CBRE

FIGURESSINGAPORElQ32025

+44%

GDPGrowth(Q22025)

+0.5%

CPIInflationyo-Y(Aug2025)

1.46%

3MSORA

(End-sep2025)

Note:CBREResearch,singstat,MAS,Q32025

Executivesummary

-

CBD(GradeA)rentsincreasing0.8%q-o-qto$12.20psf/month.

--to-

upofnewprojects.However,momentummayeasewithnofurthercompletionsin2025.

-

drivenbysustaineddemandforprimeretailspaces.Asaresult,islandwideprimeretailrentsrecordeda0.5%q-o-qincrease,extendingthegrowthof0.7%q-o-qinthepreviousquarter.

--o-

q-o-qdiplastquarter.Averagerentsforwarehouseandfactorysegmentsremainedflat·

-

atbumpernewlaunches.privatehomepricegrowthacceleratedonfirmpricesatnewlaunches.

--o-

10.3%y-o-y)to$10.294bn,a7-yearquarterlyhigh.Thequarterwitnessedanimprovementininvestorsentimentoneasingofdomesticinterestratesandde-escalationoftradetensions·

TABLE1:QuickFigures

office

Q32025

Q-O-Q

Y-O-Y

GradeARent

$12.20

+0.8%

+2.1%

capitalvalue

$2,950

Netyield*

3.9%

Retail

Q32025

Q-O-Q

Y-O-Y

primeRent(orchard)

$38.35

+0.7%

+2.4%

capitalvalue

$7,400

+0.7%

+1.4%

Netyield

5.3%

Businesspark

Q32025

Q-O-Q

Y-O-Y

Rent(cityFringe)

$6.15

0.8%

1.7%

source:CBREResearch,Q32025

Allcapitalvaluesandyieldsstatedasprime.Rentsarequotedona$psfpermonthbasisandcapitalvaluesona$psfbasis.

*yieldcalculationmethodologyrevisedbasedonanaverageofrollingeightquarterrents.

Residential

Q32025

Q-O-Q

Y-O-Y

primeRent

$5.53

-2.2%

+1.9%

capitalvalue

$2,053

-0.7%

+1.9%

Netyield

2.6%

Industrial*

Q32025

Q-O-Q

Y-O-Y

primeLogisticsRent

$1.85

+1.1%

-1.1%

capitalvalue

$234

+0.9%

yields

6.7%

Inyestment**

Q32025

Q-O-Q

Y-O-Y

Totalvolume

$10.294bn

+64.3%

+10.3%

source:CBREResearch,Q32025

*30yearprimelogisticsdataprovided.

*Investmentvolumesarepreliminary.Alltransactionsabove$10mil.

ofce

singaporemarketsustainsgrowthinrents

ThesingaporeofficemarketcontinueditsupwardtrajectoryinQ32025,withcorecBD(GradeA)rentsincreasing0.8%q-o-qto$12.20psf/month.Thismarksthethirdconsecutivequarterofrentalgrowth,supportedbyresilientoccupierdemandandatighteningsupplypipeline.Despiteglobal

economicuncertainties,themarkethasremainedrobust.vacancyinthecorecBD(GradeA)sectordeclinedfrom5.9%inQ1to5.1%inQ3,reflectingsustainedleasingmomentumandaflighttoqualityamongoccupiers.

LowvacancyratesincertainsubmarketswithincBD

BeyondrobustleasingactivityinMarinaBayandRafflesplace,adjacentsubmarketssuchasMarinacentreandBeachRoad/cityHallalsooutperformed,withvacancyratesfallingbelow3%.with

severalnotabletransactionsexpectedtocloseinQ4,corecBD(GradeA)vacancycoulddipbelow5%byyear-end.FollowingthecompletionofkeppelsouthcentralandpayaLebarGreeninQ12025,nonewsupplyenteredthemarketinQ2andQ3,whilesometransitionalofficestockwaswithdrawn.

LeasingactivityextendsbeyondcBD

occupieractivityremainsbroad-based,ledbysectorssuchasbankingandfinance,transport,

governmentandagilespaceoperators.DemandoutsidecBDisalsostrong,ledbypayaLebarGreen,whichisnowfullyoccupiedfollowingvisa'srelocationthatabsorbedtheremainingspace.This

broughtvacancyratesindecentralisedlocationsdownfrom7.9%inQ2to6.5%inQ32025.

Flighttoqualityandtightsupplytosupportrentalgrowth

primeofficerentshaverisen2.1%year-to-date.Assupplypipelinetightensandvacancycontinuestoimprovebetween20252027,largeoccupiersseekingcontiguousandqualityspacewilllikelyface

feweroptions.Thistightsupplyenvironmentcouldpromptsomeoccupierstoaccelerateleasing

decisionsbeforeavailabilitydiminishes.CBREResearchexpectsthemarkettomaintainitspositive

momentumintoQ4forafullyear2025rentalgrowthforecastofaround3%.Rentscouldacceleratein2026supportedbythelimitedsupplyandresilientdemand.

FIGURE1:officesupplyDemand(Islandwide)

source:CBREResearch,Q32025

TABLE2:officevacancyRates

Q325

Q-O-Q

Y-O-Y

$12.20

0.8%

2.1%

corecBD

$9.10

0.6%

1.7%

corecBD(GradeB)

$8.85

1.1%

2.3%

Islandwide(GradeB)

$8.15

1.2%

1.9%

TABLE3:singaporeofficeRents

Q125

Q225

Q325

5.9%

5.3%

5.1%

Islandwide

5.9%

6.1%

5.7%

corecBD

5.4%

5.0%

4.9%

FringecBD

6.8%

6.8%

6.5%

Decentralised

6.2%

7.9%

6.5%

source:CBREResearch,Q32025

source:CBREResearch,Q32025

Businessparks

Fifthconsecutivequarterofpositivenetabsorptionthoughmomentumslows

Thebusinessparkmarketposteditsfifthconsecutivequarterofpositivenetabsorptionthoughmomentumslowedsignificantly.Leasingactivitymoderatedthisquarterastakeupforthe

freshlycompletedprojectsstabilised.DemandwasconcentratedinthecityFringe,particularlyinprimedevelopmentsatAlexandraandone-north.Therewerenocompletionsthisquarter.with

somestockremoval,islandwidevacancyeasedfrom22.0%inQ22025to21.4%inQ32025.

Mixedsignalsandunevendemand

Demanddriversthisquarterweremixed.Take-upsweredrivenbyrelocationsoftech,softwareandconstructioncompanies,signallingaflighttoqualityandstrategicconsolidation.However,thiswaspartiallyoffsetbydownsizingofselecttenantsduetocostpressuresandoperational

recalibration.pharmaceuticalactivitywassubduedamiduncertaintyoverpotentialustariffsonbrandedandpatenteddrugexports.whileexemptionsmayapplyforsingaporecompanies,long-terminvestmentcouldbecloudedasmultinationalsshiftcapitaltowardusoperations.

cityFringerentsedgeupasvacanciestighten

InQ32025,averagerentsforthecityFringeincreased0.8%q-o-qto$6.15psfmthwhileaverage

rentsfortheRestofIslandsubmarketwerestableat$3.55psfmth.ThecityFringewitnessedstrongertakeupthisquarter,withvacanciesinchingdownto11.2%whileaveragevacanciesfortheRestofIslandremainrelativelyhighat29.7%.year-to-date,cityFringerentsgrew1.6%,

contrastingwiththe1.4%declineintheRestofIsland,highlightingadivergenceinperformance.

Narrowingsupplypipelinecouldmoderatefuturenetabsorption

year-to-datenetabsorptionstandsstrongat1.27mil.sq.ft.,drivenbytake-upofnewprojects.However,momentummayeasewithnofurthercompletionsin2025.Thenextaddition,27IBP

(0.21mil.sq.ft.),isslatedforQ12026,afterwhichnewsupplyisexpectedtotaper.supplycouldtightenfurtheraslandlordspursueassetenhancementtoupgradeagingproperties.withflight-to-qualitytrends,newerbusinessparksinprimelocationsshouldcontinuetooutperform,whileolderassetsmayfacecontinuedpressureonoccupancyandrents.

FIGURE2:BusinessparksupplyDemand(Islandwide)

FIGURE3:Businessparkvacancy

TABLE4:singaporeBusinessparkRents

Q325

Q-O-Q

Y-O-Y

$6.15

0.8%

1.7%

RestofIsland

$3.55

0.0%

-2.7%

RestofIslandcityFringe

TABLE5:knownBusinessparkpipeline(sq.ft.)

cityFringe

Restoflsland

0.00mil

0.00mil

2026

0.00mil

0.21mil

2027

0.00mil

0.00mil

source:CBREResearch,Q32025

source:CBREResearch,Q32025

Note:HistoricalvacanciesmaydifferduetorebasketofpropertiesinQ12025

Retail

Turnaroundinretailsales;tourismarrivalscontinuerecovering

Retailsalesindex(excludingmotorvehicles)reboundedinJulandAug2025,risingby3.1%and

3.0%y-o-yrespectivelyfollowingthemarginaldeclineof0.2%y-o-yinQ22025.consumer

sentimentscouldbeturningpositiveamidbetter-than-expectedGDpgrowthandaresilientlabourmarket.Tourismvisitorarrivalsalsocontinuedtorecover,withJulandAug2025postinggrowthof4.9%and4.5%y-o-yrespectively.

HealthyleasingdemandledbyF&B,fashionandbeauty&healthbrands

Despitemediareportsofintensecompetition,highrents,andrisingcostscontributingtostore

closures(includingprive,AImabyJuanAmador,andcathaycineplex),leasingactivityremainedrobustinQ32025.CBREResearchobservedexpansionacrossdiversesectors.DemandwasledbyF&BoperatorssuchasMajsonpjerreparis,Yo-chi,andDinTaiFung.Fashionbrandsandbeauty&healthplayersincludingBape,IMMenandcledepeauBeautealsogrewtheirpresence.Meanwhile,chinesebrandsenteringsingaporearediversifyingbeyondF&Bandfashion,with

growthinbeauty&healthandservicessuchasJoocyee,TTEElephantandBolon·

primeislandwideretailrentscontinueascentinQ3

InQ32025,thecityHall/Marinacentreandorchardsubmarketsledperformance,drivenby

sustaineddemandforprimeretailspaces.Thiswasfuelledbyretailers'confidenceintourism

recoveryandtheofficecrowdcatchment.Asaresult,islandwideprimeretailrentsrecordeda0.5%q-o-qincrease,extendingthegrowthof0.7%q-0-qinthepreviousquarter.

overallprimeretailrentspoisedforfullrecoverybyend-2025

Retailerscontinuetonavigatechallenges,includingmanpowershortages,elevatedcostsande

commercecompetition.Nevertheless,tourismrecoverysupportedbyarobustcalendarofMICE

eventsandconcertsissettodrivedemandforprimeretailspace,evenwithcautiousexpansion

strategiesduetoeconomicuncertainty.primeretailrentshaveincreased1.8%year-to-date.CBREResearchprojectsthat,withnewsupplyinlinewithhistoricalaverage,overallprimeretailrentsareontracktorise2.3%forthefullyear,returningtopreCOVID19levels,

FIGURE4:RetailEconomicIndicators

source:STB,MTI,CBREResearch,Q32025

TABLE6:primeRetailRents

EstimatedNLA(sq.ft.)

Q42025

0.10mil

2026

0.45mil

2027

0.39mil

TABLE7:EstimatedGrossNewsupply

Q325

Q-O-Q

Y-O-Y

$27.65

0.5%

2.6%

orchardRoad

$38.35

0.7%

2.4%

suburban

$32.65

0.5%

1.7%

source:CBREResearch,Q32025

source:CBREResearch,URA,Q32025

Note:projectswithaNLAoflessthan20,000sq.ft.areexcluded

Industrial

Manufacturingoutputandexportsweakenasu.s.tariffstakeeffect

InAug2025,manufacturingoutputcontractedby7.8%y-o-y,withonlythetransport

engineeringandchemicalssectorsshowinggrowth.Exportsfellby11.3%y-0-y,asnewly

implementedtariffstookeffectandtheboostfromearlierfront-loadingactivitiesdiminished.Thatsaid,SIPMM'SPMIedgedbackintoexpansionterritoryinsep2025,withtheelectronicssectorabrightspot,drivenbyrisingdemandforserversandchipsduetoadvancementsinAl1.

LeasingmomentumacceleratesinQ32025

Amidongoinguncertaintiesinglobaltrade,leasingactivitygainedmomentuminQ32025.

occupiersgravitatedtowardsingapore'ssafehavenstatus,whichsupportsbusinesscontinuityandfutureexpansion.Demandforwarehousespacesurged,primarilyfrom3PLS,while

semiconductor,engineeringandtechnologyfirmsshowedstronginterestinfactoryandhi-techspaces.Landlordsareselective,strategicallyofferingtenantincentivestoenticerelocations.

primelogisticsrentsreboundamidstrongdemand

InQ32025,primelogisticsrecordedthehighestrentalgrowthamongallindustrialsegments,

drivenbyrobustdemandformodernramp-upfacilities.withstrongtake-up,theoccupancyrateofcBRE'sprimelogisticsbasketrosefrom92.1%inQ22025to93.6%inQ32025.primelogisticsrentsincreasedby1.1%q-0-qinQ32025,recoveringfroma0.5%q-o-qdiplastquarter,while

averagerentsforthewarehouseandfactorysegmentsremainedflat.

Moderationinfutureprimelogisticssupplycouldfavourlandlords

Despitetheadditionofover5.0milsq.ft.ofnewprimelogisticsspacefromQ1toQ32025,morethan80%ofthisnewsupplyisalreadycommitted·Lookingahead,primelogisticssupplyfromQ42025to2026isexpectedtobelimited,asmostsitesarepreleased.Forthefullyear,primelogisticsrentsareprojectedtobeflat,suggestingapotentialreboundinQ42025,sincerents

havedeclinedby1.1%year-to-date.withinterestratesrapidlydeclining,investorsareseekingqualityindustrialassetstobenefitfromfavourableyieldspreads.

FIGURE5:ManufacturingIndices

y-o-ychange

30%

54

52

20%

10%

-10%

-20%

44

-30%

PMI-contractPMI-ExpandMfgoutputNODX

source:singstat,SIPMM,CBREResearch,Q32025

TABLE8:IndustrialRents

Development

Est。GFA(milsf)

Bulimsquare(JTC)(partial)

0.80

TuasDistributionHub(sankyu)

0.40

pasirRisIndustrialDrive1(SOITECMicroelectronics)

0.38

CTFoodNEX

0.20

TABLE9:significantFutureDevelopments

Factory(GrdFIr)

Q325

Q-O-Q

Y-O-Y

$1.81

0.0%

11%

Factory(UPPFIr)

$1.41

0.0%

1.4%

warehouse(GrdFIr)

$1.90

0.0%

-1.6%

warehouse(UPPFIrn)

$1.38

0.0%

-2.1%

primeLogistics

$1.85

1.1%

-1.1%

source:CBREResearch,Q32025source:CBREResearch,JTC,Q32025

Residential

Q32025newsalessurgedonrobusttake-upatbumpernewlaunches

NewhomesalesinsingaporesurgedinQ32025onthebackofrobusttakeupatbumpernew

launches.preliminarydatashowed3,281unitsweresoldup170.7%q-o-qfromQ2'slowof1,212unitsandmatchingQ12025's3,375units.Homebuyingappetitehasrecoveredstronglyamidlowinterest

ratesandbetter-than-expectedeconomicperformance.Therewere8majorlaunchesinthequarter.

Thebest-performingprojectswerespringleafResidence(941units),Lyndenwoods(343units)and

RjverGreen(524units)whichpostedlaunchweekendtakeupratesof94%,92%and88%respectively.

privatehomepricegrowthacceleratedamidfirmpricesatnewlaunches

privatehomepricesrose1.2%q-o-qinQ32025accordingtoflashestimates,acceleratingfrom1.0%qo-qgrowthinQ22025.Theincreasewasdrivenbythelandedsegment,whichclimbed1.4%q-o-q.

Non-landedhomepricesrose1.1%,pickingupfrom0.7%inthepreviousquarter.pricesgrewacrossallmarketsegments,supportedbyagoodmixoflaunches.TheccRledwith2.4%q-0-qriseon

benchmarkpricesatnewlaunches·ThiswasfollowedbytheocRwith1.0%q-o-qgrowthandlastlytheRCRwhichposteda0.4%q-o-qincreaseonmorerealisticpricingatcityfringelaunches.

RentslikelycontinuedtoriseinQ3withunevenperformancesacrossmarketsegments

URA'SRentalIndexforallprivateresidentialpropertiessawfastergrowth,rising0.8%q-o-qinQ22025aftero.4%q-o-qinQ12025.MedianpsfrentsinJulAug2025weremixed.TheccRwhich

outperformedinQ2postedareversalinQ32025,falling2.4%q-o-q,whiletheRCRandocRwhichposteddeclinesinQ2rebounded,recording1.9%and4.3%q-0-qgrowthrespectively.

Newhomesaleshavereacheda4-yearhighsince2021

Lookingahead,whilethebulkofmajorprojectshavebeenlaunched,therearestillafewanticipated

launchesinQ42025.Amidlowinterestratesandeconomicresilience,thecurrent2025newsalestallyof7,868unitshasalreadyexceededfullyeartalliesfor2022-2024.CBREResearchhasupgradedour2025newhomesalesforecastto8,0009,000units.correspondingly,homepriceswhichhaverisen3.1%year-to-datecouldgrowatasimilarpaceinQ42025,withafullyeargrowthatthehigherendofour34%forecast,andmatchorexceed2024's3.9%growth.

FIGURE6:NewprivateResidentialunitsTakeup&URApriceIndex(incl.ECS)

Note:"preliminaryfigures(excl.ECS)forQ32025basedonRealiscaveatsasof8oct2025.

TABLE10:TOP3projects(Newsales)inQ32025

FIGURE7:NonlandedMedianpsfRentsbyMarketsegment

202520252025*

CCRRCROCR

source:URA,CBREResearch,Q32025

Note:BasedonRealiscaveatsasof8oct2025.

Note:*Fornon-landedresidentialunits(excl.ECS)fromJul-Aug.BasedonRealiscaveatsasof8oct2025.

Investments

privateinvestmentvolumesroseamidlowerinterestrates

preliminaryrealestateinvestmentvolumesforQ32025surged64.3%q-o-q(up10.3%y-o-y)to

$10.294bn,a7-yearquarterlyhigh.Thiscouldbeattributedtomorepubliclandsalesandseveral

big-tickettransactions.Excludingpublicsites,Q32025volumeswereupby22.0%q-o-qbutdownby11.7%y-o-yat$6.150bn.Thequarterwitnessedanimprovementininvestorsentimentonthebackofcontinuedeasingofdomesticinterestratesandde-escalationoftradetensions·

office,retailandothertransactionssurgedq--9

Theoffice,retailand"others"sectorsdroveinvestmentvolumegrowthinQ32025.officedeals

soaredsevenfoldq-o-qto$1.794billion,buoyedbythe55%staketransactionofcapitaspringfor$1.045bn($2,822psf).Retailvolumesmorethandoubledto$625.83milwithuoL'ssaleofkinexfor$375.00mil($1,836psf)toElegantGroup,whichwasalsotheawardeeofa30-yearleasefornearbyTanjongkatongcomplexinQ22025."others"transactionswereup21foldq-o-qto$1.505bninQ32025,fuelledbytheIpoofcenturionAccommodationREIT,whichsawitacquiringaportfolioof5westlitedormitoriesfromcenturioncorporationandLianBengGroupfor$1.348bn.

Industrialandmixed-usevolumesnormalisedafterastrongQ2

ontheotherhand,industrialinvestmentvolumesnormalisedafterastrongQ22025,fallingby49.3%q-o-qto$858.03mil.Likewise,themixed-usesectorsawvolumesdropby26.5%q-o-qto$1.013bn

followingthebig-ticketsaleofa50.1%stakeinsouthBeach($1.378bn)inthepreviousquarter·

stronginvestmentmomentumshouldcontinuefortherestoftheyear

9M25investmentvolumes(excludingpubliclandsales)wereup11.9%.singapore'sreputationasa

stableandsecureinvestmentdestination,coupledwithsolidfundamentals,remainsakeydrawfor

investors,evenamidavolatilegloballandscape.Besidesyear-to-dateshort-termdomestic

benchmarkinterestratesmorethanhalvingto1.46%,theusFedinterestratecutinsep2025has

providedglobalinvestorswithmoreclarityontheinterestratetrajectory,whichshouldsupport

stronginvestmentmomentumfortheremainderoftheyear.consequently,CBREResearchmaintainsourforecastofa10%increaseininvestmentvolumesfor2025comparedto2024·

FIGURE8:TotalTransactionvolumebysector

source:CBREResearch,Q32025,*preliminaryfigures

source:CBREResearch