SINGAPORE: Singapore has set its position as the regional frontrunner in green office building adoption, with a remarkable 79% of its Grade A office spaces now certified under green building standards. This impressive figure places the city-state ahead of established markets such as Sydney (67%) and Melbourne (66%), according to a new report by CBRE featured in the latest Singapore Business Review story.
The rising trend of sustainability-focused buildings in Singapore has not gone unnoticed, with green-certified offices consistently enjoying higher occupancy rates than their non-certified counterparts. However, CBRE has observed that the rental premium for these eco-friendly offices is gradually narrowing. This shift is attributed to the high level of green certification already permeating the market, making sustainability features an expected standard rather than a unique selling point.
While green office buildings remain in high demand, the broader market is experiencing a shift in expectations. In the face of economic challenges, many businesses across Asia Pacific, including those in Singapore, remain firmly committed to achieving net-zero emissions. According to CBRE, 65% of companies in the region are continuing to pursue their sustainability goals, though many are adjusting their timelines, citing rising costs and implementation hurdles.
In response to the evolving landscape, CBRE highlights a growing trend of collaboration between landlords and tenants in Singapore. Both parties are increasingly adopting green leases and co-investing in energy-efficient retrofits, working together to decarbonise and drive sustainability forward. This shift towards partnership is a key step in overcoming the challenges posed by the transition to a low-carbon economy.
As Singapore continues to set the pace for green building adoption, its collaborative approach to sustainability may serve as a model for other cities aiming to balance environmental goals with economic realities.