Chart of the Day: Limited supply continues to boost office rents in Q3

Leasing costs are at $10 psf/monthly.

Rental costs for Grade A offices in the CBD continued their steep climb after rising by 2.7% to an average of $10 psf/monthly, according to real estate consultant Cushman & Wakefield. 

Marina Bay boasts the highest monthly rents of Singapore's office submarkets in Q3 at $11.43 psf followed by Raffles Place at $10.15 psf. On the other hand, leasing costs for offices in the city fringe and suburban areas are the lowest at $6.89 psf and $5.34 respectively. 

Also read: Tightening office vacancy rates loom in 2022 as tenants snap up limited supply

Cushman & Wakefield notes that the limited supply situation is fast stoking office rents to new heights as Singapore's Grade A CBD supply pipeline is poised to stay below 1 million sq ft from 2019 to 2021.

Tenants would have to wait three more years for a reprieve from high rents until the supply influx of 1.8 million sq ft that will be unlocked in 2022, the firm added.