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Knight Frank Asia Pacific Prime Office Rental Index

28 May 2015

Knight Frank Asia Pacific Prime Office Rental Index

Bangkok, followed by Kuala Lumpur, tops prime office rental growth in Q1 2015

 

28 May 2015, Malaysia – Knight Frank Asia Pacific, the independent global property consultancy, today launches the Asia-Pacific Prime Office Rental Index for Q1 2015.  The index increased 1.3% in the first quarter of 2015, and now sits 5.3% above its pre-crisis (Q2 2008) peak.

Results for Q1 2015

·         Rental growth was experienced in 13 of the 19 markets tracked, with three recording no rental movement and three recording rental declines

·         Northeast Asian powerhouses – Seoul and Tokyo – show similar headline growth figures for Q1 2015, but have significantly differing market characteristics and drivers

·         Although vacancy is tightening in many markets, the Asia-Pacific regional vacancy rate increased on the back of rising inventories in Greater China’s tier-one cities

·         Over the next 12 months, we expect rents in 14 cities out of the 19 tracked to either remain steady or increase, which is in line with our previous forecasts

Mr Nicholas Holt, Head of Research for Asia Pacific, says, “In Tokyo, the structure of traditional Japanese leases (which prevents significant rental hikes), has held back rental growth to only 1.9% in a very tight market with little vacancy.

 

City

Submarket(s)

3-month % change (Q4 2014-Q1 2015)

Bangkok

CBD

3.8%

Kuala Lumpur

City Centre

3.6%

Hong Kong

Central

3.2%

Seoul

CBD

2.3%

Tokyo*

Central 3 Wards

1.9%

Mumbai

BKC

1.6%

Sydney

CBD

1.0%

Guangzhou

CBD

1.0%

Taipei

Downtown

0.9%

New Delhi

Connaught Place

0.9%

Bangalore

CBD

0.8%

Phnom Penh

City Centre

0.6%

Singapore

Raffles Place, Marina Bay

0.6%

Brisbane

CBD

0.0%

Melbourne

CBD

0.0%

Jakarta

CBD

0.0%

Shanghai

Puxi, Pudong

-0.5%

Beijing

Various

-0.5%

Perth

CBD

-1.8%

Source: Knight Frank Research / *Sanko Estate

END

 Tweeter cue:

#Bangkok registered highest #RentalGrowth in Q1 2015 #AsiaPacific #PrimeOffice #Rental Index http://bit.ly/OfficeRent15Q1

#Perth registered lowest #RentalGrowth in Q1 2015 #AsiaPacific #PrimeOffice #Rental Index http://bit.ly/OfficeRent15Q1

#AsiaPacific regional #vacancyrate increased on the back of rising #inventories in #GreaterChina tier-one cities. Read: http://bit.ly/OfficeRent15Q1

To download the report, please visit:

http://www.knightfrank.com/research/asia-pacific-prime-office-rental-index-q1-2015-2911.aspx

http://bit.ly/OfficeRent15Q1

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 Public Relations & Communications

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

Pamela Phua, Asst. Marketing Manager, Knight Frank Malaysia

pamela.phua@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, together with its US alliance partner, Newmark Grubb Knight Frank, operate from 370 offices, in 55 countries, across six continents and has over 12,000 employees. 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.