CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Office MarketBeat Report

Xian Yang Wong • 08/07/2025

ECONOMIC OUTLOOK SOFTENS
Singapore’s 2025 GDP forecast has been downgraded to 0-2% from 1-3%, as its open, trade-reliant economy is impacted by slowing global trade amid US tariffs. Increased uncertainty may delay occupier decisions and soften office demand this year, though the city’s strong fundamentals—strategic location, political neutrality and policy stability—will reinforce its safe-haven appeal and
draw flight-to-safety capital.
 

RENTS ROSE AMID LOWER CBD VACANCIES

CBD Grade A office rents rose 0.6% qoq in Q2 2025, as vacancy rates tightened to 5.2%, from 5.8% in the previous quarter amid tightening supply and continued flight to quality. Vacancies remain low across most existing CBD Grade A buildings; excluding space from the newly completed Keppel South Central, the overall vacancy rate would fall to 3.9%. CBD Grade A office net
demand held steady at 0.2 msf for the second consecutive quarter, largely driven by relocations and/or expansions of financial institutions.

Decentralised office rents across all grades rose 0.2% qoq in Q2 2025, driven mainly by grade A developments. However, rental growth was more subdued as decentralised office vacancy rates edged up to 7.2% in Q2 2025, from 6.7% in the previous quarter, with key office occupiers generally still favouring the CBD.

LIMITED NEW SUPPLY TO SUPPORT RENT LEVELS

Barring a sharp economic downturn, landlords of Grade A office buildings in the CBD are likely to hold firm on asking rents, supported by limited upcoming supply. No new CBD Grade A completions are expected in H2 2025, and annual new supply over the next two years is projected at 0.3 million sf (msf), only one-third of the historical annual net demand of 0.9 msf. While CBD Grade A supply
will rise to around 2.4 msf in 2028, about one-third of these spaces is expected to be pre-committed.

A tight supply pipeline is expected to support moderate office rental growth in 2025, even as global uncertainties weigh on demand. That said, the current economic uncertainties may extend the leasing period for vacant office space, as occupiers facing ongoing capital expenditure (CapEx) constraints adopt a more cautious approach to decision-making. Landlords offering flexible
solutions, such as fitted-out units, will remain better positioned in the current market.

 

Marketbeats

Office Buildings CBD
MarketBeat

Office MarketBeat Report

CBD Grade A office rents rose 0.6% qoq in Q2 2025, as vacancy rates tightened to 5.2%, from 5.8% in the previous quarter amid tightening supply and continued flight to quality.
Xian Yang Wong • 08/07/2025
APAC Marketbeat
MarketBeat

Singapore MarketBeat

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Xian Yang Wong • 08/07/2025
Warehouse Internal Rack
MarketBeat

Industrial MarketBeat Report

Amid higher vacancy rates, warehouse rental growth moderated to 1.0% qoq, while prime logistics rents remained flat in Q2 2025.
Xian Yang Wong • 08/07/2025
Shopping Retail
MarketBeat

Retail MarketBeat Report

Singapore retail sales rose 0.6% as of April 2025 YTD, after a 2.1% yoy decline last year, driven by the Computer & Telecommunications Equipment, Recreational Goods, and Cosmetics and Toiletries & Medical Goods.
Xian Yang Wong • 08/07/2025
Warehouse Internal Rack
MarketBeat • Investment / Capital Markets

Investment MarketBeat Report

Total investment volume rose 8.9% qoq to $7.0 billion (b) in Q2 2025, driven by the residential ($1.8b), followed by industrial ($1.7b) and commercial ($1.6b) sectors.
Xian Yang Wong • 08/07/2025

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS