Singapore’s office market at the cusp of a bull run: CBRE
Premium workplace in city centre locations like Marina Bay and Raffles Place remains to be in higher need. IOI Central Blvd, which is the last major Grade A conclusion in the Core CBD until 2028, has actually accomplished about 90% commitment since 3Q2025, further emphasizing market strength, CBRE says. The firm thinks the Core CBD Grade An office vacancy price could drop below 5% by the end of the year.
Meanwhile, Song anticipates rental growth in the last quarter to be sustained by continued occupier activity, bolstered by easing rate of interest. CBRE has actually maintained its full-year business office rental development forecast of about 3% for 2025.
Upperhouse UOL Group Limited and Singapore Land Group (Singland)
Looking forward, McKellar expects tenants to accelerate decision-making to safeguard premium space as supply continues to diminish, especially for huge contiguous spaces. “Beyond strata and smaller sized redevelopments, upcoming alternatives are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to use some relief down the line,” he says.
Outside the CBD, need is also motivating. “Paya Lebar Green, finished earlier this year, is currently totally occupied following Visa’s relocation that absorbed the remaining slot,” observes David McKellar, CBRE’s Singapore head of workplace services. Therefore, workplace vacancy prices in decentralised places have decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.
The Singapore office industry is seeing the beginning of a bull run, continuing a higher path developed over the last three quarters, says CBRE. Research study by the realty consultancy discovered that gross effective rental fees for Grade An offices in the Core CBD expanded 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, marking a third successive quarter of growth.
The persistent development is underpinned by resilient occupier need and securing supply, with CBRE data showing vacancy prices for Core CBD Grade A workplaces tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Despite the dominating worldwide financial uncertainties, the marketplace has actually shown exceptional strength,” remarks Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Office leas have today grown 2.1% because the beginning of the year, with net absorption of around 510,000 sq ft, leaving out supply eliminated for redevelopment.
