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Knight Frank Asia-Pacific Prime Office Rental Index Q3 2018

27 November 2018

Knight Frank Asia-Pacific Prime Office Rental Index Q3 2018

Rental growth slows amidst rising trade tensions

27 November 2018, Malaysia – Knight Frank, the independent global property consultancy, today launched its Asia-Pacific Prime Office Rental Index for Q3 2018. The index increased by 2.3% quarter-on-quarter and 6.4% year-on-year in the third quarter of 2018.

Results for Q3 2018

  • The index showed slower growth, as office occupiers delayed significant real estate decisions amidst rising US-China trade tensions

  • 18 out of the 20 cities tracked report stable or increased rental growth

  • After a strong showing in Q2 2018, Bengaluru’s office market normalised, recording a 0.4% quarter-on-quarter growth

  • Tokyo recorded the highest increase this quarter at 5.6% on the back of strong occupier demand and limited supply

Nicholas Holt, Head of Research for Asia-Pacific, says, “While we are starting to feel the impact of the trade tensions flow through the Asia-Pacific office markets, sound economic conditions are expected to support office demand and drive steady rental growth across the region.”

Teh Young Khean, Executive Director of Corporate Services at Knight Frank Malaysia, says,The outlook for both Kuala Lumpur and Selangor office market continues to remain subdued in 3Q2018. Despite this, the rise of shared offices and co-working segments provide a slight breather to the oversupplied office market. Meanwhile, the rental growth in Greater KL is expected to remain challenging for the rest of 2018 as there is no major catalyst to boost demand in the short to medium term.”

Asia-Pacific Prime Office Rents

City

Submarket(s)

3-month % change (Q2 2018 - Q3 2018)

Forecast next 12 months

Brisbane

CBD

0.7%

Increase

Melbourne

CBD

2.6%

Increase

Perth

CBD

0.2%

Same

Sydney

CBD

2.5%

Increase

Tokyo*

Central 5 Wards

5.6%

Same

Beijing

Various

0.7%

Increase

Guangzhou

CBD

0.3%

Increase

Shanghai

Puxi, Pudong

0.0%

Decrease

Hong Kong

Central

2.7%

Increase

Taipei

Downtown

0.0%

Increase

Seoul

CBD, GBD, YBD

-0.7%

Same

Bengaluru

CBD

0.4%

Increase

Mumbai

BKC

3.9%

Increase

NCR

Connaught Place

0.0%

Same

Phnom Penh

City Centre

0.1%

Same

Jakarta

CBD

0.0%

Same

Kuala Lumpur

City Centre

-0.2%

Decrease

Singapore

Raffles Place, Marina Bay

1.1%

Increase

Bangkok

CBD

0.0%

Increase

Manila

Various

0.8%

Decrease

 Source: Knight Frank Research / *Sanko Estate

END

 

To download the report, please click here:

http://bit.ly/PrimeOfficeRental3Q18

 

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.