Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Office Rentals Continue to Rise in Several Key Asia Pacific Markets

04/10/2018
Office space rents in Asia Pacific’s core markets such as Singapore and Sydney were on an upward trend in the third quarter of 2018. According to Cushman & Wakefield’s Q3 2018 Asia Pacific Office MarketBeats, rentals in Grade A office buildings have gone up due to healthy demand and limited supply in a number of cities including Singapore and Ho Chi Minh City.

Let’s take a closer look at the office leasing trends in some of the cities from our MarketBeats reports.

SYDNEY

Prime gross effective rents, at AU $995 per square meters per annum, have grown 8.5% year-on-year while B Grade gross effective rents have increased 7% year-on-year to AU $780 per sqm per annum. Demand was led by the information, media, and technology sector, followed by finance and insurance, and professional services.

SINGAPORE

A resurgence of demand by tenants in the financial sector drove leasing activity during the quarter. During Q3 2018, Grade A CBD rent rose by 2.7% to S$10.00 per square feet per month amidst a lack of supply. Rents are projected to continue escalating as the tight supply situation will persist for three more years until an expected supply influx of 1.8 million square feet in 2022.

BEIJING

Firms in the financial sector accounted for a 22% share of leasing transactions in Q3. However, due to the recent massive wave of defaults by P2P enterprises, the Beijing Regional Management Committee is requiring landlords to be more stringent in qualification reviews of financial company tenants. We expect demand from finance companies to gradually slow.

SEOUL

Overall vacancy rates in Seoul are expected to tighten gradually with no new grade A building supply expected in Q4 2018. Average asking rent for grade A buildings in Seoul rose 4.4% year-on-year in Q3 to 29,069KRW/sq.m.

HO CHI MINH CITY

Average asking rents are on an upward trend due to limited available space offered by buildings in prime locations. In Q3 2018, average rent rose 2.4% quarter-on-quarter; year-on-year, it increased by significant 15.2%.

JAKARTA

Average rentals in USD terms decreased by 14.7% on a year-on-year basis to reach US$19.90 per sqm per month. Rentals are expected to remain under pressure until at least the end of year.

To get the full insights on the region’s office market in the third quarter, visit our MarketBeats portal.

Related Insights

Data center
Research • Sustainability

WEBINAR SERIES | THE SUSTAINABILITY IMPERATIVE FOR DATA CENTRES

With the extremely high consumption of power by data centres and the significant carbon footprint the sector generates, there is a need to strengthen sector-wide standards and commitments for the sustainable data centre operations.
Kevin Imboden • 29/09/2021
jason-zhang
Insights • Investment

Shaun Poh: Impact of COVID-19 on Singapore Investment

One of the biggest challenges that international investors are now facing as a result of the COVID-pandemic, is the inability to conduct cross-border site inspections.  
Shaun Poh • 13/09/2021
Cushman & Wakefield Q2 Asia Pacific Webinar: Spotlight on Singapore
Insights • Investment

Cushman & Wakefield Q2 Asia Pacific Webinar: Spotlight on Singapore

As Asia Pacific begins to show signs of recovery from COVID-19, led by a rebound originating from China, what is the current status of the commercial real estate market and where is it headed?
Anna Town • 13/08/2021
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS