As Singapore’s skyline continues to evolve, the CBD is expanding beyond its traditional boundaries with bold new developments. From the game-changing Greater Southern Waterfront project to high-tech business districts and floating offices, the future of Singapore’s commercial heart is looking bigger, greener, and (hopefully) more affordable for SMEs.
Why Is the CBD Expanding?
Singapore’s CBD remains one of the world’s most competitive office markets, but space is running out. With Grade-A vacancies at record lows (just 4.7% in Raffles Place, Knight Frank 2024) and rents soaring, the government is pushing ambitious projects to:
Relieve space shortages in the traditional CBD
Boost sustainability with green buildings & smart tech
Spread commercial hubs southwards & eastwards
Future-proof workspaces for hybrid & digital businesses
3 Mega Projects Defining the Future CBD
Greater Southern Waterfront (GSW) – The “New Marina Bay”
📍 Covering 2,000 hectares (3x Marina Bay) from Pasir Panjang to Marina East
Phased development from 2025 to 2040
What’s Coming?
Mixed-use waterfront workspace districts (likely with better pricing than Raffles Place)
New MRT links (2028+) including extensions to Circle & Thomson-East Coast Lines
Luxury coworking & eco-conscious offices
Leaded by URA’s “Downtown South” plan
Impact on SMEs: Could offer lower-cost alternatives as big firms shift to GSW.
Punggol Digital District & Floating Offices
📍 Punggol’s smart business hub + future floating pods
Phase 1 completed in 2024, full rollout by 2030
Highlights:
Singapore’s first fully digital business district
Smart energy grids & AI-managed workspaces
Prototype floating offices (potential for cheaper waterfront workplaces)
Why It Matters for SMEs:
Govt incentives for startups & tech firms
Could become a budget-friendly alternative to CBD core
Shenton Way & Robinson Road Revamp
📍 Raffles Place & Tanjong Pagar makeover
Major Projects:
AXA Tower Redevelopment (2026) – Bigger, smarter offices
IOI Central Boulevard Towers – New premium HQ options
More mixed-use spaces integrating retail & workspaces
Impact on Rents:
Short-term → Higher prices as new towers attract MNCs
Long-term → More vacancies could soften rents
Will These Projects Make the CBD More Affordable?
The Reality:
Short-Term (2025-2028): New premium towers may keep rents high
Long-Term (2030+): Increased supply could balance prices
Where Are the Best Deals?
GSW (Late 2020s) – Early movers may get good rates
CBD-Fringe (Tanjong Pagar, Bugis, Outram Park) – Still prestigious but 15-25% cheaper
Punggol & Jurong Lake District – Emerging hubs with incentives
Survival Guide for SMEs & Startups
Bet on flexibility (Coworking + hybrid offices like CoWorkSpace)
Watch GSW closely for future affordable waterfront spaces
Explore digital districts (Punggol, Jurong Innovation) for potential cost savings
Negotiate smarter leases (short-term, rent-free periods)
The Bottom Line: A More Diverse, Tech-Driven CBD
Singapore’s commercial core won’t disappear—it’s expanding south, east, and even onto water. While MNCs battle for Shenton Way skyscrapers, agile SMEs can thrive by adapting early.
Hot Take: Could floating offices be the next coworking trend?
What’s your move? Stick with the traditional CBD, or explore emerging hubs?
