Singapore’s Office Market Cusp Bull Run Cbre
CBRE: Bull Run Continues in Singapore Office Market
The Singapore office market has been experiencing a bullish trend, maintaining an upward trajectory over the past three quarters, according to CBRE. The real estate consultancy’s research shows that gross effective rents for Grade A offices in the Core Central Business District (CBD) rose by 0.8% quarter-on-quarter (q-o-q) to $12.20 per sq ft per month (psf pm) in the third quarter of 2025, marking the third consecutive quarter of growth. Since the start of the year, office rents have grown by 2.1%, with approximately 510,000 sq ft of net absorption, excluding stock removed for redevelopment.
This persistent growth is driven by strong occupier demand and a tightening supply. CBRE data shows that vacancy rates for Grade A offices in the Core CBD have decreased from 5.9% in the first quarter of 2025 to 5.1% in the third quarter. “Despite the uncertain global economic climate, the Singapore office market has shown remarkable resilience,” says Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Premium office space in prime locations such as Marina Bay and Raffles Place remains highly sought after. IOI Central Boulevard, the last major Grade A completion in the Core CBD until 2028, has achieved approximately 90% commitment as of the third quarter of 2025, highlighting the strength of the market, according to CBRE. The firm predicts that the vacancy rate for Grade A offices in the Core CBD could drop below 5% by the end of the year.
Outside of the CBD, demand for office space remains encouraging. “Paya Lebar Green, which was completed earlier this year, is now fully occupied after Visa relocated, taking up the remaining space,” notes David McKellar, CBRE’s Singapore head of office services. This has resulted in a decrease in vacancy rates in decentralised locations from 7.9% in the second quarter of 2025 to 6.5% in the third quarter.
Looking ahead, McKellar expects occupiers to make decisions more quickly in order to secure quality space, as supply continues to dwindle, especially for large contiguous spaces. “Apart from strata and smaller redevelopments, there are few upcoming options, with Shaw Tower (2026), Skywaters (2027), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to provide some relief in the future,” he says.
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Meanwhile, Song believes that rental growth in the last quarter of 2025 will be supported by ongoing occupier activity, aided by easing interest rates. CBRE maintains its forecast of approximately 3% office rental growth for the full year of 2025.