Prime office rents rise 3.4% in 1Q24

Knight Frank said rent rates could stabilise in the second half of 2024.

The rent rate in Singapore’s prime office market increased by 3.4% to $11.20 per square foot per month in the first quarter of 2024, backed by positive rental reversions.

In its “Asia-Pacific Q1 2024 Office Highlights,” Knight Frank reported that prime rent was up 0.6% versus the previous quarter.

Occupancy cost as of the first three months of 2024 was $155.38 per square foot per year (US$114.18), the second highest in the APAC region.

The real estate agency noted that rent rates could stabilise in the second half of 2024 as the technology and financial sectors undergo restructuring.

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Knight Frank reported a 4.3% office vacancy rate in the city-state for the first quarter, expected to remain stable throughout the year.

Overall, APAC prime rents fell 3.2% year-on-year, the seventh consecutive quarterly drop due to deepening rental declines in Chinese Mainland cities, which reached record lows during the quarter.

Of 23 cities tracked, 15 reported stable-to-increasing rents year-on-year, up from 13 in Q4 2023.

Knight Frank reported that the regional vacancy rate increased to 14.9% and will rise further due to the ongoing expansion of office space supply.

APAC’s prime office sector will remain tenant-favourable in 2024, with the vacancy rate expected to stay on an upward trend. 

US$1=S$1.36