such as retail, residential and hotels.”
CBRE expects close to a third of the buildings within the area to qualify for the scheme, with a potential 5.09 million sq ft of office stock under consideration.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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