Singapore

Commentary on URA Q1 2026 statistics - Office, Retail, and Residential

July 24, 2026

Associated Contact

Melvin Lin

Head of Marketing & Communications, Singapore

By Tricia Song (宋明蔚), Head of Research, Singapore and Southeast Asia, CBRE

Office

According to the Urban Redevelopment Authority (URA), Singapore's office market recorded a meaningful rental recovery in Q2 2026, with the URA Office Rental Index for Central Region rising 0.8% q-o-q, reversing the 0.2% decline in the previous quarter. According to CBRE Research, this recovery reflects sustained occupier demand across sectors and submarkets, against a supply pipeline that remains structurally constrained.

Since Q4 2025, URA no longer provides the tabular breakdown of office data in their press release. CBRE manually goes into the data dashboard to download latest and past quarterly data.

A closer examination of URA transaction data for Category 1 office space reveals broad-based firming in rents on a year-on-year basis. Median rents for office spaces larger than 100 sq m rose between 4.4% and 12.4% year-on-year in Q2 2026. Large-format floor plates of 500 to 1,000 sq m recorded the strongest gain, up 12.4% year-on-year to a median of $12.70 psf per month.
This is largely consistent with the trend seen in CBRE's own Core CBD Grade A data. According to CBRE Research, Core CBD Grade A rents edged up 0.8% q-o-q to $12.50 psf per month in Q2 2026, extending their climb for the sixth consecutive quarter and bringing cumulative H1 2026 growth to 1.6%. Core CBD Grade A vacancy held steady at 3.3%, a record low that continues to reinforce landlord-favourable conditions for prime space.

Table 1: Median rentals for Category 1 office space ($psf/mth)

Floor Area Band	Q2 2025 Median	Q1 2026 Median	Q2 2026 Median	QoQ Change	YoY Change
≤100 sqm	10.59	$10.81	$8.95	-17.2%	-15.5%
>100–200 sqm	10.71	$11.50	$11.20	-2.6%	4.6%
>200–500 sqm	11.28	$11.35	$12.05	6.2%	6.8%
>500–1000 sqm	11.3	$12.71	$12.70	-0.1%	12.4%
>1000 sqm	11.73	$12.58	$12.25	-2.6%	4.4%

Note: Refers to office space in buildings located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area.
Source: URA (Link)

CBRE Research also observed that flight-to-quality momentum was evident across key Core CBD assets. IOI Central Boulevard Towers, Marina One and Marina Bay Financial Centre remained focal points of active leasing activity, anchored by tenants seeking large, contiguous floor plates of international specification. E.g. AI companies of varying scales continued transitioning from flexible space into dedicated, self-managed offices in prime buildings.

Occupier demand proved broad-based. While financial services spanning banking, wealth management, insurance and asset management anchored CBD activity, Alexandra and Paya Lebar absorbed take-up from consumer goods, professional services and education tenants.

The islandwide office vacancy rate rose to 11.0% as at end-Q2 2026, from 10.8% in the prior quarter. This increase is attributable primarily to the completion of Shaw Tower in Q2 2026, which added approximately 0.4 million sq ft of office space in the Downtown Core Planning Area. Shaw Tower's tenants include Allianz, Adyen, Sanofi-Aventis Singapore and The Great Room. Together with Keppel South Central, Shaw Tower forms a quality cluster in the Fringe CBD, offering occupiers alternatives to an increasingly supply-constrained Core CBD.
According to URA statistics, occupied office space still grew by 8,000 sq m (net) in the quarter, while the pipeline for H2 2026 to beyond 2030 moderated to approximately 848,000 sq m GFA as at end-Q2 2026, from 867,000 sq m in Q1 2026. With physical occupation of Shaw Tower tenants expected to ramp up following lease commencement, CBRE anticipates this islandwide office vacancy to improve in H2 2026.

Outlook

The scarcity of large contiguous floor plates exceeding 20,000 sq ft is prompting occupiers to act well ahead of their lease expiries. Pre-commitment activity has already been registered for developments completing as far out as 2029, reflecting the depth of forward-looking demand.

While global trade tensions, geopolitical uncertainty, and macroeconomic headwinds present downside risks, Singapore's structural advantages — including its role as a regional headquarter hub, its strong regulatory framework, and its historically resilient post-correction recovery profile — underpin our positive outlook.

CBRE expects the Singapore office market to remain landlord-favourable through 2026 and into 2027, supported by robust occupier demand, a thin near-term supply pipeline and record-low Grade A vacancy. CBRE forecasts Core CBD Grade A rental growth to continue in H2 2026. Shaw Tower is the sole major office completion of 2026. With no further major completions expected this year and below-average new supply projected for 2027, competition for quality space is set to intensify.

Retail

Retail sales (excluding motor vehicles) expanded by 2.4% and 0.7% y-o-y in Apr and May 2026 respectively, reflecting resilient consumer demand supported by solid economic growth and a robust labour market, notwithstanding the Middle East conflict. However, the conflict has weighed on tourism activity, with tourism arrivals declining by 6.6% y-o-y in Q2 2026 amid higher airfares and flight cancellations.

URA’s Q2 2026 data showed that rents of retail space in the Central Region rose by 0.6% q-o-q, reversing the 0.6% q-o-q decline the previous quarter. Similarly, CBRE Research’s data showed that islandwide prime floor rents increased by 0.4% q-o-q in Q2 2026, bringing H1 2026 rent growth to 0.9%. Sustained demand for prime retail spaces reflected retailers’ confidence in tourism and consumer spending.

While retailers have become more cautious due to tensions in the Middle East, leasing activity remained healthy in Q2 2026. CBRE Research noted robust demand for space, driven primarily by F&B such as Bouillon Gavroche, Yo-chi and Molly Tea. Fashion and toys & hobbies retailers, including Subdued, kurun, Snoopy Store & Café and Happibox also contributed to strong space take-up. Meanwhile, leasing interest from wellness concepts, including health and fitness operators remained elevated, although their larger space requirements continued to present challenges in finding suitable locations.

That said, the quarter also saw several closures and consolidations, including Tarte by Cheryl Koh, Singtel and Porcelain. This led to negative net absorption of 29,000 sq. m. (about 312,000 sq. ft.) in the islandwide private retail market according to URA data, reversing the positive net absorption in the past three quarters. Consequently, islandwide private retail vacancy rates rose q-o-q from 6.4% to 7.0%.

All submarkets saw negative net absorption in Q2 2026. The rest of central submarket registered the lowest negative net absorption of 2,000 sq. m. (about 22,000 sq. ft.), reversing the positive net absorption of 3,000 sq. m. (about 32,000 sq. ft.) the previous quarter. New pop-ups and store openings in New Bahru likely offset some of the space returned by retailers in the submarket, limiting the extent of the decline. Vacancy in the submarket rose from 7.9% to 8.3% in Q2 2026.

Conversely, the Outside Central Region (OCR) submarket reversed its Q1 2026 outperformance, registering the highest negative net absorption across all submarkets. Negative net absorption reached 12,000 sq. m. (about 129,000 sq. ft.), compared with positive net absorption of 13,000 sq. m. (about 140,000 sq. ft.) in Q1 2026. Large-format store closures, such as Isetan and Daiso, could have contributed to the pullback. OCR vacancy thus rose from 4.1% to 5.2% in Q2 2026.

Outlook

Retailers continue to grapple with manpower shortages, rising operating costs—further exacerbated by the Middle East conflict—and intense competition from e-commerce players. Nevertheless, stronger tourism spending, underpinned by a healthy pipeline of MICE events and concerts, together with resilient consumer spending and Singapore’s safe-haven status, should continue to support demand for prime retail space. With new supply over the next three years expected to remain below historical norms, CBRE Research forecasts prime retail rents to grow by 1–2% in 2026.

Residential

In Q2 2026, private housing prices rose 0.5% q-o-q, consistent with the initial flash estimate. This was a moderation from the 0.9% q-o-q increase in Q1 2026 and the slowest pace since prices fell 0.7% in Q3 2024. Prices nonetheless remained resilient against the negative backdrop of the ongoing Middle East conflict, amid low unsold inventory which generally supported firm pricing at new launches.

The overall private residential price increase of 0.5% q-o-q in Q2 2026 was uneven, led by the landed and Core Central Region (CCR) non-landed segments and partially offset by declines in Rest of Central Region (RCR) and Outside Central Region (OCR) non-landed. This brings islandwide private home price growth to 1.4% in 1H 2026. Landed property prices rebounded 2.5% q-o-q in Q2 2026 after falling 0.4% q-o-q in Q1 2026. In contrast, the non-landed home price index saw a marginal 0.1% q-o-q decline after rising 1.3% in Q1 2026.

Price performance was mixed across non-landed market segments, led by the CCR which saw 1.8% q-o-q growth. On the other hand, the OCR posted a marginal decline of 0.1% q-o-q and the RCR underperformed, falling 1.2% q-o-q.

Despite not seeing any new launches during the quarter, the CCR outperformed on firm pricing at existing launches River Modern (455 units) and 999-year project The Roberston Opus (348 units), which saw units trade at higher median prices compared to preceding quarters as buyers scooped up remaining units, recognising value in these prime projects amid the narrowing price gap between the CCR and RCR/OCR.
The slight decline in OCR prices could be attributed to Tengah Garden Residences (863 units). As the first private condo launch in Tengah, the project saw overwhelming take-up due to its attractive pricing relative to recent OCR launches, moving 853 units or 99% of its total units at an average price of $2,120 psf over its launch weekend. This also coincides with the HDB resale price index falling for a second consecutive quarter, down a cumulative 0.4% in 1H 2026, which may be indicative of weaker upgrading power.
The RCR’s underperformance is likely due to realistic pricing at new launch Hudson Place Residences (327 units) which sold 213 units at a median price of $2,468 psf in the quarter, 3.9% lower than the median price of $2,567 psf recorded across units sold at preceding Media Circle launch Bloomsbury Residences.

Table 2: Top 10 best-selling new developer sales projects (excluding ECs) in Q2 2026 (ranked in descending order by no. of units sold in the quarter)

Project name	Tenure	Market segment	Units sold during quarter	Median Price ($psf)	% Of project sold as of Q2 2026*
TENGAH GARDEN RESIDENCES	99 yrs	OCR	861	$2,113	99.8%
VELA BAY	99 yrs	OCR	371	$2,863	72.0%
HUDSON PLACE RESIDENCES	99 yrs	RCR	213	$2,468	65.1%
THE CONTINUUM	Freehold	RCR	64	$2,789	95.7%
NARRA RESIDENCES	99 yrs	OCR	60	$2,189	35.6%
ONE MARINA GARDENS	99 yrs	RCR	49	$2,979	68.5%
UNION SQUARE RESIDENCES	99 yrs	RCR	38	$2,773	48.6%
CHUAN PARK	99 yrs	OCR	33	$2,641	96.3%
BLOOMSBURY RESIDENCES	99 yrs	RCR	33	$2,567	86.6%
THE SEN	99 yrs	RCR	28	$2,361	38.0%
ELTA	99 yrs	OCR	28	$2,547	82.2%

Source: URA, CBRE Research
*Based on Realis caveats as of 24 Jul 2026.

The rental index of private residential properties rose for a second consecutive quarter, up 0.7% q-o-q in Q2 2026 and faster than the 0.3% q-o-q growth in Q1. The rent increase in Q2 2026 was driven by the landed segment which rose 2.7% q-o-q, accelerating from 0.1% q-o-q growth last quarter. Meanwhile, non-landed segment rents grew at a similar pace to Q1 2026 at 0.4% q-o-q, led by an acceleration in CCR rental growth of +1.2% q-o-q, from +0.5% in Q1 2026. RCR rents were unchanged from last quarter’s levels after recording a marginal 0.2% q-o-q decline in Q1 2026, while the OCR underperformed falling 0.3%, a correction after the 1.0% increase in Q1 2026.

Overall private residential occupancy rates continued to deteriorate in Q2 2026 despite fewer completions – 700 units (ex-ECs) completed in Q2 2026 vs 911 units in Q1 2026. The stock of occupied private residential units (ex-ECs) fell by 387 units, compared to the increase of 225 units in Q1 2026. As such, the vacancy rate of completed private residential units (excl. ECs) islandwide rose to 6.4% in Q2 2026, from 6.2% in Q1.

Only the RCR saw occupancy rate improve. Vacancy rates of completed private residential properties in CCR, RCR and OCR were 8.3%, 6.1% and 5.6% respectively, compared with the 8.2%, 6.3% and 5.2% in the previous quarter.

Looking ahead, 5,012 private residential units (excl. ECs) are expected to complete in H2 2026, more than 3 times the 1,611 units in H1 2026. This brings total 2026 completions to 6,623 units, 8.2% higher than 2025 completions of 6,123 units. The bulk of H2 2026 completions are expected to come from the RCR and OCR. Limited upcoming stock in the CCR could continue to support CCR rents. Newly TOP ed projects will broaden tenant choices, and leasing may take longer as tenants become more selective and landlords compete for quality occupants especially amid slower hiring conditions. Overall, rents which have risen 1.0% in H1 2026 could grow at a similar or slower pace in H2 alongside the pickup in completions. CBRE Research forecasts islandwide rents to rise modestly by 0 – 2% in 2026.

Developers sold 2,141 new private homes (ex ECs) in Q2 2026, 6.4% higher q-o-q from the 2,013 units sold in Q1 2026, and 76.7% y-o-y from the low base of 1,212 units in Q2 2025. This came on the back of robust take-up at major new launches despite fewer launches in the quarter – developers launched 1,783 units in Q2 compared with 1,844 units in Q1.

Alongside healthy new sales, unsold inventory of uncompleted private residential units (excluding ECs) fell 7.2% q-o-q in Q2 2026 to 14,929 units from 16,095 units in Q1 2026. Including completed units, unsold inventory likewise decreased 7.2% from 16,219 units in Q1 2026 to 15,057 units in Q2 2026. Unsold inventory is significantly lower than the last peak of 37,799 units recorded in Q1 2019. At 15,057 units, this implies less than two years’ of landbank based on the 5-year annual average new home sales (2021 – 2025) of 8,766 units.

Outlook

H1 2026 new sales now tally at 4,154 units, 9.4% lower than the 4,587 units sold in 1H 2025.

Despite heightened volatility and economic uncertainty amid the ongoing Middle East conflict, homebuying appetite has held firm amid low interest rates and strong economic growth in H1 2026. Amid low unsold inventory, developers have also become increasingly bullish at CCR Government Land Sales (GLS) tenders that closed in the quarter (Q2 2026) – in particular, Peck Hay Road, Dunearn Road (2) and River Valley Parcel C recorded benchmark bid prices above comparable 2025 GLS tenders in the same location.

Barring major economic shocks, a decent pipeline of attractive new launches and healthy household balance sheets could continue to support sales momentum in H2 2026. CBRE Research expects 7,500 – 8,500 new homes to be sold in 2026. This would be a moderation from the high base of 10,815 units in 2025 largely on fewer launches and the normalisation of pent-up demand after above-trend volumes last year and is slightly below the 5-year average (2021 – 2025) of 8,766 units.

Correspondingly, private home prices, which have risen 1.4% in H1 2026 and have cumulatively risen 44.2% since the Covid trough in Q1 2020, are likely to grow at a similar pace in H2 2026. We maintain our private home prices to grow 2 – 4% in 2026 for now, relatively in line with MTI’s most recent 2026 GDP growth forecast of 2 – 4%, which is a moderation from the 5% GDP growth for 2025.

Read URA's press release here.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.