Singapore’s office market at the cusp of a bull run: CBRE
The persistent growth is underpinned by durable occupier need and securing supply, with CBRE data showing vacancy prices for Core CBD Grade An offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the dominating international economic uncertainties, the market has actually demonstrated amazing resilience,” remarks Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
On the other hand, Song expects rental development in the last quarter to be sustained by continued occupant activity, bolstered by easing interest. CBRE has actually kept its full-year business office rental development forecast of around 3% for 2025.
The Singapore workplace market is seeing the start of a bull run, continuing an upward path developed over the last three quarters, states CBRE. Research study by the real estate consultancy discovered that gross effective rents for Grade An office spaces in the Core CBD grew 0.8% q-o-q to $12.20 psf monthly (psf pm) in 3Q2025, noting a 3rd successive quarter of growth.
Looking ahead, McKellar expects occupiers to speed up decision-making to secure premium space as supply remains to dwindle, particularly for large adjoining areas. “Beyond strata and smaller sized redevelopments, upcoming options are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to supply some relief down the line,” he states.
Premium workplace in city centre locations such as Marina Bay and Raffles Place continues to be in higher need. IOI Central Boulevard, that is the last significant Grade A conclusion in the Core CBD until 2028, has actually accomplished about 90% commitment as of 3Q2025, further highlighting market stability, CBRE claims. The firm believes the Core CBD Grade A workplace vacancy price can fall lower 5% by the end of the year.
Outside the CBD, need is even motivating. “Paya Lebar Green, completed previously this year, is currently fully occupied 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 rates in decentralised locations have minimized from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Workplace rentals have today grown 2.1% because the start of the year, with net absorption of approximately 510,000 sq ft, excluding supply eliminated for redevelopment.
