Singapore CBD office rents record strongest growth in six quarters

Grade A office rents increased by 1.3% in Q3.

JLL Research data shows Central Business District (CBD) Grade A office gross effective rents rose 1.3% quarter-on-quarter (qoq) to SGD 11.83 per square foot (psf) per month in Q3 2025, marking the strongest quarterly growth in six quarters.

This acceleration was primarily attributed to IOI Central Boulevard Towers being added to the rental basket after completing its one-year seasoning period. Excluding this addition, CBD office rents maintained modest growth of under 1% for the sixth consecutive quarter.

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Dr. Chua Yang Liang, Head of Research and Consultancy for JLL Southeast Asia, comments, “Singapore’s office market has been holding up well, in part supported by stronger-than-anticipated economic fundamentals and a more conducive interest rate environment. This performance also reflects the de-escalation of global trade tensions and robust demand for technology and digital finance services, driven by the accelerating artificial intelligence (AI) revolution.”

Andrew Tangye, Head of Office Leasing and Advisory for JLL Singapore, adds, “CBD office demand continues to span diverse sectors, including AI, fintech, non-banking financial services, and professional services firms. Examples of occupiers that have recently expanded their presence in Singapore include blockchain payments firm Ripple, quantitative trading firm Jane Street, tech firm Zoom and recruitment firm Odgers.”

Although economic conditions have so far surpassed expectations, Singapore's office market is not entirely out of the woods. JLL anticipates CBD Grade A office rental growth will likely remain modest for the rest of the year, with full-year growth expected to reach approximately 3%, given that rents have already increased 2.5% in the first three quarters of 2025.

Dr Chua cautions, “Constantly evolving trade conditions coupled with widening geopolitical uncertainties mean that companies continue to face higher compliance costs, compressed margins and delayed investments, factors that could undermine the business case for relocating to higher-quality office space in the near term.”

However, office rents are expected to pick up pace in 2026, supported by a tightening supply pipeline in 2026-2027 and as firms begin to adapt to operating in an uncertain environment.

Mr Tangye notes, "With IOI Central Boulevard Towers almost full, we are currently observing genuine leasing activity at Keppel South Central and Shaw Tower, which have recently completed or will complete next year. Large corporate occupiers are already expressing early interest in projects scheduled for completion in 2027 and beyond, anticipating the supply constraints expected over the next five years. As vacancy rates are projected to tighten between 2025-2027, whole-floor and multi-floor opportunities will become increasingly limited, potentially driving rental rates beyond some tenants' budget parameters. Competition among tenants is intensifying for the remaining premium spaces in the market's most desirable buildings."