Bengaluru continues to lead the Asia Pacific region in terms of office rental growth at 12.1% year-on-year in the quarter ended September, according to Knight Frank’s Asia-Pacific Prime Office Rental Index for the quarter.
Mumbai ranked third in the index, recording 7% y-o-y growth in office rentals, followed by Delhi NCR at the 14th spot, which remained stable during the same period.
Jakarta was in the second position with a 10.9% growth in office rent. Taipei ranked fourth with a 5.5% increase in rent, followed by Singapore with a 5.3% rise, Brisbane 3.9% and Seoul 3.7%.
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Sydney ranked eighth with a 3.4% rent increase, while Perth was at the ninth position with 2.4%, and Shanghai rounded off the top 10 with 1.9% appreciation.
On a sequential basis, the index remained stationary after three consecutive quarters of expansion, while y-o-y, the overall index was up 2.3%, seeing its fourth consecutive rise. Overall, vacancy increased by 1.6% from the June quarter.
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Christine Li, (head of research), Knight Frank Asia-Pacific, said, “Vacancies in the region’s offices trended up after three consecutive quarters, set against a backdrop of new supply being released albeit with higher utilisation rates as activity in workplaces climbs to pre-pandemic levels. While the overall regional rents flattened during the quarter against mounting economic uncertainty, most markets were still holding up with a swift return of in-person work. However, concerns over slowing growth will induce more caution over lease commitments and foster more tenant-friendly markets in the region.”
Asia-Pacific Prime Office Rental Index is a quarterly publication, which tracks the rental performance of prime office properties across key markets in the Asia Pacific region.