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Tenants relocating to newly completed premium spaces drove the spike in demand in Singapore, the report said.
The city state, widely deemed Southeast Asia’s top finance hub, also saw rents improve by 1.3 per cent to S$12.10 (US$9.42) per square foot per month as of the second quarter, according to a separate report by CBRE.
“Singapore’s office demand was spurred by companies attracted to its macroeconomic stability, geopolitical neutrality and suitability as a regional business hub,” said Mike Davis, managing director for occupier services at Colliers Asia-Pacific. “There was also a spate of relocations due to a flight to quality.”
With the supply of high-end office space in Singapore’s central business district set to remain tight in the next two years, Davis said growth in prime office rents was likely to accelerate.
Overall, leasing activity across 11 key markets tracked by Colliers in Asia-Pacific rose 9.6 per cent to 4.5 million square metres (48.4 million sq ft) in the first half from a year earlier, the report said.
Besides Singapore, the Philippines and Japan also supported the regional growth, with leasing demand growing by 56 per cent and 55 per cent, respectively, the consultancy said.
