Singapore’s Office Market Cusp Bull Run Cbre
CBRE reports that the Singapore office market is experiencing a strong bullish trend, building upon the positive momentum established in the past three quarters. The real estate consultancy’s research reveals that monthly gross effective rents for top-quality Grade A offices in the Core CBD have increased by 0.8% quarter-on-quarter (q-o-q) to reach $12.20 per square foot (psf) in 3Q2025. This marks the third consecutive quarter of growth for office rents, which have seen a total rise of 2.1% since the beginning of the year. Additionally, net absorption in the market has totaled approximately 510,000 square feet, excluding spaces that have been removed for redevelopment.
According to CBRE’s data, the continued growth in office rents can be attributed to strong demand from occupiers and a tightening supply. Vacancy rates for Grade A offices in the Core CBD have dropped from 5.9% in 1Q2025 to 5.1% in 3Q2025, indicating a steady increase in demand. “Despite the current global economic uncertainties, the Singapore office market has shown remarkable resilience,” says Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
Premium office spaces in prime locations such as Marina Bay and Raffles Place remain highly sought-after. For instance, IOI Central Boulevard, the latest Grade A development in the Core CBD, has already achieved a commitment rate of approximately 90% as of 3Q2025. This further highlights the strong demand for office spaces in the market. CBRE predicts that the vacancy rate for Grade A offices in the Core CBD could drop below 5% by the end of the year.
Outside the CBD, demand for office spaces remains encouraging as well. David McKellar, CBRE’s Singapore head of office services, notes that Paya Lebar Green, which was completed earlier this year, is now fully occupied after Visa relocated to occupy the remaining space. This has caused vacancy rates in decentralised locations to decrease from 7.9% in 2Q2025 to 6.5% in 3Q2025.
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Looking ahead, McKellar anticipates that occupiers will move quickly to secure quality office spaces as supply continues to diminish, especially for larger contiguous spaces. “Apart from strata and smaller redevelopments, there are few upcoming options. However, we can expect some reprieve in the future with the completion of developments such as Shaw Tower (2026), Skywaters (2027), Clifford Centre Redevelopment, and Comcentre Redevelopment (2028),” he adds.
In the meantime, Song believes that rental growth in the last quarter will be sustained by robust occupier activity, further bolstered by falling interest rates. CBRE maintains its initial forecast of a 3% rental growth for the entire 2025.