We maintain our cautiously positive outlook for regional office markets outside China/Hong Kong where elevated supply levels and weak tenant demand is expected to result in further rental declines.
Mixed signals ahead for Asia Pacific’s office markets
As the world emerges from the aftermath of a three-year pandemic, the global economy is beginning to stabilise.
The Asia Pacific region, in particular, is on track for recovery, with forecasts from the International Monetary Fund (IMF) suggesting it will account for approximately 60% of global GDP growth in 2024. Much of this upward trajectory is driven by three crucial players, China, India, and Southeast Asia.
Meanwhile, developed markets in the region have also shown signs of improvement, especially in the second half of the year. Overall, the region's real GDP growth is expected to stabilise at a respectable 4.1% in 2024, followed by a slightly slower 4.0% in 2025, surpassing growth rates in both the US and Eurozone.