Singapore’s Grade A office market has recorded its sixth consecutive quarter of rental growth, with Core Central Business District (CBD) rents rising by 0.8% in Q2 2026 to S$12.50 per square foot per month, according to CBRE Research. This growth comes amidst ongoing economic uncertainty and geopolitical tensions.
The first half of 2026 saw a cumulative rental growth of 1.6%, with CBRE maintaining its forecast of approximately 5% year-on-year growth for the full year. Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, highlighted the structural undersupply in the market, noting that the vacancy rate has compressed from 7.8% in Q4 2024 to a record low of 3.3%.
The completion of Shaw Tower, the last major new supply for 2026, marks a significant milestone. With no further significant completions projected through 2027, landlords retain significant pricing power. Shaw Tower’s anchor tenants include Allianz, Adyen, Sanofi-Aventis Singapore, and The Great Room, offering alternatives to the constrained Core CBD stock.
Occupier demand remains diverse, with notable activity in the Alexandra and Paya Lebar submarkets. David McKellar, CBRE Head of Leasing, observed a broad demand base, including financial services and AI businesses transitioning to permanent office spaces. This shift indicates a commitment to Singapore for the medium to long term.
As quality space becomes scarce, occupiers are acting with urgency. Pre-commitment activity for developments slated for 2028 and beyond is increasing. McKellar advises occupiers with medium-term needs to engage the market promptly, as conditions favour landlords. CBRE anticipates potential rental growth should global conditions improve in H2 2026.
