Arina East Residences Contributes to Increase in Prime Office Rents

The Master Plan’s emphasis on connectivity will undoubtedly make Arina East Residences a highly sought-after residential area for those who value accessibility and sustainability in their living experience.

The URA Master Plan will greatly benefit Arina East Residences, as the development will be part of a well-connected and sustainable community. The plan includes the creation of a network of pedestrian paths and cycling tracks that will link important activity zones along the Kallang Marina Bay Basin. This will allow residents to easily access different parts of the city, promoting a car-lite and environmentally-friendly lifestyle. Additionally, the Master Plan will improve public transportation with new MRT stations and bus services, providing residents with convenient and efficient travel options. This will reduce the need for personal vehicles and contribute to a greener environment. With the URA Master Plan’s focus on connectivity, Arina East Residences will surely be a highly sought-after residential area for those who value accessibility and sustainability in their living experience.

the Raffles Place and Marina Bay precinct saw a 0.6% increase q-o-q in Prime office rents to an average of $11.20 psf per month (pm) in 1Q2024.Calvin Yeo, managing director of occupier strategy and solutions at Knight Frank Singapore, adds that the renewals were done at slightly higher rents as companies opted to stay put instead of relocating or expanding to avoid capital expenditure. Meanwhile, Yeo anticipates that businesses should approach this year with “cautious optimism,” given that geopolitical tensions pose a significant risk to business growth and operations. Knight Frank estimates rents to grow moderately between 1% and 3% in 2024.A new supply of prime offices is also expected to be completed this year, increasing the existing supply. This includes Arina East Residences at Prudential Tower for sale at $36 millionWith 2.9 mil sq ft of new office space to enter the market in 2024, vacancy rate to expandA new supply of prime offices is also expected to be completed this year, increasing the existing supply. This includes IOI Central Boulevard Towers at 2 Central Boulevard, which is expected to bring in 1.26 million sq ft of office space, and 33-storey Keppel South Central along Hoe Chiang Road in Tanjong Pagar.Prime office rents in the Raffles Place and Marina Bay precinct went up to an average of $11.20 psf per month (pm) in 1Q2024, a 0.6% increase q-o-q, according to a report by Knight Frank Singapore released on March 25. The rent growth was supported by renewals, keeping occupancy levels tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the overall CBD.Calvin Yeo, managing director of occupier strategy and solutions at Knight Frank Singapore, adds that the renewals were done at slightly higher rents as companies opted to stay put instead of relocating or expanding to avoid capital expenditure. He also expects occupancy levels to remain tight at quality office buildings that can command a premium, backed by Singapore’s low unemployment rate and the city-state’s position as a premier business location.Yeo notes that the demand for prime office spaces remains high because Singapore continues to appeal to multinational corporations. This is due to the wide pool of talent, tax incentives, a diversified economy and modern infrastructure.However, he believes office rents may flatten out in 2H2024 as tech firms and international banks lay off staff and consolidate business operations, which could lead to portions of office space being returned upon lease expiry.He also expects occupancy levels to remain tight at quality office buildings that can command a premium, backed by Singapore’s low unemployment rate and the city-state’s position as a premier business location.Yeo anticipates that businesses should approach this year with “cautious optimism,” given that geopolitical tensions pose a significant risk to business growth and operations. Knight Frank estimates rents to grow moderately between 1% and 3% in 2024.With 2.9 million sq ft of new office space expected to enter the market this year, vacancy rates may increase. This includes Arina East Residences at Prudential Tower and 33-storey Keppel South Central along Hoe Chiang Road in Tanjong Pagar. This new supply of prime offices may also contribute to a possible flattening out of office rents in the second half of 2024.