Office Highlights Q1 2025 PDF Free Download
1 / 36/36
100%
knightfrank.com/research
Office Highlights
Q1 2025
Knight Frank Asia-Pacific
Asia-Pacific Research
Office Markets
Asia-Pacific Overview –Q1 2025
2
Prime rents in the region fell faster during the
quarter, dropping a steeper 0.9% quarter-on-
quarter compared to 0.4% in Q4 2024. While
conditions in tier-one Chinese mainland cities
remained challenging, rental growth was also
observed to have cooled in Australia. 17 of the
23 monitored cities reported stable or
increasing rents year-on-year, up from 16 in Q4
2024, with Jakarta reversing a rental
downtrend.
Rents in Brisbane continue to register the
highest annual growth. However, the city’s
rental upcycle is stabilising, with rents in the
city registering just a 0.5% quarterly rise. This
can be attributed to the recent period of
sustained strong rental growth and ongoing
high fit-out costs, with tenants choosing to
remain focused on renewals. However, the
underlying lack of new supply and strong tenant
demand will likely trigger stronger growth
beyond 2025.
Regionwide vacancies remained largely
unchanged during the quarter due to tightening
availabilities in India and Southeast Asian
markets, despite the delivery of 1.3 million sqm.
Notably, leasing volumes in Bengaluru, Mumbai
and Delhi-NCR hit a quarterly record of 1.7
million sqm.
Trump’s decision to raise tariffs against its
trading partners has induced significant
economic volatility globally. These measures are
likely to disproportionately impact the region’s
economies. However, we expect some markets
to remain resilient due to the strength of
domestic demand, such as India, where leasing
volumes have largely been anchored by
businesses that are domestically driven.
-1.4%
Brisbane
17 of 23
Cautious
“As Trump’s tariffs continue to evolve, the full
economic impact of the new measures will take
time to unfold. However, forward-looking
expectations will inevitably turn more cautious as
a new modus operandi for the global economy
emerges. As companies re-assess their
occupational footprints, we expect occupiers to
delay significant real estate decisions due to
tariff uncertainties. This trend is driving a
stronger focus on lease renewals, particularly for
those who have moved into higher-quality
buildings in the past few years and prompting
occupiers to explore flexible spaces and shorter
lease terms. While the ongoing uncertainty is
complicating long-term decision-making that will
likely weigh on occupier sentiment in the near
term, we believe India and emerging Southeast
Asia to remain resilient, as occupiers diversify
their operations to navigate the new landscape..”
YoY change for Asia-Pacific
Rental Index in Q1 2025
Recorded the highest YoY
growth in Q1 2025
Tracked cities recorded
stable or increasing rents
YoY in Q1 2025
Expectations for 2025
office outlook
Tim Armstrong
Global Head of Occupier Strategy
and Solutions
Summary
Updated 7 Apr 2025
Rental decline accelerates in the region
APAC Prime Office Rental Index
Updated 7 Apr 2025 Source: Knight Frank Research 3
APAC Prime Office Rental Index – 10 Year Historical Q1 2025 Occupancy Cost (US$/sqft/Year)
130
135
140
145
150
155
160
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
19.51
25.77
30.38
31.58
33.17
36.72
38.87
39.89
46.96
50.26
51.20
54.29
56.00
56.41
58.88
66.05
70.64
76.45
80.77
85.53
90.87 120.91
127.27
Kuala Lumpur
Jakarta
Phnom Penh
Manila
Guangzhou
Bengaluru
Shenzhen
Auckland
Bangkok
Shanghai
Taipei
Melbourne
Perth
Beijing
Brisbane
Ho Chi Minh City
Mumbai
Delhi-NCR
Seoul
Tokyo
Sydney
Singapore
Hong Kong SAR
QoQ change
in Q1 2025
Australasia Southeast Asia East Asia India
- 0.9%
Covid-19 Pandemic
Tightening availabilities in India and Southeast Asia offset rise in Chinese Mainland
APAC Prime Office Vacancy Rate
Updated 7 Apr 2025 Source: Knight Frank Research 4
APAC Prime Office Vacancy Rate – 10 Year Historical Q1 2025 Vacancy Rate
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
4Q17
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
1.8%
3.6%
4.7%
5.0%8.0%
9.0%
11.0%
11.0%
11.1%
11.2%
12.3%
13.3%
13.6%
14.7%
17.6%
18.0%
18.6%22.2%
22.6%
23.0%
24.6%
25.7%
26.4%
Seoul
Tokyo
Taipei
Singapore
Brisbane
Ho Chi Minh City
Delhi-NCR
Manila
Auckland
Bengaluru
Perth
Sydney
Hong Kong SAR
Guangzhou
Mumbai
Melbourne
Beijing
Shanghai
Jakarta
Bangkok
Kuala Lumpur
Shenzhen
Phnom Penh
Australasia Southeast Asia East Asia India
QoQ change
in Q1 2025
+0.06pp
Covid-19 Pandemic
Prime rental growth decelerates across the region
APAC Prime Rental Rate Growth – Q1 2025
Updated 7 Apr 2025 Source: Knight Frank Research 5
Year-on-Year Change (%) Quarter-on-Quarter Change (%)
-16.4%-13.4%
-12.5% -7.5%
-6.2%
-4.3% 0.0%
0.3%
1.4%
1.7%
2.2%
2.4%
2.6%
2.7%
2.8%
3.4%
4.3%
5.6%
5.9%
6.9%
6.9% 11.1% 14.2%
Beijing
Shanghai
Phnom Penh
Shenzhen
Guangzhou
Hong Kong SAR
Auckland
New Delhi
Singapore
Manila
Taipei
HCMC
Kuala Lumpur
Sydney
Melbourne
Mumbai
Perth
Tokyo
Bengaluru
Seoul
Bangkok
Jakarta
Brisbane
-12.5% -5.8% -4.1%
-3.7%
-3.2%
-2.0%-0.7%
-0.1% 0.0%
0.0%
0.0%
0.0%
0.1%
0.1%
0.5%
0.6%
0.8%
1.0%
1.1%
1.9%
2.3%
2.6% 4.2%
Phnom Penh
Beijing
Shanghai
Guangzhou
Mumbai
Shenzhen
Hong Kong SAR
HCMC
Auckland
New Delhi
Singapore
Taipei
Sydney
Melbourne
Brisbane
Bengaluru
Kuala Lumpur
Perth
Bangkok
Manila
Tokyo
Seoul
Jakarta
Australasia Southeast Asia East Asia India Australasia Southeast Asia East Asia India
189.1 million sqm
10.8 million
sqm
2024 Stock
2025 New Supply
0%
1%
2%
3%
4%
5%
6%
7%
8%
-
1
2
3
4
5
6
Southeast Asia ANZ East Asia South Asia
Sqm (million)
2025 New
Supply
% Growth
New Supply by Sub-RegionNew Supply by Sub-Region
Deferred completions swell development pipeline in 2025
APAC Office Pipeline Supply
Updated 7 Apr 2025 Source: Knight Frank Research
0.0%
0.4%
0.7%
1.8%
1.9%
2.1%
2.2%
2.2%
2.4%
3.4%
3.9%
5.4%
5.4%
6.1%
6.4%
6.8%
8.2%
9.7% 14.0%
14.9%
14.9%
18.0% 40.5%
0% 20% 40% 60%
Jakarta
Seoul
Beijing
Taipei
Sydney
Tokyo
Melbourne
Perth
Kuala Lumpur
Singapore
Brisbane
Shanghai
Hong Kong SAR
Auckland
New Delhi
Bengaluru
Mumbai
Manila
Ho Chi Minh City
Bangkok
Shenzhen
Guangzhou
Phnom Penh
6
Australasia Southeast Asia East Asia India
APAC Grade A Stock
Office inventory to
rise 5.7% in 2025
New Supply Growth in 2025
Proportion of 2025 Supply to 2024 Stock
12-Month Rental Outlook
APAC Office Snapshot – Q1 2025
Updated 7 Apr 2025 Source: Knight Frank Research
Decreasing
•Beijing •Shanghai
•Guangzhou •Shenzhen
•
Hong Kong SAR
Unchanged
•Bengaluru •Mumbai
•Delhi-NCR •Singapore
•Kuala Lumpur •Melbourne
•Jakarta •Phnom Penh
•Bangkok •Manila
Increasing
•Brisbane •Sydney
•Perth •Taipei
•Auckland •Seoul
•
Ho Chi Minh City
•Tokyo
TENANT LANDLORD
BALANCED
Q1 2025 MARKET
PENDULUM
SOUTH ASIA
Tokyo
Jakarta
Singapore
Brisbane
Melbourne
Sydney
Delhi-NCR
Bengaluru
Mumbai
Seoul
Kuala Lumpur
Bangkok Manila
Shanghai
Hong Kong SAR
Taipei
Beijing
AUSTRALASIA
EAST ASIA
SOUTHEAST ASIA
Perth
Phnom Penh
Auckland
Ho Chi Minh City
Guangzhou
Shenzhen
7
Australasia
Prime net effective rents in Australia’s offices ended largely flat, down just 0.1%
quarter-on-quarter, with a marginal increase in incentives offsetting the rise in
face rents. On the whole, rent growth has noticeably lost momentum going into the
new year. A rise in incentives was observed for Melbourne’s prime offices, which
increased by 0.8 percentage points to average 47.8%, as landlords aimed to raise
occupancies. Vacancies in the city hit 18%, reportedly the highest in over 20 years,
mostly attributed to AUS Post vacating 111 Bourke Street, which released 44,000
sqm to the market. However, demand is projected to improve as the return-to-
office trend gains momentum, and the completion of major infrastructure projects
enhances connectivity. While the elevated vacancies across Australia’s major
markets are likely to hold back rental increases, the thin development pipeline in
2025 is expected to rapidly diminish options of quality spaces for occupiers.
8
Sydney
Updated 7 Apr 2025 Source: Reserve Bank of Australia, Knight Frank Research 9
For more information,
please contact:
Katherine Moss
Partner, National Head of Tenant
Representation – Office
katherine.moss@au.knightfrank.com
+61 2 9036 6647
Economic Indicators
2025F 2026F
GDP Growth 2.4% 2.3%
Unemployment Rate 4.2% 4.2%
Inflation 3.7% 2.8%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (A$ psm pa) 1,324 ↑
Vacancy 13.3% →
Market Balance Tenant Tenant
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
800
900
1,000
1,100
1,200
1,300
1,400
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
A$ psm pa
Rents and Vacancy
Rent Vacancy Rate
20
40
60
80
100
120
140
160
180
2025 2027
sqm (000)
Pipeline Supply
Melbourne
Updated 7 Apr 2025 Source: Reserve Bank of Australia, Knight Frank Research 10
Economic Indicators
2025F 2026F
GDP Growth 2.4% 2.3%
Unemployment Rate 4.2% 4.2%
Inflation 3.7% 2.8%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (A$ psm pa) 719 →
Vacancy 18.0 →
Market Balance Tenant Tenant
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
400
450
500
550
600
650
700
750
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
A$ psm pa
Rents and Vacancy
Rent Vacancy Rate
20
40
60
80
100
120
140
160
180
2025 2026 2027
sqm (000)
Pipeline Supply
For more information,
please contact:
Craig Carr
Head of Tenant Representation –
Victoria
Craig.Carr@au.knightfrank.com
+61 447 463 778
Brisbane
Updated 7 Apr 2025 Source: Reserve Bank of Australia, Knight Frank Research 11
For more information,
please contact:
Richard Pearce
Partner, Tenant Representation Office
Richard.pearce@au.knightfrank.com
+61 7 3246 8836
Economic Indicators
2025F 2026F
GDP Growth 2.4% 2.3%
Unemployment Rate 4.2% 4.2%
Inflation 3.7% 2.8%
Real Estate Indicators
Q4 2024 12mth Forecast
Prime Rent (A$ psm pa) 810 ↑
Vacancy 8.0% ↑
Market Balance Balanced Balanced
0%
3%
6%
9%
12%
15%
18%
550
600
650
700
750
800
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
A$ psm pa
Rents and Vacancy
Rent Vacancy Rate
10
20
30
40
50
60
70
80
90
100
2025 2027
sqm (000)
Pipeline Supply
Perth
Updated 7 Apr 2025 Source: Reserve Bank of Australia, Knight Frank Research 12
For more information,
please contact:
Alyson Martinovitch
State Head of Tenant Representation -
WA
Alyson.Martinovitch@au.knightfrank.com
+61 459 696 098
Economic Indicators
2025F 2026F
GDP Growth 2.4% 2.3%
Unemployment Rate 4.2% 4.2%
Inflation 3.7% 2.8%
Real Estate Indicators
Q4 2024 12mth Forecast
Prime Rent (A$ psm pa) 744 ↑
Vacancy 12.3% →
Market Balance Balanced Balanced
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
550
600
650
700
750
800
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
A$ psm pa
Rents and Vacancy
Rent Vacancy Rate
5
10
15
20
25
30
35
40
45
2024 2025
sqm (000)
Pipeline Supply
Auckland
Updated 7 Apr 2025 Source: ANZ, Knight Frank Research 13
For more information,
please contact:
Steve Rendall
National and Head of Occupier Strategy
& Solutions
Steve.rendall@bayleys.co.nz
+64 27 521 2599
Economic Indicators
2025F 2026F
GDP Growth 1.0% 3.0%
Unemployment Rate 5.1% 4.4%
Inflation 2.6% 1.9%
Real Estate Indicators
Q4 2024 12mth Forecast
Prime Rent (NZ$ psm pa) 590 →
Vacancy 11.1% →
Market Balance Balanced Balanced
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
400
450
500
550
600
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
A$ psm pa
Rents and Vacancy Rent Vacancy Rate
10
20
30
40
50
60
70
80
90
100
2024 2025
sqm (000)
Pipeline Supply
Southeast Asia
Rents rose an average of 1.3% quarter-on-quarter in Southeast Asia’s emerging
markets, powered by increases in Jakarta, Kuala Lumpur and Bangkok. After
facing continued rental declines and elevated vacancy rates since mid-2023,
Jakarta’s occupier fundamentals are set to improve 2025, driven by a receding
pipeline supply which should foster a more balanced market. Meanwhile,
continued tenant preference for high-quality, amenity-rich environment lifted
rents for Bangkok’s prime offices. Occupancies in the Kuala Lumpur’s office
market also continued to improve, which had benefitted from the expansion of
tech firms as well as MNCs seeking to strengthen their regional presence.
However, rents in Singapore were unchanged quarter-on-quarter, as occupiers are
increasingly considering cost neutral options that include right-sizing and moving
to more modern office facilities.
14
Bangkok
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 15
For more information,
please contact:
Panya Jenkitvathanalert
Executive Director and Head of Office
Strategy & Solutions
panya.jenkitvathanalert@th.knightfrank.
com
+66 86 999 5557
Economic Indicators
2025F 2026F
GDP Growth 3.1% 3.0%
Unemployment Rate 1.0 1.0
Inflation 1.6% 1.1%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (THB psm pm) 1,260 →
Vacancy 23.0% ↑
Market Balance Tenant Tenant
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
24.0%
27.0%
30.0%
500
600
700
800
900
1,000
1,100
1,200
1,300
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
THB psm pm
Rents and Vacancy
Rent Vacancy Rate
50
100
150
200
250
2025 2026 2027
sqm (000)
Pipeline Supply
Jakarta
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 16
For more information,
please contact:
Rina Martianti
Associate Director, Occupier Strategy and
Solutions, Indonesia
rina.martianti@id.knightfrank.com
+62 81398967313
Economic Indicators
2025F 2026F
GDP Growth 4.9% 4.9%
Unemployment Rate 5.0% 4.9%
Inflation 2.3% 2.7%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (IDR psm pm) 327,019 ↑
Vacancy 26.0% ↓
Market Balance Tenant Tenant
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
250
270
290
310
330
350
370
390
2Q20 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24 4Q24
IDR psm pm (000)
Rents and Vacancy
Rent Vacancy Rate
Kuala Lumpur
Updated 7 Apr 2025 Source: S&P Global, Bank Negara Malaysia, Ministry of Finance Malaysia, Knight Frank Research 17
For more information,
please contact:
Young Khean Teh
Senior Executive Director, Office Strategy
and Solutions, Malaysia
youngkhean.teh@my.knightfrank.com
+603 228 99 619
Economic Indicators
2025F 2026F
GDP Growth 4.5% - 5.5% 4.5
Unemployment Rate 3.1% 3.2
Inflation 2.0% - 3.5% 2.0
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (MYR psf pm) 6.01 →
Vacancy 24.6% →
Market Balance Tenant Tenant
20
40
60
80
100
120
140
2025 2026 2027
sqm (000)
Pipeline Supply
20.0%
22.0%
24.0%
26.0%
28.0%
30.0%
32.0%
5.4
5.6
5.8
6.0
6.2
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
MYR psf pm
Rents and Vacancy
Rent Vacancy Rate
Manila
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 18
For more information,
please contact:
Morgan Mcgilvray
Senior Director, Occupier Strategy
and Solutions, Philippines
morgan.mcgilvray@santos.knightfrank.ph
+632 7752 2580
Economic Indicators
2025F 2026F
GDP Growth 6.0% 6.2%
Unemployment Rate 3.8% 3.6%
Inflation 3.1% 3.2%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (PHP psm pm) 1,387 ↓
Vacancy 11.0% ↓
Market Balance Tenant Tenant
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
PHP psm pm
Rents and Vacancy Rent Vacancy Rate
Phnom Penh
Updated 7 Apr 2025 Source: IMF WEO, Knight Frank Research 19
For more information,
please contact:
Ross Wheble
Country Head, Cambodia
ross.wheble@kh.knightfrank.com
+855 (0) 23 966 878
Economic Indicators
2025F 2026F
GDP Growth 5.8% 6.2%
Unemployment Rate NA NA
Inflation 2.1% 3.2%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (US$ psm pm) 21.29 →
Vacancy 26.4% →
Market Balance Tenant Tenant
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
US$ psm pm
Rents and Vacancy
Rent Vacancy Rate
50
100
150
200
250
2025 2026 2027
sqm (000)
Pipeline Supply (All Grades)
Singapore
Updated 7 Apr 2025 Source: Ministry of Trade and Industry, Monetary Authority of Singapore, Knight Frank Research 20
For more information,
please contact:
Calvin Yeo
Managing Director, Occupier Strategy
and Solutions, Singapore
calvin.yeo@sg.knightfrank.com
+65 6228 6887
Economic Indicators
2025F 2026F
GDP Growth 2.5% 2.4%
Unemployment Rate 1.0% 1.8%
Inflation 1.5% 1.9%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (S$ psf pm) 11.36 →
Vacancy 5.0% ↑
Market Balance Balanced Balanced
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
8.0
9.0
10.0
11.0
12.0
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
S$ psf pm
Rents and Vacancy
Rent Vacancy Rate
100
200
300
400
500
600
2025 2027
sqft (000)
Pipeline Supply
Ho Chi Minh City
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 21
For more information,
please contact:
Leo Nguyen
Director, Occupier Strategy & Solutions
Leo.nguyen@knightfrank.com
+84 905 79 87 88
Economic Indicators
2025F 2026F
GDP Growth 6.6% 6.7%
Unemployment Rate 3-4% 3-4%
Inflation 3.4% 3.5%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (US$ psm pm) 51.82 ↓
Vacancy 9.0% ↑
Market Balance Tenant Tenant
0.0%
5.0%
10.0%
15.0%
20.0%
42.0
44.0
46.0
48.0
50.0
52.0
54.0
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
US$ psm pm
Rents and Vacancy
Rent Vacancy Rate
10
20
30
40
50
60
70
2025 2026 2027
sqm (000)
Pipeline Supply
East Asia
The rental decline across the Chinese mainland’s tier-one cities accelerated in Q1
2025, with prime rents dropping at a faster 4.5%, compared to 4.3% in Q4 2024.
Prime rents are now 13% lower than they were in Q124, with vacancies hitting over
20%. Downward pressure on its office property market is likely to persist as
foreign companies shrink their presence amid rising tensions with the US and
profitability declines as the nation’s economic growth slows. While Hong Kong
SAR’s office leasing market continues to grapple with an ample pipeline, there
were notable take-ups by firms in the legal and financial sectors. The increasing
complexity of financial markets, such as crypto, has led to heightened demand for
specialised legal services. An alternative investment firm leased over 55,000 sf
space in The Henderson, which is quickly shaping up to be an attractive address
for financial firms. Rental growth in Tokyo also gathered momentum on the back
of robust demand. According to Sanko Real Estate, net absorption in the five
central wards breached 100,000 tsubo for the first time in over four years.
22
Beijing
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 23
For more information,
please contact:
Charles Yan
General Manager, Office Strategy and
Solutions, Beijing
charles.yan@cn.knightfrank.com
+86 139 1111 1607
Economic Indicators
2025F 2026F
GDP Growth 4.1% 3.8%
Unemployment Rate 5.3% 5.5%
Inflation 0.3% 0.4%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (CNY psm pm) 237 ↓
Vacancy 18.6% ↑
Market Balance Tenant Tenant
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
20.0%
0
50
100
150
200
250
300
350
400
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
CNY psm pm
Rents and Vacancy
Rent Vacancy Rate
100
200
300
400
500
600
700
2025 2026 2027
sqm (000)
Pipeline Supply
Shanghai
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 24
For more information,
please contact:
Jonathan Rideout
Head of Office Strategy and Solutions,
Shanghai
jonathan.rideout@cn.knightfrank.com
+86 21 6032 1713
Economic Indicators
2025F 2026F
GDP Growth 4.1% 3.8%
Unemployment Rate 5.3% 5.5%
Inflation 0.3% 0.4%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (CNY psm pm) 205 ↓
Vacancy 22.2% ↑
Market Balance Tenant Tenant
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
200
220
240
260
280
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
CNY psm pm
Rents and Vacancy
Rent Vacancy Rate
200
400
600
800
1,000
1,200
1,400
2025 2026 2027
sqm (000)
Pipeline Supply
Guangzhou
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 25
For more information,
please contact:
Aaron Huang
Head of Office Strategy & Solutions,
Guangzhou
Aaron.huang@cn.knightfrank.com
+86 166 5801 0718
Economic Indicators
2025F 2026F
GDP Growth 4.1% 3.8%
Unemployment Rate 5.3% 5.5%
Inflation 0.3% 0.4%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (CNY psm pm) 128.80 ↓
Vacancy 14.7% ↑
Market Balance Tenant Tenant
0%
2%
4%
6%
8%
10%
12%
14%
16%
120
130
140
150
160
170
180
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
CNY psm pm
Rents and Vacancy
Rent Vacancy Rate
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2025 2026 2027
qsqm (000)
Pipeline Supply
200
400
600
800
1,000
1,200
1,400
1,600
2025 2026 2027
sqm (000)
Pipeline Supply
Shenzhen
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 26
For more information,
please contact:
Ken Kan
Managing Director, Head of Office
Strategy and Solutions, Shenzhen
Ken.kan@cn.knightfrank.com
+86 755 6661 3141
Economic Indicators
2025F 2026F
GDP Growth 4.1% 3.8%
Unemployment Rate 5.3% 5.5%
Inflation 0.3% 0.4%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (CNY psm pm) 156.40 ↓
Vacancy 25.7% ↑
Market Balance Tenant Tenant
0%
5%
10%
15%
20%
25%
30%
150
160
170
180
190
200
210
220
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
CNY psm pm
Rents and Vacancy
Rent Vacancy Rate
Hong Kong SAR
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 27
For more information,
please contact:
Wendy Lau
Executive Director, Head of Hong Kong
Office Strategy & Solutions
Wendy.lau@hk.knightfrank.com
+852 2846 4988
Economic Indicators
2025F 2026F
GDP Growth 2.3% 2.3%
Unemployment Rate 3.0% 2.9%
Inflation 1.7% 1.6%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (HK$ psf pm) 89.90 ↓
Vacancy 13.6% ↑
Market Balance Tenant Tenant
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
40
80
120
160
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
HKD psf pm
Rents and Vacancy
Rent Vacancy Rate
100
200
300
400
500
600
700
800
2025 2026 2027
sqft (000s)
Pipeline Supply
Taipei
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 28
For more information,
please contact:
Jessica Lu
Head, Office Strategy and Solutions,
Taiwan
jessica.lu@repro.knightfrank.com
+886 2 8729 8776
Economic Indicators
2025F 2026F
GDP Growth 2.1% 2.4%
Unemployment Rate 3.6% 3.5%
Inflation 1.5% 0.8%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (TW$ per ping pm)
3,301 ↑
Vacancy 4.7% ↑
Market Balance Tenant Tenant
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2,000
2,200
2,400
2,600
2,800
3,000
3,200
3,400
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
TWD per ping pm
Rents and Vacancy
Rent Vacancy Rate
20
40
60
80
100
120
140
160
180
200
2025 2026 2027
ping (000)
Pipeline Supply
Tokyo
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 29
For more information,
please contact:
Tim Armstrong
Global Head of Occupier Strategy
and Solutions
tim.armstrong@asia.knightfrank.com
+65 6429 3531
Economic Indicators
2025F 2026F
GDP Growth 1.3% 1.0%
Unemployment Rate 2.6% 2.5%
Inflation 2.2% 2.1%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (JPY psm pa) 29,581 ↑
Vacancy 3.6% →
Market Balance Balanced Balanced
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
25,000
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
JPY per tsubo pm
Rents and Vacancy
Rent Vacancy Rate
Seoul
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 30
For more information,
please contact:
David Lee
Director, Global Portfolio Solutions/
Project Management, Korea
david.lee@kr.knightfrank.com
+82 2 2175 3988
Economic Indicators
2025F 2026F
GDP Growth 2.0% 2.0%
Unemployment Rate 2.7% 2.7%
Inflation 1.9% 1.8%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (KRW psm pm) 41,180 →
Vacancy 1.9% →
Market Balance Landlord Balanced
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
KRW psm pm
Rents and Vacancy
Rent Vacancy Rate
50
100
150
200
250
2025 2026 2027
sqm (000)
Pipeline Supply
India
Demand in Q1 2025 trended higher in India’s three largest office occupier
markets, reflecting the strong business sentiments in the country. Leadership
teams across industries, including tech giants, are also actively driving a return to
office. Notably, leasing activity during the quarter was dominated by GCCs,
taking the spotlight from domestic-focused businesses which had anchored the
market since the pandemic. 65% of all GCC transactions were concentrated in
Bengaluru. Flex space operators were also particularly active, which increased
requirements by 28% year-on-year, taking up close to half a million sf during the
quarter, with a higher incidence of small businesses taking up co-working spaces.
However, rents fell in Mumbai, as landlords prioritized occupancies amid the
substantial volume of new office spaces expected to be completed in 2025.
31
Bengaluru
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 32
For more information,
please contact:
Rahil Gibran
National Director, Head of Occupier
Strategy and Solutions, Bangalore
rahil.gibran@in.knightfrank.com
+91 80 6818 5674
Economic Indicators
2025F 2026F
GDP Growth 6.7% 6.8%
Unemployment Rate NA NA
Inflation 4.4% 4.6%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (INR psf pa) 1,716 →
Vacancy 11.2% →
Market Balance Balanced Balanced
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
INR psf pa
Rents and Vacancy
Rent Vacancy Rate
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
2025 2026 2027
sqft (000)
Pipeline Supply
Mumbai Metropolitan Region (MMR)
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 33
For more information,
please contact:
Kaushik Shah
National Director, Occupier Strategy and
Solutions
kaushik.shah@in.knightfrank.com
+91 22 6745 0256
Economic Indicators
2025F 2026F
GDP Growth 6.7% 6.8%
Unemployment Rate NA NA
Inflation 4.4% 4.6%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (INR psf pa) 3,744 →
Vacancy 17.6% →
Market Balance Balanced Balanced
16.0%
17.0%
18.0%
19.0%
20.0%
21.0%
22.0%
3,100
3,200
3,300
3,400
3,500
3,600
3,700
3,800
3,900
4,000
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
INR psf pa
Rents and Vacancy
Rent Vacancy Rate
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2025 2026 2027
sqft (000)
Pipeline Supply
Delhi–NCR
Updated 7 Apr 2025 Source: S&P Global, Knight Frank Research 34
For more information,
please contact:
Viral Desai
Sr. Executive Director – Occupier
Strategy and Solutions
viral.desai@in.knightfrank.com
+91 80 4073 2600
Economic Indicators
2025F 2026F
GDP Growth 6.7% 6.8%
Unemployment Rate NA NA
Inflation 4.4% 4.6%
Real Estate Indicators
Q1 2025 12mth Forecast
Prime Rent (INR psf pa) 4,092 →
Vacancy 11.0% →
Market Balance Balanced Balanced
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
4,010
4,020
4,030
4,040
4,050
4,060
4,070
4,080
4,090
4,100
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
INR psf pa
Rents and Vacancy
Rent Vacancy Rate
11,000
11,500
12,000
12,500
13,000
13,500
14,000
14,500
2025 2026 2027
sqft (000)
Pipeline Supply
Our Global Presence
35
740+ OFFICES
50+ TERRITORIES
27,000+ PEOPLE
1 GLOBAL TEAM
Your partners in property
Independent & debt free
With over 125 years of experience
The Americas
4 Markets
Bahamas | Barbados | Canada
United States of America
237
11,500+
OF FI C ES
PEOP LE
United Kingdom
4 Markets
England | Jersey | Scotland | Wales
71
2,800+
OF FI C ES
PEOP LE
Europe
22 Markets
Austria | Belgium | B ulgaria | Czech Republic | Denmark
Finland | France | Germany | Greece | Hungary | Iceland
Ireland | Italy | Monaco | Netherlands | Poland | Portugal
Romania | Serbia | Spain | Sweden | Switzerland
106
1,110+
OF FI C ES
PEOP LE
Asia Pacific
16 Markets
Australia | C ambodia | Chinese Mainland | Fiji
Hong Kong SAR | India | Indonesia | Japan
Malaysia | New Zealand | Phi lippines | Singapore
South Korea | Taiwan | Thailand | Vietnam
299
11,000+
OF FI C ES
PEOPLE
Africa
11 Markets
Botswana | E gypt | Kenya | Malawi
Morocco | Nigeria | South Africa
Tanzania | Uganda | Zambia | Zimbabwe
22
630+
OF FI C ES
PEOP LE
The Middle East
4 Markets
Bahrain | Qatar | Kingdom of Saudi Arabia
United Arab Emirates
7
330+
OF FI C ES
PEOP LE
© Knight Frank LLP 2025. This document has been provided for general information only and must not be relied upon in any way. Although high standards have been used in the preparation of the information,
analysis, views and projections presented in this document, Knight Frank LLP does not owe a duty of care to any person in respect of the contents of this document, and does not accept any responsibility or liability
whatsoever for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. The content of this document does not necessarily represent the views of Knight Frank LLP in
relation to any particular properties or projects. This document must not be amended in any way, whether to change its content, to remove this notice or any Knight Frank LLP insignia, or otherwise. Reproduction of
this document in whole or in part is not permitted without the prior written approval of Knight Frank LLP to the form and content within which it appears.
knightfrank.com/research
Our mission at
Knight Frank is to
connect people
and property,
perfectly.
Tim Armstrong
Global Head of Occupier
Strategy & Solutions
tim.armstrong@asia.knightfrank.com
+65 9737 9991
Geraldine Xiao
Director, Occupier Strategy & Solutions
Asia-Pacific
geraldine.xiao@asia.knightfrank.com
+65 9191 9560
Christine Li
Head of Research
Asia-Pacific
christine.li@asia.knightfrank.com
+65 8511 3758
For further information on the report, please contact:
The Asia Pacific Occupier Strategy and Solutions team facilitates this for our clients, offering a broad suite of consulting and transactional services that
deliver domestic and multi-market occupiers with the information and advice they require. The integration of these services enables us to understand
the critical success factors for your business.
Whether you are looking for or currently occupy industrial space, office space or retail space, Knight Frank has experienced teams that are dedicated to
advising you, the occupier. Our bespoke commercial agency leasing team ensures we have the optimum expertise for each project. Our relationship
with occupiers also ensures we speak to the decision makers who determine occupational strategy.
We are locally expert, and yet globally connected. Our multi-market clients are managed centrally from our hubs across Asia-Pacific, from Singapore,
Australia, Hong Kong and India, where we devise strategies to empower clients to attain their desired goals.
SUBSCRIBE to updates and
reports delivered to your inbox
SIGN UP ONLINE
SIGN UP ONLINE
