Knight Frank Asia-Pacific Prime Office Rental Index Q3 2018

26 November 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
  • Rental growth in Sydney and Melbourne continues to be among the strongest in the region, recording further increases during the quarter to be up 14% and 7% over the past year respectively
  • Tokyo recorded the highest increase this quarter at 5.6% on the back of strong occupier demand and limited supply

Ben Burston, Partner, Head of Research and Consulting, Australia, says, “Buoyant employment growth and subdued development activity continues to drive rental uplift in Sydney and Melbourne, which have recorded some of the strongest growth in the region over the past year. The level of supply scheduled to deliver in 2019 simply will not redress the imbalance, and this will continue to drive rents and motivate tenants to pursue densification strategies or consider emerging fringe markets where expansion can be more easily achieved.”

 Asia-Pacific Prime Office Rent

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

To download the report, please click here.

 

END 

For further information, please contact:

Rebecca Sands, Director, PR & Communications, Australia

Rebecca.Sands@au.knightfrank.com +61 416 119 858

 

Notes to Editors

 

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 418 offices across 60 markets. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.