From its textured stone walls to a mirror-wrapped pillar, 55 Market Street looks no different from other buildings in Singapore's city center. But step inside and something feels amiss: most areas of this 16-story tower have been vacant for several months.

This "empty building" stands in stark contrast to the bustling financial district surrounding it. According to sources familiar with the matter, the property has been on the market for over a year, but progress has been sluggish.

This represents an extreme case of Singapore's plummeting office building transactions, despite the market largely withstanding the downturn that has swept cities worldwide since the pandemic. As institutional investors retreat, local sellers have pinned their hopes on ultra-wealthy individuals stepping in to make purchases, but results have been disappointing.

According to data compiled by MSCI, last year marked the slowest period for Singapore office investment since the 2020 pandemic outbreak, with transactions totaling only S$3.2 billion (US$2.5 billion). This year appears equally lackluster, with first-half transaction volumes matching the same period last year.

This confirms predictions by property consultancy Savills, which stated last year that Singapore would be among the cities with the worst global real estate investment sentiment in 2025.

Singapore's office market has not experienced the significant devaluation seen in other financial centers. However, the market has reached an impasse as few local property owners are willing to accept the discounts sought by institutional funds concerned about persistently high interest rates and geopolitical uncertainties.

The history of 55 Market Street serves as clear evidence. A subsidiary of Japanese developer Kajima Corporation acquired it in 2022 for approximately S$287 million from AEW Capital Management, attempting to transform it with "cutting-edge technology" while refusing to lease it out, hoping to quickly find a wealthy buyer to take over. According to sources who requested anonymity, the company wants to sell for around S$330 million, but multiple offers have failed to reach this level.

A Tokyo-based representative of Kajima declined to comment.