Singapore’s Core CBD office market remained tight through 4Q25 as limited new supply and ongoing redevelopment activity encouraged many occupiers to renew leases rather than relocate. Premium and Grade A buildings continue to attract the strongest tenant interest, while rising fit-out costs and fewer large floorplate options are making moves more challenging. Leasing demand remains solid, supported by expansion among technology firms and financial institutions shifting into more efficient space, while tenants displaced by redevelopment projects continue to help backfill available space and sustain demand for high-quality offices.
Supply is expected to remain limited through 2026, with only a small amount of new space scheduled for completion before larger projects begin delivering from 2027 onward. As a result, rents in Premium and Grade A buildings are expected to continue rising, with growth projected at 3–5% by end-2026. Occupiers are increasingly focused on efficient, well-located and sustainable buildings, reinforcing the performance gap between prime and non-prime offices heading into the next leasing cycle.
Key Takeaways:
- Tight Core CBD supply continues to favor lease renewals over relocations.
- Premium and Grade A office rents are projected to rise 3–5% by end-2026.
- Leasing demand remains firm as available space is quickly absorbed.
- Technology expansion helps offset financial firms’ space reductions.
- Limited 2026 completions keep near-term supply constrained.
- Major new supply from 2027 onward is expected to gradually ease market pressure.
