From developer to city shaper: IOI Properties’ vision for Singapore’s downtown
As prime office space becomes more valuable and work, living and leisure converge, Singapore’s Downtown Core is emerging as a more dynamic, connected and compelling urban destination. The next phase will be shaped not simply by how much space is built, but also by the quality of the places created around it. IOI Properties Group’s growing presence in the district offers one perspective on how…
Singapore's Central Business District (CBD) has long been characterized by robust fundamentals. In recent times, a burgeoning advantage has emerged - a scarcity of high-quality office space. In the prime office submarket of Marina Bay, Grade A vacancy rates tightened to 2.1 percent in Q2 2026, a fifth consecutive quarter of decline, signaling a return to levels last observed in Q3 2019.
This scarcity has sharpened the value of a broader transformation in Downtown Singapore. The Urban Redevelopment Authority's (URA) Master Plan 2025 envisions the Central Area evolving into a more mixed-use, connected, and people-oriented district. Older developments in Raffles Place and Tanjong Pagar are undergoing rejuvenation, while Marina Bay continues to extend the city centre through a diverse mix of workplaces, homes, hospitality, public spaces, and attractions.
The CBD Incentive Scheme encourages the redevelopment of aging buildings into mixed-use projects, which can introduce more residents and amenities, and extend activity beyond conventional office hours. This strategic opportunity extends beyond accommodating growth; Singapore can maintain the CBD's stature as a premier business address while enhancing Downtown Core as a place where people choose to live, work, socialize, and spend time throughout the week.
Cushman & Wakefield's research highlights the market's transformation into a two-tiered structure, with occupiers favoring newer or upgraded buildings offering superior connectivity, amenities, and workplace experience. CBD Grade A office rents increased by 0.9 percent quarter-on-quarter in Q2 2026, bringing year-to-date growth to 2.2 percent, while new Grade A supply is projected to remain below historical net demand through 2031.
For landlords, scarcity presents opportunities, but enduring advantage hinges on the relevance and quality of the asset itself. While location and floorplate remain crucial, companies are increasingly assessing the entire experience surrounding the workplace, including arrival quality, transport access, amenities, greenery, hospitality, services, and the capacity to attract talent and reinforce corporate culture.
IOI Properties Group's concentrated presence in Singapore's Downtown Core holds strategic significance. Dato' Lee Yeow Seng, group CEO of IOI Properties Group, emphasizes Singapore's ability to reinvent while preserving the fundamentals that make it a trusted investment and business hub. The company's commitment to Downtown Core is substantial, aiming to build a portfolio of complementary properties in close proximity to contribute to the next evolution of Downtown.
This approach seeks to connect workplaces, hospitality, residences, and public spaces into a more comprehensive urban ecosystem.
A successful CBD transcends the working day, becoming a vibrant, attractive, and complete city. More residences can establish a permanent Downtown population, supporting restaurants, retail, and services beyond regular office hours. Successful city-center living is enhanced when residences seamlessly connect with transport, greenery, amenities, and public spaces.
These elements, embedded in URA's long-term vision for the Central Area, have attracted 16.9 million international visitors to Singapore in 2025, with hotel occupancy at Marina Bay reaching 81.9 percent, despite the addition of 644 rooms to the market.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
