Singapore Flex Market Review 2022

The accelerated growth of technology companies, coupled with the Singapore government’s recent incentives to attract high-growth, high-tech entrepreneurs to set up and list their business in Singapore, is attracting a wealth of similar companies, all of whom have a high propensity to use flexible workspace.  

At 8.2% of total office space, Singapore currently has one of the highest penetration rates of flex space in the region. The recent expansion of tech giants within downtown Singapore is catalysing a shift in office occupier profile. Amazon recently took three floors of Citigroup’s office space in Asia Square Tower 1, while TikTok expanded at ORQ taking an Enterprise floor with TEC and Twitter have grown within CapitaGreen, both through Flex and traditional lease solutions. With flex supply continuing to grow, flexible workspace operators are establishing themselves as a key players within the Singapore real estate market. 

Corporates driving increased demand  

Demand for flexible office space saw a 37% increase in workstation volumes in 2020 as companies started to reconsider their working strategies. Although this did drop due to renewed lockdown restrictions throughout most of 2021, Q4 2021 started to show signs of recovery with an uplift of 48% in workstation demanded compared to the previous quarter. This was driven in part by large corporate occupiers shifting from traditional leases into flexible space through enterprise solutions. 

Desk rates 

Strong demand for flex space coupled with an influx of new high-quality supply means that downtown Singapore is still home to the most expensive office space in the city. This area continues to be a magnet for larger occupiers and as companies return to the office in 2022 and occupancy rates increase, prices in this area are expected to reach upwards of SGD 900 per workstation over the next six to 12 months.  

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