Office market to cool further in next 12 months: report

This could lead to a “greater re-pricing,” JLL said. 

Singapore’s office market is expected to cool further in the next 12 months, JLL said in a January report. 

Citing the forecasted limited impetus for rent growth, JLL said the office investment assets may be placed under a “greater re-pricing pressure” as interest rates are expected to stay elevated. 

In the fourth quarter of 2022, demand slowed due to global economic challenges that weighed on business sentiments. 

Read more: Rental growth in Core CBD Grade A office market to slow in 2023

“The ongoing consolidation in the tech sector also moderated its appetite for office space,” the report read in part. 

Moreover, the growth of CBD investment grade office decelerated for the first time since recovering from the pandemic. 

 “With interest rates climbing further and investors staying on the sidelines in 4Q22, CBD investment grade office capital values fell for the first time since turning around in 2Q21,” JLL said.