Why the CBD Still Needs More Grade A Offices

Singapore’s commercial landscape is shifting again — and the message from institutional investors and occupiers is clear: the CBD must remain the beating heart of business, even as decentralisation trends continue in the long term.

While suburban office hubs like Jurong, Paya Lebar and Woodlands have grown in prominence, demand for prime CBD office space remains structurally stronger, driven by multinational firms, financial institutions and high-value professional services.

To maintain global competitiveness and avoid future supply crunches, Singapore should accelerate future-ready Grade A CBD office development — especially buildings that appeal to global headquarters and professional services.

What “future-ready” CBD offices look like

• Smart, tech-enabled buildings with flexible floor plates and collaborative layouts.
• Green-certified towers that meet tightening ESG requirements from global investors and tenants.
• Wellness-focused design: natural light, end-of-trip facilities, and lifestyle amenities.
• Great connectivity to MRT interchanges, major expressways and airport access.

Why We Should Go Slower on Decentralised Offices

Decentralised office hubs play an important role — they shorten commutes and support live-work-play in the heartlands. But over-building outside the CBD can dilute demand and increase vacancy risk across the island.

Instead of launching too many decentralised projects at once, policymakers and landlords should:

• Grow each decentralised cluster in phases, anchored by strong, long-term tenants.
• Ensure each node has a clear identity (e.g. tech, media, logistics, back-office support).
• Avoid direct competition with the CBD for global HQ-type tenants.

A measured approach keeps decentralised nodes healthy without weakening the CBD’s role as a global financial and commercial centre.

Why CBD Homes Should Grow, But Not Too Fast

There is growing interest in turning older CBD buildings into mixed-use or residential-led developments. A more vibrant, 24/7 CBD with homes, F&B and lifestyle offerings is positive in the long run.

However, over-residentialising the CBD may undermine Singapore’s core strength: a concentrated financial and commercial district that attracts global capital and top-tier companies.

The key is balance:

• Refresh ageing assets into mixed-use projects selectively, not across the board.
• Maintain a critical mass of office space to preserve the CBD’s “super-core” status.
• Ensure residential supply complements, rather than displaces, high-value commercial uses.

What This Means for Owners and Investors

A strong CBD with sufficient Grade A offices is good news for:

• Office building owners – stronger rent resilience and capital upside.
• Family offices and funds – long-term relevance of CBD commercial assets in portfolio construction.
• Shophouse and strata owners near the core – spillover demand from office workers and MNC tenants.
• Retail and hospitality assets – steady weekday footfall from an active commercial cluster.

Globally, we continue to see “super-core” CBDs outperform satellite nodes in terms of rent growth, tenant quality and investor interest. Singapore is no exception — and planning decisions made today will shape performance in the next cycle.

Need Advice on CBD or Commercial Assets?

If you currently own, or are planning to acquire, CBD offices, shophouses or strata commercial units, it’s crucial to position your asset in line with upcoming planning trends, tenant expectations and financing conditions.

Reach out for a confidential discussion on valuations, exit strategy or acquisition opportunities in the CBD and city fringe.