SG ranks 9th in APAC flexible workspace demand growth in 2025

Enterprise demand supports flex uptake in a competitive office market.

Singapore recorded a 5% year-on-year (YoY) increase in flexible workspace demand in 2025, ranking ninth amongst Asia-Pacific cities, as occupiers adopted flexible models to balance access to premium space with greater agility, according to a report by The Instant Group.

The report said the city-state's growth was supported by strong enterprise demand, with businesses using flexible workspace as a strategic option in one of the region’s most competitive commercial property markets, where occupiers continue to weigh quality and flexibility against long-term lease commitments.

Across APAC, flexible workspace adoption accelerated in 2025 as companies of all sizes reassessed real estate strategies to support hybrid working, reduce operational risk and improve workforce accessibility, according to the press release.

Manila led the region with 51% YoY growth, driven by increased multinational and business process outsourcing demand. Sydney followed with 46% growth as companies decentralised into suburban and fringe business hubs, whilst Melbourne recorded 34% growth as businesses sought alternatives to long-term central business district leases.

Kuala Lumpur also posted 25% growth, supported by competitive operational and real estate costs, whilst Tokyo recorded 23% growth as dense urban conditions and long commutes drove demand for satellite and near-home workspaces. Shenzhen saw 19% growth as fast-scaling technology firms adopted agile and scalable workplace models.

Hyderabad recorded 9% growth, supported by its technology ecosystem and competitive real estate market, whilst Auckland posted 6% growth as corporates decentralised operations to reduce commute fatigue and strengthen talent access and retention. Taipei ranked tenth with 3% growth, driven by demand from SMEs and technology firms seeking flexible, short-term expansion options.

The report said flexible workspace continues to play a growing role across APAC as occupiers adjust workplace strategies in response to changing work patterns and business requirements.

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