Singapore’s Central Business District (CBD) office market concluded 2025 on a strong note, with Core CBD Premium and Grade A rents increasing by 0.8% quarter-on-quarter to S$11.82 per square foot, according to Colliers Singapore’s Q4 2025 Office Insights and Outlook report. The vacancy rate tightened to 4%, reflecting a robust demand amidst a limited supply pipeline, with no new Grade A completions expected until 2027.
The report highlights that average capital values rose to S$3,100 per square foot, whilst net yields declined to 3.6%. This trend is supported by a significant transaction involving a 33% stake in MBFC Tower 3, which was sold at S$3,268 per square foot. Bastiaan van Beijsterveldt, Managing Director of Colliers Singapore, noted, “Momentum in Singapore’s office market is set to persist, underpinned by tight CBD supply, resilient enquiry, solid economic fundamentals, and a more conducive interest-rate backdrop.”
The limited availability of high-quality office space is expected to favour landlords, with rental growth projected at 2–4% in 2026. Redevelopment activities under the CBD Incentive and Strategic Incentive schemes are anticipated to continue, creating displacement demand as older assets are modernised.
Catherine He, Head of Research at Colliers Singapore, stated, “Singapore’s pro-business policies and neutral geopolitical stance continue to underpin baseline demand, even as global uncertainties temper expansion plans.” The ongoing interest in core CBD assets is further evidenced by Hongkong Land’s announcement of a private real estate fund seeded with prime Singapore offices.
As the market remains tight, occupiers are advised to plan early to secure space, whilst landlords are encouraged to offer flexible leasing options to accommodate tenant growth.
