Question

Mr Liang Eng Hwa: To ask the Minister for Trade and Industry (a) whether the recent rise in rental prices of commercial properties have affected Singapore’s competitiveness and attractiveness as a business destination of choice; and (b) whether more can be done to moderate further rental increases.

Oral Answer (to be attributed to Minister of State for Trade and Industry Low Yen Ling)

1. Globally, inflation has stayed elevated, and the cost of doing business, which includes rental prices, has also increased. The rental index of office spaces in Singapore has increased by an average of about 1.35% per annum in the last three years. While rental for office spaces is higher than the pre-pandemic level, it remains below historical peaks in 2008 and 2015. In this same period, the vacancy rate for office spaces has remained stable, at around 11 to 13%.

2. Between 2023 and 2025, more than 530,000 square metres of office space is expected to be completed. This is about 40% higher compared to the past three years combined and can help to cater to the demand and moderate rent increases over time. Rental continues to comprise a modest proportion of overall business costs for most sectors in Singapore. The Government will continue to monitor the market. We are committed to ensuring Singapore’s competitiveness and attractiveness as a business destination.