The Central Business District (CBD) office rental market in Singapore recorded steady growth for the fifth consecutive quarter, with Grade A office rents rising 0.7% quarter-on-quarter to $11.69 per square foot (psf) monthly, according to JLL Singapore. This marks a continued trend of sub-1% growth, underlining resilience in the commercial real estate sector despite global economic and geopolitical uncertainties.
According to Andrew Tangye, Head of Workplace Leasing and Advisory at JLL Singapore, companies are increasingly engaging in strategic recentralisation and quality-driven relocations. “As Singapore transitions towards higher-value services and modernised business models, demand is shifting back from decentralised areas to CBD offices that better support sophisticated and client-centric operations,” he explains.
Landlords are proactively enhancing their portfolios in preparation for a forecasted rental recovery in 2026, ahead of new office supply anticipated in 2028. Tangye notes that targeted office upgrades, such as renovated lobbies and restrooms, and revitalisation of older office units, are strategic moves to attract premium tenants and capture future rental growth.
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Dr Chua Yang Liang, Head of Research and Consultancy for Southeast Asia at JLL, points to a narrowing rental gap as a further incentive for tenants to move to the CBD. The current CBD vs decentralised rental spread is approximately 30% to 35%, significantly lower than the historical range of 50% to 60%. “This reduced gap is driving more businesses to consider relocating to CBD offices,” says Chua.
CBD office rents are expected to remain on a moderate growth path. JLL forecasts a 2% full-year increase in 2025, with upward pressure likely in the second half of the year due to tight supply. “There are no major office completions expected in the next 12 months, aside from the new Shaw Tower, which will launch in the second half of 2026,” adds Chua.
In contrast, decentralised office rents in Singapore fell 0.8% q-o-q to $7.61 psf monthly in Q2 2025. This marks the first rental decline in four years, attributed to ongoing rightsizing exercises and a tenant shift back to the CBD, supported by improved availability of CBD space.
A notable example of this trend is Audi Singapore, which recently relocated its office from Aperia (Kallang Avenue) to Capital Square in the CBD. This move aligned with the repositioning of its showroom from Alexandra Road to 18 Cross Street, just steps from its new office location.