Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Rents for top office space in Singapore kept on expanding in 3Q2025, based upon research study from realty consultancies. In its most current quarterly office industry record, JLL’s research study reveals that Grade An office leas in the CBD improved 1.3% q-o-q to $11.83 psf per month (psf pm) last quarter, the largest quarterly development in 6 quarters.
Given the limited office stock in the following couple of years, he anticipates quality buildings to stay practically totally occupied as more firms make flight-to-quality moves from older buildings. In contrast, older and poorly connected structures will face increasing pressures to be redeveloped or modernised.
” Singapore’s workplace industry has actually been standing up well, in part upheld by stronger-than-anticipated financial basics and a much more helpful interest rate atmosphere,” says Dr Chua Yang Liang, head of research and consultancy for JLL Southeast Asia.
The greater growth was primarily attributed to the enhancement of IOI Central Boulevard Towers to the basket of real estates checked by JLL. Removing IOI Central Blvd Towers, CBD office rents climbed by lower than 1%, on balance with the last six quarters.
Cape Royale Ho Bee Land & IOI Properties
Knight Frank’s report found that tenancy levels for office spaces in the Raffles Place and Marina Bay district stayed unchanged at 94.7%, while total CBD tenancy grown from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Looking forward, JLL anticipates CBD Grade A office rental growth to remain modest for the rest of 2025, with full-year growth forecasted to reach about 3%. Entering into 2026, JLL forecasts workplace rental development to pick up pace, assisted by a tightening up supply pipeline. “As vacancy prices are forecasted to tighten in between 2025-2027, whole-floor and multi-floor options will turn into significantly minimal, possibly driving rental rates beyond some lessees’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
Calvin Yeo, head of tenant strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to quality space have actually created a two-tier market where more recent, well-connected buildings thrive and older supply encounters growing vacancy stress.”
Presented the unpredictable international environment, Knight Frank anticipates sentiment to stay careful amongst workplace occupants over the next 6 to one year. “Thus, prime rental growth for the last quarter of 2025 is expected to continue to be rather flat with some minimal development, with even more of the very same going into the first fifty percent of 2026,” the record states.
In a separate record, research by Knight Frank indicates prime grade office rents in the Raffles Place and Marina Bay spots grew 0.3% q-o-q to hit an average of $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q development recorded in 2Q2025, and brings complete rental growth for the first 9 months of the year to 0.4%.
The minimal readily available supply, combined with a cautious business environment, caused leasing event being primarily steered by lease renewals, states Knight Frank. However, select tenants, especially those with ending leases, are choosing to transfer to more recent, better-quality buildings in tandem with right-sizing or measured development. Instances of these include tech company Zoom Communications relocating from Asia Square Tower to IOI Central Blvd Towers, whilst quantitative trading company Jane Street is preparing to expand its space in the latter.
