Business News

Business

Singapore's Office Market Seeing the Beginning of a Bull Run

October 14, 2025

The Singapore office market continued its upward trajectory in Q3 2025, marking the third consecutive quarter of rental growth, CBRE Research found. Gross effective rents for Core CBD (Grade A) offices rose by 0.8% q-o-q to $12.20 per square foot per month, underpinned by resilient occupier demand and tightening supply. Tricia Song, CBRE Head of Research, Singapore and Southeast Asia, commented, “Despite the prevailing global economic uncertainties, the market has demonstrated remarkable resilience. Vacancy rates in the Core CBD (Grade A) have steadily tightened from 5.9% in Q1 2025 to 5.1% in Q3 2025, reflecting sustained leasing momentum and a relentless flight to quality.” The market’s strength was illustrated in IOI Central Boulevard’s strong performance. This development is the last major Grade A completion in the Core CBD until 2028 and achieved approximately 90% commitment by Q3. This strong take-up is demonstrative of the robust demand for premium office space, especially in the city centre as locations like Marina Bay and Raffles Place remain highly sought-after. Neighbouring submarkets like Marina Centre and Beach Road/City Hall have also outperformed, where less than 3% of space is available at the moment. With several notable deals to close in Q4, Core CBD (Grade A) office space vacancy could fall below 5% by the end of the year. David McKellar, CBRE Head of Office Services, Singapore, observed, “Occupier activity remains broad-based, led by sectors such as banking and finance, transport, government, and agile space operators. Outside the CBD, demand is also strong. Paya Lebar Green, completed earlier this year, is now fully occupied following Visa’s relocation that absorbed the remaining space. This brought vacancy rates in decentralised locations down from 7.9% in Q2 to 6.5% in Q3.” From Q1 to Q3, the market recorded net absorption of approximately 510,000 sq. ft. (excluding stock removed for redevelopment), while office rents have grown 2.1% year-to-date. Mr McKellar added, “Looking ahead, the supply pipeline remains limited, especially for large occupiers seeking 200,000 to 300,000 sq. ft. of contiguous space. Beyond strata and smaller redevelopments, upcoming options are few, with Shaw Tower (2026), Skywaters (2027), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to offer some relief down the line. The tight supply environment is prompting occupiers to accelerate decision-making to secure quality space before availability dwindles further in the short-term.” Ms Song concluded, “CBRE Research maintains its 2025 rental growth forecast of approximately 3%. In fact, there might be potential upside as interest rates ease to support continued occupier activity, and as we see more leases completing in the final quarter.” Office Investments Market on a Similar Trajectory In the investment market, Q3 2025 office deals surged seven-fold q-o-q to $1.794 billion, with the largest transaction of the quarter involving the 55% stake sale of CapitaSpring for $1.045 billion ($2,822 psf). In contrast, Q2 2025 saw transactions involving only strata office units or floors. Michael Tay, CBRE Deputy Managing Director and Head of Capital Markets, Singapore, commented, “The office sector is experiencing a resurgence of positive sentiment, thanks to strong fundamentals: rent growth, complemented by limited future supply. Adding to the positive outlook, the 3-month compounded SORA has fallen to 1.45%, positioning the sector favourably for yield-accretive returns. Buoyed by robust enquiry levels and advanced deal negotiations, we anticipate investment momentum to stay strong through the remainder of the year.” About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at  www.cbre.com .

1

ALL NEWS

COMMUNICATE. COMMAND. COMMERCE.

Lead the conversation of your brand & win more customers with MarketersMEDIA Solutions.

Explore Now
SUBSCRIBE FOR MORE