Knight Frank, the independent global property consultancy, today launches the Asia-Pacific Prime Office Rental Index for Q3 2016. The index monitors prime office rents in 19 cities across Asia-Pacific. For Q3 2016, eight cities registered positive rental growth, down from 10 in the previous quarter.
Results for Q3 2016
- Knight Frank Asia-Pacific Prime Office Rental Index grew 0.6% in Q3 2016 compared to the previous quarter as a result of rising rents in eight markets and rental declines in six markets.
- Tokyo continues to experience the highest rental growth, although demand is expected to taper off as a strong supply pipeline looms.
- Singapore sees the largest decline in rental due to slowing global economy.
- Going forward, we expect rents in 14 cities to remain steady or increase, unchanged from last quarter’s forecast.
- While it is still early days, the results of the US election is likely to lead to more uncertainty across the region, with the likely end of the Trans-Pacific Partnership (TPP) a blow to export-dependent economies.
Mr Nicholas Holt, Head of Research for Asia-Pacific, says, “The outlook for the regional economy is uncertain as the future of the TPP hangs. We expect a knock-on effect on office demand when export-driven economies are dealt a blow should the TPP be dissolved.
“Given the significant amount of supply coming into a number of markets, we do see opportunities for occupiers to upgrade into superior space, as the pendulum swings from landlord to tenant-friendly conditions.”
Asia-Pacific Prime Office Rents
Source: Knight Frank Research / *Sanko Estate
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Mr Nicholas Holt, Head of Research for Asia Pacific
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Ms Rachel Loke, Head of Asia Pacific Public Relations & Communications
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Ms Denise Nah, Public Relations & Communications Manager
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