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Knight Frank launches Asia Pacific Prime Office Rental Index

27 August 2015

Knight Frank, the independent global property consultancy, today launches the Asia Pacific Prime Office Rental Index for Q2 2015. While a number of markets in the region are plagued by excess supply, sectors empowered by technology, such as online peer-to-peer financial services in Shanghai and e-commerce in India, are driving leasing demand.

Results for Q2 2015:

  • The index increased 1.2% in Q2 2015, as the average vacancy rate dropped by 0.1 percentage point.
  • 11 out of the 19 markets tracked experienced rental growth, while three registered no movement and five recording rental declines.
  • Tokyo saw the highest rental growth in the region whilst Perth continued to be at the bottom of the list since Q1 2015.
  • E-commerce is emerging as a major demand driver in India.  Notably, Amazon and Flipkart signed up almost 300,000 sq m of space in Bengaluru recently.
  • We expect rents in 12 markets to either increase or remain steady over the next 12 months.


City Submarket(s)

3-month % change
(Q1 2015 - Q2 2015)

 Tokyo*  Central 3 wards  7.1%
 Shanghai  Puxi, Pudong  3.0%
 New Delhi  Connaught Place  2.0%
 Bangkok  CBD  1.1%
 Hong Kong  Central  1.1%
 Bengaluru  CBD  1.1%
 Sydney  CBD  0.9%
 Taipei  Downtown  0.8%
 Seoul  CBD  0.4%
 Guangzhou  CBD  0.4%
 Kuala Lumpur  City Centre  0.2%
 Brisbane  CBD  0.0%
 Melbourne  CBD  0.0%
 Phnom Penh  City Centre  0.0%
 Mumbai  BKC  -0.3%
 Beijing  Various  -0.6%
 Singapore  Raffles Place, Marina Bay  -1.4%
 Jakarta  CBD  -5.3%
 Perth  CBD  -5.8%

 Source: Knight Frank Research /*Sanko Estate


Ms Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore, says, “As global and domestic business conditions turned cautious, leasing activities in Singapore’s office market are showing signs of weakening. Typical large space occupiers, in particular financial institutions, are holding back their expansion plans or are going through a consolidation phase, by relocating to alternative locations or consolidating their offices to fewer locations in the Central Business District. The anticipated upcoming supply of 4 million sq ft of new office space by end 2016 has heightened competition among landlords. In addition, the current lack of demand from potential large-space tenants and with the possible deterioration in market sentiment, downside risks on Singapore’s rental growth could become more pronounced going forward.”


For further information, please contact:

Ms Alice Tan, Director and Head of Consultancy & Research, Knight Frank Singapore   +65 6228 6833

Ms Rachel Loke, Head of Asia Pacific Public Relations & Communications +65 6429 3587 @knightfrank

Ms Ginli Tang, Senior Corporate Communications Executive, Knight Frank Singapore +65 6228 7379