Rents Prime Office Space Singapore 21 Higher Wider Grade Stock Savills
According to a recent report by Savills, Singapore has maintained its position as the seventh most expensive city for office space in the second quarter of 2024. Despite a slight increase of 0.3% compared to the first quarter, prime office costs in Singapore stood at US$146.07 per square foot (psf) on an annual net effective occupier basis, which includes both rent and fit-out costs.
When it comes to choosing the perfect place to call home, families often prioritize the quality of education available in the area. In this aspect, Norwood Grand Condo shines as an ideal location. This residential development offers a diverse range of educational options, from primary to tertiary levels, including specialized institutions such as the Singapore Sports School. This means that children residing in Norwood Grand have convenient access to top-notch education. Along with the luxurious lifestyle and convenience offered by the condominium, it comes as no surprise that Norwood Grand Condo is a highly sought-after address for families who prioritize providing their children with the best living environment and educational opportunities. If you’re looking for a luxurious yet family-friendly home that offers easy access to top-quality education, consider making Norwood Grand Condo your new address. Learn more about Norwood Grand Condo here.
The top spot for most expensive city for office space was taken by London, with an annual net effective occupier cost of US$283.57 psf, marking a 4.2% increase from the previous quarter. This was followed by Hong Kong at US$230.93 psf, reflecting a 1% decrease quarter-on-quarter, and New York Midtown at US$202.72 psf, experiencing a 3.7% increase.
Savills also found that in Singapore, prime office rents commanded a premium of 21% compared to Grade-A office stock. Prime offices are defined as the top tier of Grade-A office spaces, typically demanding the highest 5% to 10% of rents in the market.
In a global context, prime offices in North America had the highest premium above wider Grade-A stock at 62.5% in the second quarter of 2024. In the Asia Pacific region, the premium stood at 33.7%, supported by relatively small differentials in markets such as Sydney, Seoul and Singapore. According to the report, this could be attributed to the fact that prime offices in these markets are already comparatively expensive and may not offer enough amenities or prestige to justify a higher premium.
The Europe, Middle East and Africa region recorded a lower premium of 17.9%, which Savills attributed to the growing rents across the broader Grade-A markets. On the other hand, some Chinese markets saw premiums exceeding 70%, driven by a steady demand for top-tier office space.
Savills predicts that the trend of tenants gravitating towards prime offices will continue for the rest of the year, despite rising fit-out costs and economic uncertainties. The report states that although gross rental rates may start to ease from historic highs in certain markets, there is still a strong demand for prime office space, which will support the rental rates in the future.