SUPPLY: NO NEW COMPLETION, STOCK REMAINED STABLE
Total office stock remained unchanged in Q2 2026 at approximately 1.73 million sqm NLA, as no new project entered the market. The market continued to absorb recently completed buildings while landlords focused on improving occupancy and tenant retention amid an increasingly competitive environment.
DEMAND: LEASING MOMENTUM CONTINUED TO IMPROVE
Total net absorption reached approximately 14,458 sqm in Q2 2026, supported by continued expansion and relocation demand.
Occupancy improved across both grades, with Grade A reaching 89.8% (+1.4 ppts QoQ) and Grade B increasing to 91.3% (+0.5 ppt QoQ), reflecting balanced demand for both flight-to-quality and cost-efficient office solutions.
Notable transactions highlighted active demand mainly from manufacturing, healthcare and FMCG occupiers.
RENT: STABLE PERFORMANCE AMID IMPROVING OCCUPANCY
Average rents remained relatively stable in Q2 2026 despite improving occupancy levels. Grade A rents softened slightly to USD 53.2/sqm/month, while Grade B rents eased to USD 33.3/sqm/month, reflecting ongoing competition among landlords and continued leasing incentives in selected projects.
The market remained tenant-favorable, although improving occupancy suggests rental pressure may gradually ease in well-performing assets.
MARKET OUTLOOK: FLIGHT-TO-QUALITY AND DECENTRALIZATION TO CONTINUE
Future office demand is expected to remain driven by occupiers seeking higher-quality workspaces while optimizing occupancy costs. Demand from technology, manufacturing, healthcare and professional services sectors is expected to support leasing activity, while decentralization toward emerging non-CBD submarkets continues to shape market dynamics. With limited short-term supply additions, occupancy is expected to improve gradually, particularly in well-positioned Grade A and newer Grade B buildings.
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