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Office rents outside Singapore’s CBD to grow faster as CBD rents rise and vacancy dips, says Cushman & Wakefield

Mary Alavanza
By Mary Alavanza

SINGAPORE: Office rents outside Singapore’s central business district (CBD) are expected to grow faster in the coming quarters as rents rise and vacancies fall in the city-state’s CBD, property portal 99.co reported, citing Cushman & Wakefield.

According to JLL Research and Cushman & Wakefield, Grade A office rents in the city-state’s CBD went up by around 0.5% in the third quarter of 2025 (Q3), while vacancy rates narrowed to 4.7% from 5.2% in the previous quarter.

Meanwhile, decentralised office vacancy rates fell from 7.2% to 5.3%, though rents only inched up by 0.1% in Q3.

Cushman & Wakefield expects rents in these areas to grow faster in the coming quarters, as more companies that want to stay close to the city-state’s talent pools look for affordable alternatives compared to CBD rents.

Looking ahead, the property portal noted that CBD Grade A office supply will stay limited, and with demand remaining strong and supply tight, rents are expected to rise further next year. /TISG

Read also: Singapore home buyers face losses and bank interest payments as Johor projects are abandoned

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