Singapore’s office market at the cusp of a bull run: CBRE
Workplace rentals have now grown 2.1% ever since the start of the year, with net absorption of approximately 510,000 sq ft, omitting supply removed for redevelopment.
Looking ahead, McKellar anticipates tenants to increase decision-making to protect top-notch spot as supply remains to dwindle, particularly for huge contiguous spaces. “Beyond strata and smaller sized redevelopments, upcoming choices are few, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to offer some alleviation down the line,” he says.
The persistent growth is underpinned by resilient occupier need and tightening 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. “In spite of the prevailing global financial uncertainties, the market has shown remarkable durability,” remarks Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Outside the CBD, need is also motivating. “Paya Lebar Green, completed previously this year, is now fully taken up following Visa’s relocation that absorbed the remaining space,” observes David McKellar, CBRE’s Singapore head of workplace services. Therefore, office vacancy prices in decentralised places have actually minimized from 7.9% in 2Q2025 to 6.5% in 3Q2025.
The Singapore workplace industry is seeing the beginning of a bull run, continuing an upward path developed over the last 3 quarters, says CBRE. Research by the realty consultancy found that gross effective leas for Grade A workplaces in the Core CBD grew 0.8% q-o-q to $12.20 psf per month (psf pm) in 3Q2025, noting a 3rd consecutive quarter of development.
Premium workplace in city centre locations such as Marina Bay and Raffles Place remains to be in high demand. IOI Central Boulevard, which is the last significant Grade A conclusion in the Core CBD up until 2028, has achieved about 90% commitment since 3Q2025, further emphasizing market stability, CBRE states. The firm thinks the Core CBD Grade A workplace vacancy rate might fall below 5% by the end of the year.
On the other hand, Song expects rental development in the last quarter to be sustained by continued occupant activity, bolstered by easing interest rates. CBRE has actually preserved its full-year business office rental development projection of about 3% for 2025.
