Hi-lights for Q2 2017
- Bangkok, which topped the chart last quarter, is seeing its first decline this quarter in close to three years. Given limited supply, however, a rising trend may resume for the remainder of 2017.
- The increase in the index was the result of rising rents in 15 of the markets over the quarter, with rental declines experienced in two (Bangkok and Kuala Lumpur) of the 20 markets tracked.
- Phnom Penh topped the chart this quarter at 4.2% increase quarter-on-quarter, compared to a flat performance in the last quarter. The completion of Exchange Square not only set a new benchmark standard for Grade-A office, but its strong pre-commitment level also boosted prime rental levels in the Cambodian capital.
- Over the next 12 months, we expect rents in 15 cities out of the 20 tracked to either remain steady or increase, which is the same as our previous forecast.
Mr. Marcus Burtenshaw, Executive Director and Head of Commercial Agency Department, Knight Frank Thailand, Co., Ltd., has pointed out that, “The drop in average Grade A office rents in Bangkok was a reaction to a slight decline in occupancy, however we expect that this will not last. Demand for office space from e-commerce and finance related sectors remains strong and as such we suspect that take up, occupancies and rents are likely to rebound over the next quarter.”
Knight Frank, the independent global property consultancy, today launches the Asia-Pacific Prime Office Rental Index for Q2 2017. The index increased 1.2% quarter-on-quarter and 0.6% year-on-year as at the end of the second quarter of 2017.
Mr Nicholas Holt, Head of Research for Asia-Pacific, says, “The pickup in global trade and domestic demand has negated geo-political risks to a certain extent, thereby providing a strong foundation for the Asia-Pacific prime office markets.”
Asia-Pacific Prime Office Rents
| City | Submarket(s) | 3-month % change (Q1 2017-Q2 2017) |
Forecast next 12 months |
| Phnom Penh | City Centre | 4.2% | Same |
| Tokyo* | Central 5 Wards | 4.1% | Decrease |
| Bengaluru | CBD | 4.0% | Increase |
| Seoul | CBD, GBD, YBD | 3.5% | Increase |
| Taipei | Downtown | 3.1% | Increase |
| New Delhi | Connaught Place | 2.2% | Same |
| Mumbai | BKC | 2.0% | Increase |
| Melbourne | CBD | 1.1% | Increase |
| Manila | Various | 1.0% | Increase |
| Sydney | CBD | 1.0% | Increase |
| Hong Kong | Central | 1.0% | Increase |
| Guangzhou | CBD | 0.9% | Increase |
| Brisbane | CBD | 0.9% | Increase |
| Beijing | Various | 0.3% | Decrease |
| Perth | CBD | 0.2% | Decrease |
| Shanghai | Puxi, Pudong | 0.0% | Same |
| Jakarta | CBD | 0.0% | Decrease |
| Singapore | Raffles Place, Marina Bay | 0.0% | Same |
| Bangkok | CBD | -0.2% | Increase |
| Kuala Lumpur | City Centre | -0.4% | Decrease |
