Seoul outperforms APAC peers with USD11b worth of office transaction volume

This exceeds 2024’s full year totals.

The Asia-Pacific office sector delivered a varied but generally upbeat performance in Q3 2025, with several major cities reporting strengthening demand, moderating vacancies, and rising investment activity.

According to insights from Colliers, Seoul emerged as the region’s standout, with office market transaction volume already surpassing the full-year total for 2024 and poised to reach an all-time high by year-end.
Across the region, continued “flight to quality” trends, robust demand from large occupiers, and improving leasing activity in select markets contributed to cautious optimism despite ongoing pockets of elevated vacancy.

Here are more insights based on the Colliers report:

Seoul Leads Regional Growth
Seoul’s office investment market recorded KRW 16 trillion (USD 11 billion) in transaction volume in Q3 alone, exceeding last year’s full-year tally. With numerous prime assets expected to trade in Q4, 2025 is on track to post the strongest investment volume in the city’s history. Leasing sentiment also improved, helping to stabilize vacancy levels across major business districts.

Australia and Auckland Show Renewed Momentum
Australia saw early signs of a market resurgence, with multiple assets coming to market and indications of renewed investor interest. In Auckland, demand in prime-grade offices remained strong as tenants continued upgrading their spaces, even as secondary-market vacancies rose.

Bangkok and Hong Kong Maintain Strong Leasing Activity
Bangkok’s office sector benefited from consistent demand among large occupiers, particularly for higher-grade assets. Hong Kong posted a notable 33% year-on-year increase in transaction value, supported by improving leasing activity and positive net take-up of roughly 40,000 square meters on a quarter-on-quarter basis.

Manila Conditions Stabilizing
In Manila, office rents held steady as elevated vacancy began to correct. While the market remains tenant-friendly, modest improvements in vacancy across central business districts signaled gradual stabilization.

Tokyo Demand Remains Strong for Centrally Located Offices
Tokyo continued to see robust demand for prime office space in central locations. Companies are actively upgrading workplaces to attract and retain talent, with well-located buildings persistently outperforming the broader market.

Overall, Q3 2025 highlighted a region in transition: strong investment surges in markets like Seoul, steady stabilization in places like Manila, and mixed but improving leasing dynamics across several major cities. As flight-to-quality trends persist and economic conditions evolve, investors and occupiers alike are expected to remain active through the remainder of the year.