Southeast Asia’s 2024 average office rental growth hits 2.3%

Bangkok rents led the region with a 6.1% increase.

Vacancies in Southeast Asia’s emerging markets tightened by over 3 percentage points in 2024 to 22.5% according to a recent report from Knight Frank, driven by broad-based improvements in occupancies across all its markets.

“Rents rose an average of 2.3%, powered by those in Bangkok which raced to a 6.1% increase. The flight-to-quality trend continues to persist in the capital amid the influx of new supply with the significant pipeline of premium spaces elevating rental benchmarks,” the report added.

Here’s more from Knight Frank:

Meanwhile, occupiers seeking high-quality offices in central locations in HCMC, amid limited supply expansion, drove occupiers in HCMC to accept higher rates. While rents in Singapore were also on an uptrend, the 2.1% rise in 2024 marks a deceleration from the 4.1% growth recorded a year ago.

The expansion in rents was largely held in check by occupiers renewing leases at existing premises, adopting a conservative business outlook in light of unrelenting global uncertainty.