Singapore’s Office Market Cusp Bull Run Cbre
in BusinessTimesCBRE predicts strong rental growth in Singapore’ s office marketThe Singapore commercial office market is experiencing a significant upswing, with CBRE reporting a continued upward trend in the last three quarters. The real estate consultancy’s research has shown that rent for premium office space in key locations such as Marina Bay and Raffles Place has increased by 0.8% in the third quarter of 2025, reaching $12.20 per square foot per month.
Overall, this marks a 2.1% increase since the beginning of the year, with a net absorption of approximately 510,000 square feet. This growth is attributed to the strong demand from occupiers and limited supply, driving the vacancy rates for Grade A offices in the Core CBD from 5.9% in the first quarter of 2025 to 5.1% in the third quarter.
Tricia Song, CBRE’s head of research for Singapore and Southeast Asia, notes that despite the global economic uncertainties, the market has shown great resilience. She believes this trend will continue as premium office space in the city center remains in high demand.
One notable example is IOI Central Boulevard, the last major Grade A office completion in the Core CBD until 2028, which has already achieved a 90% commitment rate as of the third quarter. This further underscores the strength of the market, according to CBRE.
Outside of the CBD, there is also positive demand. David McKellar, CBRE’s Singapore head of office services, highlights the full occupancy of Paya Lebar Green following Visa’s relocation. As a result, the vacancy rates in decentralised locations have decreased from 7.9% in the second quarter of 2025 to 6.5% in the third quarter.
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Looking ahead, McKellar predicts that occupiers will hasten their decision-making process to secure quality space as supply continues to dwindle. He notes that upcoming office options are limited, with only a few major projects such as Shaw Tower, Skywaters, and the Clifford Centre Redevelopment and Comcentre Redevelopment in the pipeline for the next few years.
Song adds that the rental growth is expected to be supported by sustained occupier activity, bolstered by the easing of interest rates. CBRE maintains its forecast of 3% rental growth for 2025.