,Singapore

Who will occupy UBS' and StanChart's offices in Singapore now?

UBS' One Raffles Quay space is said to be committed to by L’Oréal and others.

Occupiers are now after newer and better-managed spaces as firms place more focus on sustainable workplaces and employees' health and well-being. 

For example, JLL says about 95% of the space vacated by UBS at One Raffles Quay has reportedly been committed to by L’Oréal, The Executive Centre, OMERS, and Capital International, etc. The space that Standard Chartered Bank intends to release at Marina Bay Financial Centre Tower 1 has also reportedly received healthy interest from tech firms as well as media and financial services companies.

Here's more from JLL:

Projects completing in 2021 filling up fast

Afro-Asia, in the Shenton Way/Tanjong Pagar submarket, was completed in the CBD in 2Q21. For 2H21, the completion of 21 Collyer Quay and CapitaSpring remain on schedule despite the recent labour crunch situation in the construction sector.

As of 2Q21, 70% or more of the 0.8 million sq ft of office space from new buildings such as Afro-Asia and CapitaSpring have been pre-committed, while 21 Collyer Quay remains 100% committed to by WeWork.

Office rents turn the corner earlier than expected

Rents turned around in 2Q21 after recording five quarters of contraction, driven by continued economic recovery and the demand for better quality, newer and greener office assets.

Capital values of CBD investment grade offices climbed at the fastest pace in eight quarters, supported by continued competition of office assets as well as the bottoming-out of rents.

Outlook: Rents and capital values charting new growth trajectory

Strengthening demand on the back of the global economic recovery and Singapore’s business-friendly offerings, coupled with tightening supply amid limited new completions and possible supply withdrawals due to the redevelopment of ageing office assets should see rents continue to firm up in 2H21.

The bottoming-out of Singapore’s office rents is expected to intensify competition for asset acquisitions and drive a fresh wave of price appreciation. Coupled with the stable political environment, low interest rates and fairly resilient currency, Singapore remains attractive to global investors who are looking for defensive assets in the current uncertain economic climate.

Note: Singapore Office refers to Singapore's CBD Grade A office market in Marina Bay, Raffles Place, Shenton Way and Marina Centre.

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Market yields are expected to see further compression for the remainder of the year.
The worst is already behind us, but rents won’t start picking up until 2022.
Thanks to foreign luxury brands’ resilience amidst the pandemic.
Rents of Grade A1 offices in the area grew 3% from May-July 2021. 
Prime high street rents slipped 0.3% in the same period.
Home sales declined 27% to 5,546 units during the month.
Most hotel operators have taken a long-term approach in the city and will open new sites in the coming years.
Major retailers such as Naiise, Dimbulah Coffee and Manekineko had to shut down their stores.
Less than 20% of the city's office supply obtained green certifications.
Compass Offices and Regus both expanded their spaces recently.
Nearly 7 in 10 of the units sold were in Gurgaon.
Only 200 new condominium units were completed in 2Q21, the lowest since 2015.