Prime Grade office rents were not deterred by the slowing economy: expert

Office rents in Raffles Place/Marina Bay grew 0.8% QoQ and 5.1% YoY.

A study from Knight Frank showed that Prime Grade office rents in the Raffles Place / Marina Bay precinct went up 0.8% quarter-on-quarter (QoQ) and 5.1% year-on-year (YoY) in Q3 2023.

The prices averaged $11.05 per square foot and per metre. 

Following this, Knight Frank said the slowing economy did not deter office rents from holding up, with prime office rents growing a moderate 3.4% in the first nine months of 2023. 

In the remaining months of the year, Knight Frank sees that prime office rents are expected to maintain as CBD office supply will continue to remain tight.

Occupancy levels in the Raffles Place / Marina Bay precinct, and in the overall CBD were also healthy at 96.0% and 94.4%, respectively in Q3 2023. The remaining relatively stable from the corresponding levels of 95.8% and 94.1% in the previous quarter. 

“Most office occupiers in quality office buildings in the CBD were generally more inclined to renew their rental contracts due to cost efficiencies compared to relocation,” said Knight Frank.