Singapore’s office market at the cusp of a bull run: CBRE
The Singapore business office industry is seeing the start of a bull run, continuing an upward path developed over the last three quarters, claims CBRE. Research by the real estate consultancy found that gross effective leas for Grade An offices in the Core CBD grew 0.8% q-o-q to $12.20 psf per month (psf pm) in 3Q2025, noting a third consecutive quarter of growth.
Meanwhile, Song expects rental development in the last quarter to be supported by continued occupier activity, bolstered by easing interest. CBRE has actually preserved its full-year workplace rental growth forecast of approximately 3% for 2025.
Premium workplace in city centre locations like Marina Bay and Raffles Place remains to be in high need. IOI Central Boulevard, that is the last significant Grade A conclusion in the Core CBD till 2028, has actually achieved approximately 90% commitment since 3Q2025, more emphasizing market sturdiness, CBRE states. The firm believes the Core CBD Grade A workplace vacancy price could drop lower 5% by the end of the year.
The persistent development is underpinned by durable occupier demand and securing supply, with CBRE data presenting vacancy prices for Core CBD Grade A workplaces tightening up from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the prevailing global economic doubts, the marketplace has demonstrated exceptional strength,” remarks Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
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Workplace rentals have today increased 2.1% ever since the beginning of the year, with net absorption of about 510,000 sq ft, omitting supply got rid of for redevelopment.
Outside the CBD, need is even motivating. “Paya Lebar Green, completed earlier this year, is now completely taken up complying with Visa’s relocation that absorbed the remaining spot,” notes David McKellar, CBRE’s Singapore head of office services. Because of this, workplace vacancy rates in decentralised locations have actually lowered from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Looking in advance, McKellar expects occupants to speed up decision-making to protect top-notch place as supply remains to dwindle, especially for huge contiguous areas. “Beyond strata and smaller redevelopments, upcoming choices are several, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to use some alleviation down the line,” he states.
