Office rents steady as vacancy tightens to 3% in Q1

Prime rents hold at $11.57 psf as supply tightens and vacancy trends lower.

Singapore’s prime office market remained stable in the first quarter (Q1) 2026, with prime rents at $11.57 per square feet (psf) per month, vacancy at 3.0%, and occupancy cost at $161.81 (USD127.12) psf per year, according to S&P Global and Knight Frank Research.

The data shows vacancy has declined from a recent peak of around 7% in late 2024 to 3.0% in Q1 2026, whilst rents have continued a steady upward trajectory, approaching $12.00 psf per month by the end of 2026 based on projections.

Pipeline supply is expected to remain limited, with new office space additions forecast at about 480,000 square feet (sq ft) in 2026, falling further to around 260,000 sq ft in 2027, supporting a broadly balanced market outlook.

Economic indicators show moderating but stable conditions, with GDP growth forecast at 3.7% in 2026 versus 5.0% in 2025, unemployment at 1.9%, and inflation at 2.2%, according to the same dataset.

The real estate outlook indicates a balanced market over the next 12 months, with prime rents projected to remain stable whilst vacancy is expected to trend lower.

Across Asia-Pacific, prime office rents rose 0.8% quarter on quarter in Q1 2026, with 18 of 24 cities recording stable or positive growth despite geopolitical uncertainty, according to Knight Frank’s Asia-Pacific Office Highlights.