Singapore is 3rd most expensive globally for flexible office space; HK drops to 7th: Survey

The average cost of private office desk space in Singapore is US$834 (S$1,134) a month. ST PHOTO: LIM YAOHUI

SINGAPORE (THE BUSINESS TIMES) - Singapore is the third most expensive market for flexible offices in the world, coming behind two cities in the United States, New York and San Francisco.

New York tops the ranking with private office desk spaces costing an average of US$961 (S$1,307) a month, with San Francisco in second place at US$950.

The average cost of private office desk space in Singapore is US$834 a month, according to a survey out on Monday (March 28) by Workthere, a flexible office leasing agency under property consultancy Savills.

Executive director of commercial leasing at Savills Singapore Ashley Swan said it has seen strong recovery in Singapore's flexible office market in the last few months as more are returning to the workplace.

Singapore's increasing popularity for start-ups to set up offices here have also contributed to that growth.

"As we wait for new centres to open progressively over the next few years, the market remains relatively tight with vacant seats being snapped up quickly. Delays in construction mean that this trend is likely to continue for the foreseeable future," he added.

The other Asian city is Hong Kong. Once the world's most expensive office market, it has now dropped to the seventh place, with private office desk space costing an average of US$793 a month.

Savills had reported in January that office supply in Hong Kong had outstripped demand in the city, causing rents to fall and concessions to rise in order to attract tenants.

London is ranked in fourth place just after Singapore at US$803 per desk, followed by Berlin at US$800. These two are the most expensive European cities for flexible office spaces.

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