The slowdown will be more pronounced in office leases, said S&P Global Ratings credit analyst Hwee Yee Ong in a recent report.
Ong said Macroeconomic softening could temper business confidence this year which, in turn, will weigh on office demand.
"Firms may cut their real estate footprint or hold off on leasing decisions, particularly as hybrid work practices remain common," the S&P Global analyst said.
The expert added that the waning leasing demand from the technology sector will particularly weigh on the office sector.
"Technology firms globally are entering a phase of heavy retrenchments. Singapore has not been spared. Over 1,000 employees in the Singapore technology sector were made redundant from July to mid-November 2022, according to the Minister for Manpower, Tan See Leng. This is almost five times the number of retrenchments during the first half of 2022," she said.
"Technology firms have been one of the key drivers of leasing demand in recent years. As the entities give up or sublet offices, shadow space - floor area that is leased but not utilised - could increase," the S&P Global analyst added.
Bu hikaye Singapore Business Review dergisinin Issue 102 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Singapore Business Review dergisinin Issue 102 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
How TikTok powers cross-border shopping for Singapore retailers
The yellow basket feature allows viewers to purchase items directly during livestreams.
Income Insurance seeks to fill billion-dollar financing gap in climate transition
The region skimmed its carbon intensity by 2.8%, far below the 17.2% needed.
SIDS fights misconceptions in interior design with accreditation, education
The organisation is setting up a digital platform to speed up accreditation from 6 to 2 months.
IHH's proton therapy takes aim at tumours with precision and low risk
Leaving surrounding organs at risk during cancer treatment might become a thing of the past.
SingPost pivots from mail to logistics as e-commerce demand drives growth
It is banking on e-commerce to drive its logistics unit, which accounts for 69% of revenue.
Singapore needs SEA neighbours to power renewable energy transition
Experts favour Malaysia and Indonesia as renewable energy import sources.
Singapore's architecture blueprint spurs push to tackle brain drain in other sectors
Paying the country's architects just right will hopefully stop the brain drain.
Millionaires eye a piece of Singapore's rich colonial era
The country's remaining 6,500 shophouses are in high demand amongst the ultra-rich.
HDB resale portal unlikely to cut out property agents
The portal enables sellers to list their units themselves.
Factory and retail spaces shine as housing heads for worst market slump in 16 years
Its manufacturing and tourism rebound will spur demand for industrial and high-street shops.
