Prime office rents edge up 0.3% in Q3

Knight Frank also noted sustained demand for flexible workspace.

Prime Grade office rents in the Raffles Place/Marina Bay precinct averaged S$11.41 per sq ft per month in Q3 2025, up 0.3% QoQ, whilst overall CBD occupancy rose 0.5 percentage points to 94.2%, according to Knight Frank Research.

Prime rents were up 0.4% in the first nine months of 2025 as landlords prioritised tenant retention.

Knight Frank said market activity remained “cautious,” with many occupiers opting to renew rather than expand or relocate amid uncertainty and tight availability. Occupancy in Raffles Place/Marina Bay was steady at 94.7% for the quarter.

The consultancy highlighted a measured flight-to-quality, with cost-neutral, right-sizing moves into newer assets when leases expire—contributing to a two-tier market in which newer, well-connected buildings outperform older stock.

Precinct-level data showed Grade A+ rents in Raffles Place/Marina Bay at $12.25–$12.75 (0.3% QoQ) with 5.5% vacancy, and Grade A at $10.30–$10.80 (0.3% QoQ) with 5.0% vacancy. Shenton Way/Robinson/Tanjong Pagar Grade A vacancy tightened most, to 8.4% (-4.3 ppt).

Knight Frank also noted sustained demand for flexible workspace, citing The Great Room’s planned around 30,000 sq ft opening at Stamford Place, and named moves such as Zoom relocating to IOI Central Boulevard Towers and Jane Street planning expansion there.

On supply, the firm estimates around 3.5 million sq ft (GFA) of new CBD space from H2 2025–2029, with a near-term lull until a wave of completions in 2028 (including Clifford Centre and Singtel Comcentre redevelopments and The Skywaters).

With quality buildings “almost fully filled,” Knight Frank expects flat to marginal prime rental growth into late 2025 and H1 2026, as occupier movements are led by selective upgrades and older assets face pressure to modernise or redevelop.