The Singapore office market is set to remain resilient in 2026, driven by stable demand and limited supply, according to Knight Frank’s Q4 2025 report. Occupancy rates in the Central Business District (CBD) reached 94.9%, with prime office rents rising to S$11.49 per square foot per month. Despite economic uncertainties, demand for high-quality office spaces remains robust, with most buildings near full occupancy.
Rents for prime office spaces in the Raffles Place and Marina Bay precincts increased by 0.7% quarter-on-quarter, marking a 1.1% rise for the year. Occupancy levels in these areas rose to 95.7%, up 1.0 percentage points from the previous quarter. Tridiana Ong, Head of Occupier Strategy and Solutions at Knight Frank Singapore, noted that small and mid-sized occupiers could find value in spaces vacated by larger corporates downsizing, though these opportunities are quickly taken.
Landlords currently hold a slight advantage as many occupiers opt for lease renewals to avoid fresh capital expenditure. Larger occupiers, particularly in technology and professional services, are choosing to stay put due to limited quality alternatives. Meanwhile, co-working operators are expanding cautiously, with new centres set to open in 2026.
Looking ahead, the market is expected to maintain stability with moderate rental growth of 3% to 5% annually. Occupancy rates are likely to remain strong as Singapore continues to be viewed as a pro-business hub in Southeast Asia. However, global economic shifts and potential large sublease releases remain factors to monitor.
