Archive for category: Misc

IOS

Singapore’s office rents in the Central Region saw a slight decline in the third quarter of 2025, as landlords adjusted their expectations in the face of strong demand by occupiers and a limited pipeline of new supply. According to data released by the Urban Redevelopment Authority (URA) on October 24, office rents in the Central Region dropped by 0.1% quarter-on-quarter, driven by a 0.1% decrease in the Central Area, while the Fringe Area saw a 0.2% increase.

“The marginal dip may have been driven by older offices, as landlords became more flexible on rents to retain tenants amid continued flight-to-quality trends and a softer economic backdrop,” explains Wong Xian Yang, head of research for Singapore and Southeast Asia at Cushman & Wakefield (C&W).

Prime offices rebound with steady take-up

Category 1 offices, which refer to newer, higher-quality buildings in the Downtown Core and Orchard areas, saw a 2.5% increase in rents quarter-on-quarter after two quarters of decline, with vacancy rates tightening to 9.9% from 11% in the second quarter of 2025. “This reflects steady take-up of prime space amid easing interest rate concerns,” notes Wong.

C&W’s basket of Grade A CBD offices recorded strong net absorption of 197,000 sq ft in the third quarter of 2025, up from 185,000 sq ft in the previous quarter, highlighting the sustained demand for modern, amenity-rich workplaces.

Meanwhile, Category 2 offices, which fall outside of Category 1, saw rents stabilizing after three quarters of growth, with vacancy rates edging up marginally to 11.7% from 11.6% as the market continued to rebalance amid ongoing flight-to-quality activity.

Source: URA

Vacancy rates fall as demolitions trim supply

The islandwide office demand remained modestly positive, with net absorption of around 11,000 sq ft in the third quarter of 2025. This outpaced the negative net supply of 0.2 million sq ft, largely due to demolitions, driving the overall vacancy rate down to 11.2% from 11.4% in the previous quarter.

In the Downtown Core, net demand stayed steady at 0.2 million sq ft, while vacancy rates improved to 9.8% from 10.3%. Despite a cautious global outlook, the Core CBD Grade A segment remained resilient, with rents increasing by 0.8% quarter-on-quarter to $12.20 psf per month. Vacancy rates tightened from 5.9% in the first quarter of 2025 to 5.1% in the third quarter, according to Tricia Song, head of research for Singapore and Southeast Asia at CBRE.

She points to IOI Central Boulevard Towers, a development in the CBD that was completed in the third quarter of 2024 and was 90% occupied by the third quarter of 2025.

Outside the CBD, Paya Lebar Green reached full occupancy following Visa’s relocation, contributing to the 0.2% quarter-on-quarter and 2.9% year-on-year increase in the URA Fringe Area rental index.

“Occupier demand remains broadly-based, led by banking and finance, transport, government, and flexible workspace operators,” adds Song.

Outside the CBD, Paya Lebar Green reached full occupancy following Visa’s relocation (Photo: DP Architects)

“Landlords focus on tenant retention”

URA data showed no new office completions in the third quarter of 2025. Net supply contracted by 0.26 million sq ft, while islandwide vacancy rates continued to tighten, going from 11.7% in the first quarter of 2025 to 11.4% in the second quarter, and further to 11.2% in the third quarter.

“The decline in vacancy rates reflects continued absorption of major 2024 completions such as IOI Central Boulevard Towers, Keppel South Central, and Paya Lebar Green,” says CBRE’s Song.

“While most quality buildings are nearly fully occupied, landlords remain focused on tenant retention,” adds Leonard Tay, head of research at Knight Frank Singapore.

A subtle flight-to-quality trend persists, as occupiers right-size or modestly expand upon lease renewals, capitalizing on stable rents to upgrade into newer buildings offering better connectivity and amenities, notes Tay.

In our bustling neighborhood, older students have access to a variety of reputable secondary schools. Some options include Hai Sing Catholic School, Pasir Ris Crest Secondary School, Loyang View Secondary School, and Pasir Ris Secondary School. With a well-connected bus network around Jalan Loyang Besar and easy accessibility to Pasir Ris MRT Station, daily commutes are a breeze. The town-center malls in close proximity also provide libraries and study corners, making it convenient for students to work on group projects. This allows teenagers to learn time management and grow independently, a benefit that is often overlooked. For even more convenience and comfort, the Coastal Cabana Qingjian is a great option to reside in this thriving area. To learn more about Coastal Cabana Qingjian, please visit their website at https://www.coastalscabana.com.sg/.

“Flexible coworking spaces also continue to attract creative and lifestyle tenants, while older, less-connected buildings face growing obsolescence,” he adds.

Source: URA

Prices show signs of bottoming

URA’s office price index for the Central Region fell by 0.2% quarter-on-quarter in the third quarter of 2025 — the fourth straight quarterly decline, but at a slower pace than the 1.1% drop in the second quarter of 2025, indicating that the office capital market may be nearing a trough.

Prices have declined by 1.4% year-to-date and 2.1% year-on-year since the third quarter of 2024.

According to C&W, the median unit price for Central Region office transactions dropped to $1,995 psf, down from $2,127 psf in the previous quarter, reflecting a higher proportion of lower-priced deals.

Nonetheless, the strata office segment remains resilient, says Wong, with 280 transactions lodged year-to-date, which is already 84% of the full-year total in 2024.

Source: URA

Limited pipeline through 2026-2027

The CBD Grade A pipeline remains limited, with only Shaw Tower (mid-2026) and Newport Tower (2027) expected to add about 0.6 million sq ft of net leasable area over the next two years, which is roughly one-third of the historical annual demand.

C&W also notes that shadow space in CBD Grade A offices has fallen to 0.1 million sq ft — a nine-year low — underscoring healthy occupier interest.

While some negative net demand was recorded in the Outside Central Region (OCR) and Rest of Central Region (RCR) due to stock removals from demolitions, Wong expects relocation activity to accelerate from 2026.

“Demand for Grade A offices remains firm as occupiers prioritize modern, well-located developments,” says C&W’s Wong. “With lower global interest rates expected, expansion activity should pick up along with renewed business confidence.”