Singapore’s office market at the cusp of a bull run: CBRE
The Singapore office industry is seeing the start of a bull run, continuing a higher trajectory established over the last 3 quarters, says CBRE. Research study by the real estate consultancy discovered that gross effective leas for Grade A workplaces in the Core CBD expanded 0.8% q-o-q to $12.20 psf each month (psf pm) in 3Q2025, marking a 3rd successive quarter of growth.
Meanwhile, Song anticipates rental development in the last quarter to be supported by continued tenant activity, bolstered by easing interest. CBRE has actually kept its full-year office rental growth forecast of about 3% for 2025.
Premium workplace in city center locations like Marina Bay and Raffles Place continues to be in higher demand. IOI Central Boulevard, which is the last major Grade A conclusion in the Core CBD till 2028, has attained roughly 90% commitment since 3Q2025, further highlighting market strength, CBRE claims. The company believes the Core CBD Grade An office vacancy price might fall below 5% by the end of the year.
Looking in advance, McKellar anticipates tenants to accelerate decision-making to secure quality spot as stock continues to dwindle, particularly for big contiguous spaces. “Beyond strata and smaller redevelopments, upcoming alternatives are few, with Shaw Tower (2026 ), Skywaters (2027 ), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to provide some alleviation down the line,” he says.
The persistent growth is underpinned by durable inhabitant demand and securing supply, with CBRE data showing openings prices for Core CBD Grade An offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Despite the prevailing worldwide economic unpredictabilities, the market has actually demonstrated impressive strength,” mentions Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Outside the CBD, demand is even encouraging. “Paya Lebar Green, finished previously this year, is now completely taken up complying with Visa’s relocation that taken in the remaining space,” notes David McKellar, CBRE’s Singapore head of workplace companies. Therefore, office vacancy prices in decentralised locations have decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Office rents have now increased 2.1% since the begin of the year, with net absorption of approximately 510,000 sq ft, leaving out supply removed for redevelopment.
