The International Monetary Fund (IMF) has recently reiterated a stronger outlook for Asia Pacific, suggesting that the region remains the most dynamic in the global economy. Cushman & Wakefield’s Q1 2018 Asia Pacific Office Overview report echoes a similar outlook, particularly for the region’s office market.
According to the report, the region’s demand gains will be sustained by stronger economic growth, solid fundamentals across major office markets, and continued momentum in office occupying sectors.
Findings from the report include:
- Demand diversification is gaining momentum in India – share of healthcare, pharmaceutical, banking, financial, and professional services is on the rise.
- There is strong, broad-based occupier demand across Chinese markets (up by 20% YoY), led by Beijing and Shanghai.
- Global coworking players are acquiring scale in Hong Kong while Chinese operators are starting to enter the market.
- Strong occupier demand in Japan is being fueled by expansions and relocations.
- Tight vacancies are driving rents up in Sydney and Melbourne.
- Competition is heating up in Singapore’s coworking space; there is growing competition between developers and operators.
Read the full data and outlook on Asia Pacific’s office market for the first quarter of 2018 here.