THREE years ago, it was touted as a development that would rejuvenate Singapore’s central business district. But an upcoming building in the city-state could have fallen victim to the pandemic, which has upended the office market as work from home remains a long-term arrangement for some companies.

CapitaSpring, a 51-floor integrated development that will also house Singapore’s highest urban farm, has only managed to secure about 38 percent out of 647,000 square feet (62,600 sqm) of net lettable area. That’s low considering it’s 75 percent completed. Typically at that stage, buildings would have leased out more than half of their space.

And in another sign that the health crisis has hit the commercial property sector, CapitaSpring’s completion has been pushed back to the second half of the year from the first half. It’s the only premium Grade A office development in the city’s central business district that’s scheduled to finish this year.

The setback reflects how the pandemic has battered Singapore’s commercial property sector. While tech behemoths are expanding, banks such as Citigroup Inc. and Mizuho Financial Group Inc. are cutting back office space in part due to the success of working from home, with such arrangements potentially to be long term.

Prime grade office rents in the Raffles Place and Marina Bay precincts contracted about 10 percent in 2020, according to Knight Frank. Early termination of spaces continued to rise in the fourth quarter of last year to an estimated 330,000 square feet from 260,000 square feet in the third quarter.(SD-Agencies)