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Knight Frank Asia-Pacific Prime Office Rental Index Q1 2019

13 June 2019

Knight Frank Asia-Pacific Prime Office Rental Index Q1 2019

Slow start for Asia-Pacific prime office rents

 

Headwinds from 2018 persist

29 May 2019, Malaysia – Knight Frank, the independent global property consultancy, has launched its Asia-Pacific Prime Office Rental Index for Q1 2019. The index fell 0.4% quarter-on-quarter in Q1 2019 to a reading of 142.6, though it remains up 6.2% year-on-year.

Results for Q1 2019

  • Of the 20 cities tracked by the index, 15 recorded either stable or increased rents; two less than the 17 reported in the previous quarter.
  • Singapore recorded the highest year-on-year increase in prime office rents at 23.7% in the last quarter, driven in part by limited supply for mid-sized units.
  • Jakarta saw the biggest drop at -16% in the 12 months from Q1 2018 to Q1 2019, continuing its downward trend since Q4 2014.

Nicholas Holt, Head of Research for Asia-Pacific, says, “Prime office markets in Asia-Pacific saw a soft start to 2019, as sentiment continues to be dampened by uncertainties following major elections across the region, an unresolved Brexit and the re-escalation of trade tensions between the US and China. The muted start is likely to carry through the year, with moderate increases in rents compared to 2018.”

Teh Young Khean, Executive Director of Corporate Services at Knight Frank Malaysia, says, “The tenant-led office market continues to be under pressure with looming supply and weak absorption of space. Amid heightened competition and growing economic concerns, rents in Kuala Lumpur City Centre are likely to fall.”

Asia-Pacific Prime Office Rents

City

Submarket(s)

3-month % change

(Q4 2018 – Q1 2019)

Forecast next 12 months

Brisbane

CBD

0.3%

Increase

Melbourne

CBD

2.8%

Increase

Perth

CBD

0.0%

Increase

Sydney

CBD

1.1%

Increase

Tokyo*

Central 5 Wards

-1.9%

Same

Beijing

Various

-1.4%

Decrease

Guangzhou

CBD

0.0%

Same

Shanghai

Puxi, Pudong

-2.1%

Decrease

Hong Kong

Central

-1.6%

Decrease

Taipei

Downtown

1.0%

Increase

Seoul

CBD, GBD, YBD

0.2%

Same

Bengaluru

CBD

0.0%

Increase

Mumbai

BKC

0.1%

Increase

NCR

Connaught Place

1.4%

Same

Phnom Penh

City Centre

0.5%

Same

Jakarta

CBD

0.0%

Same

Kuala Lumpur

City Centre

-0.3%

Decrease

Singapore

Raffles Place, Marina Bay

1.5%

Increase

Bangkok

CBD

6.1%

Increase

Manila

Various

3.5%

Decrease

Source: Knight Frank Research / *Sanko Estate

END

To download the report, please click here.

For further information, please contact:

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

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

Ms Penny Hoo, Marketing Executive, Knight Frank Malaysia

penny.hoo@my.knightfrank.com +603 2289 9667 @KnightFrank_my

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 418 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.