Singapore’s office market at the cusp of a bull run: CBRE
The persistent growth is underpinned by durable inhabitant demand and tightening supply, with CBRE data showing vacancy prices for Core CBD Grade An offices tightening up from 5.9% in 1Q2025 to 5.1% in 3Q2025. “In spite of the prevailing global financial unpredictabilities, the marketplace has shown amazing durability,” mentions Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
On the other hand, Song anticipates rental growth in the last quarter to be sustained by continued tenant activity, bolstered by easing interest. CBRE has actually preserved its full-year workplace rental expansion forecast of about 3% for 2025.
Outside the CBD, interest is also encouraging. “Paya Lebar Green, completed earlier this year, is currently fully taken up following Visa’s relocation that absorbed the remaining spot,” observes David McKellar, CBRE’s Singapore head of workplace services. As a result, office vacancy prices in decentralised areas have actually decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Looking forward, McKellar anticipates occupants to speed up decision-making to safeguard top-notch spot as stock remains to dwindle, especially for huge contiguous rooms. “Beyond strata and smaller redevelopments, upcoming options are few, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to offer some relief down the line,” he says.
Premium workplace in city centre locations like Marina Bay and Raffles Place remains to be in high demand. IOI Central Boulevard, which is the last major Grade A conclusion in the Core CBD until 2028, has actually accomplished approximately 90% commitment as of 3Q2025, further underscoring market sturdiness, CBRE says. The firm believes the Core CBD Grade An office vacancy price could fall lower 5% by the end of the year.
The Singapore office industry is observing the beginning of a bull run, continuing a higher trajectory developed over the last three quarters, claims CBRE. Research by the realty consultancy found that gross effective rental fees for Grade A workplaces in the Core CBD expanded 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, noting a third successive quarter of development.
Office rents have now grown 2.1% since the start of the year, with net absorption of approximately 510,000 sq ft, leaving out stock eliminated for redevelopment.
