Singapore’s office market at the cusp of a bull run: CBRE
Premium office in city centre locations like Marina Bay and Raffles Place continues to be in higher demand. IOI Central Blvd, which is the last significant Grade A completion in the Core CBD till 2028, has actually accomplished approximately 90% commitment since 3Q2025, additional underscoring market stability, CBRE says. The firm believes the Core CBD Grade A workplace vacancy price might fall below 5% by the end of the year.
The Singapore workplace industry is viewing the start of a bull run, continuing an upward path established over the last 3 quarters, claims CBRE. Research by the property consultancy found that gross effective rents for Grade A workplaces in the Core CBD expanded 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, noting a third consecutive quarter of development.
The persistent development is underpinned by resilient occupier need and securing supply, with CBRE information presenting vacancy rates for Core CBD Grade An offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the dominating global economic unpredictabilities, the marketplace has actually shown exceptional resilience,” mentions Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
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Looking in advance, McKellar anticipates tenants to increase decision-making to protect quality space as supply remains to dwindle, especially for large adjoining rooms. “Beyond strata and smaller sized redevelopments, upcoming alternatives are few, 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.
Outside the CBD, need is also encouraging. “Paya Lebar Green, finished previously this year, is currently totally occupied following Visa’s relocation that absorbed the remaining slot,” notes David McKellar, CBRE’s Singapore head of office companies. Therefore, office vacancy rates in decentralised places have lowered from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Workplace rents have now increased 2.1% since the begin of the year, with net absorption of about 510,000 sq ft, excluding supply removed for redevelopment.
Meanwhile, Song expects rental development in the last quarter to be sustained by continued occupier activity, bolstered by easing interest. CBRE has actually preserved its full-year business office rental development projection of around 3% for 2025.
