SRI - Singapore Realtors Inc.

12 Feb 2025

Singapore Office Market 2025: Key Trends and Outlook

Property Insight

Singapore’s GDP grew by 4.3% in Q4 2024, up from 2.2% in Q4 2023, with full-year growth at 4.0%. Key contributors included wholesale & retail trade, transportation & storage, and the information & communications, finance & insurance, and professional services sectors. The accommodation and food services sector also benefited from rising international visitor arrivals.

According to the URA Office Price Index, office prices moderated by 0.7% in Q4 2024 after a 0.6% increase in Q3. However, for the full year, prices increased by 1.8%, rebounding from a 4.2% decline in 2023. This signals a gradual recovery in the office market.

Strata Office Market Trends

The strata office market remained stable, with transactions rising from 320 in 2023 to 327 in 2024. This suggests continued investor confidence in commercial assets.

Office Space Demand Strengthens

Singapore’s office vacancy rate declined from 11.0% in Q3 2024 to 10.6% in Q4 2024, reflecting strong demand. Net occupied office space grew by 23,000 sqm in Q4 2024, up from 17,000 sqm in Q3, signaling expanding business activity and leasing interest.

Positive Business Outlook for 2025

The Business Expectations Survey indicates optimism in Singapore’s services sector. The Finance & Insurance sector anticipates improved business conditions, with banks expecting higher investment activities and loan demand amid potential interest rate cuts.

The office market in 2025 is poised for continued stability and gradual recovery, supported by economic growth, sustained demand for prime office spaces, and resilient business formation. Investors remain confident, particularly in core CBD locations, while rental trends show moderate adjustments across different regions.

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Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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Developer Sales Jump to 1,937 Units in March 2026 on Surge in New Launches

Developer sales staged a strong recovery in March 2026, with a total of 1,937 units sold including Executive Condominiums (ECs), a significant increase from the 266 units transacted in February. This marks the first time this year that monthly sales have crossed the 1,000-unit threshold, signalling a meaningful pickup in primary market activity following the seasonal lull during the Chinese New Year period.

The rebound in sales was largely driven by a corresponding increase in new project launches. Developers released 1,615 units in March, a substantial rise from the limited supply seen in February. Key projects such as Pinery Residences, Rivelle Tampines and River Modern were major contributors, collectively accounting for about 76.9% of total transactions. This highlights a clear trend in the current market environment where buyer demand remains intact, but is closely tied to the timing, quality and positioning of new launches.

The strong performance of these projects reflects how well calibrated offerings continue to resonate with buyers. In particular, Pinery Residences and Rivelle Tampines each recorded over 500 units sold, underscoring the continued strength of demand in the Outside Central Region (OCR), where pricing remains relatively accessible and is supported by first time buyers and upgraders. At the same time, River Modern’s robust take up, with 416 units sold at a median price of about $3,220 psf, points to sustained interest within the Core Central Region (CCR).

Looking ahead, the momentum observed in March is expected to carry into the coming months, supported by a pipeline of upcoming launches such as Vela Bay and Tengah Garden Residences. As more projects enter the market across both established and emerging precincts, transaction volumes are likely to remain supported by genuine demand, albeit at a more calibrated pace.

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here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

Property Insight

Hoi Hup Tops Miltonia Close EC Site at $732 psf ppr

The tender for the Executive Condominium site at Miltonia Close has concluded with a total of 3 bidders, with Hoi Hup Realty Pte Ltd emerging as the top bidder with an offer of $340.9 million, translating to $732 psf ppr. While the number of bidders is more selective compared to some earlier tenders, it continues to reflect steady developer interest in well located EC sites, particularly within established residential areas.

The top bid is about 7.8% lower than the recently awarded Woodlands Drive 17 GLS site, which achieved $794 psf ppr. Rather than signalling a pullback, this difference points towards a more measured and calibrated approach by developers. With a growing pipeline of EC sites in the North, including parcels in Woodlands, Sembawang, Canberra Drive and Sembawang Drive, developers are likely pacing their land acquisitions more carefully. This reflects a more forward looking strategy, where developers are balancing immediate opportunities with the need to remain competitive within an expanding supply landscape.

At the same time, the Miltonia Close site presents a compelling proposition from a locational and lifestyle perspective. Situated near Lower Seletar Reservoir and within a quieter residential enclave, the site is well positioned to appeal to buyers who prioritise a more tranquil and nature oriented living environment. This suggests that the future development may attract a more defined buyer profile, particularly families and genuine owner occupiers, rather than those driven primarily by proximity to MRT connectivity or commercial nodes.

From a broader market perspective, the EC segment continues to be supported by a stable base of upgrader demand, especially from HDB households seeking to transition into private housing in a more accessible manner. This underlying demand has remained resilient, as seen in recent launches such as Rivelle Tampines, which recorded strong take up rates when projects are well positioned in terms of pricing and attributes.

Looking ahead, the EC market is entering a phase of greater supply visibility, following the ramp up in Government Land Sales supply. This is a positive development for the market, as it supports a more balanced and sustainable environment. With a more consistent pipeline of projects, price movements are likely to become more measured and closely aligned with underlying demand fundamentals, rather than being driven by supply constraints.

Overall, the tender outcome reflects a market that is evolving in a more balanced and sustainable manner. While developers remain active, there is a greater emphasis on discipline, positioning and long term planning. At the same time, demand fundamentals for ECs remain intact, supporting the outlook for steady absorption in well located and appropriately priced developments such as Miltonia Close.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

Property Insight

Kallang Close GLS Draws 4 Bidders with Top Bid of $1,415 psf ppr

The Government Land Sales tender for the Kallang Close site has closed with Frasers Property and Mitsubishi Estate (via MJR Investment) emerging as the top bidder at $1,415 psf ppr, narrowly ahead of City Developments Limited. The relatively tight spread between bids reflects a broadly aligned view among developers on the site’s underlying value and long-term potential. In total, the site attracted 4 bidders, with the outcome broadly in line with recent GLS tenders, including the Tanjong Rhu site which was awarded at $1,455 psf ppr.

The results point to continued confidence in well-located city fringe sites, although developers remain measured in their bidding approach. The ongoing ramp-up in the GLS programme has contributed to a more visible supply pipeline, allowing developers to adopt a more disciplined stance without the need to bid aggressively for individual sites.

At the same time, rising construction costs driven by geopolitical developments, particularly increases in diesel and bitumen, are beginning to influence development considerations. This has likely been factored into bids, especially for sites like Kallang Close which come with additional infrastructure and placemaking requirements. The presence of joint venture participation also reflects a growing trend of developers partnering to manage costs and risks more effectively.

Looking ahead, the site is expected to yield about 470 residential units and could tap into underlying demand in the Kallang and Boon Keng area, where new private housing supply has been relatively limited. Over time, the development may contribute to the transformation of the Kallang River corridor into a more vibrant waterfront residential cluster.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

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