Knight Frank has just released the Q1 2013 Asia-Pacific Prime Office Index. An increasingly regionally connected Chinese economy and the knock on effects from Japanese stimulus measures are likely to boost activity across the region, with domestic occupiers leading demand for prime office space.
Highlights of Q1 2013 Asia Pacific Prime Office Index:
- The Knight Frank Asia-Pacific Prime Office Index rose for the twelfth successive quarter, increasing 1.7% in Q1 2013 and 5.6% over the last 12 months
- 15 of the 19 prime office markets tracked saw prime rents increase in Q1 2013
- Tokyo led the ways in rental growth, where Grade-A office rents increased over the quarter by nearly 16%
- Rents are expected to soften in only three of the 19 markets monitored over the next 12 months
Thomas Lam, Director and Head of Research & Consultancy, Greater China at Knight Frank, remains positive about the long-term outlook for premium and Grade-A office buildings in Hong Kong. Central rents will remain stable in 2013 and rents in Kowloon East are likely to see 10-15% growth over the year. Whilst in Mainland China, there are new office supply in Beijing, Shanghai and Guangzhou in 2013, suppressing growth in rents.