Singapore’s Office Market Cusp Bull Run Cbre
According to CBRE, the office market in Singapore is experiencing a bull run, continuing its upward trend seen over the last three quarters. Research by the real estate consultancy reveals that in the Core CBD, gross effective rents for Grade A offices have grown by 0.8% q-o-q to reach $12.20 psf per month (psf pm) in the third quarter of 2025. This marks a third consecutive quarter of growth, with rents having grown by 2.1% since the beginning of the year. Additionally, there has been a net absorption of approximately 510,000 sq ft, excluding stock removed for redevelopment.
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The market’s consistent growth is driven by a strong demand for office space and a tightening supply. CBRE’s data shows that vacancy rates for Core CBD Grade A offices have decreased from 5.9% in 1Q2025 to 5.1% in 3Q2025. Despite global economic uncertainties, the market has remained resilient, according to Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Prime office space in city center locations like Marina Bay and Raffles Place remain highly sought after. The latest major Grade A office completion in the Core CBD, IOI Central Boulevard, has achieved approximately 90% commitment as of 3Q2025, further highlighting the strength of the market. CBRE believes that the Core CBD Grade A office vacancy rate may fall below 5% by the end of the year.
Outside of the CBD, demand for office space is also encouraging. Paya Lebar Green, which was completed earlier this year, is now fully occupied due to Visa’s relocation, which absorbed the remaining space. According to David McKellar, CBRE’s Singapore head of office services, the office vacancy rates in decentralized locations have decreased from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Looking forward, McKellar expects occupiers to expedite decision-making to secure quality space as supply continues to dwindle, especially for large contiguous spaces. He notes that beyond strata and smaller redevelopments, there are few upcoming options, with Shaw Tower (2026), Skywaters (2027), Clifford Centre Redevelopment, and Comcentre Redevelopment (2028) being the only options to offer some relief down the line.
Meanwhile, Song predicts that rental growth in the last quarter will be supported by continued occupier activity, boosted by easing interest rates. CBRE maintains its full-year office rental growth forecast of approximately 3% for 2025.