Singapore CBD office rents hit 8-year high in Q2

Rents rose 2.8% in Q2, the strongest quarterly growth since 2018.

Singapore’s CBD office rents continued to climb in the second quarter of 2026, supported by strong demand for premium office space, limited new supply and landlords’ continued pricing power, according to Savills.

In its latest Singapore office market review, Savills said Grade A CBD office rents rose 2.8% quarter-on-quarter to S$10.42 per sq ft in Q2 2026, marking a record high and the strongest quarterly growth since rents increased 3.3% in Q4 2018.

On a year-on-year basis, overall Grade A CBD office rents increased 4.5%, representing the largest annual increase since Q3 2019, when rents grew 6.4%, Savills said.

The consultancy attributed the rental growth to the limited supply of significant new office developments and sustained occupier demand for higher-quality buildings. With vacancy rates remaining tight, particularly among premium assets, landlords have maintained firm positions on both asking rents and lease renewals.

“The combination of constrained supply and resilient demand has continued to support rental growth across Singapore’s CBD office market,” Savills said, noting that premium buildings have retained stronger occupancy levels and greater pricing power compared with lower-grade assets.

Grade AAA offices recorded the strongest rental performance during the quarter, driven largely by premium developments in Marina Bay where vacancies remain low. Savills said rents for Grade AAA offices increased 1.4% quarter-on-quarter to S$13.61 per sq ft in Q2 2026.

The increase was the fastest quarterly growth since Q4 2022 and brought Grade AAA rents to their highest level since Q1 2015, when rents reached S$13.75 per sq ft.

Savills noted that landlords of highly sought-after premium buildings have maintained strong negotiating positions during lease discussions due to limited availability of comparable space.

The continued strength of Grade AAA rents also supported rental growth across other office grades. Grade AA office rents rose 2.8% quarter-on-quarter to S$11.38 per sq ft, while Grade A office rents increased 3.4% to S$9.29 per sq ft.

However, Savills cautioned that rental growth in Grade AA and Grade A buildings does not necessarily indicate equally strong tightening in vacancy conditions. Instead, the increases partly reflect the spillover effect from rising rents in Grade AAA developments as occupiers seek alternatives amid limited premium space availability.

Compared with the previous market trough, Grade AAA office rents in Q2 2026 have risen 11.2%, while Grade AA and Grade A rents increased 9.1% and 10.7% respectively, highlighting the resilience of Singapore’s office market.

All office grades recorded stronger year-on-year rental growth during the quarter. Grade A offices posted the largest annual increase, with rents rising 5.2%, the highest growth rate since Q2 2019. Grade AA rents increased 4.5% year-on-year, while Grade AAA rents rose 3.0%.

Across the CBD submarkets tracked by Savills, all areas recorded quarterly rental increases ranging from 1.5% to 5.1%.

Tanjong Pagar registered the strongest growth, with rents rising 5.1% quarter-on-quarter to S$9.40 per sq ft. Savills said the increase marked the ninth consecutive quarter of rental growth in the submarket and may have been supported by the recent completion of façade improvements and repositioning works at Twenty Anson.

City Hall, Marina Bay and Raffles Place also recorded continued rental increases, while Beach Road/Middle Road and Orchard Road saw rents rise 1.5% and 2.8% respectively after remaining stable in the previous quarter.

Savills said the latest rental performance reinforces the growing divide between premium office assets with strong occupier demand and lower-quality buildings facing greater leasing challenges.