Key Insights
The office market in Q2 2025 reflected a mix of cautious sentiment and selective investor interest. While overall prices and rentals softened amid global trade tensions, transaction activity picked up with the highest number of office deals in 14 quarters. Occupancy improved slightly as new completions paused, but the pipeline of upcoming supply remains significant. Singapore continues to attract institutional investors, reinforcing its position as a safe haven despite near-term challenges.
- Office prices in the Central Region fell 1.1% QoQ, led by a 3.5% drop in Fringe Area capital values.
- Office rentals dipped 0.3% QoQ overall, though median rents in the Central Area rose to a record $7.80 psf/month.
- 103 office transactions in Q2 2025 — the highest in 14 quarters — totalling $333 million, down 9% QoQ by value.
- Strata office demand remained resilient, with 26 units at Manhattan House sold for ~$11.5m.
- Vacancy rate eased to 11.4%, with no major completions in Q2; over 9.3 million sq ft of new supply is in the pipeline.
- Outlook: Rentals and prices may face slight downward pressure, though limited upcoming completions could support prime locations.
Q2 2025 saw the office market balancing softer prices with stronger sales activity, as investors selectively targeted prime and strata units. While rents eased slightly, the Central Area achieved record-high median rentals, reflecting ongoing demand for quality spaces. With vacancies stabilising and Singapore’s reputation as a resilient, transparent market, offices remain a long-term investment choice despite near-term headwinds. Download the full report for detailed data, top transactions, and PropNex’s market outlook.
