Singapore CBD Grade A office vacancy stable at 7% in Q3

Find out more about office demand and vacancy.

From data compiled by Savills, after decreasing for two consecutive quarters, the vacancy rate of CBD Grade A offices remained unchanged at 7.0% in Q3/2025. However, on a YoY basis, vacancy rates continued to grow by 0.9 of a ppt.

“While vacancy rates of Grade AAA and A offices declined by 1.1 ppts and 0.3 of a ppt to 7.3% and 5.9% respectively in the quarter, there was an offset from the increase of 1.5 ppts in vacancy rates of Grade AA offices to 7.6%, which was primarily led by the inclusion of the newly completed Keppel South Central into the office stock, the report said. Excluding Keppel South Central, vacancy rates of Grade AA offices would have contracted significantly by over 2.0 ppts.

Here’s more from Savills:

For the premium Grade AAA offices, the decline would have been the third consecutive quarter of decrease. Almost all the buildings in the Grade AAA office stock recorded improvements in occupancies, with companies adopting a “flight-to-quality” posture.

In a similar light, the vacancy rate of Grade A offices contracted for the fourth consecutive quarter and the vacancy of 5.9% was the lowest since Q2/2020 when it was 4.9%. On the other hand, the increase in vacancy rates for Grade AA offices came after two consecutive quarters of decline, as tenants are still gradually moving into Keppel South Central, which obtained TOP in Q1/2025. Excluding this development, buildings which had significant vacant space were seeing them gradually being backfilled from tenants relocating in search of more economical rents.

Capital Square, for instance, had a large amount of the space left vacant by Amazon and Morgan Stanley re-filled. The vacancy rate at the office building improved with new tenants such as Quantedge Capital, Audi Singapore and Sumitomo Mitsui Banking Corporation (SMBC) stepping in.

As such, for the overall CBD Grade A office market, net demand remained in positive territory for the fourth consecutive quarter, improving to 525,000 sq ft in Q3/2025 from the 245,000 sq ft in Q2/2025.
The vacancy rate for CBD Grade A offices improved across all micro-markets, except for Tanjong Pagar, which saw a rise to 25.3% due to the inclusion of Keppel South Central into the office stock. It should be noted that the vacancy rate in the area would have fallen should Keppel South Central be excluded in the computation. With tenants continuing to move into the building, vacancy rates are expected to reduce and stabilise in the next few quarters.

Among the micro-markets with QoQ declines in vacancy rates, the largest contraction was observed for Raffles Place, which fell from 7.5% in Q2/2025 to 5.3% in Q3/2025, the lowest since Q2/2020 when vacancy rate reached 4.2%. Similarly, vacancy rates in Marina Bay and Shenton Way contracted by over 1.0 ppts on a QoQ basis. Vacancy rates in the remaining micromarkets decreased by 0.1 to 0.5 of a ppt QoQ in Q3/2025.

Although office vacancy rates declined on a quarterly basis, it was still higher compared to the same quarter a year ago. The increase was attributed to the rise in the Tanjong Pagar micro-market. Still, even if we put aside the Tanjong Pagar micro-market, the vacancy rate for offices in Marina Bay rose 5.4 ppts YoY as well, which was also due to the addition of IOI Central Boulevard Towers in Q4/2024.

On the other hand, the remaining five micro-markets registered YoY declines in vacancy rates, with office vacancies in both Raffles Place and Beach Road/Middle Road falling by over 3.0 ppts. The YoY decline in vacancy rates in the other micro-markets were between 0.8 of a ppt and 2.7 ppts.