Singapore’s office market is experiencing a bullish phase, with Q3 2025 marking the third consecutive quarter of rental growth, according to CBRE Research. Gross effective rents for Core CBD (Grade A) offices increased by 0.8% quarter-on-quarter to $12.20 per square foot per month, driven by strong occupier demand and a tightening supply.
Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, highlighted the market’s resilience despite global economic uncertainties. Vacancy rates in the Core CBD have decreased from 5.9% in Q1 2025 to 5.1% in Q3 2025, indicating sustained leasing momentum. The IOI Central Boulevard development, the last major Grade A completion until 2028, achieved approximately 90% commitment by Q3.
Neighbouring submarkets such as Marina Centre and Beach Road/City Hall are also performing well, with less than 3% of space available. David McKellar, CBRE Head of Office Services, noted that sectors like banking, finance, and government are leading occupier activity. Outside the CBD, Paya Lebar Green is fully occupied following Visa’s relocation, reducing vacancy rates in decentralised locations from 7.9% in Q2 to 6.5% in Q3.
The market recorded a net absorption of approximately 510,000 sq. ft. from Q1 to Q3, with office rents growing 2.1% year-to-date. Looking ahead, the supply pipeline remains limited, prompting occupiers to secure quality space swiftly. CBRE maintains its 2025 rental growth forecast of around 3%, with potential upside as interest rates ease.
In the investment market, Q3 2025 office deals surged seven-fold to $1.794b, with the largest transaction being the 55% stake sale of CapitaSpring for $1.045b. Michael Tay, CBRE Deputy Managing Director, noted the sector’s positive sentiment, driven by rent growth and limited future supply. Investment momentum is expected to remain strong through the year.
