Savills lifts office rent growth view to 5%

CBD rents hit their highest since 2019.

Savills has raised its 2026 Singapore office rental growth forecast to 3% to 5% as tight supply and sustained occupancy pushed CBD Grade A rents to their highest level since 2019.

Average CBD Grade A rents rose 0.6% QoQ to $10.02 per sq ft in Q1, marking an eighth consecutive quarterly increase, whilst CBD Grade A vacancy edged down 0.1 percentage point to 6.6%.

The strongest tightening was in Grade AAA offices, where rents rose 0.4% to $13.28 per sq ft, and vacancy fell 1.2 percentage points to 5.1%, as take-up of premium space stayed firm amid limited availability.

Savills said tenant demand for quality space remained stable, but higher reinstatement and fit-out costs were prompting more occupiers to renew leases rather than relocate.

Shorter renewal terms have also become more common, particularly among technology firms, as companies remain cautious on the economic outlook.

The property consultancy said structural supply constraints should remain the main driver of rental performance in the near term, although geopolitical uncertainty and rising energy costs could introduce volatility.