Singapore Grade A office rents report largest quarterly increase since Q1 2022

Rents rose for a sixth straight quarter by 0.8% in Q3.

As office occupancies remained strong on the back of a tight supply situation, a Savills report revealed that average rents for Singapore CBD Grade A office buildings continued rising.

“For Q3/2025, they rose for a sixth consecutive quarter by 0.8% on a QoQ basis to S$9.93 per sq ft. This was the largest quarterly increase since Q1/2022 when office rents rose 0.9% QoQ,” the report added.

Here’s more from Savills:

The CBD Grade A office rents of S$9.93 per sq ft was also the highest since Q1/2020 when office rents were at S$10 per sq ft. The steady take-up of office space amid easing interest rate concerns and limited office supply led to higher rental expectations of landlords. On a YoY basis, rents grew by a larger 2.1%, the fastest YoY growth since Q4/2022 when office rents increased 2.2%.

With companies adopting a “flight-to-quality” posture, the growth momentum for Grade AAA office rents was the strongest, increasing 1.0% QoQ to $13.19 per sq ft. This was the sixth consecutive quarter of increase, with the rent at the highest level since Q1/2015 when it was S$13.59 per sq ft.

With the newly completed IOI Central Boulevard Towers largely filled up, there are not many alternatives for tenants planning to move into premium offices, resulting in landlords hiking up their rents. In a similar light, rents of Grade AA and A offices continued to increase as well, inching up 0.7% and 0.8% QoQ to S$10.85 and S$8.81 per sq ft respectively in the quarter.

For both, the rents in Q3/2025 were the highest since Q1/2020 when rents were at S$10.85 and S$8.95 per sq ft respectively. On a YoY basis, rents of Grade AAA office buildings registered the largest increase of 2.9%, the highest since Q3/2023 when they rose 3.1% YoY. In contrast, Grades AA and A saw rents increasing 2.2% and 1.8% respectively.

Across the submarkets, all submarkets excluding Beach Road/Middle saw quarterly rental increase in the quarter. Office rents in Beach Road/Middle Road remained unchanged for the third consecutive quarter. Among the remaining submarkets, the highest rental growth was seen in Marina Bay, with office rents increasing for the sixth consecutive quarter by 1.1% QoQ to S$13.17 per sq ft, the highest since Q1/2015 when rents were at S$13.75 per sq ft.

The low vacancy levels amongst existing buildings, and a lack of upcoming completions of premium grade office buildings brought about the rental escalation in this submarket, which comprises largely the Grade AAA buildings. Office rents in City Hall also rose by a rather similar magnitude of 1.0% QoQ to S$10.52 per sq ft in Q3/2025. The other submarkets registered QoQ rental increases between 0.5% and 0.9% in the quarter. For Orchard Road, the increase of 0.5% came after six consecutive quarters of no rental movements.