Singapore Grade A office capital values stable in Q2

But yields rose to 3.62% due to rental growth.

In a recent report, Colliers revealed that for Q2 2025, average capital values for Singapore’s Core CBD Premium and Grade A offices remained unchanged QoQ at SGD 3,050 per sq ft, while yields rose slightly to 3.62% due to rental growth.

Here’s more from Colliers:

The largest office transaction during the quarter occurred when City Developments sold its 50.1% stake in the South Beach mixed development to its partner, IOI Properties. The group stated that the sale intended to reduce bank borrowings and recycle capital. Similar transactions may follow as companies aim to reduce leverage, potentially benefiting investors seeking stabilised office assets.

Other notable transactions include strata floors sold at 108 Robinson and SGX Centre. Notably, the three floors transacted at 108 Robinson were sold at lofty levels of $3,915 psf, due to its freehold status, and recent asset enhancement initiatives by the seller. This transaction also demonstrates how attractive freehold CBD strata offices are to private capital for capital growth and wealth preservation.

In addition to private capital, easing interest rates may also encourage institutional-grade asset transactions, as Singapore office assets present a safe and attractive proposition with their stable prices and yields.