Singapore office rents grow for the seventh consecutive quarter in Q3

Rents inched up by 0.1% during the quarter.

Owing to lower activity in the office leasing market, rental growth in Singapore’s office market slowed. 

The average monthly rents of CBD Grade A offices in Savills basket inched up marginally for a seventh consecutive quarter, albeit at a moderated pace of 0.1% QoQ in Q3/2023, compared to the 0.7% in Q2/2023, to S$9.64 psf. For the first three quarters of this year, rents have risen by 1.1%. 

Here’s more from Savills:

Rents of prime offices in the CBD across grades recorded QoQ increases, with Grade A buildings increasing 0.2% QoQ and the higher grades (Grades AA and AAA) rose 0.1% QoQ. However, the QoQ rental growth across the gradings were lower in the third quarter. 

By location, only Raffles Place, Shenton Way and Beach Road/Middle Road recorded quarterly increases in rents of 0.1%, 0.1% and 1.1% respectively. For Beach Road/Middle Road, the larger QoQ increase in Q3/2023 was largely led by higher rents at Bugis Junction Towers. 

Rents of Grade A offices in Marina Bay, Tanjong Pagar, City Hall and Orchard Road remained unchanged in the quarter. For Marina Bay, this stagnation in rents came after six consecutive quarters of increase.