Office rents in Singapore’s Central Business District (CBD) have remained stable in the second quarter of 2025, despite global economic uncertainties. This stability is attributed to low vacancy rates and a limited pipeline of new office supply, according to Savills’ latest report.
Leasing activity in premium office buildings saw a notable increase during this period, driven by tenant relocations and a sustained interest in high-quality office spaces. Although there were no block transactions, the strata sales market experienced a significant uptick, with deals rising from three in the first quarter to eleven in the second quarter. This surge doubled the total value of strata investment sales, indicating renewed investor interest in smaller-scale office assets.
Savills’ data shows that the vacancy rate for CBD Grade A offices declined for the second consecutive quarter, dropping 0.7 percentage points to 7.0%. Grade A offices saw the steepest decline, with vacancy rates falling 1.0 percentage points to 6.2%.
The average monthly rent for CBD Grade A offices increased by 0.3% to S$9.86 per square foot, marking the fifth consecutive quarter of growth. However, this represents a slight moderation from the 0.4% growth recorded in the first quarter.
Looking ahead, Savills anticipates that the impact of regional tariffs may cause businesses to delay taking up space. However, as tariffs are negotiated down, rents for CBD Grade A offices are expected to remain flat in 2025, with a projected rise of 2% in 2026.
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