Singapore’s office market at the cusp of a bull run: CBRE
Office leas have today grown 2.1% because the beginning of the year, with net absorption of around 510,000 sq ft, excluding supply removed for redevelopment.
Premium workplace in city centre locations such as Marina Bay and Raffles Place remains to be in higher need. IOI Central Blvd, that is the last significant Grade A completion in the Core CBD until 2028, has actually accomplished about 90% commitment as of 3Q2025, more highlighting market sturdiness, CBRE says. The firm believes the Core CBD Grade An office vacancy rate could fall lesser 5% by the end of the year.
Meanwhile, Song expects rental growth in the last quarter to be supported by continued tenant activity, bolstered by easing interest rates. CBRE has preserved its full-year workplace rental development projection of about 3% for 2025.
The Singapore workplace market is seeing the start of a bull run, continuing a higher trajectory established over the last three quarters, claims CBRE. Research by the real estate consultancy found that gross effective leas for Grade An offices in the Core CBD expanded 0.8% q-o-q to $12.20 psf per month (psf pm) in 3Q2025, noting a 3rd successive quarter of development.
Looking in advance, McKellar expects tenants to increase decision-making to protect top-notch space as supply remains to diminish, specifically for large contiguous spaces. “Beyond strata and smaller redevelopments, upcoming choices are several, 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.
The persistent growth is underpinned by resilient occupier need and securing supply, with CBRE data showing vacancy prices for Core CBD Grade An offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “In spite of the prevailing worldwide financial uncertainties, the market has actually demonstrated exceptional resilience,” mentions Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Outside the CBD, need is even encouraging. “Paya Lebar Green, completed previously this year, is currently completely occupied complying with Visa’s relocation that absorbed the remaining spot,” notices David McKellar, CBRE’s Singapore head of workplace companies. Because of this, office vacancy rates in decentralised places have lowered from 7.9% in 2Q2025 to 6.5% in 3Q2025.
