2024 Singapore Flexible Office Market Report

Singapore’s Flexible Office Market Overview

Singapore is Asia-Pacific’s most prominent global centre for business and finance, attracting multinational corporations and startups alike due to its strategic location, high-tech infrastructure, and pro-business environment.

In recent years, the flexible office market has gained significant recognition, particularly as businesses search for evolving work models. That said, flexible office spaces, encompassing serviced offices, private offices, coworking spaces, shared workspaces, and managed offices, offer adaptable and cost-effective solutions that cater to the dynamic needs of modern enterprises.

This report provides a comprehensive analysis of the Singapore flexible office market in 2024, comprising key performance indicators, supply and demand dynamics, influencing factors, and anticipated future trends.

Key Performance Indicators & Growth Factors

The Singapore flexible office market continued to expand in 2024, with the co-working space market projected to reach USD 407.8 million by 2030 at a CAGR of 24.3% from the forecast period of 2024 to 2030.

CBRE reported that Singapore remained a key player in the Asia Pacific market, with approximately 4 million square feet of flexible office space available in the first half of 2024, representing a portion of the 89 million square feet available across 20 major Asia Pacific markets.

The sustained growth of the Singapore flexible office market in 2024 can be attributed to several primary drivers, such as:

• The ongoing economic recovery in Singapore has spurred the emergence of new businesses and the expansion of existing ones, leading to a demand for flexible and adaptable office solutions. 
• Government initiatives, such as the Smart Nation and Startup SG programs, which aim to promote innovation and entrepreneurship and support the growth of non-traditional workspaces. 

2024 Supply of Flexible Offices in Singapore

Breakdown of Flexible Workspace Types

As of April 2025, there are 143 flexible workspace locations available for rent in Singapore. The majority of these are serviced offices and coworking spaces, accounting for 140 locations, while sublet spaces and shared offices make up the remaining 3 locations. This highlights that serviced and coworking spaces constitute the dominant segment in Singapore's flexible office supply.

Notably, only 2% of all available listings are shared spaces, indicating that private companies sharing their office space represent a smaller portion of the overall supply.

Average Floorspace Size

The average size of a sublet and shared workspace floorspace in Singapore is approximately 139 sqm. In contrast, coworking spaces and serviced offices in Singapore offer significantly larger floor plans, with an average size of 1,813 sqm.

Workspace Supply by Building Grade

Average Desk Prices

The average monthly desk prices vary depending on the type of flexible workspace. Managed spaces offer the most affordable option at S$525 per desk, followed by shared offices at S$549. Coworking desks have an average price of S$613, while sublet offices average S$724. Enterprise suites are priced at an average of S$742, and private offices command a slightly higher average of S$791 per desk. Virtual offices are the least expensive at S$179.
 

Supply Performance and Influencing Factors

The Singapore flexible office market has shown consistent growth in recent years, and multiple performance and influencing factors have played a part, such as:

• Average desk prices in Singapore for flexible office spaces rose 15% in the first quarter of 2023, driven by high demand and inflation.
• The overall economic conditions in Singapore, including its GDP growth and business-friendly policies, played a vital role in driving the expansion of the flexible workspace market.
• Real estate market trends, such as the availability and cost of traditional office spaces, also impacted the supply of flexible options.
• The sustained demand for flexible work arrangements, driven by the increasing adoption of hybrid models and the needs of startups and SMEs, continued to incentivise the growth of flexible office supply.

2024 Demand for Flexible Offices in Singapore

Inquiry Trends and Potential Conversion Insights

Office Hub's 2024 Annual Enquiry Summary has provided insights into the overall interest in flexible spaces in Singapore for the year 2024. The high volume of global inquiries (over 50,000) from which this Singapore-centric data is drawn suggested a substantial level of interest in the local market.

The average number of desired desks per inquiry stands at 5.3, indicating that inquiries often involve small to medium-sized teams. The average monthly rental budget is S$3,508, translating to an average monthly budget of S$627 per desk.

The desired rental term averages 13.1 months, suggesting a preference for relatively short to medium-term commitments. The preferred space size is around 27.4 sqm, and the average time to the desired move-in date is 51.8 days.

Singapore Flexible Office Market: Concise Occupancy Overview (2024)

According to CBRE, Singapore's broader office market in 2024 saw a more modest performance compared to the powerful 3.5% GDP growth. Leasing sentiment was tempered by factors such as high fit-out costs and the prevalence of hybrid work arrangements.

The completion of IOI Central Boulevard Towers had a significant impact on the Core CBD (Grade A) office market, causing vacancy rates to double from 3.6% in Q1 2024 to a high of 7.8% in Q3 2024. While progressive take-up improved this to 7.0% by Q4 2024, vacancy remained elevated. Consequently, Core CBD (Grade A) rentals saw minimal year-on-year growth of 0.4%.

Looking ahead, the ongoing evolution of hybrid work will shape office needs. While some companies, particularly in the TMT sector, foresee increased office usage, this may take time to translate into significant demand due to existing lease terms. In the near term, businesses are likely to focus on optimising current space.

Demanding Industry Segments & Why People Move to Flexible Offices

The demand for flexible offices in Singapore during 2024 was driven by various industry segments. Notably, the Digital/IT/Software sector, along with Finance/Accounting and Business Services, demonstrated significant demand for flexible workspace solutions.

Other sectors, such as Design/Creative, Logistics/Transport, Engineering/Architecture, and Manufacturing, also contributed to the overall market demand, albeit potentially at varying percentages.

In addition to that, according to the data available at Office Hub, several key drivers for businesses in Singapore motivated them to move to flexible offices:
 

Specific Demands in Singapore's Flexible Office Market

Specific demands for flexible offices in Singapore have also evolved in 2024 and are likely to continue making an impact in the years to follow. Some of these growing global trends include:

• Sustainability: Increasingly, businesses are prioritising environmentally conscious workspaces in Singapore. Flexible office operators in Singapore may find a competitive edge by incorporating sustainable practices and designs.
• Niche-Specific Spaces: The trend of niche-specific workspaces catering to the unique requirements of particular industries has also gained traction, as seen in other markets.

Meanwhile, other evolving requirements include enhanced technological infrastructure, wellness amenities, and community-focused environments that promote collaboration and networking.

Overall, the growing tech industry in Singapore, coupled with the need for agility and cost-effectiveness across various sectors, continues to fuel demand for flexible office arrangements.

What are the Top Features and Facilities People Look For?

Tenants looking to rent flexible office spaces in Singapore in 2024 prioritised a range of features and facilities that support productivity, comfort, and professionalism. The data gathered by experts at Office Hub exhibited:
 

Preferred Workspace Type

Similarly, tenants' preferred workspace types recorded at Office Hub’s co-stats for the year 2024 in Singapore included:
 

Regional Analysis of the Singapore Flexible Office Market

The Singapore flexible office market in 2024 showed varying characteristics across key business districts and average office rental price estimations, covered below:

Marina Bay

CBRE reported that Marina Bay remained a highly prestigious and sought-after location for flexible office spaces, attracting premium businesses, particularly in the finance and legal sectors.

The average monthly rent per square foot for Grade A offices in Marina was S$12.83, reflecting the prime location and high-quality facilities available. The demand for flexible spaces was primarily driven by companies seeking a prominent business address and excellent connectivity.

Raffles Place

As the core of Singapore's financial district, Raffles Place remained a prime location for flexible office spaces, housing major financial institutions and corporations.

The average monthly rent per square foot for Grade A offices in Raffles Place was S$10.12, reflecting the area's central location and premium office buildings. The demand remained consistently strong from businesses seeking proximity to financial networks and high-end amenities.

Tanjong Pagar

Located in Singapore's CBD, Tanjong Pagar offered a blend of historical charm and modern amenities, which made it an attractive location for a diverse range of businesses.

The average monthly rent per square foot for Grade A offices in Tanjong Pagar was S$8.59, offering a balance between cost and prestige. The district attracted a mix of tech startups, multinational corporations, and businesses in shipping and trading due to its proximity to key infrastructure.

The Inquiry-to-Deal Summary of Singapore in 2024

This section explores the critical aspect of how inquiries translate into finalised deals within Singapore's dynamic and flexible office market in 2024. Understanding the efficiency of this conversion process provides valuable insights for both operators and potential tenants.
 

The Enquiry-to-Deal Ratio: A Key Performance Indicator

Office Hub's data revealed that 12.3% of enquiries were successfully converted into signed deals. This figure served as a benchmark for the market's overall efficiency in matching tenant requirements with available flexible office solutions.

Time Was of the Essence: From Enquiry to Move-In

The speed at which an enquiry progressed to a signed agreement and subsequently to move-in was a crucial factor for both tenants and operators. Office Hub's data provided valuable metrics on these timelines:

• Average Days from Enquiry to Signed Deal: 22.2 days. This represented the average duration it took for a prospective tenant to find a suitable space, negotiate terms, and finalise the agreement after their initial enquiry.
• Average Days from Signed Deal to Move-In: 24.9 days. This was the average time between signing the lease agreement and the tenant's physical occupation of the workspace. This period typically involved administrative processes, any necessary fit-out adjustments, and logistical arrangements.

These timelines highlighted the relatively swift nature of transactions in the flexible office market compared to traditional long-term leases. The total average time from initial enquiry to move-in was approximately 51.7 days (22.2 days + 29.5 days).

Deal Characteristics: Size, Value, and Duration

Analysing the characteristics of finalised agreements provided a deeper understanding of the typical tenant profile and the nature of arrangements in the Singapore flexible office market:

• Actual Average Team Size: 4.1 people. This indicated that the majority of deals were for smaller teams, aligning with the flexibility and scalability that these spaces offer.
• Actual Average Monthly Desk Rate: S$636. This represented the average cost per workstation per month across all signed deals.
• Actual Average Contract Value: S$29,843. This was the total average value of the lease agreements signed.
• Actual Average Agreement Term: 10.1 months. This highlighted the preference for relatively short-term commitments, a key advantage of flexible offices.

These averages provided a snapshot of the typical deal in the Singapore flexible office market. However, it is essential to note that variations can occur depending on factors such as location, workspace type, and the specific operator.

Unpacking the Signed Deals: Preferences, User Profiles, and Deal Discounts

Understanding the types of properties and workspaces that were most frequently let, along with the nature of the users, offers valuable insights into market preferences and demand drivers.

Office Hub's data indicated that serviced offices have aligned with overall demand trends and secured the most frequently signed deals. Similarly, the preferred property types situated in prime business districts offered good connectivity and amenities.

A diverse range of businesses, including startups, SMEs, and larger corporations seeking satellite offices or project spaces, constituted the user base.

Additionally, Office Hub's data revealed that an average discount of 5.1% was applied to signed deals. This suggested that negotiation played a role in the finalisation of agreements. However, the size of the discount varies depending on factors such as the lease length, the number of desks required, and overall market conditions.

The Future of Flexible Offices and Expected Challenges in Singapore

The Singapore flexible office market is expected to undergo continued evolution, shaped by several key trends covered below:
 

• Technological advancements, particularly in areas such as AI, VR, and AR, are expected to enhance the functionality and user experience of flexible workspaces, including features like virtual meeting rooms and AI-powered workspace customisation. 
• The sustained adoption of hybrid work models will continue to drive demand for flexible office solutions, enabling businesses to balance remote work with in-office collaboration. 
• Singapore's stable economic outlook is anticipated to support the continued growth of the flexible office market, attracting both domestic and international businesses. 
• The burgeoning AI industry is also expected to emerge as a significant driver of office demand in the future.

However, JLL noted that the potential supply constraints in prime locations within Singapore's CBD in the coming years could lead to tighter availability and might influence rental growth.

Conclusion

In 2024, Singapore's flexible office market showed resilience despite shifting work patterns and economic factors. Although overall demand declined slightly, various flexible workspace options remained a top choice, with serviced private offices and coworking spaces being the most favoured.

Supply growth normalised following a period of rapid expansion. Average desk prices varied by type and location but generally trended upward in recent years. Cost savings, flexibility, and access to amenities were key drivers for adoption, with tenants prioritising functionality, comfort, and a professional setting. Prime CBD areas continued to dominate regionally.

The future outlook for Singapore's flexible office market remains positive, driven by technology, hybrid work arrangements, and economic stability; however, potential supply limitations in central areas require consideration.

Ready to redefine your workspace strategy in Singapore or expand your horizons globally? Office Hub provides a platform to browse, compare, and rent premium, flexible offices with ease. Connect with us now to find the ideal space that propels further business growth and empowers your team.