RealEstat.id (Jakarta) – The Asia Pacific office market is predicted to grow in 2025 with new Colliers’ data showing demand across top markets in the third quarter of 2024 surging 10.7% year-on-year (y-o-y).
Colliers’ Asia Pacific Office Market Insights Q3 2024 report found Asia Pacific Grade A office demand surged 10.7% in Q3 2024 (y-o-y) to 2.2 million sqm as major markets across the region strengthened, signalling a potentially strong 2025.
The demand momentum was particularly strong in countries such as India, New Zealand and Singapore, with annual growth in office leasing in these markets exceeding 30%.
Read More: Asia Pacific Office Markets: Unlocking Tangible Office Real Estate Savings
Colliers found an overall office vacancy rate across top APAC markets of 14.3% in Q3 2024, with 212.2 million sqm of stock on the market. Supply is further expected to improve in the next quarter led by significant project completions in major markets.
Bagus Adikusumo, Head of Office Services Colliers Indonesia mentioned that, with the inauguration of the new President, political uncertainty has been addressed.
"We expect to see a significant increase in office demand to catch up with the current oversupply situation. Furthermore, as the economy continues to grow and new supply remains limited, we anticipate an acceleration in office rental rates in the near future,” he explained.
Read More: Colliers: Asia Pacific Remains Dominant Source and Destination for Global Capital
Mike Davis, Colliers’ Managing Director of Occupier Services in APAC, said despite some market uncertainties, office demand in the region was expected to grow modestly in the short term while rentals were likely to remain range-bound.
“The Asia Pacific office market is poised for continued growth as we look to 2025 and beyond, driven by an evolving understanding of what makes a workspace truly valuable,” Davis said.
Office occupiers’ focus on prioritizing both productivity and sustainability, alongside their commitment to adaptability and innovation, will drive the market forward.
Read More: Jakarta Office Sector: Landlords Need Strategic Initiatives to Retain Tenants
The surge in office demand that we have seen in Q3 2024 reflects a dynamic shift as companies seek not just more space but environments that foster productivity and align with sustainable practices.
“With occupiers increasingly prioritizing quality spaces, the focus on green certifications and sustainable upgrades among developers is intensifying, indicating a shift towards a more resilient and robust office market in 2025,” Davis concluded.
Read More Interesting News and Articles on Google News
