Singapore Office Rents Resume Growth Cbre
Singapore CBD office rents hold steady in 1Q2019: Colliers
Otto Place EC, located at Plantation Close Parcel B, is an anticipated residential development by Hoi Hup Realty. It is set to be the next in the line of EC developments following Novo Place. Those interested can visit the official website at https://www.ottoplaceec.com.sg/ to learn more about Otto Place EC.
According to recent research by CBRE, office rents in Singapore have seen a revival after four consecutive quarters of flat growth. The firm reported a 0.8% increase in gross effective rents for core CBD Grade A offices in the first quarter of 2025, reaching $12.05 psf per month.
While vacancies rose slightly from 4.9% to 5.3%, CBRE attributes this to a few large occupiers choosing not to renew leases or spaces, such as Meta and Morgan Stanley. However, demand for high-quality office spaces in prime locations remains strong, with low vacancies in buildings meeting these criteria and record rents for unblocked views.
Tricia Song, head of research for Singapore and Southeast Asia at CBRE, notes that the supply and availability of prime offices in the core CBD are expected to tighten in the coming quarters, with IOI Central Boulevard already achieving over 80% occupancy. This trend is likely to benefit landlords, who are now feeling more confident in standing firm on asking rents.
In terms of rental growth, CBRE forecasts a 2-3% increase in core CBD Grade A rents this year, outpacing the 0.4% growth seen in 2024. However, the firm remains cautious due to global economic uncertainties, particularly with regards to trade conflicts that could dampen business sentiment and trade.
Despite these concerns, Song believes that Singapore will continue to see resilient demand for office spaces due to its political neutrality and stable government policies.
In the investment market, CBRE reports a total of $159.33 million in office transactions in the first quarter of 2025, representing an 80.8% decline from the previous quarter. However, this marks a recovery from the 15-year low seen in the first quarter of 2024. The largest office transaction last quarter was the sale of the top three floors at 20 Collyer Quay for $91.8 million.
Michael Tay, CBRE Singapore’s advisory deputy managing director and head of capital markets, believes that the current uncertainties caused by the trade war and potential recession in the US could lead to a resurgence of interest in the office sector. He also highlights Singapore as a stable and attractive real estate investment market, particularly with the recent extension of the Central Business District Incentive and Strategic Development Incentive, which are expected to attract investors and developers to development projects.