Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
Presented the unclear worldwide setting, Knight Frank expects sentiment to remain careful among office occupants over the next six to 12 months. “Therefore, prime rental growth for the last quarter of 2025 is expected to stay relatively flat with some limited development, with more of the exact same going into the very first fifty percent of 2026,” the report states.
Rents for prime office in Singapore continued growing in 3Q2025, based on study from realty consultancies. In its most recent quarterly workplace market record, JLL’s research study reveals that Grade A workplace rental fees in the CBD increased 1.3% q-o-q to $11.83 psf per month (psf pm) past quarter, the largest quarterly growth in 6 quarters.
Knight Frank’s record found that occupancy levels for office spaces in the Raffles Place and Marina Bay precinct continued to be unchanged at 94.7%, while overall CBD occupancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
In a separate report, study by Knight Frank shows prime grade office rents in the Raffles Place and Marina Bay spots grew 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings total rental growth for the very first 9 months of the year to 0.4%.
” Singapore’s office market has actually been standing up well, partially maintained by stronger-than-anticipated financial principles and a much more conducive interest rate setting,” mentions Dr Chua Yang Liang, head of study and consultancy for JLL Southeast Asia.
The limited offered supply, paired with a mindful company environment, brought about leasing activity being predominantly driven by lease renewals, says Knight Frank. However, select occupiers, specifically those with concluding leases, are selecting to transfer to newer, better-quality structures in tandem with right-sizing or measured development. Examples of these consist of tech business Zoom Communications moving from Asia Square Tower to IOI Central Blvd Towers, while quantitative trading firm Jane Street is planning to expand its space in the latter.
Looking ahead, JLL prepares for CBD Grade A office rental growth to remain reasonable for the rest of 2025, with full-year development predicted to get to roughly 3%. Entering into 2026, JLL predicts workplace rental growth to pick up speed, sustained by a tightening up supply pipeline. “As vacancy rates are forecasted to tighten between 2025-2027, whole-floor and multi-floor options will certainly come to be increasingly restricted, possibly driving rental rates past some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
The greater growth was mainly credited to the enhancement of IOI Central Boulevard Towers to the basket of real estates monitored by JLL. Excluding IOI Central Blvd Towers, CBD office rents rose by lower than 1%, on par with the last six quarters.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to quality space have produced a two-tier market where newer, well-connected buildings prosper and older supply encounters growing vacancy stress.”
Given the limited workplace stock in the next few years, he expects high quality buildings to continue to be nearly fully inhabited as even more companies make flight-to-quality moves from older structures. In contrast, older and poorly attached structures will certainly face increasing pressures to be redeveloped or modernised.
