Singapore’s Central Business District (CBD) Investment Grade office spaces continue to attract corporate relocations, even as the broader market faces macroeconomic and geopolitical challenges, according to a JLL report. In Q2 2025, Audi Singapore relocated its office from Aperia to Capital Square and its showroom to 18 Cross Street. Simultaneously, SMBC is reportedly negotiating to move its back office operations to Capital Square from Changi Business Park.
The office market is experiencing a supply constraint, with no new developments expected for the remainder of the year. The withdrawal of 39 Robinson for refurbishment and conversion to serviced flats further tightens supply. From H2 2025 to 2027, only three new office completions are anticipated: Shaw Tower, Solitaire on Cecil, and Newport Tower. Additionally, tenants at 79 Anson have been notified to vacate by mid-2026 for redevelopment.
CBD office rents have shown modest growth, marking the fifth consecutive quarter of sub-1% quarter-on-quarter increases. Capital values have remained stable, with economic uncertainties and tight spreads between office yields and interest rates keeping institutional investors cautious.
Looking ahead, the limited supply pipeline is expected to support stable to modest growth in rents and capital values over the next 12 months, barring unforeseen shocks. Landlords are likely to enhance their assets with modernised facilities to remain competitive and prepare for market recovery.
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