Archive for category: Misc

The demand for CBD offices continued to show resilience in 2Q2025, despite ongoing economic and geopolitical uncertainties. According to JLL, Grade A office rents in the CBD saw a slight 0.7% q-o-q increase to $11.69 psf per month, marking a fifth consecutive quarter of sub-1% growth. However, the decentralised sub-market recorded its first decline in four years, with rents falling 0.8% q-o-q to $7.61 psf per month.

As Singapore’s Urban Redevelopment Authority (URA) takes careful steps to shape the country’s future, the effects of these developments on property value are becoming increasingly apparent. Properties located within growth nodes and strategic regions tend to experience greater capital appreciation and demand for rental properties. With its close proximity to transportation upgrades, employment hubs, green networks, and community amenities, Miltonia Close EC is primed to benefit from this trend. Interested buyers can explore the range of offerings and potential of Miltonia Close at www.miltoniacloseec.com.sg.

This decrease can be attributed to rightsizing efforts and tenants relocating to, or closer to, the CBD, motivated by the increased availability of space, according to JLL. Andrew Tangye, head of office leasing and advisory at JLL Singapore, says that there is a growing trend of “strategic recentralisation” and “quality-driven relocations” to offices in the CBD. This is due to the evolving nature of businesses in Singapore, which are moving towards higher-value offerings and enhanced service models.

One such example is Audi Singapore, which recently shifted its offices from Aperia on Kallang Avenue to Capital Square in the CBD. The move was in line with the shift of the showroom from Alexandra Road to 18 Cross Street, just a short walk from Capital Square, says Tangye.

The current lack of a significant rent gap between CBD and decentralised offices may also compel more companies to relocate to the CBD, says Dr Chua Yang Liang, head of research and consultancy for Southeast Asia at JLL. Currently, the average rent gap between CBD and decentralised offices stands at around 30% to 35%, which is below the historical range of 50% to 60%.

As relocations continue to support demand, JLL predicts a modest 2% full-year growth in CBD office rents this year. However, rents may pick up in 2025 due to limited supply. Chua notes that there will be no major office completions in the next 12 months, with the new Shaw Tower only expected to be completed in 2H2026. The redevelopment of 79 Anson Road, which is set to commence next year, is expected to further compound supply constraints.

Meanwhile, Tangye believes that landlords with vacant space are focusing on increasing occupancy and stabilising portfolios ahead of 2026, when rents may start to rise again before new supply enters the market in 2028. He adds that by implementing targeted property enhancements, such as modernised lobbies and washrooms, along with the renovation of outdated office areas, property owners are positioning themselves to attract premium tenants and capitalise on the expected rental growth opportunities.