Office rent in Singapore’s central business district were 51.7% lower than Hong Kong’s in 2012, according to Cushman & Wakefield’s Office Space Across the World 2013 report released Wednesday. Singapore company registration specialist Rikvin is optimistic that the announcement will set off renewed interest to start a Singapore company.
According to the report, current going rates in Singapore are approximately S$8.61 psf, representing almost half of Hong Kong’s going rate of S$16.66 psf. This in turn places Hong Kong as the second most expensive places for office property in 2012. London emerged as the most expensive city last year for commercial property. Rio De Janerio, New Delhi and Tokyo came in as the other five most expensive cities for commercial property in the world last year. Singapore, on the other hand, came in as the 14th most expensive city for office prices.
The report also said that Singapore office rents have fallen 16% y-o-y. This is in part due to the government’s continuous efforts to decentralize business activities to other commercial hubs outside of the city centre or CBD.
Although the cost of living and doing business are rising, office rent is still more affordable here compared to Hong Kong. In addition, Singapore offers some creature comforts that are attractive including better air quality, connectivity and diverse choices for education. Altogether, it still makes sense to establish a base in Singapore, as a means to tap opportunities in the region.
Analysis by Rikvin shows that multinational firms such as HSBC, BW Marine and Rolls Royce have moved to or established their offices in non-centralized commercial hubs such as the Changi Business Park and Mapletree Business City in Alexandra.
In addition, and as indicated in a former announcement, the Singapore government has recently revealed its plans to develop 13 million sqm of commercial space to complement the existing commercial areas by 2030. In the north of Singapore, the North Coast Innovation Corridor spanning between Woodlands and Punggol will be created. In the east of Singapore, the Changi Business Park, Tampines Regional Centre and Lorong Halus area are set to be further developed as well.
Ms. Christine Lim, General Manager of Rikvin, is optimistic that the announcement will motivate entrepreneurs to opt for Singapore company incorporation. “In spite of current socio-political debates, Singapore is still an attractive place to do business in the Asia Pacific region and is in want of entrepreneurial minds who can contribute meaningfully to its social and economic fabric,” she said.
“Although the cost of living and doing business are rising, office rent is still more affordable here compared to Hong Kong. In addition, Singapore offers some creature comforts that are attractive including better air quality, connectivity and diverse choices for education. Altogether, it still makes sense to establish a base in Singapore, as a means to tap opportunities in the region,” affirmed Ms. Lim.