Singapore’s office market at the cusp of a bull run: CBRE
Outside the CBD, interest is even motivating. “Paya Lebar Green, finished earlier this year, is currently completely occupied following Visa’s relocation that absorbed the remaining slot,” notes David McKellar, CBRE’s Singapore head of workplace companies. Because of this, office vacancy rates in decentralised locations have reduced from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Looking ahead, McKellar anticipates occupiers to increase decision-making to protect quality space as supply continues to diminish, specifically for huge contiguous rooms. “Beyond strata and smaller sized redevelopments, upcoming choices are few, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to offer some alleviation down the line,” he says.
On the other hand, Song expects rental development in the last quarter to be sustained by continued occupant activity, bolstered by easing rate of interest. CBRE has actually maintained its full-year office rental progress projection of approximately 3% for 2025.
The Singapore office industry is viewing the beginning of a bull run, continuing a higher path developed over the last three quarters, states CBRE. Study by the property consultancy found that gross effective rents for Grade A workplaces in the Core CBD grew 0.8% q-o-q to $12.20 psf per month (psf pm) in 3Q2025, noting a third consecutive quarter of development.
The persistent growth is underpinned by resilient inhabitant need and tightening supply, with CBRE information presenting openings prices for Core CBD Grade A workplaces tightening up from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the prevailing international financial uncertainties, the market has actually shown remarkable resilience,” mentions Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
Office rentals have now grown 2.1% since the begin of the year, with net absorption of approximately 510,000 sq ft, leaving out stock got rid of for redevelopment.
Premium office in city center locations like Marina Bay and Raffles Place continues to be in higher need. IOI Central Boulevard, that is the last major Grade A conclusion in the Core CBD until 2028, has achieved about 90% commitment as of 3Q2025, additional underscoring market sturdiness, CBRE states. The company believes the Core CBD Grade An office vacancy rate might drop lower 5% by the end of the year.
