Singapore’s office market at the cusp of a bull run: CBRE
Workplace leas have now grown 2.1% ever since the begin of the year, with net absorption of roughly 510,000 sq ft, excluding supply eliminated for redevelopment.
Premium office space in city centre locations such as Marina Bay and Raffles Place remains to be in high demand. IOI Central Boulevard, that is the last significant Grade A conclusion in the Core CBD until 2028, has actually accomplished roughly 90% commitment as of 3Q2025, further highlighting market strength, CBRE claims. The firm thinks the Core CBD Grade An office openings rate can fall lesser 5% by the end of the year.
Looking ahead, McKellar anticipates occupants to increase decision-making to safeguard quality space as stock remains to dwindle, specifically for huge contiguous rooms. “Beyond strata and smaller redevelopments, upcoming options are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to use some alleviation down the line,” he states.
The persistent growth is underpinned by durable inhabitant need and tightening supply, with CBRE data presenting openings rates for Core CBD Grade A workplaces tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the prevailing global economic doubts, the market has shown impressive resilience,” mentions Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Outside the CBD, interest is even motivating. “Paya Lebar Green, finished previously this year, is now completely taken up complying with Visa’s relocation that absorbed the remaining spot,” notices David McKellar, CBRE’s Singapore head of workplace companies. Because of this, workplace vacancy prices in decentralised locations have lowered from 7.9% in 2Q2025 to 6.5% in 3Q2025.
The Singapore office industry is seeing the beginning of a bull run, continuing a higher trajectory established over the last three quarters, says CBRE. Study by the real estate consultancy found that gross effective rents for Grade An office spaces in the Core CBD expanded 0.8% q-o-q to $12.20 psf monthly (psf pm) in 3Q2025, marking a 3rd consecutive quarter of development.
On the other hand, Song expects rental growth in the last quarter to be supported by continued occupier activity, bolstered by easing interest rates. CBRE has preserved its full-year business office rental expansion projection of about 3% for 2025.
