\n<\/p>\n
Singapore’s office market remains supported by limited new supply and steady demand from sectors such as financial services.<\/p>\n
Mr McKellar noted that vacancy rates in prime office buildings have fallen from 5.5 per cent at the\u00a0start of last year to 3.3 per cent currently.<\/p>\n
Demand is also coming from artificial intelligence firms that initially incubated in co-working spaces before moving into conventional offices as they expand.<\/p>\n
While many began with small teams, some are now taking up between 10,000 sq ft and 100,000 sq ft as their operations grow, Mr McKellar noted.<\/p>\n
Analysts say the tight market is expected to persist.<\/p>\n
Mr Alan Cheong, executive director for research and consultancy at Savills Singapore, said around 609,000 sq ft of new office space is expected to be completed\u00a0this year, below the annual average of 1.12 million sq ft delivered between 2021 and 2025.\u00a0<\/p>\n
Supply is expected to remain below 1 million sq ft in 2027 before rising to 2.3 million sq ft in 2028, he added.\u00a0<\/p>\n
With supply constrained and tenants continuing to favour prime CBD locations, analysts expect office rents to continue rising in the coming years.<\/p>\n<\/div>\n
\n
TIGHT SUPPLY SUPPORTING RENT GROWTH Singapore’s office market remains supported by limited new supply and steady demand from sectors such as financial services. Mr McKellar…<\/p>\n","protected":false},"author":1,"featured_media":59903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/dam.mediacorp.sg\/image\/upload\/s--v1_oshDj--\/c_fill,g_auto,h_676,w_1200\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2021-08:cna,w_0.1\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/06\/11\/office_1.png?itok=lG5iHR-J","fifu_image_alt":"","footnotes":""},"categories":[2],"tags":[8326,24576,24577,24575,517,1764,10082,3284,5885],"class_list":["post-59902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-news-sg-global","tag-competition","tag-dangle","tag-intensifies","tag-landlords","tag-office","tag-pickleball","tag-popups","tag-retail","tag-tenants","wpcat-2-id"],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/59902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59902"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/59902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/59903"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}