-- By Tricia Song (宋明蔚), Head of Research, Southeast Asia, CBRE
Office
According to URA, Singapore’s office rents in the Central Region declined for a second straight quarter in Q3, albeit at a slower rate. The URA Office Rental Index for the Central Region declined by 0.1% q-o-q in Q3 2025, following a 0.3% decline in Q2 2025. This offsets Q1’s increase and brings year-to-date a net rental decline of 0.1%.
In contrast, the Prime CBD office space saw a rental increase this quarter, as indicated by the performance of Category 1 office buildings (see Table 1). According to URA data, the median rents (by contract date) recorded a 2.5% q-o-q increase in median rents (by contract date) in Q3 2025, reversing declines seen in the first half of the year. The uptick could be due to a flight to quality and tightening supply, as overall vacancy in Category 1 office buildings dropped to 9.9% in Q3 2025, down from 11.0% in Q2 2025. Category 2 office buildings’ rents were unchanged with vacancy up mildly by 0.1 percentage point to 11.7%.
CBRE Research echoed this trend, reporting a 0.8% q-o-q rise in Core CBD (Grade A) rents in Q3 to $12.20 psf/month. Despite global economic headwinds, the market remained resilient, with vacancy rates in the Core CBD (Grade A) sector falling from 5.9% in Q1 to 5.1% in Q3 2025. Notably, IOI Central Boulevard Towers, the latest new development in the Core CBD Grade A segment which was fully completed in Q3 2024, achieved approximately 90% occupancy by Q3 2025.
CBRE Research notes that occupier demand remains broad-based, driven by sectors such as banking and finance, transport, government, and flexible workspace operators. Outside the CBD, demand is also robust. Paya Lebar Green reached full occupancy following Visa’s relocation. This may have contributed to a 0.2% q-o-q and 2.9% y-o-y increase in URA’s Fringe Area rental index.
Table 1: Median rentals based on contract date
1 Refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area.
2 Refers to the remaining office space in Singapore which are not included in “Category 1”
Source: URA
According to the latest data from URA, no new office supply was introduced in Q3 2025, but net supply declined by 0.26 mil sq. ft. Islandwide vacancy rate have steadily declined from 11.7% in Q1 2025 and 11.4% in Q2 2025 to 11.2% in Q3 2025. This could be due to the absorption of past year’s large completions such as IOI Central Boulevard Towers, Keppel South Central and Paya Lebar Green.
URA’s price index showed that prices for office spaces in the Central Region declined for the fourth straight quarter, -0.2% q-o-q in Q3 2025, though much slower than the 1.1% decline in Q2 2025, which could signal a bottoming of the office capital market. This brings the cumulative price decline of 1.4% year to date and 2.1% since Q3 2024.
Outlook
According to CBRE Research, Prime office rents have risen 2.1% year-to-date. As supply pipeline tightens and vacancy continues to improve between 2025-2027, large occupiers seeking contiguous and quality space will likely face fewer options. This tight supply environment could prompt some occupiers to accelerate leasing decisions before availability diminishes. CBRE Research expects the market to maintain its positive momentum into Q4 for a full year 2025 rental growth forecast of around 3%. While there are still global macroeconomic uncertainties, the office market in 2026 could remain resilient supported by limited new supply and low vacancy.
Retail
Retail indicators such as the retail sales index rebounded in Q3 2025. Jul and Aug 2025 rose by 3.1% and 3.0% y-o-y respectively following the marginal decline of 0.2% y-o-y in Q2 2025. Consumer sentiments could be turning positive amid better-than-expected GDP growth and a resilient labour market. Tourism visitor arrivals also continued to recover, with Jul and Aug 2025 posting growth of 4.9% and 4.5% y-o-y respectively.
URA’s Q3 2025 data showed that rents of retail space in the Central Region increased by 0.9% q-o-q, extending the rise of 0.9% q-o-q the previous quarter. Similarly, CBRE Research’s data showed that islandwide prime floor rents increased by 0.5% q-o-q in Q3 2025, bringing YTD rent growth to 1.8%.
Despite media reports of intense competition, high rents, and rising costs contributing to store closures (including Prive, Alma by Juan Amador, and Cathay Cineplex), leasing activity remained robust in the quarter. According to URA data, Q3 2025 saw positive net absorption of 5,000 sq. m. (about 54,000 sq. ft.) in the islandwide private retail market, reversing the negative net absorption in the prior two quarters. However, with a net increase in stock of 13,000 sq. m. (about 140,000 sf), islandwide private retail vacancy rates rose from 7.0% in Q2 2025 to 7.2% in Q3 2025.
- Similar to the previous quarter, CBRE Research observed selective expansions across diverse sectors, with demand led by F&B operators such as Maison Pierre Hermé Paris, Yo-chi, and Din Tai Fung. Fashion brands and beauty & health players including Bape, IM Men and Cle de Peau Beaute also grew their presence. Meanwhile, Chinese brands entering Singapore are diversifying beyond F&B and fashion, with growth in beauty & health and services such as Joocyee, TTE Elephant and Bolon.
Performance was mixed across the submarkets in Q3 2025. The Downtown Core submarket outperformed, boasting the highest positive net absorption of 9,000 sq. m. (about 97,000 sq. ft.). This strong performance is largely attributed to sustained retailer confidence, particularly from new-to-market brands, who are drawn to the area's substantial office crowd catchment and ongoing tourism recovery. As a result, vacancy rates in the submarket declined from 8.1% in Q2 2025 to 7.1% in the quarter.
Conversely, the outside central region (OCR) submarket posted the highest negative net absorption of 9,000 sq. m. (about 97,000 sq. ft.) among all submarkets after outperforming the rest of the submarkets with positive net absorption of 2,000 sq. m. (about 22,000 sq. ft.) in Q2 2025. While retailers are attracted to the submarket’s resilient local catchment, the sustained increase in rents could have prompted some retailers to seek alternative locations. Coupled with the introduction of new supply from the completion of Lentor Modern Mall in August – where tenants may still be in the process of moving in – the OCR submarket registered an increase in vacancy rate from 4.5% in Q2 2025 to 5.9% in Q3 2025.
Despite the increase in rents, URA’s price index showed that prices for retail spaces in the central region fell by 0.7% q-o-q, reversing the marginal rise of 0.1% q-o-q in Q2 2025. Notwithstanding volatile quarterly price movements, price index for retail space in central region is up 1.3% year-to-date, comparable to the full year price growth of 1.0% in 2024. CBRE Research anticipates resilient appetite in both prime and suburban retail assets on the back of continued growth in prime rents, combined with expectations of a tourism recovery and steady consumer spending.
Outlook
Retailers continue to navigate challenges, including manpower shortages, elevated costs and e-commerce competition. Nevertheless, tourism recovery supported by a robust calendar of MICE events and concerts is set to drive demand for prime retail space, even with cautious expansion strategies due to economic uncertainty. CBRE Research projects that, with new supply in line with historical average, overall prime retail rents are on track to rise 2.3% for the full year, returning to pre-COVID-19 levels.
Residential
In Q3 2025, private housing prices rose 0.9% q-o-q. This was slower than the initial flash estimate of 1.2% q-o-q, and similar to the 1.0% q-o-q increase in Q2 2025.
The price increase was led by landed properties which posted 1.4% q-o-q growth, albeit moderating from 2.2% q-o-q in Q2 2025. Meanwhile, non-landed properties saw prices rise 0.8% q-o-q, in line with 0.7% growth last quarter.
Prices in all 3 non-landed segments saw increases in the quarter, led by the CCR which recorded the largest increase of 1.7% q-o-q but easing from its 3.0% q-o-q rise in Q2 2025. OCR prices grew 0.8% after a 1.1% increase in Q2 2025 and the RCR rebounded 0.3% q-o-q after its 1.1% decline last quarter. This brings 9M25 price growth for CCR, RCR and OCR to 5.6%, 0.9% and 2.2%, with CCR as growth leader in 2025. However, CCR is still playing catch up as prices are up 26% from its Covid trough, while RCR and OCR are already 50% and 48% respectively above their Covid troughs.
The rental index of private residential properties rose for the 3rd consecutive quarter, accelerating in Q3 2025 with 1.2% q-o-q growth after the 0.8% increase Q2 2025. With a cumulative 2.4% increase in 9M 2025, rents have reversed the 1.9% correction in 2024. Occupancy rates improved across all non-landed market segments despite more completions – 1,776 units (ex-ECs) completed in Q3 vs 341 units in Q2. The stock of occupied private residential units (ex-ECs) increased by 2,640 units, compared to a decrease of 2,585 units in Q2. With 1,144 units expected to be completed in Q4 2025 implying a total of 5,249 units for the whole of 2025, this is 38% lower than 2024’s completions of 8,460 units. We maintain our forecast for islandwide rents to grow 1 – 3% in 2025, barring a significant pullback in demand.
3,288 new private homes (excluding ECs) were sold in Q3 2025, surging 171.3% q-o-q from Q2 2025’s low base of 1,212 units on the back of healthy take-up at bumper new launches which were priced and designed sensitively. Homebuying appetite has recovered strongly against the backdrop of low interest rates and better-than-expected economic performance. This brings 9M 2025 new home sales to 7,875 units, already exceeding full year tallies for 2022 – 2024.
While the bulk of major projects have already been launched, there are still a few major launches for the remainder of the year, four of which have been announced in October spread across market segments. With robust performance reported at these launches, CBRE Research now forecasts that full year 2025 new home sales could reach a 4-year high of 9,000 – 10,000 units – since 13,027 units were sold in 2021.
Correspondingly, private home prices which have risen 2.7% in 9M 2025 could see similar growth momentum in Q4 2025. We expect the full year price increase will likely be at the higher end of our 3-4% forecast, matching or exceeding 2024’s 3.9% full year growth.
Details
Private housing prices rose 0.9% q-o-q. This was lower than the initial flash estimate of 1.2% q-o-q and marginally below the 1.0% q-o-q increase in Q2 2025. The price increase was led by landed properties which posted 1.4% q-o-q growth, albeit moderating from 2.2% q-o-q in Q2 2025. Meanwhile, non-landed properties saw prices rise 0.8% q-o-q, in line with 0.7% growth last quarter.
Prices in all 3 non-landed segments saw increases in the quarter, led by the CCR which recorded the largest increase of 1.7% q-o-q but easing from its 3.0% q-o-q rise in Q2 2025. OCR prices grew 0.8% after a 1.1% increase in Q2 2025 and the RCR rebounded 0.3% q-o-q after its 1.1% decline last quarter. This brings 9M25 price growth for CCR, RCR and OCR to 5.6%, 0.9% and 2.2%, with CCR as growth leader in 2025.
- CCR’s Q3 outperformance could have been attributed to pent-up demand and attractive launches. UpperHouse at Orchard Boulevard (301 units) sold 202 units (67%) at a median price of $3,277 psf. Comparatively, existing launches in the Orchard district, albeit on the other end of Orchard Road, at Sophia Road, Orchard Sophia and The Collective at One Sophia traded at $2,716 psf and $2,826 psf respectively in Q3 2025. In the River Valley locality, 99-year River Green sold 88% of its 524 units at an average price of $3,130 psf during its launch weekend in early August, on efficiently-sized layouts and affordable quantum. 999-year project The Robertson Opus (348 units), in the CCR, did well on scarcity factor as its Robertson Quay precinct had not seen a new launch in more than a decade since The Wharf Residence launched in 2008, and there is pent-up demand for a freehold-equivalent prime product. The Robertson Opus moved 171 units or 49% of 348 units at a median price of $3,359 psf.
- New OCR launches Canberra Crescent Residences (376 units) and Springleaf Residence (941 units) set new benchmark prices in their respective districts. Canberra Crescent Residences sold 238 units at a median price of $1,993 psf and Springleaf Residence saw 881 units change hands at a median price of $2,166 psf.
- The RCR saw major new launches Lyndenwoods (343 units) and Promenade Peak (596 units) which were priced more realistically. The former is the first condo launch at Singapore Science Park and sold 336 units or 98% at a median price of $2,464 psf, while the latter moved 337 units, or 57% of 596 units at a median price of $2,922 psf by end of Q3.
Table 2: Top 10 best-selling new developer sales projects (excluding ECs) in Q3 2025 (ranked in descending order by number of units sold in the year)
Source: URA, CBRE Research
*Sales status based on caveats from Realis as of 24 Oct 2025.
New home sales surged in Q3 2025 on the back of robust take-up at bumper new launches. Developers launched 4,191 new units, more than double the 1,520 units in Q2 2025. Correspondingly, 3,288 units were sold—up 171.3% q-o-q from Q2’s low of 1,212 units and matching Q1 2025’s 3,375 units. Homebuying appetite has recovered strongly amid low interest rates and better-than-expected economic performance. There were 8 major launches in the quarter. The best-performing projects were Springleaf Residence (941 units), Lyndenwoods (343 units) and River Green (524 units) which posted launch weekend take-up rates of 94%, 92% and 88% respectively.
Resale transaction volumes in Q3 2025 rose moderately by 6.4% q-o-q to 3,881 units, after 3,647 units in Q2 2025. Resale transactions made up 52.4% of total transactions in Q3 2025, down from 71.1% in Q2 2025 a buyers gravitated to attractive new launches in the quarter.
Alongside strong new sales, unsold inventory of uncompleted private residential units (excluding ECs) fell 7.9% q-o-q in Q3 2025 to 17,029 units from 18,498 units in Q2 2025. Including completed units, unsold inventory likewise decreased 7.7% from 18,653 units in Q2 2025 to 17,209 units in Q3 2025.
- Unsold inventory is significantly lower than the last peak of 37,799 units recorded in Q1 2019. At 18,653 units, this implies more than two years’ of landbank based on the 5-year annual average new home sales (2020 – 2024) of 8,600 units and 2024’s total developer sales of 6,469 units.
Rentals of private residential properties saw faster growth in Q3 2025 after Q2 2025’s rise. URA’s islandwide rental index was up 1.2% q-o-q in Q3 2025 after rising 0.8% q-o-q in Q2 2025.
- Landed properties led in Q3 2025, posting a 2.4% q-o-q increase while non-landed property rents rose at a slower 1.1% q-o-q. This brings 9M25 rental growth for landed and non-landed properties to 3.5% and 2.5% respectively.
- Among non-landed properties, performance was mixed across market segments. The CCR which outperformed last quarter underperformed in Q3 2025, posting a 0.5% q-o-q decrease after the 1.8% q-o-q increase in Q2 2025. Comparatively, RCR and OCR rents which were flat in Q2 2025, recorded increases of 1.8% and 2.5% q-o-q respectively in Q3 2025, compared to respective 0.0% and 0.1% q-o-q growth last quarter. Cumulatively, 9M 2025 rents in the CCR, RCR and OCR rose 1.8%, 2.2% and 3.4%.
- In Q3 2025, 1,776 private residential units (ex. ECs) were completed, more than 5 times Q2 2025’s 341 units. Looking ahead, 1,144 private residential units (excl. ECs) are expected to be completed in Q4 2025. At a total 5,249 units for the whole of 2025, this is still 38% lower than 2024’s completions of 8,460 units.
- The stock of occupied private residential units (excluding ECs) increased by 2,640 units in the quarter, compared to a decrease of 2,585 units in Q2 2025. As a result, the vacancy rate of completed private residential units (excluding ECs) fell from 7.1% in Q2 2025 to 6.9%.
- Vacancy rates of completed private residential properties as at Q3 2025 in CCR, RCR and OCR were 9.9%, 6.7% and 5.6% respectively compared with 10.7%, 7.2% and 5.6% in the previous quarter.
Outlook
The tally of new homes sold in 9M 2025 is currently at 7,875 units, already exceeding full year tallies for 2022 – 2024. Looking ahead, while the bulk of major projects have been launched, there are still a few anticipated launches in Q4 2025 including Skye at Holland (666 units), Penrith (462 units) and Faber Residence (399 units). With robust performance reported at said launches, CBRE Research now forecasts that full year 2025 new home sales could reach a 4-year high of 9,000 – 10,000 units – since 13,027 units were sold in 2021.
Rents continued to rise with the URA rental index rising for a 3rd consecutive quarter and seeing faster growth of 1.2% q-o-q in Q3 2025 after the 0.8% rise in Q2 2025. With a cumulative 2.4% increase in 9M 2025, rents have reversed the 1.9% correction in 2024. We note, however, that growth in Q3 2025 continues to be rather mixed, largely supported by the landed segment and higher non-landed OCR and RCR rents while CCR rents posted a decline. We maintain our forecast for islandwide rents at 1 – 3% growth in 2025, barring a significant pullback in demand.
Private home prices which have risen 2.7% in 9M 2025 and could see similar growth momentum in Q4 2025. We expect the full year price increase will likely be at the higher end of our 3-4% forecast, matching or exceeding 2024’s 3.9% full year growth.
Read the URA press release here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.
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Phone: +65 8878 7329
Email: Melvin.Lin@cbre.com
