Core CBD office rents in Singapore rise in Q4 on tight vacancy

Colliers forecasts 2%–4% rental growth in 2026 for Core CBD Premium and Grade A assets.

Rents in Singapore’s Core CBD office market rose in the fourth quarter of 2025 and for the full year, as vacancy tightened and demand remained resilient, according to Colliers.

Colliers said Premium and Grade A Core CBD rents increased 0.8% QoQ to $11.82 psf in Q4, bringing full-year rental growth to 1.2%. Vacancy tightened to 4.0%, supported by net absorption of about 320,000 sq ft in Q4 and 856,000 sq ft over 2025.

Capital values also edged higher, with average Core CBD values reaching $3,100 psf, whilst net yields compressed to 3.6%. Leasing enquiries broadened across both Grade A and Grade B buildings, with fitted “plug-and-play” offices continuing to attract occupiers seeking cost certainty and faster move-in timelines.

Looking ahead, Colliers expects market momentum to persist in 2026, underpinned by tight supply and a more supportive interest-rate environment.

It noted that there are no new CBD Grade A completions expected until 2027, and forecasts 2%–4% rental growth in 2026 for Core CBD Premium and Grade A assets.

Colliers also highlighted ongoing redevelopment activity under the CBD Incentive and Strategic Incentive schemes, which is expected to create displacement demand as older buildings are upgraded or redeveloped.

The firm said the scaled-down Town Hall Link white site, which now includes about 40,000 sq m of office space, further reinforces limited near-term supply in the CBD.

On the investment front, Colliers described prime CBD pricing as firm. It cited the sale of a 33% stake in Marina Bay Financial Centre Tower 3 at $3,268 psf, with about 80 years of lease remaining, and pointed to continued core CBD interest following Hongkong Land’s announcement of a private real estate fund seeded with prime Singapore office assets.

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