"The office remains an important part of the work environment, and newer offices in good locations are still highly sought after. While the hybrid working model has proliferated across multiple industries, most companies intend to gradually increase their in-office attendance as long as the state of the pandemic stays manageable."

"Even in today’s tough market conditions there are still tenants taking space and lot will depend on the return of PRC demand next year, particularly in core areas."

"With high vaccination rates and the plummet in COVID-19 cases, the softening sentiment seen in the market over this year seems manageable. Like Tokyo, prime assets remain mostly occupied and have seen few corrections in rent, while buildings with poor access are suffering, resulting in the overall deterioration of market rents and vacancy. However, each region’s fundamentals and prospects look different."

"Rents for well-located and newer offices are likely to remain stable while older offices with poor accessibility will struggle. This trend is expected to continue to soften the overall market as a result, although there are some signs of recovery."

"Rental declines were milder in Kowloon with vacancy gradually absorbed after the aggressive rental adjustments of late last year. "