Regional Japanese office markets see rental growth in H2 2024

Rents in Osaka grew by 2.2% HoH.

According to a Savills report, regional investment-grade office markets in Japan have exhibited strong recovery over the past half-year. Indeed, Osaka, Nagoya, and Fukuoka all recorded rental growth of 2.2% HoH, 0.9% HoH, and 0.2% HoH, respectively.

Meanwhile, Savills said investment-grade vacancy in Fukuoka, Nagoya, and Osaka decreased moderately by 1.4ppts HoH, 0.8ppts HoH, and by 0.1ppts HoH, respectively.

Here’s more from Savills:

All-grade office markets also remained on a favourable trajectory over the past half-year, with all regional markets enjoying half-yearly rental growth. Sapporo again saw the largest rental increment of 2.7% HoH. Rental growth was moderate in other markets. The vacancy situation was similarly positive, with all markets aside from Sapporo seeing vacancy rates fall.

That said, moderate loosening in Sapporo appears to have been triggered simply by the large influx of office supply, and should be temporary as strong demand from tenants helps to deal with existing vacancies.