The report said that office rentals in the Southeast Asian city-state could at some point outstrip those of rival Hong Kong in 2022 if trends continue.

Singapore office rents may overtake those of Hong Kong for the first time since 2009, Bloomberg reported yesterday, based on its own data. The findings may suggest that Singapore may be winning a competitive edge over its main Asia rival.

Average office spot rents in Singapore could rise by 5 per cent to 10 per cent next year as a result of limited supply, the newswire said, citing a Bloomberg Intelligence report. Hong Kong’s prime office vacancy rate may exceed 12 per cent by the end of next year following a rise in supply in decentralised districts.

The contrasting office market outlook reflects the impact of different pandemic management strategies adopted by the cities, the report said. While Singapore is cautiously reopening, and working from home remains the default arrangement, it has stopped targeting zero COVID-19 cases and begun easing border controls. Hong Kong has strict quarantine rules due to its elimination strategy.

The report also sheds light on how these rival IFCs have been affected not just by the pandemic, but arguably by trends such as concerns about Beijing's imposition of a national security law on Hong Kong in 2020, prompting some Hong Kong residents to consider alternative places to park their wealth.

Separately, Singapore has been pushing to make itself the premier hub for family offices, unveiled its variable capital companies (VCC) regime at the start of 2020.