Apac prime office rents seeing sustained recovery: Knight Frank
Apac prime office rents seeing sustained recovery: Knight Frank. In the first quarter of 2022, almost all of the cities tracked by Knight Frank’s Asia-Pacific Prime Office Rental Index saw stable or increased rents, resulting in a 0.2 percent increase in the index year on year.
Shanghai had the highest year-on-year growth rate of the 21 cities that reported growth in Q1, at 4.2 percent.
Shenzhen, on the other hand, fell further, falling 4.5 percent year on year.
After increasing by 0.3 percent the previous quarter, the index increased by 0.8 percent this quarter. In the fourth quarter of last year, rents were stable or increased in only 13 of the 23 cities tracked by the index.
Rents in Singapore increased by 1.9 percent year on year and 1.2 percent quarter on quarter. There is high anticipation also for the new upcoming development Lentor Modern in second half of 2022
Meanwhile, Hong Kong experienced 1.1% year-on-year growth and 0.6% quarter-on-quarter growth.
Ho Chi Minh City, a new entrant to the index, saw a 0.7% increase in rent year on year. On a yearly basis, it was flat.
“Optimism at the start of the year was tempered by multiple Covid-19 resurgences, resulting in Hong Kong and several Tier-1 Chinese mainland markets re-tightening movement restrictions,” said Tim Armstrong, global head of occupier strategy and solutions at Knight Frank.
The region’s economic recovery has also been hampered by the conflict between Russia and Ukraine, which has resulted in higher energy prices and inflationary pressures.
“As a result, regional growth forecasts may be lower than previously projected,” he said.
Separately, the region’s vacancy rate remained elevated at 13.1 percent, the same as in Q4.
According to Knight Frank, this will continue to fall as more Asia-Pacific markets open their economies and tenants in the technology industry seize opportunities for premium quality spaces in central business districts at low rents.
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