As all roads lead to Singapore for global businesses and investors as a geopolitical safe haven, demand for office space has been growing strong in the last few years boosting the rental prices at an even pace.
According to EDB (Economic Development Board), about 80 of the world’s top 100 technology companies have found their sweet spot in the garden city with its sound infrastructure ecosystem, aggressive and transparent policies etc.,
As convenience and flexibility prioritizes startups predominantly, and established corporations to some extent, flexible workspace operation has presently become mainstream asset class ranking top among six occupier sectors in CBD and elsewhere.
Upheld by new entrants, expansions and renewals amidst tight supplies, the 8% rental growth forecast for 2019 saw 5.4% fulfilled by first half and 7% by Q3 2019, well on track to fulfil the predictions by year end.
New buildings in CBD such as Frasers Tower, Guoco Tower and UIC Building, all completed within the last three years have improved the image in the precinct and rental rates along.
As AI (Artificial Intelligence) emerges as the future and initiatives like Singapore AI supporting the cause positioning Singapore as an AI R&D hub, Chinese AI start-up Sense Time with remarkable triple-digit percentage growth has expanded its presence in Singapore occupying about 10,000 sq ft on Fraser Towers with plans to triple its local workforce to 300 in the next three years.
Nevertheless, traditional occupier sectors also play their part in the foray, evident through American Express’ move to the three floors of One Marina Boulevard.
Expecting to bridge and build a community of Japanese and Singapore Companies, One &C o of JR East has opened 13,000 sq ft co-working space to accommodate 275 persons on the 11th floor of Twenty Anson in light of the recent MOU between EDB and JETRO (Japanese External Trade Organization) to strengthen ties between businesses of the two countries.
Since 2017, co-working market has grown from 7,00,000 sq ft to 1.4 million sq ft, which is likely to exceed 2 million sq ft by 2020.
In Q2 2021, after HSBC moves out, WeWork will take over 21 Collyer Quay (previously HSBC Building) of about 200,000 sf as part of its aggressive expansion.