Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
uptick-in-rentals-continues-in-select-office-markets australia-and-new-zealand-hotel-market-overview

Uptick in Rentals Continues in Select Office Markets

04/04/2019
Several office markets in Asia Pacific such as Singapore, Sydney, Melbourne and Ho Chi Minh City continued to experience rising rents in the first quarter of 2019 as new supply remained limited. Meanwhile, Jakarta’s Grade A average occupancy rate in the same period continued to decrease, falling to 74.13% during the quarter from 76.67% in the same period of 2018. Data from our Q1 2019 Asia Pacific Office MarketBeats showed that this was mainly due to the large additional supply in the first quarter of 2019.

Seoul’s office market, on the other hand, remained tenant favourable. Two sizable office buildings are scheduled to be delivered in Q2 2019, which is expected to further elevate vacancy rates.

Here’s an overview of the first quarter performance in some of Asia Pacific’s office markets.

SINGAPORE

During the first quarter of 2019, Grade A CBD rents rose by 2.3% to S$10.61 per square feet per month (psf/mo), surpassing the previous peak of S$10.43 psf/mo in 1Q 2015. Decentralization activity may increase due to high CBD rents, with Bayer leasing 38,000 square feet of space at Paya Lebar Quarter. Co-working demand will be maintained, as there is still room for the sector to expand further.

SYDNEY

Market fundamentals remain firmly landlord favourable with stock hard to come by, although tenant demand appears to be past its peak. After a period of subdued growth, Premium rents have now recorded multiple quarters of solid rent growth. As a result, Prime gross effective rents have grown 8.0% year-on-year (YoY) to A$1,030 per sqm p.a.

HO CHI MINH CITY

Average asking rents continued upward as a result of limited space available for lease, rising marginally by some 1.1% on quarter, but a significant increase of 8.7% on year. Rental growth is expected to be sustained in the short- to medium-term.

JAKARTA

The average gross rental (all grades) in US dollar terms continued to decrease, falling by 7.3% from the same period in 2018 to US$20.24 per sq.m. per month. Rentals are expected to remain under pressure until the end of 2019, with overall vacancies projected to rise further as supply growth will not be balanced by the demand size.

MANILA

A total of 168,156 sq.m. of Prime and Grade A office space was completed within the first three months of 2019, resulting in a total supply of 7,162,370 sq.m. Average asking rent in Metro Manila grew by 5.2% from PHP 899/sq.m./mo (USD17.25) in the last quarter of 2018 to PHP 946/sq.m./mo (USD18.15) in the first quarter of the current year.

SEOUL

Seoul’s office occupier market continues to remain tilted in favor of the tenant. The average vacancy rate of Grade A office buildings in Seoul dropped for a second straight quarter, as availabilities in the three business districts of the CBD, GBD and YBD fell marginally to 9.1% in Q1 2019. This can be mainly attributed to a combination of little to no new supply during the quarter, as well as rapid absorption of availabilities in YBD due to aggressive marketing.



For the full data and analysis of Asia Pacific’s office sector in the first quarter, visit our MarketBeats portal.

Related Insights

Future-Foretold-Conversations
Insights • Insights

Future Foretold – Conversations at Cushman & Wakefield

We hosted our first edition of Conversations at Cushman & Wakefield at CapitaSpring, where we welcomed our clients into our new workplace.
Xian Yang Wong • 07/09/2022
Data-Center-Update_APAC_web-card-1221
Research • Data Center

APAC Data Centre Update

Major APAC Markets Continue to have tight vacancy rates even as data centre deliveries and development pipelines reach new milestones. Collectively, the markets of Hong Kong, Singapore, Sydney, Tokyo, and Jakarta have nearly 750 MW in total under active construction.
20/07/2022
istockphoto-2022-cardimage-Policy--Watch-SG
Insights • Investment

Cushman & Wakefield's Comments On Ura May 2022 Developer Sales

On the back of more launches in May, developers sold 1,356 new private homes (excluding ECs) last month – the highest monthly volumes since November 2021 when 1,547 new units were sold.
Xian Yang Wong • 15/06/2022

Related Stories

Dexcom Philippines New Office Fit-out Project
Dexcom Philippines • Healthcare
Learn More
Cushman & Wakefield Stories
Booking.com Philippines Inc. • Travel
Learn More
Cushman & Wakefield Stories
OMD Philippines • Advertising
Learn More
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