Brisbane records highest prime office rental growth in APAC
Brisbane has again recorded the highest prime office rental growth of all the cities in APAC, according to the latest research from Knight Frank.
14 August 2025
The firm’s Asia-Pacific Office Highlights Q2 2025 report found Brisbane continued to lead net rental growth across the region, rising over 14% year-on-year, driven by strong demand for premium-grade assets as competition for high-quality spaces intensifies on Australia's Eastern Seaboard markets.
It was followed by Seoul in South Korea, which recorded growth of 8.2%, and Bengaluru in India, which recorded growth of 7.9%.
Of the Australian cities, Perth was second to Brisbane, recording growth of 4.2%, followed by Melbourne (2.4%) and Sydney (1.9%).
Brisbane’s quarterly prime rental growth was 3.2% over Q2, putting it in third place behind Mumbai (3.5%) and Bengaluru (3.2%).
Looking ahead, Brisbane, Perth and Sydney are all forecast to see office rents rise over the next 12 months, while Melbourne office rents are predicted to be stable, according to the Knight Frank report.
The Knight Frank research found that Asia-Pacific prime office rents registered their first quarterly increase in nearly three years in Q2 2025, rising 0.2% quarter-on-quarter.
The quarterly gain signals a potential stabilisation after a prolonged downturn driven by weakness in the Chinese mainland market.
The other markets were largely stable or slightly impacted by the tariff war during the quarter, as many did not consider the tariff rates permanent.
17 out of 23 monitored cities across APAC reported stable or increasing rents in the 12 months to the end of Q2 2025.
Knight Frank Partner Research and Consulting Jennelle Wilson said a lack of supply post 2025 would underpin prime rental growth in Brisbane’s CBD over the coming years.
“The two new buildings entering the market this year will leave backfill space for lease, but little new space remains available, and no additional new supply is expected before late 2028,” she said.
“Refreshed stock such as 140 Elizabeth St (9,908sqm) and 70 Eagle St (11,467sq m 50% committed) will be available from mid-year.
“There are no refurbishment projects which will complete in 2026 and 450 Queen St (17,265sq m), a full building refurbishment, is expected to come back online in H1 2027.
“The five-year forecast effective annual growth rate for Brisbane rents is 6.5%.”
Knight Frank Head of Office Leasing Queensland Mark McCann said new supply and backfill space in Brisbane’s CBD office market was expected to lift tenant mobility in the second half of 2025.
“In Q2, lease volumes for tenant relocations remained low, with the exception being the sub 500sq m band, where tenants still have a large range of new and recycled fitted options to consider,” he said.
“However, we expect renewed focus from large corporate occupiers considering pre-commitments to new developments over the next six months as occupiers contemplate their new workplace environments and future needs from 2028 onwards.”
