CBD office demand demonstrates continued resilience amid AI and digital finance sector expansion

• CBD office demand remained resilient, driven by robust leasing from AI and digital finance firms expanding their regional presence. Growth was supported by Singapore’s pro-business framework and regional strategic position.
• Blockchain payments firm Ripple, quantitative trading firm Jane Street, and tech firm Zoom are examples of occupiers that have recently expanded their presence in Singapore.

Limited office supply pipeline through 2027

• No new office developments were completed or withdrawn during the quarter. 
• Office supply will stay limited from Q4 2025 through 2027, comprising just three new completions: Shaw Tower, Solitaire on Cecil, and Newport Tower. Additionally, 39 Robinson is slated to re-enter the market following refurbishment in late 2026.

CBD office rents grow by its fastest pace in six quarters

• CBD rents recorded their fastest growth in six quarters, driven by the inclusion of IOI Central Boulevard Towers in the rental basket after its seasoning period. Excluding this, rents maintained modest sub-1% growth for the sixth straight quarter.
• Capital value movements mirrored rents as yields stayed relatively stable.

Outlook: Rental and capital value growth will stay modest through 2025 and accelerate in 2026

• Evolving trade dynamics and persistent geopolitical uncertainties will continue to impact corporate decision-making, creating headwinds for office expansion and relocation activities through the remainder of 2025.
• However, with IOI Central Boulevard Towers nearly full, the scarcity of whole-floor and multi-floor opportunities in quality buildings is tightening supply, setting the stage for accelerated rental and capital value appreciation in 2026.