CBD office rents hit five-year high on strong occupancy amidst tight supply

Savills reported its sixth straight quarterly rise in Q3.

CBD Grade A office rents in Singapore rose for the sixth straight quarter in Q3, up 0.8% quarter on quarter (QoQ) to $9.93 per square foot, the highest in five years, according to Savills Singapore.

Savills said limited new office supply and high occupancy continued to lift rents amidst easing interest rate concerns. On a year-on-year basis, rents grew 2.1%, the fastest pace since Q4 2022.

Grade AAA offices led the gains, rising 1.0% to $13.19 per sq. ft., the highest since Q1 2015. Grade AA and A offices climbed 0.7% and 0.8% to $10.85 and $8.81 per sq. ft., respectively. Marina Bay posted the sharpest submarket growth of 1.1% to $13.17 per sq. ft., also a 10-year high.

Savills expects premium office rents to keep rising through 2027 as new Grade A supply remains limited. Executive Director Alan Cheong projects annual rent growth of 2–3% over the next two years, supported by sustained occupancy and a tight development pipeline.