Singapore office rents to grow by 3% for full-year 2024

Learn more about the economic dynamics affecting this forecast.

Singapore’s Gross Domestic Product (GDP) increased 2.9% y-o-y in Q2 2024, with the yearly growth supported by the finance & insurance, information & communications, and wholesale trade sectors, according to a Knight Frank report. 

“With interest rate cuts, growth of the services sectors, particularly finance and insurance, are expected to remain firm, supporting Singapore’s projected economic expansion of between 2.0% and 3.0% for the full year 2024,” the report said.

Here’s more from Knight Frank:

On the domestic front, the office leasing market is unlikely to witness substantial relocation, except for natural lease expiries by large space users. For leases that are expiring in the next 12 to 18 months, corporates may not relocate or renew the same amount of space due to flexible working. 

Companies with sustainability goals in mind, should also consider retrofitting and greening their interior workspace designs to foster ESG operational workplace practices, taking that extra step after having benefited from the green building specifications from the majority of buildings in the CBD that have already achieved green certification. 

With the above dynamics likely to stay, rents in the remaining months of 2024 are expected to be largely unchanged, with full year rents growing about 3%.