Singapore Office Rents Set To Rise In 2021
Despite a downturn in leasing this year due to the COVID-19 pandemic, property consultancy CBRE says office rents in Singapore are likely to rise in the second half of 2021, driven by a limited supply of new Grade A space and strong demand from Chinese tech firms and non-bank financial service providers.
Five new projects are set for completion next year, adding 1.23 million square feet (114,271 square metres) to the overall office supply, CBRE said in a release. The five projects include only one Grade A office development, CapitaSpring, which will add 650,000 square feet of office stock to the core CBD market.
The 51-storey CapitaSpring, a $1.3 billion mixed-use development in the Raffles Place commercial hub, is a joint venture of Singaporean developer CapitaLand, its REIT affiliate CapitaLand Commercial Trust and Japan’s Mitsubishi Estate Co. JP Morgan is signed up as the first anchor tenant, agreeing to lease.