2024-05-14-莱坊-Asia_Pacific_Office_Highlights_Q4_2023_37页_2mb

Asia-Pacific Office Market Q4 2023 Overview

Key Highlights

• Rental Decline: Office rental rates across the region accelerated in Q4 2023, driven by concerns over job losses in sectors like technology and finance, though the impact on occupancy is expected to be limited due to a tight employment market.
• Prime Office Demand: Prime assets saw sustained demand as occupiers seek high-quality spaces to support evolving workplace needs.
• Vacancy Rates: Vacancy rates reached high levels in many cities, with Kuala Lumpur (31.3%) and Jakarta (29.5%) leading.

Rental Growth YoY

• Positive Growth Areas:
  • Perth (+6.9%), Seoul (+6.4%), Auckland (+6.1%), Brisbane (+5.8%), Sydney (+5.5%), Singapore (+4.1%).
• Negative Growth Areas:
  • Tokyo (-0.1%), Phnom Penh (-0.2%), Ho Chi Minh City (-1.2%), Jakarta (-3.1%), Shenzhen (-6.3%), Shanghai (-6.7%), Beijing (-8.1%).

Future Office Supply

• Major Supply Markets: High upcoming supply in Phnom Penh (40.5%), Ho Chi Minh City (34.9%), Bangkok (30.7%), Guangzhou (28.5%), Shenzhen (23.8%), Manila (9.7%), Shanghai (8.1%), New Delhi (7.7%), Singapore (7.0%).
• Proportion of Supply: New supply is expected to increase the overall office stock by 6.6% by 2024.

2024 Outlook

• Market Dynamics: The outlook is cautious due to geopolitical tensions, slowing growth in some markets, and cautious decision-making by corporates. High vacancy andlower rentals persist in most cities, except for selected markets like Seoul and Taipei.

Regional Insights

• East Asia: Strong rental growth seen in Sydney and Mumbai, but declining growth in Beijing, Shanghai, and Guangzhou.
• Southeast Asia: Jakarta and Ho Chi Minh City showed mixed results, with rentals declining in some cities.
• South Asia: High vacancies and falling rentals in Mumbai and Delhi-NCR.
• Oceania: Perth and Auckland saw stability or slight growth in vacancies and rentals.

Contact Information

• Knight Frank Research: Provides detailed market dashboards and contact details for each city for further information.
• Global Head of Occupier Strategy: Tim Armstrong

This report offers a comprehensive view of the Asian-Pacific office market condition as of Q4 2023, highlighting key trends, challenges, and future growth areas. For detailed market-specific data and forecasts, refer to Knight Frank’s full research reports.