The rise of the two-tier office market in Singapore – this is why it will become a landlord’s market in 2026

Historically, demand in Singapore’s office market has been shaped by the tendency among corporate occupiers to move to the latest and most premium office space when it becomes available. This flight-to-quality is shaping the office market in the first three months of this year. In 1Q2026, Central Business District (CBD) Grade A office rents reached $11.36 psf per month (pm), a quarterly increase of 1.4%. It is based on gross effective rents in a basket of Grade A office buildings located in Marina Bay, Raffles Place, Shenandoah Way, Tanjong Pagar, City Hall, Orchard Road and Bugis – and is compiled by Cushman & Wakefield (C&W). The latest quarterly figures on the office market were also released by URA on 24 April. After five consecutive quarters of decline, the central sector rent index rose 0.2% q-o-q. This pushed the average office rent to $2,230 psf in 1Q2026 from $2,169 psf in 4Q2026. Work on the new office is now expected to be limited to 2027…