Asia Pacific Office Market Dynamics Q3 2024
Occupiers focus on sustainable and premium quality buildings; cost containment still in focus
Highlights from the report include:
Persistent flight to quality continues to drive occupancy gains in newer stock while older buildings account for most negative net absorption. A robust supply pipeline of premium buildings across markets may facilitate occupier upgrades to higher quality spaces.
Slight uptick in regional rent growth led by steady leasing demand with a quarterly decrease in region-wide vacancy rates edging towards 15%. Quarterly net absorption levels also rose y-o-y owing to healthier take up in new completions.
Investment volumes for Asia Pacific reached USD 12 billion marking a 66% y-o-y as regional monetary policies pivot. Transaction activity rebounds with domestic owner occupiers and opportunistic investors dominating the investment landscape.
