Singapore’s property market displayed a mixed performance in Q2 2025, according to CBRE Research’s analysis of the Urban Redevelopment Authority’s (URA) latest statistics. The office sector experienced a slight decline, with the URA Office Rental Index for the Central Region dropping by 0.3% quarter-on-quarter (q-o-q), reversing the previous quarter’s increase. Category 1 office spaces saw a 3.2% decline in median rental rates, despite a reduction in vacancy rates from 11.7% to 11.0%, attributed to the absorption of space at IOI Central Boulevard Towers.
Conversely, Category 2 office spaces recorded a 2.7% increase in median rents, marking the third consecutive quarterly rise. CBRE noted that the Core CBD Grade A segment continued to see rent growth, with a 0.4% q-o-q increase, as businesses prioritised premium spaces. Tricia Song, CBRE Head of Research, Southeast Asia, highlighted the ongoing global economic uncertainties influencing these trends.
In the retail sector, rents in the Central Region rose by 0.9% q-o-q, reversing a previous decline. However, the islandwide private retail market faced negative net absorption, with vacancy rates increasing to 7.0%. Despite challenges, certain sectors, including food and beverage, showed expansion, with brands like Pizza Studio Tamaki and Huggs leading demand.
The residential market saw private housing prices rise by 1.0% q-o-q, driven by a 2.2% increase in landed property prices. Non-landed properties experienced uneven growth, with the Core Central Region (CCR) leading with a 3.0% increase. The rental index for private residential properties rose by 0.8% q-o-q, indicating a recovery from the previous year’s correction.
Looking ahead, CBRE anticipates continued growth in the office and retail sectors, supported by limited new supply and Singapore’s stable business environment. The residential market is expected to see improved sales with more launches in the second half of 2025.
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