Singapore’s flexible office market grew by 22% last year, outstripping the growth of mature markets in Sydney, San Francisco and London, making it the third fastest growing market after Melbourne and New York, according to global flexible workspace specialists The Instant Group. Desk rates are set to increase as demand continues to grow, but with an average desk cost of $558 in Singapore, businesses are easily able to secure office space in some of the most coveted areas of this key global market.
Last year, Instant research revealed that co-working and hybrid space in Singapore had increased four times in size in four years, making the country a strong part of overall APAC market growth. As a key urban location in the Asia Pacific region with desk rates significantly lower than other key cities like Shanghai and Hong Kong, and a massive 57% cheaper than New York, Singapore is set to see even further growth as new operators set up in key locations.
This year, the flexible workspace market in Singapore has already seen a 17% increase in the number of centres offering co-working, flexible and hybrid office space. Despite a massive 33% rise in flexible centres in North Singapore, over 90% of flexible workspace centres are still located in Singapore’s CBD, with 200 centres currently operating in Central.
In general, the economy performed well in Singapore during 2017, with service industries such as finance and transport among the main drivers of growth. Many companies are based within the Central area, but the government is planning on creating new business zones outside of the central district. Towards the East, there is a gradual extension from the core city, with the airports in that area making it a natural hub for the aviation sector.
This year, demand for serviced offices has outstripped the dominant hybrid space market, with a 48% increase overall for serviced compared to 34% for hybrid.
Singapore’s Office Market
Please note all figures in Singapore Dollars
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The global flexible office market is growing as more businesses step away from traditional office space and lengthy leases and move towards more agile ways of working, flexible leases and improved networking opportunities.
Research by Instant Offices, which collates more than 20 years of data, shows businesses can save up to 73% by choosing flexible office space over conventional leased space in the world’s major cities. They are also able to set up in prime locations that may otherwise be inaccessible.
And with larger companies seeing the benefits, demand continues to grow. The proportion of office space occupied by flexible workspace in Singapore is projected to steadily increase as more operators try to meet this demand.
The Instant Group: Flexible Workspace Specialists
The Instant Group is the global flexible workspace specialist. Underpinned by unrivalled expertise, Instant tailors unique solutions to help businesses of all sizes to grow, drive savings or gain invaluable insight. Established in 1999, The Instant Group has achieved 23% compound growth over the past four years and continues to expand with private equity funding secured from MML Capital in 2012. With offices in London, Berlin, Dallas, New York, Hong Kong and Sydney, The Instant Group employs more than 100 experts and has clients in 113 countries. For more information, visit www.theinstantgroup.com.