CBD leasing demand holds firm in Q3 with AI and fintech expansion

The vacancy rate held at 7.0%, whilst average gross effective rents stood at $11.83 per square foot per month.

Leasing demand in Singapore’s CBD office market remained resilient in Q3 2025, supported by continued expansion from sectors such as artificial intelligence and digital finance.

According to JLL, companies like Ripple, Jane Street, and Zoom contributed to healthy leasing activity during the quarter.

No new office completions were recorded in the quarter, and the forward supply pipeline remains limited.

Only a few projects—Shaw Tower, Solitaire on Cecil, and Newport Tower—are expected to be completed through 2027. In addition, 39 Robinson is set to re-enter the market in late 2026 after undergoing refurbishment.

CBD gross effective rents saw their fastest growth in six quarters, although this was largely attributed to the inclusion of the new IOI Central Boulevard Towers in the rental basket.

Excluding that addition, rents continued their steady trend, registering sub-1% growth for the sixth consecutive quarter. Capital values moved in tandem with rents, whilst yields remained stable.

Market fundamentals in the CBD showed year-to-date net absorption of 0.3 million square feet against 0.6 million square feet of new supply.

The vacancy rate held at 7.0%, whilst average gross effective rents stood at $11.83 per square foot per month. On a year-on-year basis, rents rose 2.9%, and the overall rental cycle was assessed as stable.

Looking ahead, JLL noted that persistent trade and geopolitical uncertainties are likely to keep expansion and relocation activity cautious for the remainder of 2025.

With IOI Central Boulevard Towers nearing full occupancy, whole-floor and multi-floor space options in high-quality buildings are becoming increasingly scarce. This tightening supply could accelerate both rental and capital value growth in 2026.