SLOW START FOR ASIA-PACIFIC PRIME OFFICE RENTS
Knight Frank Asia-Pacific Prime Office rental index fell 0.4% quarter-on-quarter in the first quarter of 2019.
Index decline was attributed to continued heightened global uncertainties led by US-China trade tension re-escalation, Brexit and various major elections across the region.
The Asia-Pacific prime office markets saw a soft start to 2019 as sentiment continues to be dampened by uncertainties over an unresolved Brexit and the re-escalation of trade tensions between the US and China. For Q1 2019, Knight Frank’s Asia-Pacific Prime Office Rental Index fell 0.4% quarter-onquarter to a reading of 142.6; on a yearly basis the index remains up 6.2% year-on-year.
The quarterly decline continues the growth deceleration trend witnessed over the past few quarters which recorded 2.2% and 1.4% rises in Q3 and Q4 2018 respectively. Of the 20 cities tracked by the index, 15 recorded either stable or increased rents; 2 less than the 17 reported in the previous quarter. Heading into 2019, we maintain our muted growth outlook for the year and expect the rental index to rise between 0 to 3% this year, down from 2018’s 7.7% rise.