Singapore seen to get lower office space surplus by 2033: Savills

Aside from Singapore, Mumbai and Seoul may also see lower office space.

The new office supply in Singapore remained relatively low from 2020 to 2022, a study from Savills showed.

In 2022, considering the withdrawal of office space from the market and new additions, the net lettable area (NLA) is recorded at 926,000 sq ft, said Savills.

For 2023, despite the influx of 1.9 million NLA of new space, a significant portion (1.26 million sq ft) is attributed to IOI Central Boulevard. 

Considering potential project delays, the upcoming development may spill over into the supply figures for 2024. 

Cumulatively, from 2024 to 2028, the projected new supply stands at 3,196,000 sq ft NLA.

Against this backdrop, Savills said there is an increasing number of employees going back to the office but tech firms still adopt flexible working policies.

Aside from this, a hybrid working model is anticipated, driven by the need to retain millennial and Gen Z staff who value remote work and occupiers’ need to reduce rental overheads.

Globally, the US will likely have highest future office availability with the APAC region seen to be the lowest.

Alan Cheong, executive director of Savills Research & Consultancy, said, "Whilst office space in most developed economies faces excess supply in the coming years, Singapore remains a relatively tight market due to a lack of new supply, which offsets the expected decrease in demand as companies adopt hybrid work models."