Staff Reporter
Published:
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Rents gained 1% quarter on quarter on limited supply of premium space.
The central business district (CBD) Grade A office vacancy fell to a two-year low of 3.9% in the third quarter (Q3) of 2026, from 4.7% in Q2, according to Cushman & Wakefield (C&W).
Rental growth increased 1% quarter on quarter, driven by limited supply of high-quality office space and continued demand for premium premises, C&W said in the MarketBeat report.
Leasing activity was led by relocations amongst financial services, professional services, and technology firms, including a growing number of global artificial intelligence firms establishing or expanding their presence in Singapore.
The report showed CBD Grade A rents rose 3.8% in the first nine months of 2026, putting them on track to meet C&W’s full-year growth forecast of 4% to 5% year on year.
C&W expects supply to remain below historical demand, with no major completions in Q4 2026 and only a significant pipeline addition in 2028.
Although rental growth may moderate amidst geopolitical and interest rate uncertainties, tight vacancy rates and sustained occupier demand are expected to support leasing conditions, C&W added.
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