Core CBD Premium, Grade A rents rise 0.6% QoQ to $11.53 per sq ft

Tight vacancies and flight-to-quality moves drove the increase.

Rents for core CBD Premium and Grade A offices continued to rise in 2Q23, markings its ninth consecutive quarter of increase.

In 2Q23, rents rose marginally by 0.6% QoQ to $11.53 per sq foot, data from Colliers showed.

Colliers attributed the increase to tight vacancies and flight to quality moves.

Looking at sub-markets, Shenton Way / Tanjong Pagar drove the rental growth for Q2.

Colliers, however, warned that rental growth may be impacted by the global market volatility.

“Due to the uncertain global environment, it has been observed that tenants are focused on cost management and hence are not rushing into making plans for relocation, choosing to monitor market developments instead. However, this could be an opportune time to plan their real estate needs, allowing them to take advantage of a variable market and good quality fitted out spaces coming to market,” Bastiaan van Beijsterveldt, managing director, Singapore at Colliers said.