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Prime office rental index for the Asia Pacific region edged up by 1.3 percent quarter-on-quarter in Q1 2015, and now hovers 5.3 percent above its pre-crisis peak in Q2 2008, according to Knight Frank.
Out of the 19 cities tracked in the region, 13 saw rental growth, three recorded no rental movement, while remianing three posted rental declines.
Bangkok led the region with the highest quarterly rental growth of 3.8 percent, followed by Kuala Lumpur and Hong Kong with 3.6 percent and 3.2 percent respectively.
At fourth place is Seoul, which saw a modest gain of 2.3 percent, trailed by Tokyo with 1.9 percent and Mumbai at 1.6 percent.
Sydney and Guangzhou are tied at the seventh spot with rental growth of 1.0 percent each. Similarly, Taipei and New Delhi both took the eight spot with rental gains of 0.9 percent.
At the ninth place is Bangalore with 0.8 percent, followed by Singapore and Phnom Penh, which recorded the lowest rental increase of 0.6 percent each.
On the other hand, prime office rents in Jakarta, Brisbane and Melbourne were unchanged on a quarterly basis. Beijing and Shanghai both saw a rental dip of 0.5 percent, while Perth posted the highest drop of 1.8 percent.
“Over the next 12 months, we expect rents in 14 cities out of the 19 tracked to either remain steady or increase, which is in line with our previous forecasts,” said Knight Frank. However, prime office rents in Singapore’s Raffles Place and Marina Bay are likely to be flat over the next 12 months, it added.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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