Singapore’s office market at the cusp of a bull run: CBRE
Premium office in city center locations such as Marina Bay and Raffles Place remains to be in higher demand. IOI Central Blvd, that is the last major Grade A conclusion in the Core CBD until 2028, has attained around 90% commitment since 3Q2025, more emphasizing market strength, CBRE states. The firm believes the Core CBD Grade A workplace vacancy rate might drop lower 5% by the end of the year.
The Singapore business office market is observing the start of a bull run, continuing an upward path established over the last 3 quarters, claims CBRE. Research by the realty consultancy discovered that gross effective rental fees for Grade An office spaces in the Core CBD expanded 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, noting a 3rd successive quarter of growth.
Workplace rents have today grown 2.1% because the beginning of the year, with net absorption of about 510,000 sq ft, excluding supply got rid of for redevelopment.
Meanwhile, Song anticipates rental development in the last quarter to be assisted by continued occupant activity, bolstered by easing interest. CBRE has actually preserved its full-year office rental development projection of around 3% for 2025.
The persistent growth is underpinned by durable occupier demand and securing supply, with CBRE data presenting openings rates for Core CBD Grade An offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the dominating worldwide financial unpredictabilities, the market has actually shown remarkable resilience,” mentions Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
Looking in advance, McKellar anticipates tenants to speed up decision-making to safeguard premium spot as supply continues to diminish, particularly for large contiguous rooms. “Beyond strata and smaller redevelopments, upcoming choices are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to supply some alleviation down the line,” he claims.
Outside the CBD, demand is even motivating. “Paya Lebar Green, finished earlier this year, is currently fully filled following Visa’s relocation that taken in the remaining space,” observes David McKellar, CBRE’s Singapore head of office companies. Because of this, workplace vacancy prices in decentralised locations have actually minimized from 7.9% in 2Q2025 to 6.5% in 3Q2025.
