Office vacancy rises to 8.1% in Q1

Net absorption dropped to 0.08 million sq ft.

Office vacancy in Singapore rose to 8.1% in year-to-date (YTD) 2025, according to JLL.

This increase is due to the lower net absorption YTD at 0.08 million sq ft as well as the completion of Keppel South Central in February adding 0.6 million sq ft of office space,

In addition, gross effective rent stood at $11.60 per sq ft per month (psf pm), growing 1.5% year-on-year (YoY).

JLL noted that office supply will tighten from Q2 2025 to 2027, as CBD modifications and Strategic Development Investment Schemes may prompt more property owners to renovate, further reducing office stock.

“Despite recent global market sell-down, office demand should stay positive, driven by supportive government policies and businesses seeking to capitalise on Southeast Asia's growing need for wealth management, fintech, and AI solutions. Positive demand and limited new supply are expected to keep office rents and capital values on a stable to modest growth path over the next 12 months, barring any unforeseen economic shocks,” JLL said.