Singapore’s Office Market Cusp Bull Run Cbre
CBRE reports that the Singapore office market is currently experiencing a bullish trend, with rent prices increasing for the third consecutive quarter. The real estate consultancy’s research reveals that gross effective rents for Grade A offices in the Core Central Business District (CBD) have grown by 0.8% quarter-on-quarter (q-o-q) to $12.20 per square foot (psf) per month in the third quarter of 2025. This brings the total rental growth for the year to 2.1%, with a net absorption of approximately 510,000 square feet (sq ft), excluding redevelopment.
This consistent growth is driven by strong demand from occupiers and a limited supply of office space in the Core CBD, as CBRE’s data shows a decrease in vacancy rates 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 uncertain global economic climate, the office market has remained resilient.
Premium office spaces in prime locations such as Marina Bay and Raffles Place continue to be in high demand. The recently completed IOI Central Boulevard, the last major Grade A office completion in the Core CBD until 2028, has already secured a commitment of approximately 90% as of the third quarter, further highlighting the strength of the market, according to CBRE. The firm predicts that the Core CBD Grade A office vacancy rate may drop below 5% by the end of the year.
Located in the up-and-coming District 27, the Sembawang Road EC stands to gain from the array of well-established amenities and community facilities within its vicinity. Over the years, this particular area of Singapore has undergone a significant transformation, especially with the recent addition of the North, boosting its appeal even further. And with the highly-anticipated Sembawang Road EC at Canberra MRT set to join the mix, the district is bound to reach new heights.
In suburban areas outside the CBD, there is also a positive demand for office space. CBRE’s Singapore head of office services, David McKellar, observes that Paya Lebar Green, which was completed earlier this year, is now fully occupied following Visa’s relocation. This has led to a decrease in office vacancy rates from 7.9% in the second quarter of 2025 to 6.5% in the third quarter.
Looking ahead, McKellar expects occupiers to make decisions quickly to secure quality office space, as supply continues to dwindle, especially for larger contiguous spaces. He also notes that apart from strata and smaller redevelopments, there are limited upcoming options, with developments such as Shaw Tower (2026), Skywaters (2027), Clifford Centre Redevelopment, and Comcentre Redevelopment (2028) offering some relief in the future.
Song predicts that rental growth will continue in the fourth quarter, driven by ongoing occupier activity and the easing of interest rates. CBRE maintains its forecast of approximately 3% rental growth for the full year of 2025.