2022-04-19-莱坊-Asia_Pacific_Office_Highlights_Q1_2022_37页_4mb

Asia-Pacific Q1 2022 Office Highlights Summary

Asia-Pacific Overview

In Q1 2022, the Asia-Pacific Prime Office Rental Index grew by 0.8% QoQ, continuing the positive trend from Q4 2021. On an annual basis, the index rose by 0.2% YoY, marking the second consecutive increase. Vacancy rates remained elevated at 13.1%, similar to Q4 2021. Office rents are believed to have reached their lowest point, with landlords gradually increasing asking rents in response to returning demand. Optimism for 2022 remains, driven by improving sentiments and demand, though challenges from the Omicron variant and the Russia-Ukraine war have tempered growth expectations.

Key Trends and Outlook

• Positive Growth: Most cities across the Asia-Pacific region recorded stable or increasing rents in Q1 2022, with Shanghai leading the YoY growth.
• Market Sentiment: Despite the challenges posed by the Omicron outbreak and macroeconomic uncertainties, the overall outlook for the office sector remains optimistic.
• Leasing Activity: The financial and professional service sectors drove leasing activity, with tenants in the tech industry favoring premium CBD spaces at lower rents.
• Supply Trends: East Asia continues to lead in new office supply growth, followed by South Asia, particularly in Ho Chi Minh City and Phnom Penh.

12-Month Rental Outlook

• Decreasing:
  • Auckland, Shenzhen, Tokyo, Jakarta, Bangkok, Kuala Lumpur, Manila, Phnom Penh
• Unchanged:
  • Guangzhou, Taipei, Delhi-NCR, Mumbai
• Increasing:
  • Brisbane, Melbourne, Perth, Sydney, Beijing, Shanghai, Hong Kong SAR, Seoul, Bengaluru, Singapore

Market Dashboards and Regional Insights

Oceania

• Office rents increased slightly in Q1 2022, driven by improved sentiments and demand.
• Leasing activity was boosted by financial and professional service sectors.
• Vacancy rates varied; cities like Melbourne and Sydney are expected to see more supply entering the market in 2022.
• Auckland experienced rental growth and is expected to continue this trend.

Sydney

• Prime rent: A$1,196 psf pa
• Vacancy rate: 8.4%
• 12-month forecast: Rent is expected to increase, vacancy to remain stable.

Melbourne

• Prime rent: A$708 psf pa
• Vacancy rate: 12.1%
• 12-month forecast: Rent is expected to increase, vacancy to decrease.

Brisbane

• Prime rent: A$617 psf pa
• Vacancy rate: 16.3%
• 12-month forecast: Rent is expected to increase, vacancy to decrease.

Perth

• Prime rent: A$626 psf pa
• Vacancy rate: 11.5%
• 12-month forecast: Rent is expected to increase, vacancy to decrease.

Auckland

• Prime rent: NZ$530 psf pa
• Vacancy rate: 10.3%
• 12-month forecast: Rent is expected to increase, vacancy to decrease.

Southeast Asia

• All cities recorded stable or increasing rents, with Jakarta and Singapore leading the recovery.
• Rental growth reversed, and average rents increased by 0.7% QoQ.
• Vacancy rates remain high, with Phnom Penh, Bangkok, and Ho Chi Minh City showing slight improvements.

Bangkok

• Prime rent: THB1,057 psf pm
• Vacancy rate: 11.6%
• 12-month forecast: Rent is expected to remain stable, vacancy to decrease.

Kuala Lumpur

• Prime rent: MYR5.78 psf pm
• Vacancy rate: 28.6%
• 12-month forecast: Rent is expected to remain stable, vacancy to increase.

Ho Chi Minh City

• Prime rent: US$47.8 psf pm
• Vacancy rate: 9.1%
• 12-month forecast: Rent is expected to increase, vacancy to increase.

East Asia

• The office market in Greater China is expected to have a sluggish recovery in 2022 due to repeated outbreaks of COVID-19 and new supply.
• Shanghai recorded the highest YoY growth, while Beijing saw a drop in rental prices.
• Vacancy rates rose in most cities, but are expected to stabilize as the market returns to normal.

Hong Kong SAR

• Prime rent: HK$114 psf pm
• Vacancy rate: 7.2%
• 12-month forecast: Rent is expected to increase, vacancy to increase.

South Asia

• Delhi-NCR and Mumbai maintained stable rents, while Bengaluru recorded a significant 5.8% rental growth, indicating early signs of recovery.
• Tech companies are the main drivers of leasing demand, especially in Bengaluru, where vaccination rates have increased, enabling employees to return to offices.
• More employers are expected to open up workplaces, boding well for the office market in Tier-1 cities.

Seoul

• Prime rent: KRW37,354 psf pm
• Vacancy rate: 3.8%
• 12-month forecast: Rent is expected to increase, vacancy to decrease.

Key Insights and Predictions

• The Asia-Pacific office sector is showing signs of recovery, with rents expected to sustainably increase in 2022.
• While macroeconomic uncertainties (such as inflation and geopolitical tensions) have dampened growth forecasts, the region is less affected than others.
• Leasing activity is on the rise, particularly in Tier-1 cities, driven by demand from tech and financial sectors.
• Vacancy rates remain elevated, but are expected to improve in the coming months as demand increases and supply stabilizes.
• New office supply is growing, with East Asia and South Asia leading the way, which may affect market balance in the long term.

Contact Information

• James Johnston – Director, Occupier Strategy and Solutions, Australia
  +61 2 9036 6873 | James.Johnston@au.knightfrank.com

• Gordon Wyllie – Partner, Occupier Strategy and Solutions, Australia
  +61396044666 | Gordon.Wyllie@au.knightfrank.com

• Matt Martin – Partner, Occupier Strategy and Solutions, Australia
  +61732468822 | Matt.Martin@au.knightfrank.com

• Theo Smyrniotis – Partner, Head of Occupier Strategy and Solutions, Australia
  +61 8 9225 2521 | Theo.Smyrniotis@au.knightfrank.com

• Lloyd Budd – Director Commercial and Industrial, Australia
  +64210738789 | lloyd.budd@bayleys.co.nz

• Marcus Burtenshaw – Head of Occupier Strategy and Solutions, Thailand
  +66 (0)2643 8223 | marcus.burtenshaw@th.knightfrank.com

• Rina Martianti – Associate Director, Occupier Strategy and Solutions, Indonesia
  +62 81398967313 | Rina.martianti@id.knightfrank.com

• Morgan McGilvray – Senior Director, Occupier Strategy and Solutions, Philippines
  +632 7752 2580 | Morgan.mcgilvray@santos.knightfrank.ph

• Ross Wheble – Country Head, Cambodia
  +855 (0) 23 966 878 | ross.wheble@kh.knightfrank.com

• Jonathan Rideout – Head of Office Services, Shanghai
  +86 21 6032 1713 | jonathan.rideout@cn.knightfrank.com

• Katherine Lu – Managing Director, Beijing
  +86 10 6113 8021 | demi.zhu@cn.knightfrank.com

• Ken Kan – Managing Director, Shenzhen
  +86 755 6661 3141 | ken.kan@cn.knightfrank.com

• Tim Armstrong – Global Head of Occupier Strategy and Solutions
  +65 6429 3531 | Tim.armstrong@asia.knightfrank.com

• Viral Desai – Executive Director, Occupier Strategy and Solutions, India
  +91 80 4073 2600 | Viral.desai@in.knightfrank.com

• Calvin Yeo – Head of Occupier Strategy and Solutions, Singapore
  +65 6228 6887 | Calvin.yeo@sg.knightfrank.com

• Alex Crane – Managing Director, Ho Chi Minh City
  +84 93 645 8000 | alex.crane@knightfrank.com

• David Lee – General Manager, Global Portfolio Solutions/Project Management, Korea
  +82 2 2175 3988 | david.lee@kr.knightfrank.com

Knight Frank's Mission

Knight Frank's mission is to "Connect People and Property, Perfectly", and the Asia-Pacific Occupier Strategy and Solutions team supports clients with consulting and transactional services. They provide tailored advice to occupiers, whether they are seeking or occupying industrial, office, or retail spaces. The team is locally expert and globally connected, managing multi-market clients from hubs across the Asia-Pacific region.