Singapore Office Q2 2025: Steady leasing momentum amid subdued investment activity

Singapore’s office market held steady in Q2 2025, as tight supply and selective demand supported rents across the Core CBD. Most consultancies — Colliers, CBRE, Cushman & Wakefield, Savills, Knight Frank and Newmark — reported marginal rental growth and easing vacancy in the Grade A segment.

Colliers noted that Core CBD Premium and Grade A rents rose 0.3 % q-o-q to S$11.71 psf, describing continued momentum despite cautious sentiment. Cushman & Wakefield recorded a stronger 0.6 % increase, with vacancy tightening to 5.2 %, while Savills highlighted a fifth straight quarter of rental growth and vacancy around 7 %.

CBRE’s reading, based on the broader URA office rental index, showed a 0.3 % decline in the Central Region but still characterised the market as “resilient.” The variance largely reflects different baskets: private-sector indices track premium CBD towers, whereas URA data includes older and fringe assets.

Vacancy across Core CBD offices now stands between 5 % and 7 %, supported by ongoing take-up from financial and professional-services tenants. With few new completions before 2027 — aside from Keppel South Central — landlords have retained some pricing power, though incentives remain deal-specific.

Capital values were broadly unchanged. Colliers placed average CBD values at about S$3,050 psf, while CBRE’s URA office price index slipped 1.1 % q-o-q. Investment activity stayed muted: CBRE reported office transactions down 35 % to roughly S$280 million. Cushman & Wakefield’s all-sector MarketBeat, however, showed an 8.9 % increase in total real-estate investment to S$7 billion, led by mixed-use and industrial assets — indicating selective but improving capital flows.

Most brokerages expect full-year 2025 rental growth of 0–2 %, underpinned by limited new supply and steady replacement demand. As CBRE observed, the market “continues to demonstrate resilience,” even as higher costs and global uncertainty temper growth expectations.

Sources: Colliers, Singapore Office Market Report Q2 2025; CBRE, Singapore Figures Q2 2025; Cushman & Wakefield, MarketBeat Q2 2025; Savills, Singapore Office Briefing Q2 2025; Knight Frank; Newmark.