SINGAPORE – Singapore has been ranked among Asia’s top commercial real estate locations with attractive submarkets for technology, media and telecommunications (TMT) occupiers, according to a research report by property services firm Colliers International.
In particular, the Shenton Way/Tanjong Pagar district was rated top in Singapore for TMT firms and flexible workspace operators due to its “excellent accessibility”, Colliers said on Monday (May 27), with TMT occupancy at 21 per cent of total space and current vacancy at 3.1 per cent.
Rejuvenation is supporting the district, with two new Grade A buildings since 2016 and a couple more to be completed in 2020-2021, said the firm. Accessibility is excellent, with MRT stations at Raffles Place and Tanjong Pagar and Telok Ayer, plus many bus routes, Colliers added.
“City Hall and the Raffles Place/New Downtown area are also good locations with ample supply of quality office stock,” it noted.
The extension into Marina Bay or New Downtown has added more premium buildings and solidified the city’s financial hub status. But with technology occupancy about 12 per cent of the total, Raffles Place New Downtown cannot be called a tech cluster at present, said Colliers. On the other hand, the office stock consists of many premium Grade A buildings, with vacancy at 3.4 per cent, it added.
Colliers’ research uses four metrics – existence of a tech cluster, availability of office stock, accessibility and cost of rent – to identify the top city submarkets for TMT occupiers.
TMT companies have become a key driver of demand for office space, said Andrew Haskins, executive director of research for Asia at Colliers.
These submarkets are typically in the central business district (CBD) or CBD fringe locations for large TMT enterprises, while smaller tenants often prefer business parks, Mr Haskins said.
Other top tech locations in Asia include Hong Kong, Bangalore, Shenzhen, Beijing, Shanghai and Tokyo, according to the report.
In India’s Bangalore, Colliers recommended the Outer Ring Road, Whitefield and North Bengaluru for TMT enterprises, while Hong Kong’s Causeway Bay, Quarry Bay and Cyberport are said to attract top talent with optimal locations and premium office facilities.