Singapore is increasingly home to the regional headquarters of the world’s biggest firms, a boon for the city state’s office market.

In Asia Pacific, Singapore currently has the largest number of corporate regional headquarters than any time in the past decade, according to the country’s Economic Development Board.

“Singapore’s status as a regional business hub is reinforced by its business-friendly tax environment, political neutrality and diversified economy,” says Andrew Tangye, Head of Office Leasing Advisory, Singapore. “These contribute towards the relatively stable demand for office space.”

Both Singapore and Hong Kong have long been actively attracting corporates. The balance can shift from year to year, with preferences currently leaning toward Singapore. Some 4,200 multinationals have made Singapore their regional headquarters in 2021, according to Bloomberg data.

The concentration of HQs is supporting Singapore’s office market. While the government’s Urban Redevelopment Authority reported a dip in the island-wide office vacancy rate to 9.9% at the end of 2023, Hong Kong’s overall vacancy rate rose to 12.8%, according to JLL data.

Rents are moving accordingly. Singapore recorded a 0.7% year-on-year increase in office rents to $8.36 square feet per month.