Office market resilient in Q4 2025 amidst tight occupancy

Strong demand keeps prime CBD offices nearly fully occupied.

The city-state’s office market remained resilient in the fourth quarter (Q4) of 2025 due to tight occupancy levels and stable demand, a Knight Frank Singapore report said.

Rents of Prime Grade office spaces in the Raffles Place/Marina Bay precinct showed continued growth, up 0.7% quarter-on-quarter (q-o-q) to $11.49 psf per month in Q4.

This translates to a 1.1% increase for the year as occupiers take a cautious approach to expansion, most opting to renew their current leases amid the ongoing economic uncertainty and often due to a lack of suitable relocation options.

Occupancy levels in the Raffles Place/Marina Bay precinct in Q4 rose to 95.7%, increasing 1.0 percentage points (pp) from the previous quarter and 2.1 pp year-on-year (y-o-y).

The overall central business district (CBD) occupancy also increased 0.7 pp q-o-q and 1.2 pp y-o-y to 94.9% in Q4 2025.

Demand for high-quality and well-located offices remained strong, with most quality buildings in the CBD nearly fully occupied.

Occupiers continued to show a clear preference for modern buildings over older stock, despite higher occupancy costs.

Co-working operators continue to be cautious on expansion as several new centres slated to open in 2026, including The Executive Centre’s expansion at Frasers Tower, JustCo’s THE COLLECTIVE at Labrador Tower, and The Great Room’s announced openings at Shaw Tower and Stamford Court.

The office market is expected to remain stable in 2026, with moderate annual rental growth of around 3% to 5%.

Demand is also likely supported by financial services and, potentially, a recovery in technology-sector leasing if global conditions improve, whilst Singapore’s position as a regional business hub continues to underpin occupier confidence.

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