REGIONAL GROWTH AND THE DEMAND FOR OFFICE SPACE IN SINGAPORE

Abstract

Office demand has been studied by numerous researchers. Many of them found that macroeconomics variables are significant determinants of office space. Although the importance of external influences was also mentioned, none tries to quantify this particular variable. This research gap provides the basis for this study. Based on the quarterly data from 1985 to 1994, a multiple regression analysis shows that the variables that affect the demand for office space in Singapore include the prime lending rate, rental price index (lagged four quarters), employment in the financial and business sector, the transportation and communication and Malaysia's GDP. Of the four ASEAN countries that was studied, only Malaysia's economic performance has significant impact on the office demand in Singapore due to the strong linkages between the economies of Singapore and Malaysia.