Singapore CBD premium office rents up 1.2% for full-year 2025

Analysts expect the momentum to continue in 2026.

Singapore’s prime office market closed 2025 on a firm footing, with Core CBD Premium and Grade A rents posting modest growth amid tightening vacancy and resilient demand, according to Colliers.

Colliers Singapore’s Q4 2025 Office Insights and Outlook report shows that Core CBD Premium and Grade A office rents rose 0.8% quarter-on-quarter to S$11.82 per square foot in the fourth quarter, bringing full-year rental growth for 2025 to 1.2%.

According to Colliers, market fundamentals strengthened over the quarter, with CBD vacancy tightening to 4%, supported by net absorption of approximately 320,000 sq ft in Q4. For the full year, net absorption totalled 856,000 sq ft, reflecting sustained occupier demand despite a cautious global backdrop.

Capital values continued to edge up, with average prices rising to S$3,100 per sq ft, while net yields compressed to 3.6%, signalling ongoing investor confidence in prime office assets.

Leasing activity broadened across both Grade A and Grade B office segments, Colliers noted. Demand for fitted “plug-and-play” offices remained strong, as occupiers prioritised cost efficiency and faster move-in timelines amid tighter budgets and evolving workplace strategies.

“Momentum in Singapore’s office market is set to persist, underpinned by tight CBD supply, resilient enquiry, solid economic fundamentals, and a more conducive interest-rate backdrop,” said Bastiaan van Beijsterveldt, Managing Director of Colliers Singapore.

Supply conditions are expected to remain tight in the near term, with no new CBD Grade A office completions expected until 2027. The limited development pipeline is supporting a landlord-favourable environment, prompting Colliers to forecast rental growth of 2% to 4% in 2026 for Core CBD Premium and Grade A assets.

Redevelopment activity is also expected to continue under the CBD Incentive Scheme and Strategic Development Incentive Scheme, which are likely to create displacement demand as older buildings undergo upgrading or redevelopment. The scaling down of the Town Hall Link white site, which will now yield about 40,000 sq metres of office space, further reinforces tight near-term CBD supply.

Investment sentiment remained firm in the fourth quarter. A 33% stake in Marina Bay Financial Centre (MBFC) Tower 3 transacted at S$3,268 per sq ft, with approximately 80 years remaining on the lease, signalling long-term confidence in landmark CBD assets.

In a separate move highlighting sustained institutional interest, Hongkong Land announced the launch of a private real estate fund seeded with prime Singapore office assets, including One Raffles Link and stakes in One Raffles Quay and MBFC Towers 1 and 2.

“Singapore’s pro-business policies and neutral geopolitical stance continue to underpin baseline demand, even as global uncertainties temper expansion plans,” said Catherine He, Head of Research, Singapore at Colliers.