APAC

Tokyo and Seoul saw the fastest rate of growth in Q4.

Rental growth was at 7% in 2023.

Nearly half of redevelopments in 2024 were geared towards upgrading office specifications.

Bangkok rents led the region with a 6.1% increase.

This is higher than the 4% growth in 2024.

Moderate increases of 1-2% are expected to materialise.

However, this increase is lower than the growth seen last year.

Japan is gradually emerging from its decades-long deflationary slump.

Total investment in the region increased by 23% to $131.3 billion in 2024.

Q4 volumes reached $34.9b, a 10% YoY increase.

Australia, Korea, and Singapore are expected to lead investment activity.

Office demand is expected to average 75 million square feet per annum.

These markets recorded the highest diversity in retail leasing demand.Retail leasing sentiment has been solid over the past 12 months according to CBRE’s Asia Pacific Leasing Sentiment Survey, with over 75% of surveyed brokers reporting leasing enquiries from retailers seeking new setups, expansion and upgrading, indicating appetite for more space.

These markets have dynamic domestic retail ecosystems.

The Asia Pacific region will be a key investment driver and outperform global peers.

Late-stage arrear trends will vary across Japan, China, and Australia.