Temper the optimism in Singapore office buildings

IN the early days of the Covid-19 pandemic, workers in many cities across the world abandoned physical offices and worked from home. Questions arose about the fate of office buildings. Would these buildings become empty shells and see their values plummet?

But, aided by the rollout of vaccines, much of the world, including Singapore, has learned to live with Covid. In 2022, many workers are commuting to physical offices, and Singapore’s Central Business District (CBD) is getting back its buzz.

Fortunes are looking up for office landlords here. The Urban Redevelopment Authority’s office rental index in the central region showed an increase of 2.4 per cent quarter-on-quarter, picking up pace from the 1.6 per cent growth in the previous quarter.