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Knight Frank Asia-Pacific Prime Office Rental Index Q3 2018


Knight Frank Asia-Pacific Prime Office Rental Index Q3 2018
Rental growth slows amidst rising trade tensions
22 November 2018, – Knight Frank, the independent global property consultancy, today launched its Asia-Pacific Prime Office Rental Index for Q3 2018. The index increased by 2.3% quarter-on-quarter and 6.4% year-on-year in the third quarter of 2018.
Results for Q3 2018
- The index showed slower growth, as office occupiers delayed significant real estate decisions amidst rising US-China trade tensions
- 18 out of the 20 cities tracked report stable or increased rental growth
- After a strong showing in Q2 2018, Bengaluru’s office market normalised, recording a 0.4% quarter-on-quarter growth
- Tokyo recorded the highest increase this quarter at 5.6% on the back of strong occupier demand and limited supply
Shishir Baijal, Chairman and Managing Director, Knight Frank India, says, “Rentals across major markets have shown a positive trend due to factors such as a growing demand and somewhat restricted supply scenario. The office market space in both Bengaluru and Mumbai has not only revealed optimistic growth in the recent times but is also slated to strengthen further. Going forward, we expect that these factors will help major commercial markets to remain on a sound footing and boost the rental segment in the region.”
Asia-Pacific Prime Office Rents
City | Submarket(s) | 3-month % change (Q2 2018 – Q3 2018) | Forecast next 12 months |
Brisbane | CBD | 0.7% | Increase |
Melbourne | CBD | 2.6% | Increase |
Perth | CBD | 0.2% | Same |
Sydney | CBD | 2.5% | Increase |
Tokyo* | Central 5 Wards | 5.6% | Same |
Beijing | Various | 0.7% | Increase |
Guangzhou | CBD | 0.3% | Increase |
Shanghai | Puxi, Pudong | 0.0% | Decrease |
Hong Kong | Central | 2.7% | Increase |
Taipei | Downtown | 0.0% | Increase |
Seoul | CBD, GBD, YBD | -0.7% | Same |
Bengaluru | CBD | 0.4% | Increase |
Mumbai | BKC | 3.9% | Increase |
NCR | Connaught Place | 0.0% | Same |
Phnom Penh | City Centre | 0.1% | Same |
Jakarta | CBD | 0.0% | Same |
Kuala Lumpur | City Centre | -0.2% | Decrease |
Singapore | Raffles Place, Marina Bay | 1.1% | Increase |
Bangkok | CBD | 0.0% | Increase |
Manila | Various | 0.8% | Decrease |
Source: Knight Frank Research / *Sanko Estate
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