>

>

Office occupancy in APAC average 80% compared to 50% in North America: Colliers

/ EdgeProp Singapore |

June 16, 2023 4:22 PM SGT

SINGAPORE (EDGEPROP) - An industry report by Colliers International has highlighted that office occupancy in the Asia Pacific region is about 80% on average. This is higher compared to North America and Europe where occupancy levels are about 50% and 65% respectively.

The Colliers’ report states that this difference boils down to varying return-to-office approaches, underlying city functionality, ESG compliance, and market reactions to shifts in inflation and interest rate movements. As a result, this has caused the latest divergence in office investment volumes, pricing and global investment appetite, the consultancy says.

“Even as the office markets globally continue to face short-term challenges, Asia Pacific remains attractive for office investments over the longer term,” says Chris Pilgrim, managing director, global capital markets, Asia Pacific.

He adds: “The strong underlying fundamentals include the diverse range of markets, positive sentiments towards offices from a demand perspective and strong population-led economies presenting more resilient economic growth."

In contrast, the office market in North America faces weak occupier demand. As a result, the average vacancy rate in that region has climbed to 16%. The ability of landlords to offer incentives to support rents continues to be stretched.

However, prime rents for European offices are increasing as demand for higher-quality spaces — especially ESG-compliant spaces — is growing. “We are seeing pressure to repurpose space that doesn’t meet contemporary demands as a growing proportion of buildings face obsolescence,” says Luke Dawson, head of global and EMEA capital markets at Colliers. “This is driving a shift in value-add plays across key markets, especially where high importance is placed on ESG, such as in the UK."

Tags:

office occupancy

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Emerald of Katong hits 99% sales at launch, averaging $2,621 psf

2

Kingsford sells 76% of Chuan Park units at an average price of $2,579 psf

3

Is it a Good Deal?: $1.03 million for a four-room HDB flat in District 10

4

Sim Lian Group’s Emerald of Katong: Will it be another top-seller?

5

CDL sells 20% of Union Square Residences at an average price of $3,200 psf

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00