Singapore office rents steady in Q1

The city’s vacancy rate inched up to 5%, reflecting a slight cooling in demand amid cautious sentiment.

Singapore’s prime office rents remained flat in the first quarter of 2025 at $11.36 per square foot per month, according to the latest Asia-Pacific Office Highlights report by Knight Frank.

The city’s vacancy rate inched up to 5%, reflecting a slight cooling in demand amidst cautious sentiment.

Despite the softening, market conditions remain balanced, with neither landlords nor tenants holding a clear upper hand. Businesses are increasingly exploring cost-neutral strategies, including right-sizing operations and moving into more modern, efficient office spaces.

“Rents in Singapore were unchanged quarter-on-quarter, as occupiers are increasingly considering cost-neutral options that include right-sizing and moving to more modern office facilities,” the report noted.

Singapore's broader economic indicators remain stable, with GDP growth forecast at 2.5% for 2025, unemployment at a low 1%, and inflation projected at 1.5%. These fundamentals continue to support the office market, even as firms remain cautious with long-term commitments.

Looking ahead, Knight Frank projects rental levels to stay largely unchanged over the next 12 months, as occupiers weigh quality upgrades against tighter cost controls.