Singapore’s office rental landscape presented a mixed picture in Q3 2025, with the Urban Redevelopment Authority (URA) reporting a 0.1% quarter-on-quarter decline in the Central Region’s office rents, marking a second consecutive quarterly drop. However, Prime Central Business District (CBD) office spaces bucked the trend, recording a 2.5% increase in median rents, attributed to a flight to quality and tightening supply.
The URA data revealed that the vacancy rate for Category 1 office buildings, which includes modern and high-rental spaces, decreased to 9.9% from 11.0% in Q2 2025. Meanwhile, Category 2 office buildings saw unchanged rents with a slight vacancy increase to 11.7%. CBRE Research noted a 0.8% rise in Core CBD (Grade A) rents, with vacancy rates dropping to 5.1% in Q3 2025.
Tricia Song, CBRE Head of Research for Southeast Asia, highlighted that occupier demand remains broad-based, driven by sectors such as banking, finance, and flexible workspace operators. Notably, Paya Lebar Green achieved full occupancy following Visa’s relocation, contributing to a rental index increase in the Fringe Area.
Looking ahead, CBRE Research anticipates a continued positive momentum into Q4, forecasting a full-year rental growth of around 3% for 2025. The tight supply environment is expected to prompt occupiers to accelerate leasing decisions, with limited new supply and low vacancy supporting market resilience into 2026.
