Singapore prime office rents up 2.9% YoY in Q2, among the fastest in APAC: Knight Frank

Vacancy was also among the lowest in the region.

Prime office rents in the Lion City increased by 2.9% in the second quarter from a year ago, the sixth fastest in the Asia Pacific, according to data from Knight Frank.

Its latest APAC Office Markets report showed Singapore trailed behind Seoul which logged a 3.5% YoY Q2 growth, but still beat Phom Penh’s 2.7% increase during the same period. 

Australian markets Brisbane, Perth and Sydney recorded the three highest rental growth at 8.1%, 7.1% and 5.1%, respectively. 

Vacancy rate in Singapore was also among the lowest in the region at 5% in Q2, slightly above Tokyo’s 4.3% and lower than Taipei’s 6.4%. Seoul had the lowest at 1.5%.

Knight Frank, meanwhile, noted how the city-state’s prime office YoY rental growth has been slowing for four consecutive quarters 

On a quarterly basis, Singapore prime office rents inched up 0.2% to $11.28 per square foot per month, placing it at the middle of the pack. The three Australian cities took the top spot once again with QoQ rental growth rates ranging from 2.1% to 3.5%. 

“With occupiers remaining conservative in capex spending amid space consolidation and reduction by technology firms and banks, landlords on the island state are increasingly willing to negotiate to keep buildings filled,” Knight Frank said.