Prime Benchmark Research

Savills Research & Consultancy aims to offer objective advice to clients in order to help them make well-informed real estate related decisions and realise pre-defined goals.

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Prime Benchmark, January 2020

09 March 2020

Prime office rental markets in most cities are now in a late up cycle. The prime markets recorded rental movements from -6.5% (Shenzhen) to +7.9% (Tokyo). In China, rents declined in Shenzhen and Guangzhou (-2.1%) and increased in Beijing (0.9%) and Shanghai (0.2%). Although the phase one US/China trade deal has provided a short-term boost to the economy, abundant new supply is undermining rental growth in major Chinese cities. In Japan, both Tokyo (7.9%) and Osaka (1.9%) saw positive rental growth as the tax rate was amended following the Consumption Tax hike in October 2019. Hong Kong remained the most expensive prime office market in the region but is now entering a downward cycle.

 
 
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Prime Benchmark, July 2019

05 September 2019

Prime office rental markets in most cities are now in a late up-cycle. The prime markets recorded rental movements from -3.0% (Shenzhen) to +16.3% (Ho Chi Minh City). In China, negative rental growth was seen in Shenzhen (-3.0%), Beijing (-1.4%) and Guangzhou (-0.4), with the exception of Shanghai (0.1%). The sluggish GDP growth of 6.2% in Q2/2019, the trade war and ongoing deleveraging by the central government will continue to put downward pressure on the office sector. In Ho Chi Minh City, investor appetite was strong because of its healthy domestic office market demand and low vacancy of less than 2%. Hong Kong remained the most expensive prime office market in the region.

 
 
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Prime Benchmark, January 2019

18 March 2019

In local terms, prime office rental markets in most cities are now in a late up-cycle. The prime markets recorded rental movements from -4.8% (Jakarta) to +8.3% (Sydney). Investor appetite was strong for Sydney CBD office assets in 2018, with record high capital values and a low vacancy rate of less than 4%. Hong Kong continued to outperform other cities and remained as the most expensive prime office market in the region, with rents hitting nearly US$300 per sq m net pm, more than double its closest rival, Tokyo.

 
 
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Prime Benchmark, July 2018

17 August 2018

In local terms, prime office rental markets in most cities rose slightly over the first half of the year and many are now in an early up-cycle. The markets moved by between -1.4% (Jakarta) and 7.3% (Osaka). Because of tightening supply in Osaka with a vacancy rate below 3%, prime buildings in this market saw higher rental growth than the average. Hong Kong remains easily the most expensive prime office market in the region 86% ahead of its nearest rival, Tokyo (C5W).

 
 
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Prime Benchmark, January 2018

15 March 2018

APAC economic growth continued to picked-up moderately in 2H/2017 and the International Monetary Fund estimates that the “Emerging and Developing Asia” economies grew by 6.5% over the year as a whole while China grew by 6.8% and Japan’s economy grew by 1.8% in 2017 from 0.9% in 2016. The improving global economic outlook and an accommodative monetary policy created momentum for business expansion.

 
 
 

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Simon Smith

Simon Smith

Senior Director
Research & Consultancy

12/F Cityplaza One

+852 2842 4573

 

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