Singapore’s office market at the cusp of a bull run: CBRE
The Singapore business office industry is viewing the beginning of a bull run, continuing a higher trajectory developed over the last 3 quarters, says CBRE. Study 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 per month (psf pm) in 3Q2025, noting a third successive quarter of growth.
On the other hand, Song anticipates rental development in the last quarter to be supported by continued tenant activity, bolstered by easing interest rates. CBRE has maintained its full-year business office rental expansion forecast of about 3% for 2025.
Office leas have today grown 2.1% because the start of the year, with net absorption of around 510,000 sq ft, omitting stock eliminated for redevelopment.
Looking forward, McKellar expects occupants to speed up decision-making to secure quality place as supply continues to diminish, particularly for big contiguous rooms. “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 claims.
Premium office space in city centre locations such as Marina Bay and Raffles Place remains to be in higher demand. IOI Central Blvd, that is the last significant Grade A completion in the Core CBD until 2028, has achieved about 90% commitment as of 3Q2025, further underscoring market sturdiness, CBRE says. The firm thinks the Core CBD Grade An office vacancy rate can fall lesser 5% by the end of the year.
Outside the CBD, demand is even motivating. “Paya Lebar Green, finished earlier this year, is currently completely filled complying with Visa’s relocation that taken in the remaining space,” notices David McKellar, CBRE’s Singapore head of office companies. As a result, office vacancy rates in decentralised locations have actually lowered from 7.9% in 2Q2025 to 6.5% in 3Q2025.
The persistent growth is underpinned by resilient occupier need and securing supply, with CBRE data showing vacancy rates for Core CBD Grade An offices tightening up from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the dominating worldwide financial doubts, the marketplace has shown remarkable durability,” says Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
