City Hall office rents hit S$9.82 psf in Q2, second to Marina Bay: Savills

Workplace rental fees in the City Hall area climbed 1.3 per cent quarter-on-quarter to S$ 9.82 per sq ft (psf), making it the second-highest in rental fee amongst Quality The main business district (CBD) micro-markets after Marina Bay, Savills Singapore said in a Wednesday (Aug 3) report.

This comes as ordinary monthly Grade A CBD rents enhanced by 0.4 per cent from the last quarter to S$ 9.47 psf in the second quarter.

This results from net demand for Quality Bazi Analysis Singapore, CBD offices more than increasing, from 59,000 sq ft in the initial quarter to 136,000 sq ft in Q2. On a year-on-year basis, the rental fees were up 1.1 percent, higher than the 0.3 percent growth recorded in Q1.

Savills sees durable demand for office possessions in spite of headwinds from geopolitical uncertainties and higher interest rates. Office leas for 2022 are forecasted to expand 3 per cent year-on-year.

“Although there are economic obstacles, with low levels of brand-new supply, rents have actually been able to rise to counter the rising cost of living and also future environmental relevant expenses,” stated Alan Cheong, executive supervisor of research at Savills Singapore.

The tightening of supply and need equilibrium, alongside high inflation, is pressing proprietors to increase gross rents, the working consultant noted.

This is to cover increasing expenses of the workforce as well as service providers while adhering to ecological criteria and also growing their sinking fund for future environment-related investments.

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