A report on the subject from commercial property adviser DTZ suggests demand for prime offices in Singapore’s central business district (CBD) remained high in the third quarter of 2011 but was hindered by concerns about global economic prospects.
As a result, rents on CBD offices in Singapore remained virtually unchanged during the period, while the cost of renting space in decentralised developments fell back slightly, or “moderated,” in DTZ’s terminology.
“Leasing activity remains subdued as occupiers become increasingly wary of the uncertain global economic outlook,” said Cheng Siow Ying, DTZ’s regional executive director of business space.
However, some industries remain keen on expanding office space in Singapore, Cheng said, pointing particularly to the IT and energy sectors.
Overall occupancy at purpose-built office buildings across the island remains high at 93.9 per cent after a 0.1 per cent increase in the third quarter, DTZ said.
At 4.6 per cent, Marina Bay, to the east of Singapore’s CBD, saw the sharpest rise in occupancy during the period, but this increase came as certain companies relocated from other parts of the city and left sites like those in Raffles Place with fewer tenants.
“Leasing activity is expected to remain low and prime rents in the CBD are anticipated to stay unchanged for the next few quarters, with longer rent-free periods being offered to attract occupiers,” said Chua Chor Hoon, DTZ’s head of South-East Asia research.
“As the pessimistic scenario of a financial contagion from the eurozone debt crisis increases in probability, the possibility of a fall in office rents has also risen.”
Raffles Place is named after the British statesman Thomas Stamford Raffles, who arrived on the island in the 19th century and is generally credited with founding the modern city, now one of Asia’s key financial services and logistics hubs.
Editor’s notes: In Q1 2023, prime office rental rates in Singapore were at S$10.83 per square foot per month
Office rent for prime space in Singapore increased by about 1 per cent each quarter, as it had in 2022.
More and more employees were returning to the office as fewer companies were committing to a hybrid working model.
This was partly because productivity became a priority amid a deteriorating global business environment, and the recent collapses of Silicon Valley Bank and Credit Suisse created further jitters.
As of July 2023, Singapore was expected to remain resilient and stable, partly because it could swiftly adapt policies in response to global economic conditions.
There was a flight to quality in Singapore, as there was in many locations around the world – companies were increasingly seeking good quality office space, and this demand for quality was reflected in the occupancy rate of prime offices in the CBD of 94.1 per cent.
As well as the continued upward pressure on rental rates for the best-in-class office space.
As of Q1 2023, Singapore had 45.85 million square feet of office space stock or 4.26 million square metres.
Singapore CBD Grade A office rents rose 1.4 per cent quarter-on-quarter in Q1 2026, amid tighter supply and occupiers’ sustained flight-to-quality. Gross effective rent stood at S$11.36 per square foot per month at quarter-end.
CBD Grade A office vacancy rates fell to 4.1 per cent in the quarter from 4.4 per cent in Q4 2025.
As of Q1 2026, Singapore had 4.1 million square metres of office space inventory.