City Fringe vs. Core CBD: Where Are Investors Betting Big in 2025? 

In 2025, Singapore’s commercial real estate market is witnessing a fascinating shift. While the Central Business District (CBD) remains iconic, investor attention is increasingly shifting toward city fringe areas. With remote work, cost efficiency, and decentralization in focus, the once-unquestioned dominance of the CBD is facing fresh competition. 

So, if you’re a business hunting for the ideal office space or an investor eyeing high-potential properties, where should your bets lie? Let’s explore the dynamics of CBD versus city fringe in Singapore’s evolving office landscape. 

What Defines the CBD and City Fringe? 

• Core CBD: This includes Marina Bay, Raffles Place, and Tanjong Pagar. Think iconic skyscrapers, premium amenities, and big-ticket multinational tenants. 

• City Fringe: Typically spans locations like Paya Lebar, Alexandra, Novena, and Harbourfront. These areas offer a mix of commercial, retail, and residential development, often with better rental flexibility and newer mixed-use buildings. 

2025 Snapshot: CBD vs. City Fringe Office Market 

Here’s a quick comparison of the two markets based on current data and market forecasts: 

Why City Fringe is Gaining Investor Interest 

1. Higher Yields & Lower Entry Costs 
   Investors are attracted by lower capital outlay and higher yield potential in the city fringe market. These areas typically offer more bang for your buck, especially for first-time commercial investors or portfolio diversifiers. 

2. Tenant Demand from New Economy Sectors 
   Creative industries, tech firms, and growing SMEs prefer the fringe for flexibility and affordability. City fringe hubs like Paya Lebar are becoming magnets for innovative companies, many of which prioritize well-designed, lifestyle-integrated offices. 

3. Live-Work-Play Ecosystems 
   Mixed-use developments are a major pull. Employees value proximity to food, retail, and transport, which fringe areas often deliver in more integrated formats. This contributes to higher employee satisfaction and retention for businesses. 

4. Urban Decentralization Strategy 
   Singapore’s planning authority is actively promoting regional commercial centers outside the CBD to reduce congestion and distribute economic activity more evenly. This trend aligns well with the city fringe growth story. 

Why the CBD Still Has Weight 

1. Prestige & Global Connectivity 
   For firms needing international credibility or those in industries like finance, legal, and consultancy, the CBD still offers unmatched prestige and centrality. 

2. Mature Infrastructure 
   From MRT connectivity to client-facing spaces and executive clubs, the CBD remains top-tier in terms of convenience and corporate presentation. 

3. Stable, Long-Term Tenancy Base 
   While fringe areas are dynamic, the CBD maintains lower volatility and a stable corporate base, appealing to risk-averse investors. 

Making the Right Choice for Your Business 

The right office location depends on your business priorities: 

• If you prioritize client access, prestige, and mature infrastructure, CBD remains a strong choice. 

• If you’re a startup, SME, or creative firm looking for cost savings and flexible terms, fringe locations are increasingly attractive. 

Consider the following before deciding: 

Let MatchOffice Help You Find the Right Fit 

Whether you envision your next office in a gleaming tower in Raffles Place or a creative hub in Paya Lebar, the key is aligning location with business goals. At MatchOffice, we simplify that journey by offering curated listings and expert insights tailored to your needs. 

Explore premium and flexible office spaces today with MatchOffice – your smart partner in commercial real estate success.