Singapore leads APAC in office demand growth for H1 2025

Singapore led Asia Pacific in office demand growth during H1 2025, registering a 12-fold YoY increase.

Demand for Grade A office space in Singapore is being reshaped by a structural shift toward flexible, sustainable, high-quality buildings, according to the latest APAC Office Market Insights H1 2025 report by Colliers.

With no new completions in the first half of the year and sustained interest from ESG-conscious occupiers, the city’s office market is expected to tighten further in H2 2025.

Colliers projects upward rental pressure across the prime segment, whilst vacancy levels are likely to remain stable or fall slightly, driven by limited availability and high absorption in premium buildings.

Singapore led Asia Pacific in office demand growth during H1 2025, registering a 12-fold YoY increase. The city’s vacancy rate held steady at 5.3%, one of the lowest in the region, whilst average monthly rents hit US$97 per sqm, the highest across APAC markets.

Although 0.65 million sqm of new supply is in the pipeline, no new inventory was completed during the first half of the year, further intensifying the supply-demand imbalance. Colliers expects this shortage to fuel further rental gains in the second half of 2025.

In the broader APAC context, Singapore was identified as a key growth market alongside Japan and the Philippines, but it outpaced all others in percentage growth.