Chart of the Day: Office vacancy rates in key areas could recover from 2018

Shenton Way and Marina Bay office vacancy rates could go down to 9.4% and 8.5% on average.

This chart from asset management firm DWS showed that Marina Bay saw the highest office vacancy rate at 19.3% back in 2017 compared to the markets in Shenton Way and Raffles Place.

The two other key office areas saw vacancy rates of 10.9% and 4.7% in 2017, respectively.

“Singapore, which experienced a supply surge in 2017, is expected to benefit from a strong cyclical recovery as supply pressures subside significantly,” DWS said.

According to the firm, the supply surge could ease up in the said areas, which could reduce average vacancy rates in Shenton Way and Marina Bay to 9.4% and 8.5%, respectively from 2018 to 2022. Meanwhile, the firm thinks that vacancy rates in Raffles Place could inch up to 6.8% on average from 2018 to 2022.