Singapore office market tightens further as vacancy falls to a record 3.3% in Q1

Core CBD grade A rents also rose for the fifth straight quarter.

Singapore’s office market continued its strong performance in Q1 2026, with Core CBD Grade A rents rising for the fifth consecutive quarter, supported by firm occupier demand and tightening supply conditions, according to CBRE.

CBRE Research reported that Core CBD Grade A rents increased 0.8% quarter-on-quarter to S$12.40 per square foot per month in Q1 2026, bringing total growth to 2.9% over the past year. The firm noted that momentum remains broad-based despite global macroeconomic and geopolitical uncertainties.

A key driver of performance was the continued compression of vacancy, which fell to a record low of 3.3%, down from 4.5% in the previous quarter. CBRE highlighted that net absorption was supported by approximately 200,000 sq ft of take-up, concentrated in high-quality, well-located buildings with strong sustainability and wellness credentials, including IOI Central Boulevard Towers, Marina One and Marina Bay Financial Centre Tower 1.

According to CBRE, demand was driven by a diverse occupier base including banking, wealth management and insurance firms, alongside increasing leasing activity from artificial intelligence companies transitioning from flexible workspace to dedicated office space. Coworking operators also remained active, underpinned by sustained demand from startups and international firms establishing a Singapore presence.

CBRE noted that islandwide vacancy also tightened, falling nearly 10% quarter-on-quarter to 5.1%, with declines recorded across fringe and decentralised office markets.