Singapore Grade A office vacancy falls to 2.6% as rents rise
CBRE forecasts rental growth above 5% for 2026, while substantial new office supply is not expected until 2028.
Rents for Grade A offices in Singapore’s Core CBD climbed 2.0% in the third quarter to S$12.75 per square foot per month, according to CBRE. Vacancy dropped from 3.3% in the second quarter to 2.6%, as tenants expanded and net absorption remained healthy.
The quarterly rental increase was the largest since the 2.7% rise recorded in Q3 2022. CBRE put rental growth for the year to date at 3.7% and expects it to exceed 5% for the whole of 2026. That would mark the strongest annual increase since 2022, when rents rose 8.3%.
Tricia Song, CBRE’s head of research for Singapore and Southeast Asia, said tenants faced fewer suitable premises and very limited additional supply before 2028. She expects landlords to retain the advantage unless economic conditions worsen materially.
Separately, Colliers measured a 5.3% rental increase across Core CBD Premium and Grade A offices during the first nine months of 2026, nearing the top of its full-year forecast range of 4% to 6%. Its third-quarter figures showed rents rising 1.8% to S$12.45 per square foot, with vacancy declining from 3.3% to 2.7%.
Colliers reported net absorption of 419,000 square feet, compared with negative 172,000 square feet in Q2. Technology companies and non-bank financial firms led demand, although tenants remained cautious about expansion. Vacancy is expected to stay low until 2028, when substantial supply is scheduled from The Clifford, The Skywaters and One Comcentre.
