What is the office rental trend in 2025

Singapore's office rental market in 2025 is displaying mixed trends across different segments. Overall, office rents in Singapore declined slightly by 0.3% quarter-on-quarter in the second quarter of 2025, effectively reversing the small gain observed in the previous quarter. However, this aggregate trend conceals varying movements within sub-markets.

In the Central Business District (CBD), office rents have been edging upwards as leasing activity is buoyed by renewals and a noticeable flight to quality, indicating sustained demand for centrally located premium office space. In contrast, decentralised office rents experienced their first fall in four years, dropping by 0.8% quarter-on-quarter in the second quarter of 2025. This decline has been attributed to companies relocating back to the CBD in pursuit of better amenities and prestige.

On a yearly basis, office rents in the Central Region registered a 2.0% increase in the first quarter of 2025, though this is a slower growth rate compared to previous years.

In summary:
- Overall office rents are softening slightly in 2025.
- CBD office rents remain resilient and are trending upwards due to ongoing demand for quality spaces.
- Decentralised office rents are under pressure as occupiers consolidate or move towards the CBD.
- Annual growth in central office rents has moderated after a strong run in previous years.

These trends suggest that while the general office rental market faces some headwinds, demand for prime and centrally located office spaces in Singapore continues to support rents in the CBD segment.