The Colliers’ Asia Pacific Office Markets: 1H2020 Review and Five-Year Outlook report offers insight into how demand, rent, supply and vacancy for the APAC office market will look in the future.
According to Andrew Haskins, research executive director of Colliers Asia, APAC office markets are currently struggling with little to no demand and high supply.
“The prospect of conditions favoring tenants for up to three years gives occupiers the chance to lock in good deals in markets like Hong Kong’s Central, Shanghai’s New Bund and Shenzhen’s Qianhai district,” said Haskins. “Investors should focus on popular occupier centers with above average rent growth over five years, such as Singapore, Bangalore, Melbourne CBD and Auckland.”
The report revealed that aggregate absorption in the 19 office markets that were tracked fell 56% in the second quarter of 2020. Additionally, annual absorption over the next five years should be close to 2019’s 6.82 million square meters.
Colliers also predicts that supply in the region throughout this year and 2021 will be three times the aggregate take-up.
Even more, the report suggests that landlords that are competing for limited demand will start reconfiguring their product to accommodate those needs, while also emphasizing the health and safety of their space.