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Knight Frank Asia-Pacific Prime Office Rental Index

13 March 2017

Kuala Lumpur – Knight Frank, the independent global property consultancy, today launches the Asia-Pacific Prime Office Rental Index for Q4 2016. The index monitors prime office rents in 19 cities across Asia-Pacific. For Q4 2016, 12 cities registered positive rental growth, up from eight in the previous quarter. 

Mr Nicholas Holt, Head of Research for Asia-Pacific, says, “Across the region, international companies are taking a cautious approach to mitigate the negative effects of an uncertain global economy. Increasingly, markets with robust absorption and sustained demand from a diverse group of local firms will continue to experience growth.” 

Teh Young Khean, Executive Director of Corporate Services, Knight Frank Malaysia comments, “Amid growing mismatch in office supply and weaker occupier demand from the O&G sector, the Kuala Lumpur office market remained resilient. The rental index contracted only 0.2% during Q4 2016 although it is expected to dip further in the near term.” 

Results for Q4 2016

·         Knight Frank Asia-Pacific Prime Office Rental Index grew 1.3% in Q4 2016 compared to the previous quarter as a result of rising rents in 12 markets and rental declines in seven markets.

·         Knight Frank expects rents in 12 cities to remain steady or increase, down from 14 in the previous forecast.

·         Bangkok was the strongest performer on the index registering a 5.0% change quarter-on-quarter. Rents have been on the rise since Q3 2014 due to limited high-grade office supply in the CBD.

·         Jakarta was the weakest performer registering a -5.3% change quarter-on-quarter.

·         Indian cities occupying second, third and fourth places respectively on the index were Mumbai (4.8%), New Delhi (4.3%) and Bengaluru (3.1%). Supply struggled to catch up with robust demand coming from various sectors especially technology firms.

 

Asia-Pacific Prime Office Rents

City

Submarket(s)

3-month % change (Q3 2016 – Q4 2016)

Forecast next 12 months

Bangkok

CBD

5.0%

Increase

Mumbai

BKC

4.8%

Increase

New Delhi

Connaught Place

4.3%

Same

Bengaluru

CBD

3.1%

Increase

Hong Kong

Central

2.8%

Increase

Melbourne

CBD

2.5%

Increase

Sydney

CBD

2.2%

Increase

Phnom Penh

City Centre

1.6%

Same

Brisbane

CBD

0.5%

Increase

Guangzhou

CBD

0.4%

Increase

Tokyo*

Central 5 Wards

0.2%

Same

Shanghai

Puxi, Pudong

0.1%

Decrease

Kuala Lumpur

City Centre

-0.2%

Decrease

Beijing

Various

-0.3%

Decrease

Taipei

Downtown

-0.4%

Decrease

Perth

CBD

-1.0%

Decrease

Singapore

Raffles Place, Marina Bay

-1.5%

Decrease

Seoul

CBD, GBD, YBD

-1.6%

Increase

Jakarta

CBD

-5.3%

Decrease

Source: Knight Frank Research / *Sanko Estate

 

END

   

To download the report, please visit:

http://www.knightfrank.com/research/asia-pacific-prime-office-rental-index-q4-2016-4487.aspx

 

For further information, please contact: 

Mr Nicholas Holt, Head of Research for Asia-Pacific

nicholas.holt@asia.knightfrank.com +65 6429 3595 @nholtKF

 

Ms Rachel Loke, Head of Asia Pacific Marketing, Communications & Digital

rachel.loke@asia.knightfrank.com +65 6429 3587 @knightfrank

 

Ms Seline Soo, Marketing & Communications Manager, Knight Frank Malaysia

seline.soo@my.knightfrank.com +603 2289 9669 @KnightFrank_my

 

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 14,000 people operating from 413 offices across 60 countries. 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 knightfrank.com. 

Knight Frank has a strong presence in Malaysia with its headquarters in Kuala Lumpur as well as branches in Penang, Johor and Kota Kinabalu. The company offers high-quality professional advice and solutions across a comprehensive portfolio of property services and is registered with the Board of Valuers, Appraisers and Estate Agents. The Company is licensed to undertake property, valuations / consultancy, estate agency and property management and is also on the panel of all leading banks and financial institutions. For further information about the Company, please visit www.knightfrank.com.my.