Colliers International has revealed in its Q3 2025 Singapore Office Market Report that Core CBD Premium and Grade A office rents have increased by 0.2% quarter-on-quarter, reaching $8.60 (S$11.73) per square foot. This growth is attributed to a sustained demand for quality spaces and fitted offices, despite a backdrop of global economic uncertainty.
The report highlights that average capital values have remained stable at $2,236 (S$3,050) per square foot, underscoring Singapore’s appeal as a safe-haven for investors. The lack of new supply until 2027 is expected to support continued rental growth, albeit at a measured pace.
Bastiaan van Beijsterveldt, Managing Director of Colliers Singapore, noted, “Cautious sentiment and slower leasing activity suggest demand will remain subdued in the near term. Landlords should adopt proactive strategies such as offering flexible spaces, enhanced amenities, and speculative fit outs to retain tenants and capture interest.”
Tenant enquiries and inspection activities have slowed, reflecting a cautious approach amid persistent macroeconomic uncertainties. However, occupiers with upcoming lease expiries are beginning their reviews earlier, with some exploring fitted solutions to manage costs.
Looking ahead, Colliers anticipates that office demand may taper towards the end of 2025 as companies consolidate their footprints following restructuring efforts. Despite this, Singapore’s stability and government initiatives to bolster its position as a hub for commodities trading, digital industries, and financial services are expected to sustain premium rents and attract multinational firms.
Catherine He, Head of Research at Colliers Singapore, added, “Easing interest rates have created a positive spread for investors, whilst higher rents are motivating some occupiers to own rather than lease. Despite limited repricing, Singapore offices remain attractive for their safe-haven status and steady yields.”
