Tight supply, lower interests drive Grade A office rents up 2.4% in 2025

A more decisive occupier activity was seen during the year.

CBD Grade A office rents in Singapore rose 2.4% year on year in 2025, compared with 1.7% in 2024, as the scarce supply and lower interest rates encourafed "more decisive occupier activity."

Gross effective rents increased 0.7% quarter on quarter in Q4 to $11.21 per square foot per month. Vacancy rates fell to 4.4% from 4.7% in Q3, data from Cushman & Wakefield showed.

Net demand for CBD Grade A space reached 700,000 square feet in 2025, down from 900,000 square feet in 2024. "This was largely due to the amount of new Grade A office supply, which came up to only 0.6 msf in 2025, against 1.3 msf in 2024."

Leasing activity was concentrated in IOI Central Boulevard Towers and Keppel South Central. Vacancies declined across older CBD buildings as tenants relocated.

Marina Bay recorded a vacancy rate of 3.4% and average rents of $12.93 psf. Raffles Place posted rents of $11.36 psf with vacancies at 4.7%. Shenton Way/Tanjong Pagar recorded a vacancy rate of 10.7%.

Decentralised office rents rose 0.4% QoQ in Q4. Vacancies eased to 4.7%. Full-year rental growth was 1.3%, down from 1.7% in 2024.

CBD Grade A supply is expected to remain limited, with 400,000 sq. ft. due in 2026 and 200,000 sq. ft. in 2027, compared with average annual net demand of 900,000 sq. ft.

GDP growth is forecast at 1%–3% in 2026. Lower interest rates and low unemployment are expected to support office demand.

Recent leasing deals included Adyen leasing 40,000 sq. ft. at Shaw Tower and Moody’s relocating to Marina Bay Financial Centre Tower 2. A one-third stake in Marina Bay Financial Centre Tower 3 was sold for $1.45b in Q4.

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