Archive for category: Misc

The latest research from real estate consultancies reveals that the rental prices for prime office spaces in Singapore continued to rise in the third quarter of 2025. According to JLL’s quarterly office market report, Grade A office rents in the Central Business District (CBD) increased by 1.3% quarter-on-quarter (q-o-q) to reach $11.83 per square foot per month (psf pm). This marks the largest quarterly growth in the past six quarters.

The higher growth rate can be primarily attributed to the addition of IOI Central Boulevard Towers to the list of properties monitored by JLL. Excluding this development, CBD office rents rose by slightly less than 1%, which is in line with the average growth rate of the past six quarters.

Dr. Chua Yang Liang, the head of research and consultancy for JLL Southeast Asia, notes that Singapore’s office market has been performing well, helped by strong economic fundamentals and a favorable interest rate environment.

In a separate report, Knight Frank’s research indicates that prime grade office rents in the areas of Raffles Place and Marina Bay recorded a q-o-q growth of 0.3% to hit an average of $11.41 psf pm in the third quarter of 2025. This is comparable to the 0.2% growth seen in the previous quarter, bringing total rental growth for the first nine months of the year to 0.4%.

Knight Frank’s report also found that the occupancy levels for office spaces in the Raffles Place and Marina Bay precinct remained unchanged at 94.7%. However, the overall occupancy rate for the CBD increased from 93.7% in the second quarter of 2025 to 94.2% in the third quarter.

The limited availability of office spaces, coupled with a cautious business environment, has resulted in most leasing activities being driven by lease renewals, according to Knight Frank. However, some occupiers are choosing to relocate to newer and better-quality buildings to right-size or expand their office space. Examples include tech company Zoom Communications relocating from Asia Square Tower to IOI Central Boulevard Towers, and quantitative trading firm Jane Street’s plan to expand its space in the latter.

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Looking ahead, JLL forecasts that rental growth for CBD Grade A office spaces will remain modest for the remainder of 2025, with a projected full-year growth of around 3%. Going into 2026, JLL predicts that office rental prices will pick up pace, supported by a tightening supply pipeline. Andrew Tangye, head of office leasing and advisory for JLL Singapore, comments, “As vacancy rates are projected to tighten between 2025-2027, whole-floor and multi-floor opportunities will become increasingly limited, potentially driving rental rates beyond some tenants’ budget parameters.”

Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, observes that selective upgrades to quality office spaces have resulted in a two-tier market where newer, well-connected buildings thrive, while older stock faces increasing vacancy pressure. With limited office space in the coming years, he expects quality buildings to remain almost fully occupied as more firms make flight-to-quality moves from older buildings. In contrast, older and poorly connected buildings will face increasing pressure for redevelopment or modernization.

Considering the uncertain global environment, Knight Frank anticipates that sentiment among office occupiers will remain cautious over the next six to 12 months. As such, the research company expects prime rental growth to stay flat in the last quarter of 2025 with some minor growth, and the same trend is likely to continue into the first half of 2026.