Singapore office rents rise in Q2 with strong Core CBD demand

Vacancy in the Core CBD improved to 5.3% in Q2 from 5.9% in Q1, supported by strong leasing demand.

Singapore’s Grade A office rents in the Core CBD rose for a second straight quarter, increasing 0.4% QoQ to $12.10 per square foot per month in Q2, according to CBRE.

Vacancy in the Core CBD improved to 5.3% from 5.9% in the previous quarter, supported by strong leasing demand. Much of the excess supply was absorbed by IOI Central Boulevard Towers, which reached approximately 85% occupancy during the quarter.

CBRE highlighted that demand was driven by sectors such as insurance, asset and fund management, pharmaceuticals, and quant trading. Larger occupiers are moving quickly to secure premium space, with large, contiguous office units over 30,000 sq. ft. in short supply.

In the decentralised office market, rents remained stable despite a rise in vacancy—from 6.2% to over 7%—largely due to new completions like Labrador Tower and Paya Lebar Green. Leasing activity remains steady, with manufacturing and transport companies leading renewals for prime decentralised space.

On the investment front, total office transactions declined 35.3% quarter-on-quarter to $207.07m, though investor appetite remained focused on strata office floors and units.

One of the most notable deals was the sale of three floors at 108 Robinson Road for $55.76m, or $3,912 psf.

Despite the slowdown in deal volume, falling interest rates—SORA declined by nearly one percentage point to 2.1%—and Singapore’s safe-haven status are expected to sustain buying demand. CBRE anticipates continued competitive bidding for quality assets in the coming quarters.

Looking ahead, CBRE has revised its 2025 rental growth forecast to the upper end of the 2–3% range, citing constrained future supply. Most new office developments from now until 2029 will fall below historical averages and are primarily redevelopment-led