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

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Singapore New Home Sales Cross 2,000 Units in August 2025, Driven by Strong Launches

The private residential market registered a strong performance in August 2025, marking the second consecutive month of growth in new home sales. Developers transacted 2,142 units excluding Executive Condominiums (ECs), a significant jump from the 940 units sold in July. Including ECs, the total reached 2,338 units. This is the first time since November 2024 that monthly developer sales have surpassed the 2,000-unit threshold.

This outcome is especially notable given that August is traditionally a quieter month for property transactions due to the Hungry Ghost Festival. Developers responded strategically by bringing projects to market earlier, capitalising on demand before the slowdown. This timing enabled them to sustain momentum despite the seasonal lull.

The strong results were underpinned by several high-profile launches. Five projects—Springleaf Residence, River Green, Promenade Peak, Canberra Crescent Residences, and Artisan 8—accounted for 88.4% of total developer sales in August, underscoring the pivotal role of large launches in driving activity. In contrast, all other projects combined contributed just 11.6%, highlighting the extent to which buyer attention was concentrated on fresh supply.

Springleaf Residence emerged as the top performer with 884 units sold at a median price of $2,166 psf. Over 92% of its units were snapped up during its launch weekend, led by strong demand for two- and three-bedroom units. The project benefitted from limited competing supply in its vicinity, as the next GLS tenders in Upper Thomson and Lentor were not scheduled to launch until later in the year. Its compelling entry pricing and attractive location helped draw both owner-occupiers and investors.

Cumulatively, the market in 2025 has significantly outpaced the previous year. From January to August 2025, developers sold 7,669 units, already exceeding the full-year total of 6,469 units in 2024. This turnaround reflects improved buyer sentiment, the return of larger-scale launches, and stronger participation across both suburban and central locations.

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here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: research@sri.com.sg

Property Insight

Chencharu Close GLS Tender Hits $980 psf ppr, Sembawang Road EC tops bid at $692 psf ppr

Two significant land parcels Chencharu Close (mixed-use) and Sembawang Road (Executive Condominium, EC) both of which drew developer interest and signalled continued confidence in Singapore’s residential market despite current cooling measures.

For Chencharu Close, the top bid of $1.01 billion ($980 psf ppr) came from Evia Real Estate, Gamuda Singapore, and H108 Pte. Ltd., outpacing the second-highest offer by nearly 20%. The consortium, having previously collaborated on OLA and Gem Residences, is experienced in delivering large-scale residential projects. This site, envisioned as a mixed-use development with residential units, commercial space, a bus interchange, and a hawker centre, will be the first of its kind in the Chencharu Estate. The strategic location near Khatib MRT enhances accessibility and is expected to draw steady residential and retail demand.

Meanwhile, the EC site at Sembawang Road was awarded to Oriental Pacific Development (JBE Holdings) at $197.8 million ($692 psf ppr). This represents one of the lowest land bid prices for ECs in recent years, yet the competition remained healthy with four bids received, broadly in line with the average participation rate for EC parcels. JBE Holdings is experienced in the EC segment, having delivered Piermont Grand previously, and their return to the market signals sustained confidence in the hybrid public-private housing model.

The Sembawang Road site is expected to yield about 265 units. Its location near Canberra MRT station, Canberra Plaza, schools, and parks ensures strong appeal among upgraders and young families.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: research@sri.com.sg

Property Insight

Chuan Grove (1H2025) Tender Sees Top Bid of $1,331 psf ppr by Sing Holdings–Sunway JV

A total of five bidders participated in this round, with Sing Holdings Residential Pte. Ltd. and Sunway Developments Pte. Ltd. once again emerging as the top bidder. The joint venture submitted a bid of $623.9 million, or $1,331 psf ppr, edging out the second-highest offer by just 2.9%. A close margin that highlights their strong commitment and competitive stance in acquiring key sites within this precinct.

Having previously secured the earlier Chuan Grove plot with a $703.6 million bid or $1,376 psf ppr, the repeat participation by Sing Holdings and Sunway reflects a deliberate strategy to consolidate their presence in the Chuan Grove area. Their approach signals long-term confidence in the precinct’s growth potential. By acquiring both parcels, the developers are well-positioned to unlock operational synergies across planning, construction, and marketing, while also creating a more cohesive identity for future residential developments in the neighbourhood.

Market momentum from recent new launches and a more stable interest rate environment have collectively uplifted developer sentiment. This has created a conducive setting for land acquisition as developers look to replenish their pipelines with projects in vibrant suburban regions.

Click

here

for the full report

Prepared By:

Mohan Sandrasegeran

Head of Research & Data Analytics

Email: research@sri.com.sg

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