- Initial concerns surrounding the ~2.0mil sqft of new office supply were overstated, as the two major developments – IOI Central Boulevard Towers (~1.3mil sqft) and Labrador Tower that contributed most of the stock have achieved healthy pre-commitment rates of ~70% without any major disruptions to the overall market.
- - Read this at SGinvestors.io -
- steady office demand on the back of higher adoption of return-to-office (RTO) working arrangements in Singapore (estimated 85% RTO vs pre-COVID days).
- Looking ahead, with supply being absorbed and no significant new developments expected in the core CBD (Marina Bay and Raffles Place) in the next three years at least, we believe that Grade A rents in the core CBD will resume their upward trajectory, ahead of expectations.
Grade A offices in the core CBD expected to outperform.
- - Read this at SGinvestors.io -
- The only major new supply expected in FY25 will be in the CBD fringe, which is likely to put pressure on offices that are outside of the core CBD and the more decentralised precincts.
Singapore remains the stronghold for office REITs
- Read more at SGinvestors.io.
