Singapore office net absorption drops to -76,235 sq ft in Q2

It was a huge decline from the previous quarter’s 265,000 sq ft.

Data from Edmund Tie Research reveal that overall net absorption in Singapore’s office property sector was at around -76,235 sq ft in Q2 2022, a huge drop from the previous quarter’s 265,000 sq ft. 

“Nonetheless, the leasing demand for prime office spaces in central areas saw growth in this quarter as corporates adjusted to new hybrid work arrangements,” the report said.

Here’s more from Edmund Tie:

There is robust demand for premium spaces in Marina Bay, and occupancy rates for Raffles Place and Grade A office spaces in Shenton Way/Robinson Road/ Tanjong Pagar remained stable. The overall occupancy rate for office spaces in the CBD maintained at 93.8% in Q2 2022. 

With limited supply of quality spaces, there is a rise in rental rates across all subzones of the office sector in Q2 2022, albeit to various extents. In the CBD, premium rents at Marina Bay rose by 1.7% qoq and reached a 2-year high, while Grade A rents at Shenton Way/Robinson Road/Tanjong Pagar followed closely with a 1.2% qoq increase. In Non-CBD, rents across different subzones improved by 0.5%-0.9% qoq, while office rents in the decentralised rose by 0.8% qoq in Q2 2022. 

The major leasing deal in Q2 2022 is the reported take-up by Amazon of 369,000 sq ft of space at Central Boulevard Towers.