A Review of the Singapore Office Market
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Singapore March 2017 Singapore | Hong Kong The Office A review of the Singapore office market Forecast Top tier market bottoming out – mid tier to soften by a further 10% in next 12 months Average top rental rates are now in the region of $8.50 to $9.50 per sq In the Marina Bay area we expect that Millenia Tower and Centennial ft effective. The rate of decline in this prime sector of the market has Tower will come under some pressure. Suntec City enjoys a relatively slowed down significantly and in some cases, such as Guoco Tower, high occupancy rate, so effective rates here may soften only slightly to rates are even higher than they were 6 months ago. around $7.50 - $8.00 per sq ft. Out of town locations such as Novena and Alexandra Road are likely to remain popular with average effective Generally we expect top prime rates to soften only marginally, by rate between $5.50 psf and $6.50 psf. around 5% during the course of 2017, but they are beginning to bottom out. It will be the mid-tier market that will experience that greatest It will be important for businesses to plan well in advance pressure over the next 12 months and we expect further falls of around 10% during this period in this sector. 2018 will be an important year for relocations. This is because there will be a lull in new supply for a couple of years after that, with the next 2018 will be an important year for relocations, due to a lull in new wave of supply not coming on stream until 2020/ 2021. supply for a couple of years after that It will therefore be important for businesses to plan well in advance, There should still be some excellent opportunities for tenants to secure which is not easy in this uncertain economic climate but firms should good quality space in the core financial district for around $6.50 to start their reviews this year for their 2018 requirements. Rental cost $7.50 per sq ft effective. Even Raffles Place is expected to average savings should be easy to find in all locations, whatever a tenant’s around $8.00 - $9.00 per sq ft, down from $10.00 per sq ft a year ago. business plan may be. Disclaimer The information in this publication should be regarded as a general guide only. Whilst every care is taken in it preparation, no representation is made or responsibility accepted for its accuracy or completeness. The rentals mentioned are neither asking rentals nor rentals agreed by property owners, but only represent the writers views on estimated rentals and is intended as reference only. Office Rental Guide Robinson Centre $8.50 Shaw House $8.50 Robinson Point $8.30 Singapore Pools Building Full Asking Rates Samsung Hub $8.50 - $10.00 Sunshine Plaza $6.00 SGX Centre 1 & 2 $8.20 Tanglin Shopping Centre $6.00+ In general allow around 10% discount for SIF Building $7.30 The Bencoolen $5.60 negotiations for best effective rate Shenton House $5.50 The Heeren $10.50 The Globe $6.60 Thong Teck Building Full The Octagon $6.00 Tong Building $8.00+ Tokio Marine Centre $7.00 TripleOne Somerset $8.00 - $9.00 Raffles Place / New Downtown Tong Eng Building $5.70 VisionCrest Commercial $9.00 Tung Ann Association Building $4.60 Wheelock Place $11.00+ 6 Battery Road $14.00 Wilkie Edge Full 20 Collyer Quay $10.00 - $12.00 Winsland House 1 & 2 $9.00+ 55 Market Street $8.50 Tanjong Pagar Wisma Atria $10.50 Asia Square Tower 1 & 2 $11.00 Bank of China Building $8.00 78 Shenton Way $7.80 Bharat Building $6.50 79 Anson Road $7.50 Chinatown / River Valley Road Bank of Singapore Centre $9.50 ABI Plaza $6.20 CapitaGreen $12.00 Amara Corporate Tower $7.50 CES Centre $5.50 Chevron House $9.00 Anson Centre $4.50 Central Mall $6.30 Clifford Centre $8.00 Anson House $7.50 Chinatown Point $6.50 GSH Plaza $10.00 AXA Tower $8.50 Great World City $7.00 Income@Raffles $8.50 Fuji Xerox Towers $7.20 King’s Centre $6.30 Marina One $10.00 Guoco Tower $10.00 - $11.00 The Central $8.00 Maybank Tower $9.00 - $10.00 Hub Synergy Point $5.50 UE Square $7.00 MBFC Tower 1, 2 & 3 $10.00 - $11.00 International Plaza $6.50+ Valley Point $7.00 OCBC Centre $9.50 Jit Poh Building $6.00 OCBC Centre East Full Keppel Towers $6.50 Ocean Financial Centre $11.00 Keppel Towers II $6.00 Edge of CBD One Finlayson Green $8.50 Mapletree Anson $8.70 One George Street $10.00 MAS Building Full Alfa Centre Full One Raffles Place Tower 1 $9.00 St. Andrew’s Centre Full Aperia* $6.00+ One Raffles Place Tower 2 $10.00 Southpoint $6.80 Boon Siew Building $5.20 One Raffles Quay $11.00 Tower Fifteen $7.00 Central Plaza $7.50 OUE Bayfront $11.00 - $12.00 Twenty Anson $9.00 Goldhill Plaza $5.20 RB Capital Building $9.00 Newton 200 Full Republic Plaza 1 $10.00 Novena Square $7.80 Republic Plaza 2 $8.50 City Hall / Marina Centre / Beach Rd Rex House Full Royal Group Building $9.00 SLF Building $4.40 Royal One Phillip $8.50 11 Beach Road $6.20 United Square $7.00 Singapore Land Tower $10.00 30 Hill Street $8.50 Straits Trading Building $10.00 - $12.00 Bugis Junction Towers $8.50 The Arcade $7.00 - $8.00 Beach Centre $7.80 West / Others UOB Plaza 1 $9.80 Centennial Tower $11.00 UOB Plaza 2 $9.50 Duo Tower $9.50 991 Alexandra Road $4.90 Millenia Tower $11.00 Alexandra Point $7.00 Odeon Tower $7.80 Alexandra Techno Park* $4.30 Robinson Road / Shenton Way OG Albert Complex $5.50 Fragrance Empire Building $5.50+ Parkview Square $8.00 Harbourfront Centre $6.90 4 Robinson Road $7.00 Peninsula Plaza TBC Harbourfront Tower 1 $7.50 6 Raffles Quay $8.00 Raffles City Tower $10.00 Harbourfront Tower 2 $6.00 - $7.00 71 Robinson Road TBC Shaw Tower $4.00 - $5.00 International Business Park (Jurong)* $4.00 80 Robinson Road $7.80 South Beach Tower $10.00 JEM $5.90 108 Robinson Road $7.25 Stamford Court $7.00 Keppel Bay Tower $7.50 120 Robinson Road $6.00 Suntec Towers 1 - 5 $8.00 - $9.00 Mapletree Business City $7.00 135 Cecil Street $7.00 The Adelphi $6.00 - $7.00 Merrill Lynch Harbourfront $8.00 137 Telok Ayer Street Full The Concourse $8.00 Pacific Tech Centre* $3.55 146 Robinson Road $5.50 The Gateway East and West $7.00 - $7.50 PSA Building $7.00+ 150 Cecil Street $6.30 PSA Vista $4.50 158 Cecil Street $8.20 Singapore Science Parks* $4.50+ AIA Tower Full Orchard Road / Dhoby Ghaut The JTC Summit $4.46 ASO Building Full UE Biz Hub West $6.50 Bangkok Bank Building $6.00 50 Scotts Road $7.50 Westgate $6.50 BEA Building $6.80 51 Cuppage Road $7.50 Capital Square $10.50 182 Clemenceau Ave $6.50 Capital Tower $10.00 Burlington Square $6.00 East Cecil Court $6.00 Faber House $7.50 China Square Central $8.50 Fortune Centre $5.20 223 Mountbatten $5.50 City House $7.00 Forum $8.00 Abacus Plaza Full Far East Finance Building $5.50 Goldbell Towers $8.20 AIA Tampines Full Far Eastern Bank Building $6.50 Haw Par Centre $7.00 Changi Business Park* $4.00+ GB Building $6.00 Haw Par Glass Tower $4.80 CPF Tampines Building Full Grace Global Raffles $8.50 International Building $8.50 NTUC Tampines Junction $5.50 Great Eastern Centre $9.00 Liat Towers $8.00 NTUC Tampines Point Full Hong Leong Building $8.60 Manulife Centre $8.00 Parkway Parade $6.00 Keck Seng Tower $6.00 Ngee Ann City $10.50 Singapore Post Centre $6.50 Oxley Tower $8.50 Orchard Building $8.00 Tampines Concourse $5.20 PIL Building Full Orchard Gateway $8.50 Tampines Grande $5.50 PWC Building $9.50 Orchard Towers $4.30 Tampines Plaza Full Prudential Tower $9.50 Palais Renaissance $8.80 Viva Business Park* $3.00+ Robinson 77 $8.00 Regency House $7.00 Robinson 112 $6.50 Shaw Centre $8.00 All rents quoted are asking rental rates and subject to change without prior notice * Business Park / B1 space Demand 03 The office rental market has been dominated Traders has moved into Ocean Financial by the frantic leasing activity in the new Centre along with law firm Holman Fenwick office schemes.Guoco Tower is now over & Willan, who relocated form Samsung 85% occupied with some of the most recent Hub. Nearby at One George Street, Ifchor tenants including Dentsu Aegis Networks Panamax has relocated here from The Central (100,000 sq ft), Uber (60,000 sq ft), ING Bank and law firm Chris Chong & CT Ho has moved (70,000 sq ft), Unity Technologies, Straits into OCBC Centre from GB Building. Star Trading Company, Fitbit Singapore, Frontline Insurance has moved into CapitaGreen. Shipping, Seadrill Management, Teva Pharmaceuticals, Danone Asia Pacific, Theoria New Downtown has seen mixed activity. Capital and Graticule Asset Management. Asia Square has seen some of their existing tenants expand within the scheme such as Marina One is scheduled for completion /TOP Mundipharma, Leonteq and CTBC Bank and in April and is also attracting some of the largest other new tenants there include Partners tenants around such as Bank Julius Baer Group (from 71 Robinson Road), Mitsui & (100,000 sq ft), Prudential Assurance (90,000 Co (80,000 sq ft from 80 Robinson Road), sq ft), Bank of Tokyo Mitsubishi (140,000 sq ft), Lombard International and JTP Holdings.