While technology and social media firms have hogged the headlines in recent years for aggressively snapping up office space in the Central Business District (CBD), the mood has turned more cautious as funding dries up and interest rates keep climbing. Sea’s e-commerce outfit Shopee and startup StashAway are among those that have already cut staff.

Against the backdrop of economic headwinds, leasing demand for office space could cool in 2023 as firms reassess expansion plans, while the growth in office rents should slow. However, thanks to Singapore’s positioning as a financial hub, there could still be continued demand from the likes of family offices as well as from co-working operators, as companies rein in capital expenditure and favour flexibility.

CBD (Grade A) office rents could rise 5.5-6.5 per cent in 2022 before easing to 2-4 per cent in 2023, according to Cushman & Wakefield.