Singapore holds firm as APAC sentiment softens

Office and retail cooled regionally whilst industrial demand stayed uneven.

Singapore is holding firmer leasing conditions than much of Asia Pacific (APAC) even as office and retail sentiment softens across the region and industrial markets show mixed resilience, according to CBRE Research.

CBRE Research said Singapore continues to sit in a relatively stronger position in office and retail leasing, supported by tighter supply conditions and relatively stable leasing conditions.

The findings were based on its Asia Pacific Market Sentiment Survey conducted between 11 May and 20 May 2026, which gathered 618 responses from leasing professionals across the region.

CBRE said office leasing sentiment across APAC has weakened compared to June 2025, with occupiers becoming more cautious on renewal and relocation decisions as fit out costs rise. 

It added that most occupiers report only mild concern over geopolitical developments in the Middle East and continue normal operations, but leasing decisions are increasingly being reassessed.

In Singapore, CBRE said office market conditions remain relatively tight, with low vacancy supporting landlord positioning.

It added that Singapore and Japan are amongst the markets where landlords continue to hold stronger negotiating positions, compared to Mainland China and parts of Southeast Asia where higher supply levels have shifted leverage towards occupiers.

CBRE said industrial and logistics sentiment across APAC remains more resilient overall, supported by steady trade flows, although occupiers are becoming more cautious due to higher energy and freight costs.

In Singapore, industrial conditions were described as broadly stable, reflecting balanced demand and supply compared to more polarised conditions in other regional markets.

The report noted that India and Japan continue to see firmer landlord positions in industrial and logistics due to tightening supply, whilst Australia and Mainland China remain more tenant favourable.

In retail, CBRE said leasing sentiment remains broadly steady across the region, but expansion appetite has moderated compared to previous survey periods.

It said Singapore continues to show relatively stable retail leasing conditions alongside Japan and India, supported by consistent demand and limited prime space availability.

Elsewhere, Australia and parts of Southeast Asia have seen more cautious retail expansion, whilst Mainland China remains tenant favourable due to expected supply additions.

CBRE said across all sectors, leasing decisions are increasingly focused on whether occupiers renew existing space or relocate, with rising fit out costs contributing to more cautious planning. 

It added that this has led to softer expansion demand in office markets, whilst industrial demand has remained steadier and retail expansion has continued at a slower pace.

The firm said overall office and retail sentiment has softened compared to 2025, whilst industrial and logistics remains comparatively resilient.