Paya Lebar Quarter’s Revamp: Is the East-Side Commercial Hub Delivering on Office Demand? 

Paya Lebar Quarter (PLQ), once a quieter corner of Singapore’s east, has transformed into a vibrant mixed-use business and lifestyle hub. Backed by significant investments and a strategic focus on decentralization, PLQ is now home to premium Grade-A offices, retail, and residential spaces, catering to both local and global companies. But in 2025, with shifting work patterns and heightened competition from both CBD and suburban hubs, is PLQ truly delivering on office demand? 

Let’s explore. 

PLQ’s Performance in the 2025 Office Market 

According to recent data from CBRE and Savills, PLQ’s office towers continue to see healthy demand despite broader market pressures. Vacancy rates have remained resilient at around 5.5% in early 2025, outperforming some suburban peers like Jurong East, which has seen vacancy creep up to 7%. 

PLQ’s average gross effective rents hover at S$8.30 psf/month, offering a strategic 30–35% discount compared to the CBD, where prime rents stand at S$12.10 psf/month. This pricing sweet spot, combined with strong MRT connectivity (East-West and Circle lines) and a thriving lifestyle ecosystem, makes PLQ a compelling choice for companies seeking cost-efficient, amenity-rich workplaces. 

Tenant Profile 

PLQ’s tenant mix reflects its diverse appeal: 

• Financial and insurance services (looking for cost-effective back offices) 

• Technology firms and startups 

• Consulting and professional services 

• Media and marketing agencies 

Notably, SMEs and regional branches of MNCs are driving most of the leasing momentum, attracted by PLQ’s campus-style environment, flexible floorplates, and lower operating costs. 

Comparing PLQ with CBD and Jurong East (2025) 

Table: Office market snapshot — PLQ vs CBD vs Jurong East (Sources: CBRE, JLL, Savills 2025) 

Key Takeaways: 

• PLQ holds a sweet spot in Singapore’s east with lower rents and quality offices. 

• CBD remains king for global HQs, finance, and legal sectors, but PLQ is winning among cost-sensitive occupiers. 

• Jurong East shows promise, especially for logistics and supply chain-related companies, but still lags PLQ in lifestyle integration and tech tenant demand. 

Future Outlook for PLQ 

Analysts forecast stable to slight rent growth (~1–2% annually) in PLQ through 2025–2026, reflecting steady demand and limited new office supply in the east. As the Greater Southern Waterfront and Paya Lebar Airbase redevelopment move forward, PLQ’s strategic location is expected to gain even more prominence as an East-side commercial nucleus. 

Moreover, green-certified offices in PLQ (BCA Green Mark Platinum, WELL Gold) are in high demand, as companies prioritize sustainability, wellness, and hybrid-friendly spaces. 

Is PLQ Right for Your Business? 

If your company is seeking: 

• Cost efficiency compared to the CBD 

• Strong MRT accessibility 

• A modern, employee-friendly environment 

• Flexibility in office sizes and lease terms 

Then Paya Lebar Quarter is worth serious consideration in 2025. Particularly for SMEs, tech firms, creative agencies, and regional functions of MNCs, PLQ offers the right balance of prestige, practicality, and price. 

Find Your Perfect Office with MatchOffice 

Whether you’re eyeing a prime office in PLQ, a prestigious CBD address, or a cost-efficient hub in Jurong East, MatchOffice simplifies your search. Our platform offers curated office listings across Singapore, along with expert insights to help you make the right choice for your business. 

Explore the best offices in Paya Lebar Quarter and beyond — start your search with MatchOffice today and find the workspace that fits your goals, budget, and team.