OFFICE SPACE DECENTRALISATION - THE CURRENT STATUS

Abstract

Economic growth has initiated a robust demand for office accommodation, therefore leading to rapid development within the Central Business District (CBD) of Singapore. As a result, congestion and overcrowding is seen in that area. Recognising this urgency, the government advocated a policy of decentralisation to the outlying areas. Under the 1991 Revised Concept Plan, Regional, Sub-regional and Fringe Centres are proposed for the purpose of decentralising commercial activities and creating new employment hubs in Singapore. In the light of this proposal, this study aims to evaluate the current status of the office space decentralisation in Singapore. This study initially examines the situation of the local office market, analysing its demand and supply conditions. Then, it looks into the spatial distribution as laid down by the 1991 Revised Concept Plan's decentralisation framework. A survey was then conducted to find out the preferences of firms for relocating all or part of their business operations in the light of the decentralisation policy proposed by the government. The survey findings indicated that proximity to clients, suppliers, competitors and other linked businesses is the most important factor in selecting office space for firms in the CBD. This explains why they need to be located in a central location. As for firms outside the CBD, rent and accessibility are their main concern. That is why they are located outside the CBD. In order to attract firms to decentralise, it is thus essential to create sufficient business activities in the decentralised areas so that firms will find it beneficial to locate there.