APAC office demand surges to 2.2m sqm in Q3

Demand grew by 10.7% in Q3, signalling a robust office market in 2025.

The Asia Pacific office market is predicted to grow in 2025 with new Colliers’ data showing demand across top markets surging 10.7% year-on-year in the third quarter of 2024.

Colliers’ Asia Pacific Office Market Insights Q3 2024 report found Asia Pacific Grade A office demand surged 10.7% * in Q3 2024 year-on-year to 2.2 million sqm as major markets across the region strengthened, signalling a potentially strong 2025.

The demand momentum was particularly strong in countries such as India, Australia, New Zealand and Singapore, with annual growth in office leasing in these markets exceeding 30%.

Colliers found an overall office vacancy rate across top APAC markets of 14.3% in Q3 2024, with 212.2 million sqm of stock on the market. Supply is further expected to improve in the next quarter led by significant project completions in major markets.

Mike Davis, Colliers’ Managing Director of Occupier Services in APAC, said despite some market uncertainties, office demand in the region was expected to grow modestly in the short term while rentals were likely to remain rangebound.

“The APAC office market is poised for continued growth as we look to 2025 and beyond, driven by an evolving understanding of what makes a workspace truly valuable,” Mr Davis said. “Office occupiers’ focus on prioritising both productivity and sustainability, alongside their commitment to adaptability and innovation, will drive the market forward.

“The surge in office demand that we have seen in Q3 2024 reflects a dynamic shift as companies seek not just more space but environments that foster productivity and align with sustainable practices.

“With occupiers increasingly prioritising quality spaces, the focus on green certifications and sustainable upgrades among developers is intensifying, indicating a shift towards a more resilient and robust office market in 2025.”

To read the full report, please CLICK HERE. 

* Demand is typically measured as the net absorption of Grade A office spaces within the reporting quarter. This metric captures the incremental space occupied, accounting for both new take-up and the net effect of relocations and exits. Notably, it excludes lease renewals, pre-commitments, and deals that are only in the letter of Intent stage to ensure accuracy in reflecting active space utilization.

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