Market Research

• The office market continues to be driven by upgrading activity, as occupiers seek better quality space and improved amenities.
• Talent attraction and retention remain central to site selection, with companies prioritising locations and buildings that support employee wellbeing and productivity.
• New set-ups increasingly favour fitted offices, reducing upfront CapEx and enabling quicker, more flexible move-ins.
• These new entrants typically lease smaller spaces, but their volume makes them a dominant force in overall market activity.
• Decentralised locations are gaining traction, with strong take-up driven by ample supply, competitive rents, and good-quality options that offer value for money.

• As anticipated, rental rates began to firm in the second half of 2025. Landlords are now less willing to negotiate on quoted face rents, and rent-free periods are becoming shorter as demand strengthens.
• That said, some resistance to the latest asking rates remains. However, once a building reaches 95% occupancy, most landlords see little reason to adjust pricing simply to fill the final pockets of space.

• Limited supply remains the biggest challenge for most companies looking for space.
• Schemes that have leased out well and now have high occupancy rates include Singapore Land Tower, Hong Leong Building, Republic Plaza and IOI Central Boulevard West Tower.
• The following buildings currently offer a range of availabilities, positioning them well to capture ongoing tenant demand:
  
  Keppel South Central
  Asia Square Tower 1 and Tower 2
  78 Shenton Way
  Samsung Hub
  One George Street

Rents Keep Rising, Activity Pauses

Rental rates continue to climb, though overall leasing activity has slowed. This cooling in momentum reflects a market still adjusting after several quarters of strong take-up. While demand remains healthy, decisions are taking longer, and occupiers are showing greater caution in committing to space. The lull is due to:

1. Tight supply – limited new completions.
2. Global uncertainty – occupiers delaying decisions.
3. Higher rentals – tenants being more selective.
4. Seasonal cycle – the Singapore office market runs on a quarterly rhythm. The 1st and 4th quarters are traditionally the busiest, as this is when most leases expire and renewals fall due. Mid-year often sees a natural slowdown, with fewer major transactions concluded.

New Set-Ups Lead Demand

Fresh entrants from China and India dominate, joined by energy and commodities firms, tech players and their partners, plus insurance and capital management companies.

Cost-Conscious Tenants Choose Fitted Offices

Many prefer fully fitted space to minimise upfront costs and avoid writing off fit-outs when they expand in 2–3 years. IOI Central Boulevard, BNI Tower, One George Street and Republic Plaza are leading beneficiaries. Hybrid options suit some, but co-working remains niche.

Supply Tight, Market Polarises

Future supply is limited, keeping rents firm. Grade A space continues to edge up, mid-tier rents hold steady, and Grade C in fringe or older buildings sees healthy growth. The market is increasingly split: smaller players seeking prestige at the top end, larger occupiers driving activity in the budget segment.

Looking Ahead

As we enter Q4, activity is expected to pick up again with a wave of lease expiries falling due. Competition for prime fitted offices will likely intensify, while well-located budget options should remain in strong demand. Landlords will continue to hold the upper hand, with limited new supply giving them confidence to maintain asking rents.

The polarisation of the market looks set to deepen—boutique players chasing prime CBD towers on one end, and cost-driven occupiers anchoring the budget-conscious segment on the other. For tenants, the message is clear: act early, be decisive, and secure your position before the next surge in demand.