Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
In a different record, study by Knight Frank indicates prime grade office rents in the Raffles Place and Marina Bay areas grew 0.3% q-o-q to hit an average of $11.41 psf pm in 3Q2025. This is similar to the 0.2% q-o-q growth recorded in 2Q2025, and brings overall rental development for the first nine months of the year to 0.4%.
Given the uncertain worldwide setting, Knight Frank anticipates sentiment to stay careful among workplace occupants over the following 6 to year. “Because of this, prime rental development for the last quarter of 2025 is expected to remain fairly level with some minimal development, with more of the same going into the very first half of 2026,” the report states.
Rentals for prime office space in Singapore proceeded growing in 3Q2025, based upon research from realty consultancies. In its most recent quarterly workplace market report, JLL’s study presents 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 six quarters.
Looking ahead, JLL anticipates CBD Grade A office rental growth to remain reasonable for the remainder of 2025, with full-year growth projected to reach roughly 3%. Entering into 2026, JLL predicts workplace rental growth to pick up rate, assisted by a tightening supply pipeline. “As vacancy prices are predicted to tighten in between 2025-2027, whole-floor and multi-floor opportunities will come to be significantly limited, potentially driving rental rates past some renters’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
” Singapore’s office industry has actually been standing up well, in part upheld by stronger-than-anticipated financial fundamentals and an extra helpful interest rate setting,” mentions Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
Given the limited workplace stock in the following couple of years, he anticipates quality buildings to remain practically totally inhabited as even more firms make flight-to-quality moves from older structures. On the other hand, older and poorly connected buildings will certainly face increasing pressures to be redeveloped or modernised.
Knight Frank’s record found that tenancy levels for office spaces in the Raffles Place and Marina Bay district continued to be unchanged at 94.7%, whilst overall CBD occupancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, notices that “selective upgrades to high quality space have created a two-tier market where more recent, well-connected structures thrive and older stock faces growing vacancy pressure.”
The greater development was primarily credited to the enhancement of IOI Central Boulevard Towers to the basket of real estates checked by JLL. Excluding IOI Central Boulevard Towers, CBD office rents increased by lower than 1%, on par with the previous 6 quarters.
The restricted available supply, combined with a mindful company environment, caused leasing event being primarily steered by lease renewals, claims Knight Frank. Nevertheless, select occupiers, specifically those with ending leases, are picking to relocate to more recent, better-quality structures in tandem with right-sizing or measured development. Instances of these include tech firm Zoom Communications transferring from Asia Square Tower to IOI Central Blvd Towers, whilst quantitative trading firm Jane Street is planning to increase its space in the latter.
