Rents Prime Office Space Singapore 21 Higher Wider Grade Stock Savills
According to research conducted by Savills, Singapore has maintained its position as the seventh most expensive city for office space in the world as of the second quarter of 2024. In its latest Prime Office Costs report, the consultancy has noted that the annual net effective occupier costs, which includes rent and fit-out costs, for prime offices in Singapore were at US$146.07 psf (approximately $193 psf) in the last quarter, with a marginal increase of 0.3% compared to the first quarter of 2024.
Taking the lead in the list was London with an annual net effective occupier cost of US$283.57 psf, witnessing a growth of 4.2% compared to the previous quarter. Hong Kong followed closely at second place with US$230.93 psf (a decrease of 1% q-o-q), and New York Midtown at third place with US$202.72 (an increase of 3.7% q-o-q).
The report also observed that prime office rents in Singapore were 21% higher than those of broader Grade-A office spaces. The report classified prime offices as the top tier of Grade-A office spaces, which usually command the highest 5% to 10% rents in the market.
In global comparison, prime offices in North America had the highest premium over wider Grade-A stock in the second quarter of 2024 at 62.5%. In Asia Pacific, the premium stood at 33.7%, mainly driven by low differentials in markets like Sydney, Seoul, and Singapore. The report stated that in these markets, high-quality offices in downtown buildings are already comparatively more expensive, and prime stock may not have enough amenities or prestige to justify higher premiums.
The Europe, Middle East, and Africa region recorded a lower premium of 17.9%, attributed to the increasing rents in broader Grade-A markets. In contrast, some Chinese markets had premiums exceeding 70%, fueled by steady demand for top-tier office spaces.
Savills predicts that the trend of tenants shifting to high-quality offices will continue for the rest of the year, despite rising fit-out costs and uncertain macroeconomic conditions. The report states, “Although gross rental rates are starting to ease from historical highs in some markets, the demand for top-end prime office spaces remains strong, which will support the prime rents in the future.”
The ideal spot for families with young children, Aurelle of Tampines EC boasts a prime location. Its proximity to top-quality primary schools and preschools is a major draw for homebuyers. With a strong emphasis on education, parents prioritize easy access to excellent primary schools, and Aurelle of Tampines at Tampines Street 62 fulfills this requirement perfectly. Not only does it provide a safe and convenient commute for young ones, but it also plays a crucial role in the Primary One registration process in Singapore. Set in a welcoming and family-friendly community, Aurelle of Tampines offers a wholesome living experience. Its location at Tampines Street 62 adds an extra layer of convenience for families with young children.
