Singapore’s office market experienced significant growth in Q3 2026, with Core Central Business District (CBD) Grade A rents rising by 2% quarter-on-quarter to S$12.75 per square foot per month, according to CBRE Research. This marks the fastest pace of growth since Q3 2022, as demand from occupiers remains robust and supply remains limited.
The vacancy rate for Core CBD Grade A offices decreased from 3.3% in Q2 2026 to 2.6% in Q3 2026, supported by healthy net absorption and continued expansion activities. Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, highlighted the rapid absorption of new supply, noting that vacancy has compressed from 7.8% to 2.6% in less than two years.
The demand for office space is broad-based, with financial services and technology firms, particularly artificial intelligence (AI) companies, driving leasing activity. Notable transactions include OpenAI’s negotiations for space at Shaw Tower and Anthropic’s establishment at Ocean Financial Centre.
David McKellar, CBRE Head of Leasing in Singapore, observed that the market has outperformed expectations despite global challenges. He noted the diverse demand from both financial services and AI firms, suggesting a durable source of occupier activity.
Looking ahead, no major office completions are expected until 2028, with Newport Tower in Tanjong Pagar being the only notable addition in 2027. Occupiers are increasingly focusing on future developments such as One Comcentre and The Clifford.
With rental growth already at 3.7% for the year, CBRE anticipates full-year growth to exceed 5% in 2026. The tightening market conditions are expected to bolster office investment sentiment, with prime office assets remaining highly sought after. Song concluded that the market is increasingly defined by scarcity, with landlords likely to maintain pricing power.
