A lot of news recently is pointing at positivity towards the commercial office spaces as we see the workforce going back to office spaces for work. Offices are taking up again, work from home became less relevant, and we adjust towards this new normal admits the whole covid saga.
Singapore amongst others was fortunate enough to not be as affected. From our efficient government and the vaccine provided to many, we are able to function as normal as possible; from lock down to now being free.
As quoted, “net demand for grade A office doubling”, shows more people going into the commercial rental market, from investors to business owners. We are all going out again, and business investors are going “all out”, respecting Singapore as an important business hub in time to come.
The upcoming transformations and business hubs is an exciting addition to Singapore, from creating a place with a unique balance of work and lifestyle, and this also made residential and commercial landlord alike to command higher rentals. With the potential of rental demands doubling, the commercial spaces are definitely something that investors can look at. (Also noting that commercial spaces are not subjected to ABSD, this would make investments in commercial properties more attractive).
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Sources
- EdgeProp: Office rents up 2.4% in 2Q2022 on return-to-office momentum
- The Business Times: Singapore CBD Grade A office rents may cross pre-pandemic peak by Q3: JLL
- City Hall office rents hit S$9.82 psf in Q2, second to Marina Bay: Savills
- Singapore CBD Grade A Office Rental Growth Could Double In 2022