Singapore’s office market at the cusp of a bull run: CBRE
The Singapore office industry is viewing the beginning of a bull run, continuing a higher path developed over the last three quarters, claims CBRE. Study by the realty consultancy discovered that gross effective rents for Grade An office spaces in the Core CBD expanded 0.8% q-o-q to $12.20 psf monthly (psf pm) in 3Q2025, noting a third consecutive quarter of development.
Looking in advance, McKellar expects occupiers to accelerate decision-making to protect top-notch place as stock remains to diminish, particularly for large contiguous spaces. “Beyond strata and smaller redevelopments, upcoming options are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to provide some relief down the line,” he claims.
Premium workplace in city center locations like Marina Bay and Raffles Place continues to be in high demand. IOI Central Blvd, that is the last significant Grade A conclusion in the Core CBD till 2028, has achieved approximately 90% commitment since 3Q2025, further emphasizing market sturdiness, CBRE says. The firm believes the Core CBD Grade A workplace vacancy rate could drop lower 5% by the end of the year.
Workplace leas have now expanded 2.1% ever since the beginning of the year, with net absorption of about 510,000 sq ft, leaving out stock eliminated for redevelopment.
Meanwhile, Song expects rental development in the last quarter to be assisted by continued occupant activity, bolstered by easing interest rates. CBRE has preserved its full-year business office rental expansion projection of about 3% for 2025.
Outside the CBD, need is even encouraging. “Paya Lebar Green, finished previously this year, is currently totally occupied complying with Visa’s relocation that taken in the remaining space,” notices David McKellar, CBRE’s Singapore head of office services. As a result, office vacancy prices in decentralised areas have lowered from 7.9% in 2Q2025 to 6.5% in 3Q2025.
The persistent growth is underpinned by durable occupier need and tightening supply, with CBRE data presenting openings rates for Core CBD Grade A workplaces tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the prevailing international financial doubts, the market has demonstrated exceptional strength,” remarks Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
