
Singapore CBD premium office rents to grow by up to 2% this year
Rental growth is forecast to accelerate in the second half of the year.
For the remainder of 2025, Collier expects office demand in Singapore to remain diversified across industries, with movements driven by changes in operational requirements of corporate occupiers— such as evolving policies on flexible work arrangements.
Otherwise, businesses are likely to reassess their plans and delay leasing decisions until there is more clarity on the global macroeconomic environment.
Here’s more from Colliers:
Amid the overhang of macroeconomic uncertainties, a conservative approach is expected from both occupiers and landlords. Occupiers may delay relocation or expansion plans if the cut-back on discretionary spending is triggered by worsening business expectations.
Landlords, on the other hand, may be more selective in their tenant selection through stricter Know-Your-Customer (KYC) standards to maintain stable, long-term occupancy.
Nevertheless, generally high office attendance and limited new supply is expected to continue sustaining rental growth in Core CBD Premium & Grade A. As such, Colliers is maintaining its forecast of annual rental growth of between 0 to 2% for this segment.