ASIA PACIFIC OUTLOOK 2025

SINGAPORE

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

Office market growth is poised to gain pace as demand rebalances with less new supply, stronger economic growth and easing financial conditions. Leasing activity is expected to rebound with occupiers remain drawn to the city’s status as regional business hub and seek quality spaces for brand positioning and ESG goals. Rising investments in Southeast Asia and strong recoveries in electronics demand will benefit key occupier segments and provide ongoing support to the office market.

Following an increase above historical average levels this year, Singapore's CBD Grade A office market is expected to face tighter supply in 2025, as the completion of Shaw Tower has been delayed from 2025 to 2026. The supply of new office spaces is projected to remain limited until 2028, when the redevelopment of several major office buildings is scheduled for completion.

CBD Grade A office vacancy rates are expected to tighten from 2025 to 2027, supported by limited new supply and rising new office demand as gradual interest rate cuts and easing capital expenditure constraints take effect. As economic conditions improve and global trade picks up, office relocations or expansion are expected to be driven by increased hiring optimism, high office attendance from strong return

CBD Grade A rental growth is forecast to increase to 2%-3% next year, up from 1%-2% in 2024, driven by tighter new supply and stronger demand as interest rate concerns recede and business sentiments strengthen. Continued easing of global monetary policies amid higher economic growth could raise occupiers' confidence to relocate or expand, while reduced supply next year may limit options for major leases up for renewal.

to-office mandates and a sustained flight to quality.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025