Singapore’s office market at the cusp of a bull run: CBRE
Premium office in city centre locations such as Marina Bay and Raffles Place continues to be in high need. IOI Central Boulevard, which is the last significant Grade A completion in the Core CBD till 2028, has attained roughly 90% commitment as of 3Q2025, further emphasizing market strength, CBRE says. The firm thinks the Core CBD Grade An office vacancy rate could drop lower 5% by the end of the year.
Outside the CBD, interest is also encouraging. “Paya Lebar Green, finished earlier this year, is currently totally taken up complying with Visa’s relocation that taken in the remaining spot,” notices David McKellar, CBRE’s Singapore head of workplace services. As a result, workplace vacancy prices in decentralised places have actually decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.
On the other hand, Song anticipates rental development in the last quarter to be sustained by continued occupant activity, bolstered by easing interest rates. CBRE has actually preserved its full-year office rental progress projection of approximately 3% for 2025.
Looking in advance, McKellar anticipates occupants to increase decision-making to protect quality spot as stock remains to decrease, especially for big contiguous spaces. “Beyond strata and smaller sized redevelopments, upcoming choices are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to provide some relief down the line,” he claims.
The persistent growth is underpinned by durable inhabitant need and tightening supply, with CBRE data showing openings prices for Core CBD Grade An offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “In spite of the dominating worldwide economic uncertainties, the marketplace has actually demonstrated exceptional resilience,” mentions Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
The Singapore workplace market is viewing the beginning of a bull run, continuing a higher trajectory established over the last three quarters, claims CBRE. Study by the property consultancy discovered that gross effective leas for Grade An offices in the Core CBD expanded 0.8% q-o-q to $12.20 psf per month (psf pm) in 3Q2025, marking a third consecutive quarter of growth.
Workplace leas have today expanded 2.1% since the beginning of the year, with net absorption of about 510,000 sq ft, leaving out supply removed for redevelopment.
