Cushman & Wakefield’s latest MarketBeat report reveals that Singapore’s office and retail sectors experienced rental growth in the third quarter of 2025. CBD Grade A office rents increased by 0.5% as vacancy rates fell to 4.7% from 5.2% in the previous quarter, driven by tighter supply and a persistent flight to quality. Meanwhile, prime retail rents in Orchard and other city areas rose by 0.3%, supported by demand from new-to-market brands and resilient non-discretionary spending.
The report highlights that lower interest rates and Singapore’s advantageous tariff position in the Asia-Pacific region could bolster occupier confidence, potentially leading to more relocations. This is further supported by the ongoing trend of flight-to-quality moves and displacement from office redevelopments. “We remain optimistic that relocation activity will pick up over the next 12 months,” the report states, indicating a positive outlook for the office market.
In the retail sector, the entry of international brands such as Yo-Chi and Joocyee has contributed to the growth in prime retail rents. Suburban prime mall rents also saw a 0.3% increase, with low vacancy rates and steady non-discretionary spending playing a significant role. The limited pipeline of new retail projects, with islandwide additions from 2026 to 2029 averaging less than half the 10-year norm, is expected to support rental growth.
Looking ahead, the report anticipates continued rental growth in both sectors, with CBD Grade A office rents projected to rise into 2026 as supply tightens further. Similarly, prime retail rents are expected to remain robust due to the limited supply of new projects.
