Singapore’s Central Business District (CBD) office rents remained stable in the second quarter of 2025, according to Savills Singapore, with the City Hall submarket emerging as a standout performer. Whilst the overall CBD market held steady, City Hall recorded a 1.1% quarter-on-quarter rental increase, the highest since Q2 2023, and achieved the lowest vacancy rate at 2.2%.
The City Hall submarket’s strong performance reflects a sustained demand for centrally located, high-specification office spaces. Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore, noted, “We’re seeing a game of musical chairs play out among occupiers. Tenants are moving but not necessarily expanding.”
Across the CBD, Grade A office rents rose by 0.3% quarter-on-quarter, marking the fifth consecutive quarter of growth, albeit at a moderated pace compared to the previous quarter’s 0.4% increase. The overall vacancy rate for Grade A offices declined by 0.7 percentage points to 7%, driven by improved take-up in selected buildings.
Micro-market performance varied, with Marina Bay and Tanjong Pagar experiencing increased vacancy rates due to new developments, whilst Orchard Road maintained a tight vacancy rate of 1.6%. The recent US tariffs have introduced caution among businesses, impacting leasing decisions, with many opting to renew existing leases or downsize.
Looking ahead, the redevelopment of Shaw Tower will add over 400,000 square feet of new office space to the CBD, significantly less than recent additions. Despite global trade tensions, Savills forecasts a gradual return of leasing momentum, with CBD Grade A office rents expected to grow by 2% per annum in 2026 and 2027.
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