Singapore CBD office rents enter sixth year of post-pandemic growth as vacancy nears nine-quarter low

SINGAPORE, 29 June 2026 - Singapore's CBD Grade A office market has entered its sixth year of rent growth, the longest upward cycle on record. Gross effective rents rose 1.1% quarter-on-quarter to SGD 12.19 per square foot per month in Q2 2026, accelerating from 0.5% growth in Q1. Vacancy excluding new supply fell to 5.6%, the lowest level in nine quarters, as sustained occupier demand absorbed quality space faster than landlords could deliver it, according to JLL Research.

Overall CBD vacancy edged up from 6.3% to 6.7% as Shaw Tower's completion added new stock. However, the underlying market dynamic remains firmly supply-constrained, with Marina Bay remaining the primary demand driver as IOI Central Boulevard Towers and other prime buildings near full occupancy.

Recent high-profile occupiers completing moves to Marina Bay included global data and AI company Databricks, which quadrupled its Singapore footprint to 32,000 square feet (sq ft). Other notable occupiers completing relocations include A&O Shearman, Franklin Templeton, and Virtu Financial, reinforcing Marina Bay’s status as the address of choice for leading international firms.

In the Shenton Way/Tanjong Pagar sub-market, Keppel South Central benefitted from tenants needing to relocate from 79 Anson Road ahead of its redevelopment, with JTB Singapore, OOCL, and Wan Hai Lines among those taking up space in the new building. The impending completion of the Prince Edward Road MRT station on the Circle Line together with the new Keppel and Cantonment stations completing the full loop in July 2026 is further enhancing accessibility in the sub-market, supporting landlords’ ability to raise rents in the area.

Michael Glancy, Country CEO, Singapore & Southeast Asia, comments, “The flight-to-quality narrative has evolved from a trend into a structural reality. Tenants across sectors from AI and fintech to professional services and insurance are increasingly committing to premium, well-located spaces ahead of need, recognising that the window to secure contiguous, large floor plates is closing fast. Shell's pre-commitment of approximately 100,000 sq ft at Asia Square Tower 1 as well as Databricks' expansion at IOI Central Boulevard Towers reflect this shift. Leading organisations are treating their workplace as a competitive asset, and they are doing so before the availability diminishes.”

Dr Chua Yang Liang, Head of Research and Advisory for JLL Southeast Asia, adds, “Singapore's office market is benefiting from a rare convergence of macro tailwinds. Following Singapore's strong first-quarter performance, the government has maintained its 2026 GDP growth forecast at 2% to 4% despite ongoing geopolitical uncertainties in the Middle East. This economic resilience, combined with Singapore's standing as a trusted, politically stable hub, continues to attract steady wealth inflows as the city-state cements its position as a leading global financial haven. International firms are anchoring themselves here not just for access to capital, but as a cornerstone of their regional expansion strategies."

Average CBD Grade A Office Rents

The breadth of leasing demand is expected to continue to widen in the near term, with more AI and technology firms joining financial services and professional services occupiers as active movers. OpenAI's decision to open its first Applied AI Lab outside the United States in Singapore is the latest in a series of high-conviction moves by global technology firms in Singapore as a launchpad for Asia-Pacific growth. The SGD 300 million investment will see more than 200 specialist AI professionals hired over the coming years.

Dr Chua adds, “Singapore has long benefited from its safe haven status, but that advantage is becoming increasingly tangible in the current environment. The latest Economic Strategy Review’s recommendations, particularly around AI adoption, supply chain resilience, and attracting high-capability investments, reinforce the structural case for continued office demand growth. Against this backdrop, we expect flight-to-quality to remain the dominant occupier theme through H2 2026, as companies compete for a shrinking pool of premium, large-format spaces.”

Singapore's office supply shortage shows no signs of easing. Shaw Tower represents the only major Grade A completion in 2026 and is already substantially leased. In 2027, Newport Tower will be the sole non-strata new development to complete. The next wave of meaningful new supply will not arrive until 2028, limited to The Skywaters, The Clifford, One Comcentre and Union Square Central, with the broader development pipeline remaining thin thereafter.

Glancy concludes, "The shift we are witnessing goes beyond real estate, it reflects a fundamental rethink of what the workplace needs to deliver for people. Staff engagement, collaboration, and wellbeing are sitting alongside sustainability and connectivity as core criteria in occupier decision-making. One Comcentre speaks directly to this. It's Singapore's first office development with 100% carbon neutral construction and fossil fuel-free base building operations, the first with dedicated 5G+ connectivity enabling customised network slicing, and an AI-enabled platform that helps optimise how the building performs day to day. These are not features, they are responses to what people expect from the places they work. Occupiers are now prioritising their options based on these attributes."

The increased sophistication of upcoming projects will support continued office rent growth. Looking ahead, JLL maintains its 2026 full-year CBD Grade A rent growth forecast at approximately 4%, with a cumulative 5-year rental growth of around 15% projected through 2030.