Prime Grade office rents in Singapore’s Raffles Place and Marina Bay precincts remained stable at S$11.36 per square foot per month in the first quarter of 2025, according to Knight Frank Singapore. This stability comes despite a modest year-on-year rent increase of 1.4%, down from 3.4% in Q1 2024. The occupancy rate for prime buildings rose by 1.4 percentage points to 95.0%, driven by lease renewals and a trend towards higher-quality spaces.
Overall, the Central Business District (CBD) recorded a slight dip in occupancy to 93.5%, attributed to the newly completed Keppel South Central, which has 50% of its space committed or under negotiation. Calvin Yeo, Managing Director of Occupier Strategy and Solutions at Knight Frank Singapore, noted that landlords are prioritising occupancy amid global economic uncertainties.
The demand for quality office spaces is being driven by occupiers in older buildings seeking cost-neutral options, including right-sizing and relocating to modern facilities. The adoption of AI technology is also enabling businesses to streamline operations, reducing space requirements. Yeo highlighted that “landlords continue to prioritise building occupancies in a time of uncertainty.”
Despite a tentative economic outlook, Singapore remains an attractive commercial hub. Notable developments include Coller Capital’s new office in Marina Bay Financial Centre and The Great Room’s upcoming 36,000 square foot workspace in Shaw Tower.
Looking ahead, Singapore’s GDP growth is expected to slow in 2025 due to global trade tariffs and corporate retrenchments. With limited new office supply, Knight Frank anticipates prime rental growth to range between -1% and 2% for the year.
“`
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. If you spot an error, please report it here.
