Singapore’s office market at the cusp of a bull run: CBRE
Outside the CBD, demand is even motivating. “Paya Lebar Green, completed earlier this year, is currently totally taken up following Visa’s relocation that absorbed the remaining space,” observes David McKellar, CBRE’s Singapore head of workplace companies. Because of this, office vacancy prices in decentralised locations have actually reduced from 7.9% in 2Q2025 to 6.5% in 3Q2025.
The Singapore workplace market is viewing the beginning of a bull run, continuing a higher trajectory developed over the last three quarters, says CBRE. Research by the property consultancy discovered that gross effective rents for Grade A workplaces in the Core CBD expanded 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, marking a 3rd consecutive quarter of growth.
Looking ahead, McKellar expects occupiers to accelerate decision-making to secure premium spot as stock continues to dwindle, specifically for large adjoining areas. “Beyond strata and smaller redevelopments, upcoming alternatives are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to provide some alleviation down the line,” he claims.
On the other hand, Song anticipates rental development in the last quarter to be supported by continued tenant activity, bolstered by easing interest. CBRE has actually maintained its full-year workplace rental progress projection of about 3% for 2025.
Workplace rents have today grown 2.1% because the start of the year, with net absorption of roughly 510,000 sq ft, excluding stock eliminated for redevelopment.
The persistent growth is underpinned by resilient occupier demand and tightening supply, with CBRE data showing vacancy prices for Core CBD Grade An offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Despite the dominating international financial uncertainties, the market has demonstrated amazing strength,” mentions Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
Premium office in city centre locations such as Marina Bay and Raffles Place remains to be in higher need. IOI Central Boulevard, that is the last major Grade A conclusion in the Core CBD up until 2028, has actually attained around 90% commitment as of 3Q2025, further highlighting market stability, CBRE claims. The firm believes the Core CBD Grade An office vacancy rate could drop lower 5% by the end of the year.
