DBS Research says banks' office downsizing 'less than projected'

FINANCIAL firms are expected to return less office space than DBS Group Research had earlier projected.

"(It's) darkest before dawn. Most of the negative news on major occupiers space rationalisation is out, in our view," the brokerage said in a report on Friday.

DBS Research estimates that the total return of space by major financial institutions is about 0.5 million square feet (sq ft), which is "manageable" for the office market. This is less than the average annual demand over the past five years, it added.