Grade A office rents expected to rise slightly this year despite increased supply

He added that generally, the Singapore office market “has been pretty resilient and stable” over the past few years.

More than 2.4 million sq ft of premium office space will be added to the Singapore office market, with projects such as the IOI Central Boulevard Towers and Labrador Tower expected to be completed this year. 

This increased supply is unlikely to put pressure on rent prices, as the demand for Grade A office space remains strong, said observers. 

Singapore, with its conducive business environment, good governance, and easy access to talent, remains a popular location for businesses as a gateway to access the rapidly growing Southeast Asia market. 

“I still have some positivity in the market, despite the amount of supply that is coming in, especially for this year,” said Mr Sim. 

“The reason is because Singapore seems to be a magnet for what we call wealth management. And the growth of Southeast Asia seems to also favour Singapore, because firms tend to like to have Singapore as their regional (headquarters).”

Rents could be higher for longer, said market watchers, who expect the supply of new completions to taper after this year and pick up again only in 2028.