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.

Click here for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

You may also like

Property Insight

Singapore Property Market: Strength Through Global Shocks

Singapore’s property market has demonstrated remarkable resilience across multiple global crises, reinforcing its reputation as a stable and trusted investment destination. While geopolitical tensions in the Middle East have introduced volatility in oil prices, financial markets and investor sentiment, historical patterns suggest that periods of global uncertainty have often strengthened Singapore’s position as a safe haven for capital.

Over the past few decades, Singapore’s real estate market has experienced several major disruptions, including the SARS outbreak in 2003, the Global Financial Crisis in 2008, the COVID 19 pandemic and more recently global trade tensions in 2025. Despite short term disruptions, each crisis has been followed by a strong rebound in housing demand and transaction activity.

More recently, global markets experienced renewed uncertainty following the introduction of tariffs in 2025. Despite these developments, Singapore’s residential market remained resilient, with developer sales reaching their highest level since 2021. This reflects the continued depth of underlying housing demand and the stability of Singapore’s domestic market fundamentals.

Recent launch performance also highlights continued buyer confidence. The River Modern development recorded strong take up during its launch weekend, with over 90 percent of units sold. Its location within District 9, direct connection to Great World MRT station and views of the Singapore River contributed to strong buyer interest.

Overall, Singapore’s property market resilience reflects strong governance, transparent regulations, prudent fiscal management and a diversified economy. These structural strengths continue to anchor investor confidence, reinforcing Singapore real estate as one of the most stable and trusted asset classes in Asia.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

Property Insight

Lentor Central GLS Tender Draws 5 Bidders with Top Bid of $1,278 $psf ppr

The Government Land Sales tender for the Lentor Central residential site attracted a total of 5 bidders, reflecting continued developer interest in the Lentor precinct as it evolves into a new private residential enclave. The highest bid of $657.1 million, translating to $1,278 $psf ppr, was submitted by GuocoLand (Singapore) Pte. Ltd., Intrepid Investments Pte. Ltd. and TID Residential Pte. Ltd. This bid represents a notable increase of about 38.9% compared to the most recently awarded Lentor Gardens site, which was secured at $920 $psf ppr, suggesting sustained developer confidence in the location despite the growing supply pipeline within the precinct.

GuocoLand’s successful bid signals a strategic move to further strengthen its presence in the Lentor area. The developer has already established a significant footprint through earlier projects such as Lentor Modern and Lentor Mansion. Securing another parcel enables the developer to continue shaping the residential identity of the precinct while maintaining a strong development pipeline. From a portfolio perspective, the timing is also notable. With River Modern launching soon and Tengah Garden Residences expected later in the year, the acquisition of the Lentor Central site may be viewed as a strategic replenishment of GuocoLand’s land bank to support future launches.

Importantly, the Lentor Central site marks the 8th residential land parcel released in the Lentor precinct under the GLS programme. The steady release of land parcels has progressively built up a cluster of private residential developments supported by Thomson East Coast Line connectivity and improving amenities. As projects reach completion and residents move in, the precinct is gradually transitioning from a future growth area into a more established residential neighbourhood. This gradual maturation can help anchor long term property values while maintaining healthy competition among developers.

Recent project performance within the precinct also indicates resilient demand. Developments such as Lentor Modern, Lentor Hills Residences, Lentor Mansion and Lentor Central Residences have recorded strong take up rates, with several projects achieving near or complete sell out. This suggests that demand has largely kept pace with the progressive supply of new homes in the area.

The attainment of Temporary Occupation Permit for Lentor Modern further marks a milestone for the neighbourhood. With residents beginning to move in and retail amenities becoming operational, the area is experiencing increasing activity and improved liveability. The integrated development provides convenient access to supermarkets, dining options and essential services, addressing earlier gaps in amenities and strengthening Lentor’s appeal as a self contained residential environment.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email:

mohan@sri.com.sg

Property Insight

Shophouse Demand Expected to Remain Resilient in 2026

Singapore’s shophouse market enters 2026 on a stable and constructive footing, underpinned by resilient macroeconomic conditions and disciplined investor participation. Following strong economic momentum through 2025, with growth broad based across manufacturing, services, and trade related sectors. This supportive macro backdrop has provided a firm foundation for commercial real estate segments closely linked to business activity, consumer spending, and lifestyle driven demand, including shophouses.

While the increase was measured, it reflects underlying resilience in the segment amid a higher interest rate environment and cautious capital deployment. The ability for transaction volumes to hold and improve marginally suggests that buyers continue to identify value in well located and income generating shophouse assets, particularly those with strong tenant profiles and long-term repositioning potential. This pattern of activity indicates selective and purposeful acquisitions rather than speculative behaviour, supporting market stability heading into 2026.

Freehold shophouses continued to anchor market activity in 2025. This dominance underscores the enduring appeal of freehold tenure among investors prioritising long term ownership, asset security, and capital preservation. In a market characterised by structurally limited supply, freehold shophouses are widely viewed as generational assets, sustaining demand even in a more selective investment climate.

District level transaction patterns highlighted a clear preference for established city fringe and lifestyle driven precincts. District 08 recorded the highest number of caveated transactions, supported by strong footfall, central positioning, and cultural vibrancy. District 15 followed closely, reflecting sustained demand for heritage shophouses within Katong and Joo Chiat, underpinned by lifestyle appeal and tenant retention. Other districts such as Districts 07, 14, and 19 also saw continued activity, indicating selective interest in well-connected locations with evolving commercial profiles.

Looking ahead, demand for shophouse assets is expected to remain resilient in 2026. Structural supply constraints, sustained investor interest, and a more accommodative interest rate environment are likely to support transaction activity. Investor focus is expected to remain centred on freehold and long tenure shophouses located within established commercial and lifestyle precincts. Overall, the shophouse market is positioned for stable and selective growth, supported by sound economic fundamentals and enduring tenure preferences.

Click

here

for the full report:

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: mohan@sri.com.sg

Singapore Realtors Inc

CEA License No. L3010738A

1 Kim Seng Promenade #17-10/12

Great World City, West Tower

Singapore 237994

admin@sri.com.sg

For Home Owners

Commission Guidelines

For Corporate

Property Management

Local Project Marketing

Capital Markets

International Project Marketing

For Agents

Culture and Community

Technology & Tools

Company

© 2026 SRI Pte Ltd • Privacy Policy & Data Protection

Follow us on