Singapore CBD Grade A office rents rise for seventh straight quarter

Rents increased by 0.3% in Q4.

Average rents for CBD Grade A offices continued to climb in Q4/2025, supported by limited new supply and persistently low vacancy levels, particularly among premium assets, according to data from Savills.

Savills reported that CBD Grade A office rents rose for the seventh consecutive quarter, increasing 0.3% quarter-on-quarter in Q4/2025 to S$9.96 per sq ft. While the pace of growth moderated from the 0.8% quarterly increase recorded in Q3/2025, Savills noted that rental momentum remains firmly positive.

On a full-year basis, office rents rose by 1.8% in 2025, accelerating from 1.1% growth in 2024 and marking the strongest year-on-year increase since 2022, when rents advanced by 2.2%.

According to Savills, sustained occupier demand for higher-quality space, coupled with a constrained development pipeline, has continued to support rental growth across the CBD.

Premium assets continue to underpin rental growth

Savills highlighted that the premium segment has been a key driver of rental performance. As occupiers continued to take up space in Grade AAA buildings, persistently low vacancy levels allowed landlords to raise rental expectations in earlier quarters.

As a result, Grade AAA office rents continued to rise in Q4/2025, although the pace of growth softened. Savills reported that Grade AAA rents edged up 0.2% quarter-on-quarter to S$13.23 per sq ft, down from 1.0% growth in the previous quarter.

For the full year, Grade AAA office rents increased by 2.5% in 2025, exceeding the 1.6% growth recorded in 2024 and representing the fastest annual increase since 2022, when rents rose by 3.3%, according to Savills.

Rents for Grade AA and Grade A offices also remained on an upward trajectory, supported by improving occupancy levels across these segments.

In Q4/2025, Savills reported that Grade AA rents rose by 0.6% quarter-on-quarter to S$10.92 per sq ft, while Grade A rents increased by 0.1% to S$8.81 per sq ft.

On a year-on-year basis, Grade AA and Grade A rents grew by 1.8% and 1.6% respectively in 2025, up from 1.4% and 0.7% in 2024. Savills noted that for Grade AA offices, the rental growth recorded in 2025 was the strongest since 2019, when rents climbed by 3.3%.

Broad-based rental growth across CBD submarkets

Across CBD submarkets, Savills reported that all locations registered quarter-on-quarter rental increases in Q4/2025, highlighting the broad-based nature of the recovery.

The strongest growth was recorded in the Beach Road/Middle Road submarket, where office rents rose 1.0% quarter-on-quarter to S$8.18 per sq ft. Savills noted that this marked the highest rental level since data collection began in Q3/2010, following three consecutive quarters of flat rents, largely driven by higher rents at Duo Tower.

The remaining CBD submarkets recorded more moderate quarterly rental growth of between 0.1% and 0.5%, according to Savills.

For the full year 2025, every CBD submarket recorded year-on-year rental increases, ranging from 0.9% to 3.3%, with City Hall posting the largest annual gain.

Overall, Savills said that constrained supply conditions and sustained demand for quality office space are likely to keep CBD Grade A rents on a gradual upward trajectory, even as the pace of growth moderates.