According to data from the Urban Redevelopment Authority, core central business district (CBD) occupancy rates have declined by 1.2 percentage points (ppt) y-o-y, due mainly to the addition of IOI Central Boulevard. Lai thinks the remaining vacancies at IOI Central Boulevard could be taken up in less than a year.
The majority of new office supply in 2024 has been absorbed, and concerns of an office downturn are unlikely, says DBS Group Research analyst Dale Lai.
“Initial concerns surrounding the 2 million sq ft of new office supply were overstated, as the two major developments that contributed most of the stock have achieved healthy pre-commitment rates of 70% without any major disruptions to the overall market,” writes Lai in a Dec 12 report.
