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Knight Frank Asia-Pacific Prime Office Rental Index Q3 2017

18 December 2017

Kuala Lumpur – Knight Frank, the independent global property consultancy, today launches the Asia-Pacific Prime Office Rental Index for Q3 2017. The index increased 0.6% quarter-on-quarter and 0.8% year-on-year as at the end of the third quarter of 2017. 

Results for Q3 2017

·        The increase in the index was the result of rising rents in 11 of the markets over the quarter, with rental declines experienced in six of the 20 markets tracked.

·        Bangkok was the strongest-performing Asia-Pacific market last quarter, registering a 4.4% quarter-on-quarter increase which was faster than its 3.9% annual growth. This upward trend is expected to continue for at least the next 24 months.

·        Prime rents in Singapore increased for the first time since late 2014, even as vacancy rates continued to rise above 15% due to the huge supply influx in the last two quarters.

·        Over the next 12 months, we expect rents in 16 cities out of the 20 tracked to either remain steady or increase, up from 15 in our previous forecast. 

Mr Nicholas Holt, Head of Research for Asia-Pacific, says, “Amidst growing market confidence and the impressive recovery of Asia’s export markets so far in 2017, leasing momentum remains broadly robust across Asia-Pacific prime office markets.” 

Mr Teh Young Khean, Executive Director of Corporate Services, Knight Frank Malaysia, says, “As a growing number of new office space come into completion amidst the weaker occupier demand, overall rents and occupancy levels continued to be under pressure. In this tenant-led market, landlords continue to be flexible as they strive to maintain and improve the occupancies of their buildings.” 

Asia-Pacific Prime Office Rents

City

Submarket(s)

3-month % change
(Q2 2017-Q3 2017)

Forecast next
12 months

Bangkok

CBD

4.4%

Increase

New Delhi

Connaught Place

2.1%

Same

Melbourne

CBD

2.0%

Increase

Manila

Various

1.6%

Increase

Sydney

CBD

1.6%

Increase

Bengaluru

CBD

1.4%

Increase

Hong Kong

Central

1.0%

Increase

Beijing

Various

0.8%

Decrease

Guangzhou

CBD

0.4%

Increase

Brisbane

CBD

0.2%

Increase

Singapore

Raffles Place, Marina Bay

0.1%

Increase

Perth            

CBD

0.0%

Same

Mumbai

BKC

0.0%

Increase

Jakarta

CBD

0.0%

Decrease

Seoul

CBD, GBD, YBD

-0.2%

Increase

Kuala Lumpur

City Centre

-0.4%

Decrease

Taipei

Downtown

-0.4%

Increase

Phnom Penh

City Centre

-1.0%

Same

Tokyo*

Central 5 Wards

-1.0%

Decrease

Shanghai

Puxi, Pudong

-1.0%

Same

Source: Knight Frank Research / *Sanko Estate

 

END

 

To download the report, please click:
http://www.knightfrank.com/research/asia-pacific-prime-office-rental-index-q3-2017-5130.aspx

 

For further information, please contact:

Mr Nicholas Holt, Head of Research for Asia-Pacific

nicholas.holt@asia.knightfrank.com +86 10 6113 8030 @nholtKF

 

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

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

 

Mr Clement Tan, Manager, Public Relations & Communications, Asia-Pacific

clement.tan@asia.knightfrank.com +65 6429 3599 @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.