Singapore office rents rise for sixth consecutive quarter amid global uncertainties: CBRE

Ashley Lo

/ EdgeProp Singapore

June 25, 2026 4:30 PM SGT

ashley.lo@edgeprop.sg

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Rents for core CBD Grade A offices logged a 0.8% q-o-q increase in 2Q2026, reaching $12.50 psf per month (Photo: Samuel Isaac Chua/EdgeProp Singapore)

Singapore office rents continued their upward trajectory for the sixth consecutive quarter despite economic uncertainty and geopolitical tensions, according to research by CBRE. Rents for core CBD Grade A offices tracked by the firm logged a 0.8% q-o-q increase in 2Q2026, reaching $12.50 psf per month.

Vacancies in the core CBD area fell to 3.3% during the quarter amid limited available supply, says Tricia Song, head of research for Singapore and Southeast Asia at CBRE. The completion of Shaw Tower along Beach Road, which obtained its temporary occupation permit in 2Q2026, effectively marks the end of new office supply in 2026, notes Song.

“The absence of new completions through 2027 means that the structural undersupply underpinning this rental cycle is not a short-term phenomenon,” she adds.

Beyond the CBD, demand for office space in decentralised locations also strengthened, with the Alexandra and Paya Lebar submarkets recording healthy take-up, says CBRE. Leasing activity was driven by a diverse mix of occupiers, including those from the public sector, consumer goods, professional services and education industries.

Meanwhile, the withdrawal of HarbourFront Centre from the active office stock, following its upcoming redevelopment into a 33-storey mixed-use project, further tightened islandwide supply. The project is slated for completion in 2031. As a result, islandwide vacancy rates fell from 5.6% in 1Q2026 to 3.6% in 2Q2026.

As office vacancies tighten and supply remains constrained, CBRE warns that the opportunity for occupiers to secure quality space on favourable terms is narrowing. “We are advising occupiers with requirements in the next two to three years to engage the market now, as conditions are not likely to ease,” says David McKellar, CBRE’s head of leasing for Singapore.

CBRE is forecasting core CBD Grade A rental growth to come in at around 5% this year. Despite ongoing geopolitical uncertainties, the firm believes that any signs of a near-term resolution could boost leasing sentiment and provide additional upside for rents.

“With no new supply arriving for the foreseeable future, even a moderate softening of external pressures — such as easing oil market volatility — could translate into a meaningful uplift in leasing confidence in 2H2026,” says Song.

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