Knight Frank Asia Pacific Q2 2024 Office Highlights
Tuesday, 30 July 2024
Prime office rents in Asia-Pacific fell 3.1% year-on-year, a slight deceleration from Q1, led by falling rents in Chinese Mainland cities. However, vacancy rates stabilised at 14.8% last quarter, halting a continuous rally that persisted since Q3 2022, indicating a potential levelling off in the market. In Hong Kong SAR, the falling office rents are spurring recentralisation and flight-to-quality moves by occupiers.
Looking ahead, the Asia-Pacific prime office sector is expected to remain tenant-favourable in 2024, with over 11 million sqm of prime stock set for delivery, 60% of which will be in Chinese Mainland markets. Landlords will likely maintain accommodative strategies to sustain occupancies, while occupiers focus on lease renewals amidst economic uncertainty. As demand continues to lag, region-wide vacancies are expected to remain elevated, with subdued rent growth for the remainder of the year.
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©INFRAMAP - KNIGHTFRANK 2024
