THE Urban Redevelopment Authority's rental index for office space in Singapore's central region rose 1.3 per cent in the second quarter of this year over the previous quarter. This is a smaller increase compared with the 3.3 per cent quarter-on-quarter rise in Q1 2021.
Its price index for office space in the central region rose 0.9 per cent in the second quarter, contrasting with the 2.7 per cent drop in the previous quarter.
Islandwide, as at the end of Q2 2021, there was a total supply of about 697,000 square metres gross floor area of office space in the pipeline, lower than the 761,000 sq m as at the end of the previous quarter.
The amount of occupied office space shrank by 23,000 sq m net lettable area (NLA) in Q2 2021, after contracting by 19,000 sq m in the previous quarter. On the other hand, the stock of office space grew by 34,000 sq m NLA in Q2 2021, after shrinking by 9,000 sq m in the previous quarter. As a result, the islandwide vacancy rate of office space climbed to 12.6 per cent as at end-Q2 2021, from 11.9 per cent as at end-Q1 2021.