Asia Pacific Office Outlook 2024

SINGAPORE

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 Singapore’s CBD Grade A new office supply is set to soar to 1.9 msf in 2024, largely as a result of the delayed completion of IOI Central Boulevard Towers.  This is close to double the 10-year (2013-2022) annual average of 1 msf, providing more options for tenants.  Post-2024, the CBD office market will return to a tight supply situation with limited new supply from 2025 to 2027.

 CBD Grade A office vacancy rates are expected to rise to about 5.4% in 2024 from 4.1% in 2023, as net absorption is outweighed by net supply.  Despite a persistent flight

 CBD Grade A rental growth is forecast to moderate in 2024 to about 1%, down from the 3% growth in 2023.  Occupiers facing extended CapEx constraints could hold back on relocation plans as the increase in new

 The city-state’s office market growth is expected to slow as supply and demand rebalance against the background of prolonged, heightened interest rates and a supply influx.  Nonetheless, the office market is underpinned by a high return-to-office rate post-pandemic and resilient office demand thanks to Singapore’s position as a key regional business hub for Asia Pacific.

to-quality and shadow stock returning to pre COVID levels, the ‘higher for-longer’ interest rate regime and global economic uncertainties could limit upsides to demand.

supply and potentially, secondary stock in 2024 will intensify competition for tenants.