Office Market Review

Supply Q4 2023

Tightening office supply over the next three years, will soon begin to bite in the next few quarters. However, because demand remains fragile, the shortage of available space will have less of an impact on rising rates that would otherwise have been the case.

Many tenants still seem surprised there is such a lack of supply. When you have 2.5M sq ft schemes like Suntec City, standing with a vacancy rate of just 2%, it is typical of the market today. It is the secondary/fringe locations that have struggled the most with their occupancy rates and this is where tenants can find bargains, if they are prepared to be more flexible in terms of location.

2024 will see some attractive new office developments completed but only one of these is inside the financial district – namely Keppel South Central.

Tight supply to bite harder, but demand remains fragile