Prime office rents rise in 3Q2025 amid limited supply and flight-to-quality moves
The greater growth was largely attributed to the addition of IOI Central Blvd Towers to the basket of properties checked by JLL. Removing IOI Central Boulevard Towers, CBD office rents increased by lower than 1%, on par with the previous 6 quarters.
Knight Frank’s report found that occupancy status for office spaces in the Raffles Place and Marina Bay district continued to be unchanged at 94.7%, while total CBD occupancy increased from 93.7% in 2Q2025 to 94.2% in 3Q2025.
Calvin Yeo, head of occupier strategy and solutions at Knight Frank Singapore, observes that “selective upgrades to high quality space have created a two-tier market where more recent, well-connected structures grow and older supply faces growing vacancy pressure.”
” Singapore’s workplace industry has actually been holding up well, partly upheld by stronger-than-anticipated financial fundamentals and a much more conducive interest rate atmosphere,” says Dr Chua Yang Liang, head of research study and consultancy for JLL Southeast Asia.
In a different record, research by Knight Frank indicates prime grade office rents in the Raffles Place and Marina Bay places expanded 0.3% q-o-q to hit approximately $11.41 psf pm in 3Q2025. This resembles the 0.2% q-o-q growth recorded in 2Q2025, and brings complete rental growth for the first 9 months of the year to 0.4%.
Looking ahead, JLL anticipates CBD Grade A office rental development to remain modest for the remainder of 2025, with full-year development predicted to get to approximately 3%. Going into 2026, JLL anticipates workplace rental development to pick up progress, assisted by a tightening up supply pipeline. “As vacancy prices are projected to tighten up between 2025-2027, whole-floor and multi-floor opportunities will become increasingly restricted, potentially driving rental prices past some tenants’ budget parameters,” remarks Andrew Tangye, head of office leasing and advisory for JLL Singapore.
The limited readily available supply, paired with a careful business setting, caused leasing event being mainly driven by lease renewals, says Knight Frank. Nonetheless, select tenants, specifically those with concluding leases, are choosing to relocate to more recent, better-quality structures in tandem with right-sizing or measured growth. Instances of these include tech firm Zoom Communications transferring from Asia Square Tower to IOI Central Blvd Towers, whilst quantitative trading firm Jane Street is preparing to expand its area in the latter.
Rentals for prime office space in Singapore proceeded expanding in 3Q2025, based upon research study from realty consultancies. In its latest quarterly workplace industry report, JLL’s research shows that Grade An office rents in the CBD improved 1.3% q-o-q to $11.83 psf each month (psf pm) past quarter, the largest quarterly development in 6 quarters.
Granted the unsure global atmosphere, Knight Frank anticipates sentiment to stay mindful amongst office occupants over the following 6 to year. “Therefore, prime rental development for the last quarter of 2025 is anticipated to continue to be relatively level with some low development, with even more of the exact same going into the initial half of 2026,” the record states.
Given the limited office stock in the next few years, he expects high quality buildings to remain nearly completely occupied as more companies make flight-to-quality moves from older structures. In contrast, older and poorly connected buildings will face increasing pressures to be redeveloped or modernised.
