Singapore’s Central Business District (CBD) Grade A office rents have surged by 1.3% quarter-on-quarter, reaching S$11.83 per square foot in Q3 2025, according to JLL. This marks the most significant growth in six quarters, largely due to the inclusion of IOI Central Boulevard Towers in the rental basket. Despite this uptick, JLL anticipates that rental growth will remain modest for the remainder of the year, with a more pronounced increase expected in 2026 as supply tightens.
The addition of IOI Central Boulevard Towers was a key factor in the rental increase, although underlying growth remained below 1% for the sixth consecutive quarter. Dr Chua Yang Liang, Head of Research and Consultancy for JLL Southeast Asia, noted that the office market’s resilience is supported by strong economic fundamentals and a favourable interest rate environment. The demand for office space is bolstered by sectors such as artificial intelligence, fintech, and technology.
Andrew Tangye, Head of Office Leasing and Advisory for JLL Singapore, highlighted the diverse demand from sectors including AI, fintech, and professional services. Notable companies expanding in Singapore include Ripple, Jane Street, Zoom, and Odgers.
Whilst economic conditions have been better than expected, Dr Chua warns of potential challenges due to evolving trade conditions and geopolitical uncertainties. These factors could impact companies’ decisions to relocate to higher-quality office spaces.
Looking ahead, JLL expects office rents to accelerate in 2026, driven by a tightening supply pipeline and increased competition for premium spaces. Tangye observed genuine leasing activity at Keppel South Central and Shaw Tower, with large corporate occupiers showing interest in future projects. As vacancy rates tighten, rental rates may exceed some tenants’ budgets, intensifying competition for desirable locations.
