Workstations rates up 15% YoY in Q1: report

The Instant Group said the desks in Orchard Area went up 17%.

A real estate report showed that work areas in Singapore continue to increase, with rates growing 15% year-on-year in the first quarter (Q1) of 2023.

According to The Instant Group, the rates in the Orchard area increased the most, which grew 17% in Q1 2023, with a desk costing an average of $958 per month.

Prices for Singapore’s Central Business District and Tampines are up by 9% and 2% respectively, while Suntec rates have dropped by 1%.

READ MORE: Chart of the Day: Rental growth of Grade A offices to be subdued in 2023

The report also showed that rate hikes led to a decrease in demand, which fell 44% YoY in Q1 2023.

Transactions growth

In Singapore, demand for 10-25+ desks grew by 53% in 2022 when compared to 2021, and already in Q1 2023, 44% of the demand has come from 10 - 25+ desk size enquiries. 

“This demand is also translating into transactions, with deals for 10-25+ desks up by 40% in 2022 when compared to 2021,” read the report.

Demand from the tech sector and consulting firms for office space grew.

The Instant Group’s report findings also reveal that the average contract lengths for firms occupying flexible workspaces are continuing to increase, up by 37% in 2022 when compared to 2021.