CBD Grade A office rents in Singapore have increased by 0.7% quarter-on-quarter to S$11.69 per square foot per month in the second quarter of 2025, according to JLL Research. This marks the fifth consecutive quarter of sub-1% growth. Meanwhile, the Decentralised office market experienced a 0.8% decline to S$7.61 per square foot per month, the first drop in four years, driven by recentralisation and quality-focused relocations.
The disparity between the two markets is attributed to businesses seeking higher-value offerings and enhanced service models, prompting a shift towards CBD locations. Andrew Tangye, Head of Office Leasing and Advisory for JLL Singapore, highlighted Audi Singapore’s move from Aperia to Capital Square as an example of this trend, aligning with their direct-to-consumer sales strategy.
Dr. Chua Yang Liang, Head of Research and Consultancy for JLL Southeast Asia, noted that the current rent gap of 30-35% between CBD and Decentralised offices is insufficient to deter relocations to the CBD. JLL anticipates a modest 2% growth in CBD rents for the full year, with potential acceleration in 2026 due to limited supply.
No major office completions are expected in the next 12 months, with new developments like Shaw Tower set for 2026. Landlords are focusing on occupancy and portfolio stabilisation, enhancing properties to attract premium tenants ahead of anticipated rental growth.
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