Singapore

Singapore’s natural geographic constraints have always represented a challenge for the city-state, and this lack of space continues to be a hurdle for corporate occupiers. There is incredibly high demand for space of any type, especially in the CBD, as international businesses continue to see Singapore as a premier location for office space. This increasingly includes demand from major Chinese companies, tech firms, which are taking some of the largest single office spaces in the city, and looking for premium fit outs to match. Despite this sky-high demand, costs are relatively competitive. A high-specification fit out costs much less in Singapore (S$4,899 per m2) than other financial hubs in Western markets.

Part of the challenge for the market is the awareness of the space shortage, meaning that occupiers often acquire more space than they need currently to allow for future expansion, and may hold on to space they don’t need during a downturn. This naturally leads to inefficiency, and money goes into acquiring and maintaining space more than fitting it out.

However, we are seeing significant fit outs as Singapore continues to adjust to the rise of flexible working and co-working, changing space from more traditional set-ups to suit the needs of the future. This is also true for how much of buildings might be dedicated to office space. Increasingly, the city is seeing a demand for mixed-use space, adding residential and leisure space into the same core locations that might traditionally have been office-focused.