Singapore’s office market at the cusp of a bull run: CBRE
Office leas have now expanded 2.1% ever since the begin of the year, with net absorption of roughly 510,000 sq ft, omitting supply removed for redevelopment.
Looking in advance, McKellar anticipates occupiers to accelerate decision-making to protect premium spot as stock remains to dwindle, particularly for huge adjoining spaces. “Beyond strata and smaller sized redevelopments, upcoming alternatives are few, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to offer some alleviation down the line,” he states.
On the other hand, Song anticipates rental development in the last quarter to be sustained by continued occupier activity, bolstered by easing rate of interest. CBRE has kept its full-year office rental progress projection of approximately 3% for 2025.
The Singapore workplace market is observing the start of a bull run, continuing an upward trajectory developed over the last 3 quarters, states CBRE. Research study by the property consultancy found that gross effective rents for Grade An offices in the Core CBD grew 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, marking a third successive quarter of development.
Outside the CBD, demand is even encouraging. “Paya Lebar Green, completed previously this year, is now totally occupied complying with Visa’s relocation that absorbed the remaining slot,” notices David McKellar, CBRE’s Singapore head of office services. As a result, office vacancy rates in decentralised locations have actually decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Premium office space in city centre locations such as Marina Bay and Raffles Place continues to be in high demand. IOI Central Blvd, which is the last major Grade A conclusion in the Core CBD till 2028, has actually accomplished about 90% commitment as of 3Q2025, further underscoring market sturdiness, CBRE claims. The firm believes the Core CBD Grade A workplace vacancy price can fall below 5% by the end of the year.
The persistent development is underpinned by durable occupier demand and tightening supply, with CBRE data showing openings prices for Core CBD Grade A workplaces tightening up from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the prevailing global economic doubts, the marketplace has actually shown exceptional durability,” mentions Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
