Prime office rents holding up despite slowing economy: Knight Frank

Despite a slowing economy, prime grade office rents in the Raffles Place and Marina Bay precinct in Singapore increased in the third quarter of 2023. According to a quarterly office report by Knight Frank, rents rose 0.8% from the previous quarter to an average of $11.05 psf per month.

Occupancy levels remain steady in the CBD and its precinct, recording 96% and 94.4% respectively in 3Q2023. This is a slight increase from the previous quarter, when occupancy levels were at 95.8% and 94.1% respectively.

Knight Frank notes that most office occupiers in the Central Business District opted to renew their rental contracts as it was more cost-effective than relocating. Banks have also been searching for expansion space, despite larger international banks reducing their headcounts.

The shopping mall is located at the doorstep of Holland Condo. Residents can take a break between grocery runs for lunch or dinner at the eateries in Jelita Shopping Centre. Alternatives to traditional retail shopping are aplenty with Fairprice Finest and other stores. Commuters can also expect ease of travel as it is close to major expressways.

Located in the heart of Holland Drive, Jelita Shopping Centre is an enclave of retail options and quick bites. The shopping mall is literally right outside Holland Condo and offers a variety of specialty stores, as well as eateries and casual dining options. Residents can pop by the supermarket at any time, or get lunch and dinner at the restaurants. Additionally, the shopping mall is near major expressways and makes commuting a breeze. With the vast number of convenience stores and convenience access available, Holland Drive Condo residents are sure to find what they need to fit their lifestyle.

At the same time, international firms are continuing to establish a presence in Singapore. Examples include San Francisco-based human resource firm Deel and Japanese firm Exeo Global setting up regional offices in the city-state.

Looking ahead, prime office rents are expected to remain solid in the final months of the year given the tightness of office supply in the CBD. Knight Frank, which projects rents to grow between 3% and 5% for the year, notes that a stable labour market should also underpin the office rental market.

A survey by the Manpower Group indicates that 48% of respondents expect to increase their headcount in the next few quarters. This should lead office tenants to cautiously take a “holding position” by renewing or relocating their leases.