Colliers APAC Office Review and Outlook 1H 2020

Webpnetresizeimage 1536 x 1040

The latest information and five-year forecast for 19 office markets across APAC.

Key findings:

  • The aggregate APAC vacancy rate stood at 11.4% at end-Q2. We expect APAC vacancy to peak at 14.5% at end-2022, and to ease to 13.3% by end-2024.
  • Supply should remain high in 2021 but ease thereafter, with demand and supply balanced by 2023.
  • Weighted average APAC rent should fall 5.0% in 2020, while over five years we see an average annual rent decline of 0.7%. Popular occupier centres such as Singapore, Bangalore and Melbourne CBD should achieve higher rent growth, of 3.3%-2.5% on average over five years.
  • Office markets with solid rent growth, e.g. Singapore, Bangalore, Melbourne CBD and Auckland, have the greatest potential for long-run capital appreciation.
  • Singapore offers the highest average annual rent growth in APAC over five years (3.3%). Auckland offers the highest spread over ten-year government bonds (5.1pp).
  • Despite a 48% YOY drop in aggregate APAC office investment sales in Q2 2020, capital values have yet to fall sharply, and yields are little changed. We expect modest yield softening over H2 and H1 2021 in some markets.

Find the link to download and view the report below, or CLICK HERE to view more Colliers Insights.

Colliers APAC Office Executive Snapshot Review and Outlook 1H 2020Colliers APAC Office Full Report Review and Outlook 1H 2020 


Related Experts

Chris Dibble

National Director | Colliers Partnerships, Research & Communications

Auckland CBD

My Colliers Partnership priorities focus on support initiatives that drive collaboration, best practice learning, cost efficiencies and growth opportunities across the wider Colliers International New Zealand franchise network. I also oversee the collaboration and delivery of award-winning research reports and communications for Colliers. With over 13 years of experience and university qualifications in economics, geography, marketing and property. I have a multi-disciplinary approach that assists a broad range of clients and internal stakeholders. I am a regular presenter and market commentator, often discussing the latest insights on current and future property trends. I also work with in-house and external writers to curate an audience-focused content delivery strategy for Colliers.

View expert

Richard Kirke

Director | Capital Markets

Auckland CBD

Richard is responsible for the promotion of New Zealand property to international investors, leveraging of his relationships developed in executive positions during his near 8 years in Hong Kong, as well as assisting to grow the company’s nationwide Rural and Agribusiness agency capability.

Richard began his real estate career in 2004 with CBRE, in the five years he spent with them (before leaving to run Colliers Hong Kong business in 2008) he was involved in many notable transactions including the sale of the Lion Nathan site in Newmarket for $162m, the sale of the GE & BNZ Britomart properties on behalf of Manson’s to the German fund HIH and portfolio sales, including the successful auctioning of 16 National Bank Branches across New Zealand.

During his time as MD of Colliers Hong Kong he was involved in the sale of 50 Connaught Road on behalf Apollo Group (a New York based Hedge Fund) to the Agricultural Bank of China for $US632m.

Richard was the Managing Director of Colliers Hong Kong office for six years from 2009-2014. During this time he was an active participant in several high value transactions and developed broad relationships with both Asian investors and colleagues across the region.

In late 2014, Richard agreed to run CBRE’s Asia Pacific Capital Market business, including their Capital Advisory (Real Estate Investment Banking) business, this further added to his knowledge of real estate investors, particularly in greater Asia.

As a senior executive of Colliers for 6 years in Hong Kong, Richard has strong personal relationships with Colliers personnel across the globe.

View expert

Ian Little

Associate Director | Research

Auckland CBD

My Colliers partnership priorities focus on supporting the New Zealand franchise network through the provision of research and thought leadership reports, articles and presentations. I draw on over 30 years of experience in the property market, gained in both the UK and New Zealand to my role enabling me to assist a broad range of clients and internal stakeholders. I am a member of the Royal Institution of Chartered surveyors. I am a regular presenter on current market conditions and future trends to the media, clients and various interest groups.

View expert

Adrian Goh

Research Analyst

Auckland CBD

Adrian conducts and prepares market research reports covering commercial and residential sectors across New Zealand. Alongside this, he actively manages a range of Colliers’ proprietary databases used in providing data-driven solutions for clients and  Colliers’ award-winning research reports. Coming from an academic background in finance and commercial law, Adrian has a unique approach in conducting market macro and micro economic analysis. Prior to joining Colliers, Adrian worked as an assistant valuer assisting with property and plant and machinery valuations at Beca Group.

View expert