The first half of 2025 has been a defining moment for Singapore’s office market. Leasing activity surged to new levels, making our city one of the most dynamic markets in the Asia-Pacific region. As a business owner, tenant, or investor, you’re probably wondering what this means for the next few years. With demand reshaped by evolving business needs and supply expected to remain tight, you’ll want to understand where the market is headed and how it might affect your options for an office in Singapore, whether for rent or for sale.
Table of contents
- Singapore’s office market H1 2025
- Q1 2025 rebound, Q2 slowdown
- Category 1 (Core CBD / Prime offices)
- Category 2 (Non-core offices)
- Grade A core CBD offices (CBRE research)
- Singapore’s office market trends
- Office market supply outlook (2025–2027)
🔑 Key takeaways
✨
Unprecedented leasing growth
Singapore saw a 12-fold surge in office leasing activity in H1 2025, the highest in the Asia-Pacific region.
🏢
Strong demand drivers
Businesses are shifting into premium offices near the CBD and CCR, drawn by Singapore’s stability and business-friendly ecosystem.
🌱
Flight to quality
Grade A Core CBD offices stayed resilient, with tenants prioritizing high-quality and sustainable workspaces.
⚖️
Supply imbalance
With no new completions in H1 2025 and limited supply projected through 2027, availability will remain tight.
💰
Rental outlook
Expect upward rental pressure in premium spaces, while non-core offices continue to attract cost-conscious occupiers.
🚧
Looking ahead
Upcoming projects like Keppel South Central (2025) and Shaw Tower Redevelopment (2026) will add new supply, though withdrawals and redevelopments will offset gains.
👉 For business owners, tenants, and investors, the message is clear: high-quality office space in Singapore will stay competitive, and keeping ahead of these trends will help you secure the right opportunity.
Singapore’s office market H1 2025
In the first six months of 2025, the Singapore office market H1 2025 performance stood out as the strongest in the region. Leasing activity jumped 12 times year-on-year, outpacing every other Asia-Pacific city. This exceptional growth was supported by several key factors.
First, many companies moved into newly completed premium office spaces, taking advantage of fresh supply in central locations. Second, Singapore continues to benefit from its macroeconomic stability and political neutrality, which make it a safe and attractive hub for regional operations. Finally, a clear “flight to quality” has emerged, with occupiers looking to upgrade into higher-grade offices near the CBD and CCR.
When looking at the wider region, Singapore was highlighted alongside Japan and the Philippines as one of the key growth markets. However, in percentage terms, Singapore led the pack, showing the fastest pace of expansion.
Q1 2025 rebound, Q2 slowdown
In Q1 2025, the market rebounded well. However, in Q2 2025, growth slowed down. The URA Office Rental Index for the Central Region dropped 0.3% quarter-on-quarter, reversing the 0.3% increase seen in Q1.
Category 1 (Core CBD / Prime offices)
For offices in core areas such as Downtown and Orchard, the story was more mixed. Median rents fell 3.2% q-o-q to $11.68 psf/month in Q2, down from S$12.07 psf/month in Q1. On the other hand, vacancy rates improved slightly, falling from 11.7% to 11.0%, thanks to solid leasing at IOI Central Boulevard Towers, which achieved close to 85% occupancy.
However, price trends still pointed downward. The price index for Central Region offices declined 1.1% in Q2, after a 0.2% drop in Q1. Since Q3 2024, this segment has now seen a cumulative decline of 1.9%.
Category 2 (Non-core offices)
Outside the central areas, the market moved differently. Rents rose 2.7% q-o-q in Q2 2025, reaching S$6.52 psf/month. This was the third straight quarter of increases. Vacancy stayed relatively stable at 11.6%. These figures suggest that while prime offices are facing some pressure, cost-efficient spaces are gaining traction as companies remain cautious amid global uncertainties.
Grade A core CBD offices (CBRE research)
Meanwhile, another segment painted a brighter picture. According to CBRE, Grade A offices in the Core CBD saw rents climb 0.4% q-o-q in Q2 2025, reaching S$12.10 psf/month. Across the first half of the year, rents in this segment rose 1.3%, supported by the continued flight to quality. Even when overall averages soften, premium offices near the CBD remain highly sought after.
Singapore’s office market trends
Looking at the bigger picture, you’ll notice that tenant needs are evolving. Many are seeking flexible layouts, sustainable features, and high-quality Grade A assets, often driven by ESG commitments.
On the supply side, the market is feeling the pinch. There were no new completions in H1 2025, and while about 0.65 million sqm is in the pipeline, none has been delivered yet. This imbalance is keeping availability tight.
Because of this, analysts project that prime rentals could face upward pressure, while vacancies may stay stable or even drop slightly. This means that if you’re looking for an office for rent or sale in Singapore, especially one near the CBD or CCR, you can expect competition for high-quality space to remain strong.
Looking for a new office space? Here are your options
Office market supply outlook (2025–2027)
Looking ahead, the office pipeline is expected to remain below average levels. Between 2025 and 2027, new completions are forecast to range between 800,000 and 1.6 million sqft per year. That’s slightly under the long-term average of 1.5 million sqft annually.
This follows a one-off surge in 2024, when about 2.5 million sqft of new space entered the market. With fewer completions on the horizon, supply will remain tight. Analysts believe this will push rents up further in the second half of 2025 and beyond, as demand continues to concentrate on premium, sustainable spaces.
In terms of new projects, you can look out for Keppel South Central in 2025 and the Shaw Tower Redevelopment in 2026. However, even these additions may be balanced by stock withdrawals and redevelopment projects, which will limit the overall increase in available space.
The post Office demand in Singapore hits 12-fold record high in H12025 – What lies ahead? appeared first on .
