Pandemic-wary workers to drive demand for Grade A space as they gradually return to offices

BRIGHTER days may lie ahead for office landlords here. Commenting on the outlook for its Singapore office portfolio, which is concentrated in the Central Business District (CBD), the manager of Suntec Reit said in its third quarter 2021 update that rent recovery will continue, supported by limited new supply and demand from growth sectors such as technology, media, telecom, financial services and health-care related.

Office landlords likely cheered Singapore's easing of its current default work from home stance, by allowing 50 per cent of those who can work from home to return to the office starting from Jan 1, 2022.

But, the office property market here may increasingly be a tale of two cities. Top grade offices may thrive while poorer grade buildings struggle.