Singapore’s Central Business District (CBD) Grade A office rents have experienced a modest 0.5% increase quarter-on-quarter (QoQ) to SGD 11.60 per square foot in the first quarter of 2025, according to JLL Research. This marks the fourth consecutive quarter of growth below 1%, the longest period of such modest variation since JLL began tracking this data. The subdued growth is attributed to ongoing global economic challenges, including trade conflicts and geopolitical tensions.
The vacancy rate for CBD Grade A offices rose to 8.1% following the completion of Keppel South Central. Dr Chua Yang Liang, Head of Research and Consultancy for JLL Southeast Asia, noted that the stability in rents is due to a balance of demand and supply factors in the post-COVID market. “Whilst demand exists, it remains moderate due to ongoing market volatility,” he said.
Andrew Tangye, Head of Office Leasing and Advisory for JLL Singapore, highlighted the “flight to quality and location” as a key driver of office demand. With IOI Central Boulevard Towers nearing an 80% commitment level, demand is expected to spill over to new developments. Keppel South Central has secured Manulife as its first anchor tenant, with nearly 50% of its space committed or under negotiation.
Looking ahead, JLL projects positive office space demand due to supportive government policies and interest from international firms. Dr Chua added that new office space supply is expected to be constrained between Q2 2025 and 2027, supporting moderate rent growth. Meanwhile, the office investment sales market saw a typical seasonal lull in Q1 2025, with no en bloc transactions recorded.
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