# Singapore CBD Grade A office rents to rise by up to 7% in 2027

- **Source:** Real Estate Asia
- **Published:** 2026-08-11T00:39:13.000Z
- **Author:** Staff Reporter
- **Original:** https://realestateasia.com/commercial-office/news/singapore-cbd-grade-office-rents-rise-7-in-2027
- **Topics:** Commercial & Industrial, Investment & Capital Markets

## Featured rationale

Limited premium supply and resilient occupier demand signal stronger landlord pricing power, potentially raising occupancy costs and concentrating tenant interest in well-located Grade AAA buildings.

## AI summary

Savills expects Singapore Grade A CBD office rents to rise 5%-7% year-on-year in 2027 after vacancy fell to 5.6% in Q2 2026.

## Original article

Tight supply is expected to support rental growth.

Singapore’s Grade A CBD office market is expected to maintain its positive momentum over the next two years, with limited premium office supply and resilient occupier demand supporting further rental growth, according to Savills.

In its latest outlook for the Singapore office sector, Savills said there is currently limited evidence that corporate adoption of artificial intelligence (AI) is reducing office demand among Grade A CBD occupiers. While AI adoption remains a developing trend, many non-technology companies are still experimenting with applications or have yet to integrate AI fully into their operations.

Savills said the fundamental drivers of office demand remain largely unchanged, although businesses are facing additional uncertainty from factors such as recent Liberation Day tariffs and pressure on corporate operating margins.

However, any resulting impact on office occupancy is expected to emerge gradually rather than immediately, according to the consultancy. Savills noted that office leasing decisions are typically long-term in nature, with most occupiers committing to three- to five-year leases and multinational corporations often taking five-year terms for larger office footprints.

Existing lease obligations, along with relocation and reinstatement costs, mean companies cannot easily reduce office space in the short term even if business conditions deteriorate, Savills said.

Meanwhile, supply constraints continue to underpin the market outlook. Savills highlighted that the availability of Grade AAA office buildings with premium locations, superior views and strong connectivity remains limited, creating a market environment with little spare capacity.

Although Singapore continues to attract technology start-ups and new businesses, Savills said many early-stage companies typically occupy smaller footprints, use co-working spaces or operate under hybrid working models.

However, if even a modest proportion of these companies begin securing traditional Grade A CBD office space, the impact on rental growth could be significant due to limited supply elasticity, Savills said.

The consultancy pointed to strong leasing momentum in Q2 2026, when net absorption surged to approximately 358,000 sq ft, compared with just 52,000 sq ft in Q1 2026.

The increase in take-up contributed to a decline in CBD Grade A office vacancy to 5.6%, a level Savills said is likely below what could be considered a normal equilibrium vacancy rate for the market.

As available space became increasingly scarce, landlords gained greater pricing power, resulting in stronger rental growth during the quarter.

Based on the tighter market conditions, Savills revised upwards its 2026 Grade A CBD office rental growth forecast from 3%-5% to 5%. The consultancy expects rents to increase by a further 5%-7% year-on-year in 2027.

Savills said the forecast is based on a market operating with limited slack, where constrained premium office supply and low vacancy levels mean incremental tenant demand can quickly translate into higher rents.

Well-located Grade AAA buildings are expected to remain the strongest performers due to their accessibility, amenities and building specifications, with supply of such assets remaining inelastic over the medium term.

Looking beyond 2027, however, Savills said the long-term impact of AI adoption on office demand remains uncertain.

The consultancy outlined two possible scenarios: one in which AI-driven productivity gains stimulate economic growth, business creation and office demand; and another where widespread automation reduces employment growth and weakens demand for physical office space.

Savills said neither outcome is expected to materially affect occupier demand within its current forecast horizon, with any structural impact from AI-driven economic changes more likely to become visible towards the end of 2027 or beyond.

For the near term, Savills expects Singapore’s premium office market to remain supported by tight supply, strong occupier demand and landlords’ continued pricing power.

## Chinese translation

> Translation model: grok_cli

### 新加坡中央商务区甲级写字楼租金2027年有望上涨最多7%

新加坡中央商务区甲级写字楼市场预计未来两年将保持正面动能，优质写字楼供应有限且租户需求具韧性

供应紧张预计将支撑租金增长。

据第一太平戴维斯称，新加坡中央商务区甲级写字楼市场预计未来两年将保持正面动能，优质写字楼供应有限且租户需求具韧性，将支撑租金进一步上涨。

在其最新新加坡写字楼行业展望中，第一太平戴维斯表示，目前几乎没有证据表明企业采用人工智能（AI）正在减少中央商务区甲级租户的写字楼需求。尽管人工智能采用仍是一个发展中的趋势，许多非科技公司仍在试验应用，或尚未将人工智能充分融入运营。

第一太平戴维斯表示，写字楼需求的基本驱动因素大体未变，不过企业正面临额外不确定性，例如近期“解放日”关税以及企业运营利润率承压。

不过据该顾问机构称，由此对写字楼占用的任何影响预计将逐步显现，而非立即发生。第一太平戴维斯指出，写字楼租赁决策通常具有长期性质，多数租户承诺三至五年租约，跨国公司较大面积写字楼往往采用五年租期。

第一太平戴维斯表示，现有租约义务以及搬迁和修复成本意味着，即使经营环境恶化，企业短期内也难以轻易削减写字楼面积。

与此同时，供应约束继续支撑市场展望。第一太平戴维斯强调，具备优越地段、景观和连通性的3A级写字楼供应仍然有限，形成几乎没有闲置容量的市场环境。

尽管新加坡持续吸引科技初创企业和新企业，第一太平戴维斯表示，许多早期公司通常占用较小面积、使用联合办公空间，或以混合办公模式运营。

不过该机构称，即便这些公司中仅有一小部分开始锁定传统中央商务区甲级写字楼，由于供应弹性有限，对租金增长的影响也可能显著。

该顾问机构指出，2026年第二季度租赁动能强劲，净吸纳跃升至约35.8万平方英尺，而2026年第一季度仅为5.2万平方英尺。

吸纳增加促使中央商务区甲级写字楼空置率降至5.6%，第一太平戴维斯表示，这一水平可能已低于可被视为市场正常均衡空置率的水平。

随着可用空间日益稀缺，业主定价权增强，当季租金增长随之走强。

基于更趋紧张的市场条件，第一太平戴维斯将其2026年中央商务区甲级写字楼租金增长预测从3%至5%上调至5%。该顾问机构预计，2027年租金将再同比增长5%至7%。

第一太平戴维斯表示，该预测基于市场闲置空间有限：优质写字楼供应受限且空置率偏低，意味着增量租户需求可迅速转化为更高租金。

地段优越的3A级大楼预计仍将是表现最强的资产，因其可达性、配套和建筑规格，而此类资产供应在中期内仍缺乏弹性。

不过展望2027年之后，第一太平戴维斯表示，人工智能采用对写字楼需求的长期影响仍不确定。

该顾问机构勾勒了两种可能情景：一种是人工智能带来的生产率提升刺激经济增长、企业创立和写字楼需求；另一种是广泛自动化抑制就业增长并削弱对实体办公空间的需求。

第一太平戴维斯表示，在其当前预测期内，两种结果预计都不会对租户需求产生实质性影响，人工智能驱动的经济变化所带来的任何结构性影响更可能在2027年底或之后显现。

就近期而言，第一太平戴维斯预计新加坡优质写字楼市场将继续受到供应紧张、租户需求强劲以及业主持续定价权的支撑。