The impact of the COVID-19 outbreak on class A office rents in Singapore’s central business district was not as apparent in first quarter 2020, as average rents remained firm at S$10.09 ($7.12) per square foot. Colliers does not expect a major change in rents this year, and the firm forecasts rents to decline by 4 percent in 2021, in view of slower demand and higher supply in 2022.
Vacancy tightened to 3.1 percent, as technology, media and telecommunications occupiers, and flexible workspace operators continued to drive demand.
The COVID-19 pandemic is expected to be more apparent in the second quarter 2020, presenting opportunities for occupiers to make decisions in a more tenant-favorable environment.
Total office or mixed-office investment volumes fell 32 percent quarter-to-quarter to S$746 million ($524 million) in the first quarter of 2020, bringing the rolling 12-month volume to S$7.4 billion ($5.2 billion, –2.6 percent quarter-to-quarter).
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