Singapore’s office market at the cusp of a bull run: CBRE
The Singapore office industry is observing the start of a bull run, continuing a higher path developed over the last 3 quarters, says CBRE. Research by the real estate consultancy discovered that gross effective leas for Grade An office spaces in the Core CBD grew 0.8% q-o-q to $12.20 psf monthly (psf pm) in 3Q2025, marking a 3rd consecutive quarter of development.
The persistent development is underpinned by durable inhabitant need and tightening supply, with CBRE data showing openings rates for Core CBD Grade A workplaces tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Regardless of the prevailing international financial doubts, the market has actually shown exceptional resilience,” says Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Looking in advance, McKellar expects tenants to speed up decision-making to secure top-notch space as stock remains to diminish, specifically for big adjoining areas. “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 use some relief down the line,” he states.
Workplace leas have today expanded 2.1% since the beginning of the year, with net absorption of approximately 510,000 sq ft, leaving out stock removed for redevelopment.
Outside the CBD, interest is even motivating. “Paya Lebar Green, completed previously this year, is currently fully occupied following Visa’s relocation that absorbed the remaining spot,” notices David McKellar, CBRE’s Singapore head of workplace companies. As a result, office vacancy rates in decentralised places have actually reduced from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Meanwhile, Song anticipates rental growth in the last quarter to be assisted by continued occupier activity, bolstered by easing interest. CBRE has maintained its full-year office rental progress projection of about 3% for 2025.
Premium workplace in city center locations such as Marina Bay and Raffles Place continues to be in higher demand. IOI Central Blvd, that is the last major Grade A completion in the Core CBD till 2028, has actually achieved roughly 90% commitment since 3Q2025, additional underscoring market sturdiness, CBRE says. The firm believes the Core CBD Grade An office vacancy price could fall lower 5% by the end of the year.
