Decentralised office rents fall as firms relocate to CBD: JLL
The redevelopment of 79 Anson Road, that might begin next year, is anticipated to compound supply constraints even more, he adds.
At the same time, Tangye thinks property managers with uninhabited area are focusing on increasing occupancy and stabilising portfolios ahead of 2026, when rental fees may begin climbing once more prior to brand-new supply gets in the marketplace in 2028. He adds: “By applying targeted property enhancements, consisting of modernised lobbies and bathrooms, in addition to the remediation and renovation of outdated office areas, property owners are positioning themselves to draw in premium occupants and capitalise on the expected rental development possibilities.”
As transfers carry on to sustain demand, workplace rents in the CBD are expected to continue to be small, with JLL predicting full-year growth of 2% this year. Nevertheless, leas may pick up in 2025, amid limited supply. “No huge office completions are expected for the next 12 months, with the brand-new Shaw Tower only entering onstream in 2H2026,” notes Chua.
One instance is Audi Singapore, that most recently relocated its business offices from Aperia on Kallang Avenue to Resources Square in the CBD. The move accompanied the display room’s change from Alexandra Road to 18 Cross Street, simply a brief walk from Capital Square, claims Tangye.
In contrast, workplace rents in the decentralised sub-market reported a downtrend in 2Q2025, its very first fall in 4 years. Rents in the market slipped 0.8% q-o-q to $7.61 psf each month last quarter. “This decrease is credited to ongoing rightsizing efforts and tenants relocating to, or closer to, the CBD, stimulated by the boosted opportunity of space,” JLL includes.
Andrew Tangye, head of workplace leasing and advisory at JLL Singapore, says an increasing pattern of “strategic recentralisation” and “quality-driven relocations” to offices in the CBD. “Many establishments in Singapore are evolving towards higher-value services and improved service models, causing a movement of some office need from decentralised areas to CBD facilities that better fit their progressively sophisticated and client-oriented procedures,” he includes.
More firms might be compelled to transfer to the CBD due to “the current lack of a considerable lease space in between CBD and decentralised offices”, claims Dr Chua Yang Liang, JLL’s head of study and consultancy for Southeast Asia. Currently, the average rental fee void in between investment-grade offices in the CBD and the decentralised sub-market stands at around 30% to 35%, which Chua says is below the historic 50% to 60% range.
Regardless of ongoing financial and geopolitical unpredictabilities, CBD office rentals edged up again in 2Q2025. Grade A gross effective rents climbed 0.7% q-o-q to $11.69 psf per month, marking a fifth straight quarter of sub-1% growth, according to JLL.
