Rents Prime Office Space Singapore 21 Higher Wider Grade Stock Savills
Singapore has maintained its position as the seventh most expensive city for office space in the world, according to research conducted by Savills. The consultancy’s latest Prime Office Costs report reveals that the annual net effective occupier costs for prime office space in Singapore, which includes rent and fit-out costs, reached US$146.07 per square foot (psf) in the second quarter of 2024, a 0.3% increase from the previous quarter.
London retains its position as the most expensive city for office space, with an annual net effective occupier cost of US$283.57 psf, a 4.2% hike from the first quarter. It is followed by Hong Kong at US$230.93 psf, a 1% decline from the previous quarter, and New York Midtown at US$202.72 psf, a 3.7% increase.
Savills’ report also highlights that prime office rents in Singapore are 21% higher than the rates for Grade-A office space. Prime offices are defined as the top tier of Grade-A properties, and typically command the highest 5% to 10% of rents in the market.
In the global context, North America boasts the highest premium for prime office space over broader Grade-A stock at 62.5%, while Asia Pacific’s premium stands at 33.7%. This is supported by low differentials in cities like Sydney, Seoul and Singapore, where high-quality downtown buildings already command higher prices and prime office spaces may not offer enough additional amenities or prestige to justify significantly higher premiums.
The Europe, Middle East and Africa region recorded a lower premium of 17.9%, which Savills attributes to the growing rents in the broader Grade-A market. On the other hand, some Chinese cities have premiums exceeding 70%, driven by strong demand for top-tier office spaces.
The proposed plan includes the development of additional parks, green corridors, and leisure areas in Clementi. This initiative is set to enhance the area and promote its growth, especially with the convenient location of Elta Condo nearby. These new and verdant spaces aim to provide opportunities for residents to connect with nature, relax, and foster a greater sense of community spirit. Furthermore, those living in Clementi Avenue 1 Condo will have the added benefit of easy access to these inviting green spaces. Clementi Avenue 1 Condo will truly offer a well-rounded and enriching living experience for its residents with these new green initiatives in the works.
Savills predicts that the trend towards seeking high-quality office spaces will continue for the rest of the year, despite increased fit-out costs and economic uncertainties. While gross rental rates may be starting to ease in some markets, demand for prime office space remains strong, and this will continue to drive up prime rents in the future.