Office

Trends to Watch

1. Healthy leasing demand

   The Asia Pacific labour market will remain tight, with redundancies by tech firms accounting for only a small fraction of their total workforce. Corporate revenue will continue to grow but at slower pace in the face of heightened economic uncertainty. CBRE expects office demand to be solid, with leasing volume growing by 0-5% in 2023, driven by the recovery in mainland China.

2. Office attendance to find new equilibrium

   Office attendance has now stabilised at a level around 10% - 15% lower than prior to the pandemic. India and Australia will experience a relatively stronger impact from hybrid working compared to other markets.

3. Focus on new and ESG-compliant buildings

   New office supply is set to rebound in Asia Pacific this year, with completions equivalent to about 20% of current Grade A supply due to come on stream over the next three years. This will create opportunities for occupiers to expand in previously tight markets, such as Singapore and Taipei.

4. Tenant-favoured market

   With the exception of major Australian cities and Seoul, rental growth will be sluggish in most Asia Pacific markets. Although the region has entered an early stage of rental recovery, the rebound will be slow and L-shaped. Rents in two-thirds of markets will remain below pre-pandemic levels at the end of 2023.