Competitive Office Space

Singapore is becoming a more competitive place to locate a business in the heart of town, going by a global survey of the cost of running an office.

It is now ranked 86th among 111 locations worldwide on the list, which starts with the most expensive place. This is a good 19 rungs down from where it stood in 2002.

According to property consultancy DTZ Debenham Tie Leung, which conducted the survey, it is now cheaper to have an office in Singapore than Beijing, Melbourne and New Delhi, unlike previously in 2002.

The study found that the space to house a worker in the central business district here last year cost US$3,930 (S$6,720) annually on average, while it cost US$3,960 in Beijing, US$5,100 in Melbourne, and US$4,260 in New Delhi.

The study takes into account rent and other expenses like maintenance costs and property tax.

The DTZ report said that the cost of running an office in Singapore last year dropped 14 per cent from 2002.

Islandwide, 14.3 per cent - or 7.8 million sq ft - of office space available to the private sector is currently unoccupied.This was largely due to lower rents because of an oversupply of office space.

Experts say that businesses are taking the opportunity to relocate and consolidate their ventures in one location, Singapore.

They are being drawn not just by the lower rents but also by the incentives dangled by landlords, which include renovating or fitting out their premises on top of giving rent-free periods.