The Singapore office market continues its upward trajectory as Core CBD Grade A office rents increased by 0.8% quarter-on-quarter to S$12.40 per square foot per month in Q1 2026, according to CBRE Research. This marks the fifth consecutive quarter of rental growth, attributed to robust occupier demand and a tightening supply of premium office spaces.
Vacancy rates have plummeted to a record low of 3.3%, down from 4.5% in the previous quarter. Tricia Song, CBRE Head of Research, Singapore and Southeast Asia, noted, “This rental resilience is the result of a combination of firm occupier demand, as well as the continued compression of vacancy rates.”
The demand for prime office spaces is being driven by sectors such as commercial banking, wealth management, and insurance, alongside artificial intelligence firms transitioning from co-working spaces to dedicated offices. David McKellar, Head of Office Services and Head of Leasing, Singapore, highlighted the diverse sector demand, saying, “We have seen active leasing from commercial banking, wealth management, and insurance—leaning into Singapore’s stable and business-friendly environment.”
Islandwide, office vacancy rates have also decreased, with a notable drop to 5.1%. The scarcity of large contiguous floor plates, particularly in the Core CBD, is prompting occupiers to secure quality space urgently, with pre-commitment activity already underway for developments completing in 2029.
Despite global uncertainties, CBRE maintains a cautiously optimistic outlook, forecasting a 5% year-on-year rental growth for Core CBD Grade A offices by the end of 2026. The limited supply and strong demand are expected to support rental prices throughout the year.
