Chart of the Day: CBD office supply could hit 4.6 million sqft in 4 years

New offices in the Marina Bay Area are expected to boost supply.

This chart from Edmund Tie shows that the office supply pipeline in the CBD will be at 4.6 million sqft in the next four years, translating to 1.1 million sqft per annum.

The report noted that this figure is lower than the 3- and 5-year average net supply of 2.1 million sqft and 1.7 million sqft, respectively. Most of the 2023 supply will be coming from the Marina Bay Area, contributing around 1.3 million sqft.

In their previous report stated that CBD office supply will hit 3.3 million sqft in 2022, which is about half of the three and five-year average net supply. In addition, CBD office development pipeline could reach 0.5 million sqft in H2 2019. The 352,000 sqft office property at 9 Penang Road, 139 Cecil Street and the renovation works at China Square Central are expected to be completed by end-2019, which is expected to significantly add up to the supply pipepline.

As of now, the islandwide net absorption in Q3 increased nearly four-fold to 851,000 sqft in whilst its occupancy rate improved 1.2 ppt QoQ to 94.4%, which is lead by rates in the decentralised area. Co-working and technology firms continued to be the key occupiers of CBD office space with several international companies setting up their regional offices in Singapore.