CBD Grade A office rents in Singapore have increased for the sixth consecutive quarter, reaching S$9.93 per square foot (psf) in Q3 2025, according to Savills’ latest report. This marks the highest level since Q1 2020, when rents were S$10 psf. The rise is attributed to strong office occupancies and a limited supply of new buildings, leading to higher rental expectations from landlords.
The report highlights a 0.8% quarter-on-quarter (QoQ) increase in rents, with a year-on-year (YoY) growth of 2.1%, the fastest since Q4 2022. Grade AAA office rents saw the most significant rise, increasing by 1.0% QoQ to S$13.19 psf, the highest since Q1 2015. Meanwhile, Marina Bay’s office rents surged by 1.1% QoQ to S$13.17 psf, also the highest since Q1 2015.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “Owing to the lack of new supply for Grade A CBD offices from now to end-2027, we believe that office rents for Grade A offices should continue to rise at rates about 2-3% per annum for the next two years.”
Despite uncertain business prospects, the limited supply of Grade A office space is expected to sustain rental growth. Companies may attempt to downsize or lease out excess space, but the tight supply is likely to keep vacancy rates low. Savills anticipates that this trend will persist until significant new stock becomes available.
