Despite fewer commercial spaces being released and slight holdbacks from tenants in the leasing market – office rents have fallen 20 per cent since 2015 – property analysts are still hopeful for a 3 per cent overall rental growth in prime Grade A office space, mostly in the Central Business District (CBD). The rebound in rental prices is expected to happen in the later half of 2018, with stabilisation possibly occurring even earlier.
At the moment, average monthly rents of an office space in Marina Bay hovers around $9.05 psf, followed by $8.72 psf in Raffles Place, $8.42 psf at City Hall and $7.86 psf in ShentonWay and Tanjong Pagar. The weakening oil and gas sector has put pressure on businesses and affected market sentiments all round.
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But with announcements of multi-national companies such as Facebook moving into the Marina Bay area and upcoming city fringe developments such as South Beach giving more traditional office districts a run for their money, 2017 could be the time to pick off potential units which may be affordable options when rents do rise come next year. The next wave of new office spaces which will enter the market is projected for 2020 and 2021.