Categories: Financial Results

Knight Frank Asia-Pacific Prime Office Rental Index Q3 2018

Rental growth slows amidst rising trade tensions

New Delhi, November 24, 2018: Knight Frank, the independent global property consultancy, today launched its Asia-Pacific Prime Office Rental Index for Q3 2018. The index increased by 2.3% quarter-on- quarter and 6.4% year-on-year in the third quarter of 2018.

Results for Q3 2018 

  • The index showed slower growth, as office occupiers delayed significant real estate decisions amidst rising US-China trade tensions
  • 18 out of the 20 cities tracked report stable or increased rental growth
  • After a strong showing in Q2 2018, Bengaluru’s office market normalised, recording a 0.4% quarter-on-quarter growth
  • Tokyo recorded the highest increase this quarter at 5.6% on the back of strong occupier demand and limited supply

Nicholas Holt, Head of Research for Asia-Pacific, says, “While we are starting to feel the impact of the trade tensions flow through the Asia-Pacific office markets, sound economic conditions are expected to support office demand and drive steady rental growth across the region.”

Shishir Baijal, Chairman and Managing Director, Knight Frank India, says, “Rentals across major markets have shown a positive trend due to factors such as a growing demand and somewhat restricted supply scenario. The office market space in both Bengaluru and Mumbai has not only revealed optimistic growth in the recent times but is also slated to strengthen further. Going forward, we expect that these factors will help major commercial markets to remain on a sound footing and boost the rental segment in the region.”

Asia-Pacific Prime Office Rents 

City Submarket(s) 3-month % change (Q2

2018 – Q3 2018)

Forecast next 12

months

Brisbane CBD 0.7% Increase
Melbourne CBD 2.6% Increase
Perth CBD 0.2% Same
Sydney CBD 2.5% Increase
Tokyo* Central 5 Wards 5.6% Same
Beijing Various 0.7% Increase
Guangzhou CBD 0.3% Increase
Shanghai Puxi, Pudong 0.0% Decrease
Hong Kong Central 2.7% Increase
Taipei Downtown 0.0% Increase
Seoul CBD, GBD, YBD -0.7% Same
Bengaluru CBD 0.4% Increase
Mumbai BKC 3.9% Increase
NCR Connaught Place 0.0% Same
Phnom Penh City Centre 0.1% Same
Jakarta CBD 0.0% Same

 

 

Kuala Lumpur City Centre -0.2% Decrease
Singapore Raffles Place, Marina Bay 1.1% Increase
Bangkok CBD 0.0% Increase
Manila Various 0.8% Decrease

Source: Knight Frank Research / *Sanko Estate

Corporate Comm India(CCI Newswire)

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