Research by CBRE found that gross effective rents for Grade A offices in the Core CBD grew 0.8% q-o-q to $12.20 psf per month in 3Q2025 (Picture: Samuel Isaac Chua/The Edge Singapore)
The Singapore office market is seeing the beginning of a bull run, continuing an upward trajectory established over the last three quarters, says CBRE. Research by the real estate consultancy found that gross effective rents for Grade A offices in the Core CBD grew 0.8% q-o-q to $12.20 psf per month (psf pm) in 3Q2025, marking a third consecutive quarter of growth.
Office rents have now grown 2.1% since the start of the year, with net absorption of approximately 510,000 sq ft, excluding stock removed for redevelopment.
The persistent growth is underpinned by resilient occupier demand and tightening supply, with CBRE data showing vacancy rates for Core CBD Grade A offices tightening from 5.9% in 1Q2025 to 5.1% in 3Q2025. “Despite the prevailing global economic uncertainties, the market has demonstrated remarkable resilience,” remarks Tricia Song, CBRE’s head of research for Singapore and Southeast Asia.
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Premium office space in city centre locations such as Marina Bay and Raffles Place continues to be in high demand. IOI Central Boulevard, which is the last major Grade A completion in the Core CBD until 2028, has achieved approximately 90% commitment as of 3Q2025, further underscoring market strength, CBRE says. The firm believes the Core CBD Grade A office vacancy rate could fall below 5% by the end of the year.
Outside the CBD, demand is also encouraging. “Paya Lebar Green, completed earlier this year, is now fully occupied following Visa’s relocation that absorbed the remaining space,” observes David McKellar, CBRE’s Singapore head of office services. As a result, office vacancy rates in decentralised locations have reduced from 7.9% in 2Q2025 to 6.5% in 3Q2025.
Looking ahead, McKellar expects occupiers to accelerate decision-making to secure quality space as supply continues to dwindle, especially for large contiguous spaces. “Beyond strata and smaller redevelopments, upcoming options are few, with Shaw Tower (2026), Skywaters (2027), Clifford Centre Redevelopment and Comcentre Redevelopment (2028) on the horizon to offer some relief down the line," he says.
Meanwhile, Song expects rental growth in the last quarter to be supported by continued occupier activity, bolstered by easing interest rates. CBRE has maintained its full-year office rental growth forecast of about 3% for 2025.