Net effective costs for prime occupiers in Singapore hit US$144.25 

Singapore has the 7th highest net effective cost in the world.

Singapore's net effective costs for prime occupiers remained at US$144.25 in 3Q23, the seventh highest in the world.

Globally, Savills said the average net effective costs for occupiers taking top-quality office space in key cities rose 0.8% in 3Q23.

Meanwhile, Savills also reported that Singapore has seen a surge in office vacancy rates at the end of 2022 from 5.6% to 7.4% in 3Q23.

“The Singapore office market has remained largely flat throughout 2023 and Q3 has been no different with rents remaining mostly unchanged from the previous quarter and fit-out cost stabilising," said Ashley Swan, Executive Director, Commercial Leasing, Savills Singapore.

Economic headwinds continue to be at the forefront of occupier decisions which has led to a decline in leasing activity across the market. Whilst overall vacancies have crept up in 2023, we do not expect occupier costs to change significantly for the remainder of the year as the lack of new supply persists," Swan added.