Singapore’s office market at the cusp of a bull run: CBRE
Premium office in city center locations such as Marina Bay and Raffles Place continues to be in higher demand. IOI Central Boulevard, that is the last major Grade A completion in the Core CBD up until 2028, has actually accomplished approximately 90% commitment since 3Q2025, more highlighting market stability, CBRE says. The company believes the Core CBD Grade A workplace vacancy rate could drop below 5% by the end of the year.
Outside the CBD, need is also motivating. “Paya Lebar Green, finished earlier this year, is currently totally occupied following Visa’s relocation that taken in the remaining spot,” notices David McKellar, CBRE’s Singapore head of office services. Therefore, workplace vacancy rates in decentralised locations have decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Looking in advance, McKellar expects occupiers to increase decision-making to protect top-notch place as stock remains to diminish, specifically for large 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 supply some relief down the line,” he claims.
Workplace rentals have now increased 2.1% since the beginning of the year, with net absorption of roughly 510,000 sq ft, omitting supply removed for redevelopment.
On the other hand, Song anticipates rental development in the last quarter to be sustained by continued occupant activity, bolstered by easing interest rates. CBRE has preserved its full-year office rental progress forecast of approximately 3% for 2025.
The Singapore business office market is viewing the start of a bull run, continuing an upward path developed over the last 3 quarters, says CBRE. Study by the real estate consultancy found that gross effective rental fees for Grade An office spaces in the Core CBD grew 0.8% q-o-q to $12.20 psf per month (psf pm) in 3Q2025, marking a third successive quarter of growth.
The persistent development is underpinned by resilient inhabitant need and securing supply, with CBRE information presenting vacancy prices for Core CBD Grade A workplaces tightening up from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Despite the prevailing global financial doubts, the marketplace has demonstrated remarkable durability,” mentions Tricia Song, CBRE’s head of research study for Singapore and Southeast Asia.
