Newmark Report: Resilient Singapore Office Demand Backed by Steady Economic Growth

SINGAPORE, March 7, 2025 /PRNewswire/ -- Newmark has released a study, led by its Valuation & Advisory and Leasing & Brokerage teams, on the Singapore office leasing market. The report considers broader economic factors and ongoing trends among occupiers, projecting a positive year ahead for office leasing activity and continued moderate rental growth amid limited supply and stable economic growth on the island in 2025.

"Increasing office-using employment and declining office supply should help to better balance the market's supply and demand over the next 12 months, supported by steady economic growth and export growth," said Chris Carver, MRICS, MSISV, AAPI, Executive Managing Director and Head of Asia-Pacific Valuation & Advisory. "With a limited development pipeline and sustained need for high-quality office space, we anticipate that rental growth will remain positive in 2025 and occupiers will continue to focus on workplace efficiency and employee experience, driving interest for prime spaces."

Among the key 2024 takeaways:

• Office vacancy rose slightly to 9.4% in 2024, largely attributable to the addition of the 1.25-million-square-foot IOI Central Boulevard Towers to the office supplyi.
• Singapore's CBD Grade A office rents grew approximately 2% in 2024 and are projected to increase at a moderate pace of around 2% in 2025. This growth is attributed to the limited supply of new office space in the CBD and sustained demand for premium office spacesii.
• Flight to Quality remains a key driver of office relocations, as businesses prioritize talent acquisition and retention.
• Service sectors, such as information and communications, financial and professional services, all grew in 2024 and are projected for further growth in 2025, which should in turn drive additional office demandiii.

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