Southeast Asia office rents up 1.3% in Q1

Jakarta, Kuala Lumpur, and Bangkok led the growth.

According to Knight Frank, office rents rose an average of 1.3% quarter-on-quarter in Southeast Asia’s emerging markets, powered by increases in Jakarta, Kuala Lumpur and Bangkok.

After facing continued rental declines and elevated vacancy rates since mid-2023, Jakarta’s occupier fundamentals are set to improve 2025, driven by a receding pipeline supply which should foster a more balanced market.

Here’s more from Knight Frank:

Meanwhile, continued tenant preference for high-quality, amenity-rich environment lifted rents for Bangkok’s prime offices. Occupancies in the Kuala Lumpur’s office market also continued to improve, which had benefitted from the expansion of tech firms as well as MNCs seeking to strengthen their regional presence.

However, rents in Singapore were unchanged quarter-on-quarter, as occupiers are increasingly considering cost neutral options that include right-sizing and moving to more modern office facilities.