Core CBD Premium and Grade A office rents declined slightly by 0.1% QoQ to $11.67 per square foot
Office rents in Singapore’s Core Central Business District (CBD) remained largely stable in the first quarter of 2025, even as vacancy levels edged up and new supply remained limited, according to the latest market report from Colliers.
Core CBD Premium and Grade A office rents declined slightly by 0.1% QoQ to $11.67 per square foot, whilst average capital values held firm at $3,050 per square foot.
Despite the slight dip, rents in some premium buildings saw marginal increases, indicating continued interest in high-quality space.
“The core CBD Premium and Grade A segment is expected to outperform due to limited supply and resilient demand for quality spaces in the CBD,” said Tridiana Ong, Executive Director and Head of Tenant Representation at Colliers Singapore. “In contrast, projects outside the CBD may face some pressure, but could attract cost-conscious tenants with lower rents and different value propositions.”
Vacancy rates in the premium segment rose to 7.6%, largely due to the addition of Keppel South Central to the market. However, Colliers noted the building is already approaching 50% commitment, and expects overall vacancies to ease as excess space is gradually absorbed.
With limited new office supply projected over the next two years, the report encourages tenants to act decisively to secure preferred locations and lease terms. “Tenants should act decisively to secure space as supply tightens and the pool of options shrinks,” the report advised.
Colliers also saw sustained interest from tenants in sectors such as non-bank financials, technology, asset management, family offices, and professional services. Much of the activity is expected to be driven by renewals and flight-to-quality, as occupiers look to upgrade into modern spaces that reflect evolving workplace needs.
On the investment side, the growing divide between older and newer office buildings may present opportunities for repositioning.
As office dynamics continue to evolve, Colliers expects the CBD’s top-tier office segment to remain a key focus for both occupiers and investors amid tightening supply and structural demand for quality real estate.
