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Stricter Return-to-Office rules sweep APAC as 82% of employers enforce penalties: CBRE survey
By Cecilia Chow | August 28, 2025

More companies now require employees to be in the office three to five days a week, rising to 76% this year from 70% in 2024 (Photo: Albert Chua/The Edge Singapore)

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As the Asia Pacific (APAC) region emerged from the pandemic, many employers initially adopted lenient return-to-office (RTO) policies. While companies set in-office work targets, enforcement was often light. That has changed in 2025.

CBRE’s 2025 Asia Pacific Office Occupier Survey, released on Aug 28, shows a marked shift towards stricter enforcement. Around 82% of respondents now impose consequences for non-compliance with RTO protocols, up from 66% last year. Half (50%) of respondents link attendance directly to performance reviews, compared to 29% in 2024.

However, in markets such as Australia and Singapore, government policies still protect employees’ rights to flexible work arrangements if certain criteria are met.

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Stricter enforcement of RTO

More companies now require employees to be in the office three to five days a week, rising to 76% this year from 70% in 2024. Actual attendance has reached 74%, closely tracking expectations (73% in 2024).

This narrow gap suggests that office culture is more entrenched in APAC than elsewhere. By comparison, CBRE’s 2025 Americas Office Occupier Survey shows a 7-percentage-point gap between expectations (77%) and actual attendance (70%). In APAC, the divergence is only two points, indicating relatively successful enforcement.

Some 62% of respondents say office attendance has reached a “steady state,” while 34% (up from 32% last year) expect office usage to rise further.

Acceptance of the current state of office attendance by overall and selected industries

The finance sector saw the biggest shift, with 34% of respondents expecting greater office use (up 9 points from 2024), as global banks resume five-day office weeks and tie attendance to reviews.

By contrast, expectations in the technology, media and telecom (TMT) sector fell to 38% from 50%. Amid AI- and robotics-driven innovation, tech firms believe that in-person collaboration in the office is essential.

Smaller firms drive demand growth

Office utilisation continues to improve. 55% of occupiers now achieve peak utilisation above 80%, up 12 points year-on-year. Average utilisation above 80% was recorded by 28% of occupiers, a 7-point increase.

Read also: Asia Pacific full-year investment volume to grow 10% to 15% in 2025: CBRE

Expansion appetite has stabilised since 2022. This year, 42% of respondents expect to increase office space in the next three years, while 31% foresee no change.

Expansionary demand for occupiers of different sizes over the next three years

Growth is being driven by smaller firms (fewer than 1,000 employees), with 48% planning expansion. Leading sectors include finance (asset management, family offices, and private equity), legal, and tech start-ups, particularly those related to AI.

Meanwhile, larger corporations, especially in tech and finance, continue to consolidate their portfolios and focus on efficiency under stricter RTO regimes.

Demand for CBD space remains strong, with 65% of occupiers preferring CBD core areas. However, vacancy in CBD core areas remains tight, with most availability concentrated in non-core locations (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Preference for CBD locations

Demand for CBD space remains strong, with 65% of occupiers preferring CBD core areas and 32% favouring CBD fringe. Fewer than 30% are open to non-CBD sites. However, vacancy in CBD core areas remains tight, with most availability concentrated in non-core locations.

“Securing quality CBD space has become increasingly competitive across Asia Pacific,” says Tom Gaffney, CBRE’s head of leasing, Asia Pacific. “Success requires proactive planning and innovative leasing strategies that balance cost pressures with the needs of a dynamic workforce.”

‘Flight to quality’ continues

While rental costs remain a key consideration, occupiers are increasingly prioritising workplace quality to attract staff back and boost productivity. This shift reflects the ongoing “flight to quality” trend.

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Amenities such as F&B and lifestyle offerings (62%) and shorter commuting times (42%) are gaining importance, underscoring how employee experience has become central to real estate decisions.

Factors influencing decisions to relocate to new offices

To deliver this, companies are targeting buildings that combine location with features that elevate staff engagement. These include:

Consequently, landlords could consider refurbishing dated office spaces to improve building quality, focusing on sustainability, wellness, and digital features. They could also enhance building services that support different modes of working, such as flexible layouts and collaborative spaces.

“Occupiers are balancing expansion, efficiency, and employee engagement against economic uncertainty,” says Ada Choi, CBRE’s head of research, Asia Pacific. “This is shaping a complex, evolving real estate landscape that demands flexible, forward-looking approaches.”


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