Savills Q3 Office Report shares that CBD Grade A office rents continued its upward trajectory for the sixth consecutive quarter by 0.8% Quarter-on-Quarter (QoQ) to S$9.93 psf in Q3/2025. This was the highest since Q1/2020 when office rents were at S$10 psf. This comes with the strong office occupancies at the back of a tight pipeline supply of new buildings. The steady take-up of office space amid easing interest rate concerns and limited office supply led to higher rental expectations of landlords.

On a Year-on-Year (YoY) basis, rents grew by a larger 2.1%, the fastest YoY growth since Q4/2022 when office rents increased 2.2%.

With companies adopting a “flight-to-quality” posture, the growth momentum for Grade AAA office rents was the strongest, increasing 1.0% QoQ to $13.19 psf. This was the sixth consecutive quarter of increase, with the rent at the highest level since Q1/2015 when it was S$13.59 psf.

In a similar light, rents of Grade AA and A offices continued to increase as well, inching up 0.7% and 0.8% QoQ to S$10.85 and S$8.81 psf respectively in the quarter. For both, the rents in Q3/2025 were the highest since Q1/2020 when rents were at S$10.85 and S$8.95 psf respectively.

On a YoY basis, rents of Grade AAA office buildings registered the largest increase of 2.9%, the highest since Q3/2023 when they rose 3.1% YoY. In contrast, Grades AA and A saw rents increasing 2.2% and 1.8% respectively.

Among the submarkets, the highest rental growth was seen in Marina Bay, with office rents increasing for the sixth consecutive quarter by 1.1% QoQ to S$ 13.17 psf, the highest since Q1/2015 when rents were at S$13.75 psf. Office rents in City Hall also rose by a rather similar magnitude of 1.0% QoQ to S$10.52 psf in Q3/2025

Rents for the premium grade of office space in the CBD are likely to continue rising with the supply of Grade A office space limited for 2026 and 2027. This is despite companies facing uncertain business prospects and other cost push pressures. Large office space users may attempt to downsize upon lease renewal or lease out excess space as their existing lease still has some years to run. The space given up are likely to be leased out because of the tight supply of premium grade office space in the CBD.

Lawrence Teo, Director, Commercial & Industrial, Savills Singapore, “While we continue to see a steady uptick in leasing activity especially for the more premium stock in the CBD, as tenants look to possibly upgrade, the main driver of rents and occupancy remains tight supply rather than strong new demand. We expect that this will remain the case of the next few years until significant new stock hits the market.”

Alan Cheong, Executive Director, Research & Consultancy, Savills Singapore, “Owing to the lack of new supply for Grade A CBD office from now to end-2027, we believe that office rents for Grade A offices should continue to rise at rates about 2-3% per annum for the next two years. Rents for non-Grade A CBD office rents may rise by similar amounts.”

Read the full report here.