Singapore core CBD office rents expected to grow by 2% for full year 2023

Grade A office rents have already risen by 1.3% YTD.

According to CBRE, Singapore Core CBD (Grade A) rents have increased by 1.3% year-to-date. Although near-term risks such as a cautious economic outlook and high interest rates remain, the market has outperformed expectations. 

Tricia Song, CBRE Head of Research, Singapore and Southeast Asia observed, “The delayed completion of IOI Central Boulevard Towers to Q1 2024 should keep market vacancy low and maintain landlords’ confidence for the remainder of 2023. The increased supply in 2024 may better match the recovery in demand, along with the more positive economic growth next year”. 

CBRE Research expects this momentum to continue through to the end of the year. Core CBD (Grade A) rents could eventually grow by 1.5% - 2.0% for the full year – outpacing projected GDP growth but at a more modest pace compared with 8.3% rental growth in 2022. 

This resilience reflects Singapore's strong office fundamentals, as it remains relevant and is well placed as a key business hub and gateway city despite the weaker global economic backdrop.