Singapore’s Central Business District (CBD) office rents have entered their sixth consecutive year of growth, with gross effective rents increasing by 1.1% quarter-on-quarter to SGD 12.19 per square foot per month in Q2 2026. This growth is driven by a surge in demand from AI, fintech, and professional services firms, according to JLL Research. Vacancy rates, excluding new supply, have fallen to 5.6%, the lowest in nine quarters.
The completion of Shaw Tower added new stock, slightly increasing overall CBD vacancy from 6.3% to 6.7%. However, prime locations like Marina Bay continue to see high demand, with buildings such as IOI Central Boulevard Towers nearing full occupancy. Notable companies like Databricks, A&O Shearman, and Franklin Templeton have recently expanded their presence in the area.
The Shenton Way/Tanjong Pagar sub-market is also benefiting from relocations, with firms like JTB Singapore and OOCL moving to Keppel South Central. The upcoming completion of the Prince Edward Road MRT station is expected to enhance accessibility and support rent increases.
Michael Glancy, Country CEO for Singapore & Southeast Asia, noted the shift towards premium spaces, stating, “Tenants across sectors are increasingly committing to premium, well-located spaces ahead of need.” Dr Chua Yang Liang, Head of Research and Advisory for JLL Southeast Asia, highlighted Singapore’s economic resilience and its appeal as a global financial hub.
Looking ahead, JLL maintains its forecast for a 4% growth in CBD Grade A rents for 2026, with a projected 15% cumulative growth through 2030. The continued sophistication of office projects is expected to support this trend.
