Apac Prime Office Rents Fall 25 Y O Y 3Q202

In the third quarter of 2024, Knight Frank reported a decline of 2.5% year-on-year in prime office rents across the Asia Pacific (Apac) region, marking a slight decrease from the 2.8% drop seen in the previous quarter. On a quarter-on-quarter basis, rents decreased by 0.1%.The primary reason for the decline in office rents in the region was the performance of Chinese mainland cities. Out of the 23 cities monitored in the report, Beijing showed the steepest decline with an 11.3% decrease year-on-year and a 1.9% decrease quarter-on-quarter in the third quarter of 2024.Source: Knight FrankOther Chinese cities also experienced a decrease in rental rates year-on-year. These include Shanghai (-11.2%), Hong Kong (-9.4%), Shenzhen (-9.2%), and Guangzhou (-6.4%). On a quarter-on-quarter basis, rents in these cities decreased by 3.2%, 1.8%, 2.5%, and 0.1%, respectively.Read also: Craig Shute named new CEO of Knight Frank Asia PacificMeanwhile, cities in India continued to show growth in prime office rents. Mumbai saw a 5% increase year-on-year, while Bengaluru recorded a 3% increase. Rents in the Delhi National Capital Region remained stable.Australian cities also demonstrated an increase in prime office rents. Brisbane topped the list for the region, with an 11.4% year-on-year increase in rental prices in the third quarter of 2024. Perth came in second with a 5.4% increase year-on-year.On a quarter-on-quarter basis, Mumbai (+5%), Brisbane (+4.2%), and Bangkok (3.1%) experienced the highest rental growth.Source: Knight FrankSingapore saw a 0.6% quarter-on-quarter increase and a 2.7% year-on-year increase in prime office rents in the third quarter of 2024.Overall, 16 out of the 23 cities tracked by Knight Frank showed stability or growth in rents compared to the same period last year, up from 15 cities in the second quarter of 2023.Prime office vacancy rates also showed signs of stabilising, with a quarter-on-quarter decrease of 0.2 percentage points to 14.8%. According to the report, this is the first recorded decrease in prime office vacancy rates since the second quarter of 2022.“While the business sentiment may improve as the Fed eases monetary policy, demand will continue to be tempered by prudent spending and workplace strategies focused on maximising space utilisation,” says Tim Armstrong, Knight Frank’s Global Head of Occupier Strategy & Solutions.Read also: Knight Frank: Strata office prices fall 20.1% quarter-on-quarter in first half of 2024However, he adds that as the production pipeline of prime office space shrinks, any future uptick in leasing activity could rapidly tighten the availability of prime space. In 2024, almost 12 million sq m (129 million sq ft) of prime office supply was delivered. Moving forward, Knight Frank expects the supply of new office space in 2025 to decrease by about 20%.Given these factors, Knight Frank believes that the Apac prime office market will continue to favour tenants in 2024, with a gradual decrease in availability over time.Source: Knight Frank

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The concept of environmental sustainability holds great importance in the URA Master Plan, especially for Toa Payoh. As part of this plan, the area will witness an increase in green spaces and the implementation of eco-friendly initiatives. A key aspect of this development includes the addition of more trees, the establishment of park connectors, and the construction of environmentally-friendly buildings. The residents of The Orie, who also have access to The Orie Showflat, will undoubtedly benefit from a greener and more sustainable environment. This not only enhances the overall aesthetic appeal of the locality but also promotes healthier living conditions.