Robust office leasing demand kept rents at elevated levels.
Prime office rentals in the Asia Pacific increased 0.8% YoY and 0.6% QoQ in Q3 as a result of rising rents in 11 of the region’s markets, according to Knight Frank’s Asia Pacific Prime Office Rental Index.
Bangkok was the strongest performing market after posting a 3.9% annual growth that is forecasted to be sustained for the next two years.
Prime rents for Singapore similarly increased by a marginal 0.1% QoQ for the first time since 2014, even as vacancies remain on the rise at above 15% due to a huge influx of supply.
Manila also posted strong growth after growing 9.3% YoY as supported by strong economic growth from local and multinational companies.
In Kuala Lumpur, Phnom Penh, Shanghai and Tokyo, rental decline is accelerating as opposed to Beijing and Jakarta where rents are easing.
Rental growth is accelerating for most of Australia including Perth, Brisbane, Begaluru and Mumbai while rental growth is falling in Guangzhou, Melbourne, Sydney, Hong Kong, Taipei, New Delhi and Seoul.
“Amidst growing market confidence and the impressive recovery of Asia’s export markets so far in 2017, leasing momentum remains broadly robust across Asia-Pacific prime office markets,” said Knight Frank Asia Pacific Head of Research Nicholas Holt.
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