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Knight Frank Asia-Pacific Prime Office Rental Index Q2 2019

05 September 2019

 Knight Frank Asia-Pacific Prime Office Rental Index Q2 2019
Most markets remained stable or experienced growth, despite growing headwinds

4 September 2019, Malaysia – Knight Frank, the independent global property consultancy, has launched its Asia-Pacific Prime Office Rental Index for Q2 2019. The index rose 0.9% quarter-on-quarter, reversing the decline seen in Q1.

Results for Q2 2019

  • Of the 20 cities tracked by the index, 14 recorded either stable or increased rents; one less than the 15 reported in Q1 2019
  • Tokyo recorded the highest rise at 6.9% quarter-on-quarter rise due to limited supply of prime office space

 

  • Most office markets in Asia-Pacific remained stable or saw growth: Sydney saw 1.3% growth and Singapore registered 0.9% prime office rental growth; while Hong Kong (-1.0%) and Shanghai (-1.1%) both saw declines in the past quarter.

Nicholas Holt, Head of Research for Asia-Pacific, said, “With no end in sight over the trade tensions between the world’s two dominant economies, the looming prospect of a hard Brexit and the ongoing concerns in Hong Kong, we expect the rest of 2019 to remain challenging for Asia-Pacific office markets.”

Teh Young Khean, Executive Director of Corporate Services at Knight Frank Malaysia, said, “Office rents in Kuala Lumpur City Centre saw a marginal decline in the second quarter of 2019.

 

“Faced with the high impending office supply driven by new construction, prime grade office rents in KL City continue to be under pressure with landlords competing to attract new occupiers as well as to retain existing tenants.” 

 Asia-Pacific Prime Office Rents

City

Submarket(s)

3-month % change (Q1 2019 – Q2 2019)

Forecast next 12 months

Brisbane

CBD

0.7

Increase

Melbourne

CBD

3.7

Increase

Perth

CBD

0.8

Increase

Sydney

CBD

1.3

Increase

Tokyo*

Central 5 Wards

6.9

Same

Beijing

Various

-1.6

Decrease

Guangzhou

CBD

0.2

Same

Shanghai

Puxi, Pudong

-1.1

Decrease

Hong Kong

Central

-1.0

Decrease

Taipei

Downtown

1.0

Increase

Seoul

CBD, GBD, YBD

0.4

Same

Bengaluru

CBD

0.0

Increase

Mumbai

BKC

0.0

Increase

NCR

Connaught Place

0.0

Same

Phnom Penh

City Centre

0.0

Same

Jakarta

CBD

-0.02

Same

Kuala Lumpur

City Centre

-0.2

Decrease

Singapore

Raffles Place, Marina Bay

0.9

Increase

Bangkok

CBD

-0.1

Same

Manila

Various

1.9

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.