Singapore CBD Grade A Office Rents Hit S$12.19 psf as Supply Shortage Accelerates Growth

JLL data shows Singapore CBD Grade A office rents grew 1.1 per cent quarter on quarter in Q2 2026 to S$12.19 per square foot per month. CBRE data shows cumulative rental growth of 1.6 per cent for the first half of 2026, with vacancy rates falling sharply from 7.8 per cent in Q4 2024 to 3.3 per cent currently.

CBRE Southeast Asia research head Song Ming Wei said: “There will be no new office supply entering the market next year, meaning this rental growth cycle is supported by a structural supply shortage, not a short-term phenomenon.” Shaw Tower is the main Grade A office building completing this year, with the next significant new supply not expected until 2028.

The supply crunch is also benefiting CBD fringe office buildings. Newmark data shows the Beauty World and Bukit Timah area recorded the fastest rental growth, with Q2 rents rising 0.5 per cent to S$10.81 psf per month. The Ubi Road and Paya Lebar corridor also climbed 0.4 per cent to S$10.05 psf, as some tenants choose fringe locations to manage costs.

JLL Southeast Asia research and consulting head Dr Cai Xuan Ke said: “Singapore has long been a safe haven, and this advantage becomes more pronounced in the current environment. The latest economic strategy committee recommendations, especially regarding AI adoption, supply chain resilience, and attracting investment, further consolidate structural demand for office space.”

Recently, OpenAI, Anthropic and Databricks have all announced expanding their operations in Singapore, establishing hubs and building teams. Databricks, for example, plans to move in the second half of 2026 to IOI Central Boulevard Towers, occupying 30,000 sq ft of office space, four times its original footprint.

JLL predicts that rental demand will continue to broaden, with more AI and technology companies joining the wave of active relocation beyond the traditional base of financial services and professional services tenants. Knight Frank notes that the flight-to-quality trend means older offices in the CBD will face rising vacancy and falling rents, while ByteDance has opted to lease three floors at Mapletree Business City as a more cost-effective alternative to prime CBD space.