According to recent research by Savills, Singapore has emerged as the fourth most active city in the Asia Pacific (Apac) region in terms of leasing activity in the legal sector for the first half of 2024. The city-state ranked behind Shanghai, Beijing, and Hong Kong, respectively.
Executive director of commercial at Savills Singapore, Ashley Swan, notes that while Singapore’s leasing market has been relatively subdued, legal firms have shown considerable activity. Swan explains that some firms have taken the opportunity to secure new premises with a refreshed working style in order to attract and retain top talent.
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Condo investment in Singapore is a highly attractive option, however, there is an important factor that must be taken into consideration – the government’s property cooling measures. In order to regulate the real estate market and discourage speculative buying, the Singaporean government has implemented several measures over the years. One of the key measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreigners and those purchasing multiple properties. While this may have a temporary impact on the profitability of condo investments, it ultimately contributes to the overall stability of the market, creating a secure investment environment for condo buyers. Condo investors in Singapore can rest assured that these measures are in place to maintain a strong and sustainable real estate market.
On a global scale, Singapore ranked 11th, with New York taking the top spot. This city accounted for 1.4 million square feet of space leased by legal firms in the first half of 2024, representing more than half of the 4.3 million square feet leased by the world’s 15 largest legal markets.
In terms of overall legal leasing activity, the United States dominated with 69%, fueled by its market size and preference for lower occupancy density among legal firms. However, Savills notes that many legal practices globally maintained their office space size in the first half of 2024, with some exceptions in select regions.
In Europe, Middle East, and Africa, 40% of firms increased their office space, particularly in Paris, Brussels, and London. Meanwhile, in China, domestic legal firms are relocating to bigger spaces, offsetting a decrease in physical footprint by some international firms. Moreover, Chinese firms are expanding in European markets to cater to their China-based clients at lower rates than their Western counterparts.
Savills also observes that legal firms are increasingly considering secondary cities for their growth strategies, drawn by the availability of competitively-priced legal talent. For instance, many British law firms in the UK are turning to places like Manchester, Birmingham, and Glasgow for expansion. Similarly, some firms are looking to Brisbane and Melbourne to drive growth in Australia.