Only these two cities recorded Q3 office rental growth in Southeast Asia

Find out how each of the cities performed during the quarter.

Rental growth continued to be weak across much of Southeast Asia’s office markets according to a recent Knight Frank report, as landlords remained focused on maintaining or raising occupancies.

Rents fell 1.7% quarter-on-quarter in Ho Chi Minh City as landlords lowered rentals to align with new supply that had been delivered in the previous quarter.

Here’s more from Knight Frank:

The implementation of a sales & service tax also kept conditions in Kuala Lumpur subdued, as occupiers monitored cost implications and reassessed their office strategies. With over 44,000 sqm delivering during the quarter, rent levels held steady to sustain occupancies.

Similarly, landlords in Jakarta were also accommodative amid elevated vacancy levels. Meanwhile, Singapore’s market remained stable. Despite a tightly supplied market, prime rental growth had been marginal as tenant retention was prioritised.

Bangkok and Manila were the only markets that recorded rent rises during the quarter. While the delivery of premium stock raised overall rents in Thailand’s capital, sustained demand from IT-BPM firms supported a rental uplift in Manila.