---
title: "Office vacancy steady at 3.3% in H1 amidst tight supply"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296430136.md"
description: "Singapore's office vacancy rate remained steady at 3.3% in H1 2026, the third-tightest in APAC, with zero net supply and rents rising to $129.60 per sq m. Driven by AI firm demand and limited Grade A inventory, the market favors landlords. Singapore outperformed regional peers like Tokyo and Osaka on rental values despite higher vacancies than them, while significantly undercutting Hong Kong's high vacancy rates. Colliers forecasts continued rent growth and falling vacancy in H2 2026."
datetime: "2026-08-20T03:34:47.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296430136.md)
  - [en](https://longbridge.com/en/news/296430136.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296430136.md)
generator: "portal-rs"
---

# Office vacancy steady at 3.3% in H1 amidst tight supply

**Rents rose to $129.60 per square metre as net supply remained at zero.**

Singapore's office vacancy rate held at 3.3% in the first half (H1) of 2026, the third-tightest reading amongst Asia-Pacific (APAC) markets, according to a Colliers report.

The city-state has no new Grade A supply entering the market, whilst average rents rose to $129.60 (US$102.05) per square metre (sq m) per month.

The result placed Singapore behind Tokyo (1.3%) and Osaka (2.5%), but ahead of every other market in the region on rental values.

Structurally tight supply and resilient occupier demand kept the market landlord-favourable during the period, with the trend most pronounced in the Core central business district Grade A and premium segments.

Artificial intelligence firms emerged as a prominent source of new demand.

Total office stock in Singapore stood at 1.9 million sq m. Net demand reached 0.01 million sq m in the first half, against the 0.07 million-square-metre full-year demand recorded in 2025.

Net supply remained at zero, compared with 0.65 million sq m added over the full year in 2025.

Rental growth was led by premium Grade A assets, where sustained demand and a limited near-term development pipeline continued to compress vacancy and push rents higher.

Singapore's premium status stood out against wider regional trends. Tokyo and Osaka posted lower vacancy rates but commanded lower rents of $94.58 (US$74.47) and $46.88 (US$36.91) per sq m, respectively.

Hong Kong, by contrast, carried a vacancy rate of 16.1%, nearly five times Singapore's level, at a comparable rent of $93.85 (US$73.90).

Colliers said demand across the APAC region is shifting towards best-in-class office assets as occupiers compete for talent and productivity gains.

"Combined with limited supply in several gateway markets and improving market sentiment, this is creating a favourable backdrop for sustained leasing activity across the region," said Mike Davis, Managing Director for Occupier Services for APAC at Colliers.

Colliers forecasts supply and vacancy in Singapore will fall further in the second half of 2026, whilst demand and rents continue to rise. GDP growth for Singapore is projected at 4.4% for 2026 and 2.82% for 2027.

*(US$1 = SG$1.27)*

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**