Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
In a separate report, research study by Knight Frank suggests prime grade office rental fees in the Raffles Place and Marina Bay places grew 0.3% q-o-q to hit an average of $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings total rental growth for the first nine months of the year to 0.4%.
Knight Frank’s report found that tenancy status for office spaces in the Raffles Place and Marina Bay district continued to be unchanged at 94.7%, while total CBD occupancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Granted the uncertain global environment, Knight Frank expects sentiment to stay cautious amongst workplace occupiers over the following 6 to one year. “As such, prime rental development for the last quarter of 2025 is expected to continue to be relatively level with some marginal development, with even more of the exact same going into the first fifty percent of 2026,” the report states.
The restricted readily available supply, combined with a mindful business atmosphere, resulted in leasing event being mainly driven by lease renewals, says Knight Frank. However, select tenants, especially those with expiring leases, are picking to relocate to more recent, better-quality structures in tandem with right-sizing or measured growth. Instances of these consist of tech firm Zoom Communications relocating from Asia Square Tower to IOI Central Boulevard Towers, whilst quantitative trading company Jane Street is preparing to broaden its space in the latter.
” Singapore’s office space market has been standing up well, partly supported by stronger-than-anticipated economic basics and a much more conducive interest rate atmosphere,” says Dr Chua Yang Liang, head of study and consultancy for JLL Southeast Asia.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, watches that “selective upgrades to high quality space have created a two-tier market where more recent, well-connected buildings thrive and older stock encounters growing vacancy stress.”
Given the limited workplace stock in the following few years, he anticipates quality structures to continue to be nearly totally occupied as even more companies make flight-to-quality moves from older structures. On the other hand, older and poorly connected structures will certainly face increasing pressures to be redeveloped or modernised.
Rentals for prime workplace in Singapore continued growing in 3Q2025, based upon research study from real estate consultancies. In its most recent quarterly workplace market record, JLL’s research study shows that Grade An office leas in the CBD raised 1.3% q-o-q to $11.83 psf monthly (psf pm) past quarter, the biggest quarterly growth in six quarters.
The higher growth was largely attributed to the addition of IOI Central Boulevard Towers to the basket of properties kept track of by JLL. Excluding IOI Central Boulevard Towers, CBD workplace rents rose by less than 1%, on balance with the past 6 quarters.
Looking ahead, JLL anticipates CBD Grade A office rental development to remain modest for the remainder of 2025, with full-year development forecasted to get to around 3%. Entering into 2026, JLL anticipates workplace rental development to pick up rate, supported by a tightening supply pipeline. “As vacancy rates are predicted to tighten up between 2025-2027, whole-floor and multi-floor opportunities will come to be increasingly minimal, possibly driving rental prices beyond some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
