Singapore CBD Grade A office rents inch up 0.7% in Q2

Meanwhile, rents in the decentralised submarket declined for the first time in four years.

JLL Research data shows CBD Grade A office gross effective rents edged up 0.7% quarter-on-quarter (qoq) to SGD 11.69 per square foot (psf) per month in 2Q25, marking the fifth consecutive quarter of sub-1% growth.

CBD Grade A office rents remained on an upward trajectory despite ongoing macroeconomic and geopolitical headwinds as continuing strategic recentralisation and a focus on quality-driven relocations supported sustained demand for such spaces.

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In contrast, the outlook is less optimistic in the Decentralised sub-market. After seven quarters of stability, office rents in this sub-market declined for the first time in four years, falling 0.8% qoq to SGD 7.61 psf per month in 2Q25. This decrease is attributed to ongoing rightsizing efforts and tenants relocating to, or closer to, the CBD, motivated by the increased availability of space.

Andrew Tangye, Head of Office Leasing and Advisory for JLL Singapore, comments, “Many businesses in Singapore are evolving toward higher-value offerings and enhanced service models, causing a migration of some office demand from Decentralised locations to CBD premises that better accommodate their increasingly sophisticated and client-oriented operations. Audi Singapore illustrates this transformation perfectly. They have moved their offices from Aperia in the Decentralised area to Capital Square in the CBD, coinciding with their showroom's relocation from Alexandra Road to 18 Cross Street. This strategic repositioning strengthens their customer experience while supporting their transition to a direct-to-consumer sales approach.”

Dr. Chua Yang Liang, Head of Research and Consultancy for JLL Southeast Asia, adds, “The current lack of a substantial rent gap between CBD and Decentralised offices also does not incentivise them to remain in the Decentralised area. The average rent gap between investment grade offices in the CBD and the Decentralised sub-market currently stands at around 30-35%. This is below the 50-60% threshold that historically deterred companies from moving back to the CBD.”

JLL anticipates that Singapore's CBD office market will continue to navigate headwinds through the rest of the year, with full-year growth coming in at a modest 2%. However, rents may accelerate in 2026 due to the constrained supply pipeline, particularly during the period spanning 2H 2025 through 2027.

Adding on, Dr Chua states, “No major office completions are anticipated for the next 12 months, with the new Shaw Tower only coming onstream in 2H 2026. Supply constraints will be further intensified as 79 Anson is expected to utilise the CBD Incentive Scheme for redevelopment next year.”

Tangye concludes, "Landlords with vacant spaces are prioritizing occupancy and portfolio stabilization before 2026, when rental rates may regain upward momentum until new supply enters the market in 2028. By implementing targeted property enhancements including modernized lobbies and washrooms, along with the restoration and renovation of outdated office areas, property owners are positioning themselves to attract premium tenants and capitalize on the anticipated rental growth opportunities.”