Singapore’s office market at the cusp of a bull run: CBRE

Premium workplace in city center locations like Marina Bay and Raffles Place continues to be in high demand. IOI Central Blvd, that is the last major Grade A conclusion in the Core CBD until 2028, has accomplished roughly 90% commitment since 3Q2025, more underscoring market stability, CBRE states. The firm believes the Core CBD Grade An office vacancy price could fall lower 5% by the end of the year.

Office leas have now expanded 2.1% because the begin of the year, with net absorption of roughly 510,000 sq ft, omitting supply removed for redevelopment.

Outside the CBD, demand is also motivating. “Paya Lebar Green, finished earlier this year, is now fully filled complying with Visa’s relocation that taken in the remaining spot,” notices David McKellar, CBRE’s Singapore head of workplace companies. As a result, workplace vacancy prices in decentralised places have actually decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.

Meanwhile, Song expects rental development in the last quarter to be assisted by continued tenant activity, bolstered by easing interest. CBRE has preserved its full-year business office rental expansion projection of approximately 3% for 2025.

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Looking forward, McKellar anticipates tenants to speed up decision-making to protect premium spot as stock continues to diminish, particularly for large contiguous areas. “Beyond strata and smaller redevelopments, upcoming options are few, 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.

The Singapore business office industry is viewing the beginning of a bull run, continuing a higher path established over the last three quarters, states CBRE. Research by the real estate consultancy found that gross effective rents for Grade An office spaces in the Core CBD grew 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, noting a third consecutive quarter of development.

The persistent growth is underpinned by resilient inhabitant need and securing supply, with CBRE information showing openings rates for Core CBD Grade An offices tightening up from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Despite the dominating worldwide financial doubts, the market has shown exceptional strength,” remarks Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.