Prime Offices 

• The prime office markets presented a mixed picture in H2/2024, with 10 out of 21 markets experiencing growth. Rental movements ranged from -14% HoH (Beijing) to 2% HoH (Brisbane). Major markets in Australia, Japan, South Korea, Singapore and Taiwan demonstrated resilience, driven by stable demand for high quality office space.
  
  
• Emerging markets in Southeast Asia, such as Manila (1.7% HoH) and Hanoi (1.5% HoH), experienced mild growth while Ho Chi Minh City (-0.8% HoH) and Kuala Lumpur (-0.4% HoH) saw slight declines. In India, three major markets, including Mumbai (0.3% HoH), Delhi NCR and Bengaluru, remained relatively flat in H2/2024, supported by a limited supply of prime office space and a positive economic outlook. 
  
  
• Greater China continued to be impacted by weak leasing sentiment, high vacancy rates, and oversupply, with Taipei (0.2% HoH) the only exception. The four major markets of Beijing (-14% HoH), Shanghai (-6.9% HoH), Shenzhen (-3.6% HoH), and Guangzhou (-3.8% HoH), along with Hong Kong (-2.6% HoH), saw further rental declines, with Beijing experiencing the sharpest drop in the region.
  

Prime Retail

• Prime retail rental markets remained stable, with 12 out of 15 markets either registering rental growth or remaining flat, with rental movements ranging from -1.4% HoH (Shenzhen) to 8.6% HoH (Seoul). Only three markets, including Shenzhen (-1.4% HoH), Shanghai (-1.1% HoH), and Manila registered a mild decline.

• While Hong Kong prime shopping malls faced various headwinds, including outbound consumption, weak consumer sentiment and a sluggish Chinese economy, rents remained stable and the city continued to report the highest occupancy cost in the region.

• Seoul experienced a significant improvement of 8.6% HoH, demonstrating the resilience of prime shopping malls there. Vietnam also performed well in H2/2024, with both major markets, Hanoi and Ho Chi Minh City, recording rental growth of 5.6% HoH and 4.3% HoH, respectively. This growth was driven by strong leasing demand from luxury retailers and a limited supply of retail space in prime locations.

Prime Logistics

• Prime logistics rental markets remained stable in H2/2024, with only Shanghai and Beijing recording declines of -5.1% HoH and -1% HoH, respectively, due to weakening leasing demand and oversupply.
  
  
• Seoul outperformed in H2/2024, recording 16.2% growth, supported by robust demand for dry storage facilities in strategic locations. Meanwhile, other mature markets, including Singapore and Tokyo also recorded a strong 5.3% HoH and 2.4% HoH increase, respectively, despite signs of a slowdown on a quarterly basis.
  
  
• Major Australian markets, including Sydney, Melbourne and Brisbane remained stable, with rental growth ranging from 2.5% HoH to 3% HoH, supported by a limited pipeline and low vacancy.
  

Luxury Apartments

• The luxury apartment rental markets posted a mixed performance in H2/2024, with half of the markets we monitor recording rental growth. Rental movements ranged from -0.5% HoH (Shanghai) to 6% HoH (Hong Kong).

• Hong Kong experienced a significant rebound of 6% HoH in H2/2024, fueled by the gradual return of expatriate professionals and a continued influx from mainland China.

• In Japan, rental performance in Osaka (3.9% HoH) and Tokyo (3% HoH) saw moderate growth, driven by a growing economy and strong net migration.

• Singapore, another prominent financial hub, continued its rental correction with a decline of  -0.6% HoH, signaling a return to market norms after the sharp rental growth experienced from 2021 to 2023.

• Mainland China remained weak in H2/2024 and the three major Tier-1 markets – Shanghai, Shenzhen and Guangzhou continued to record the declines of -0.5% HoH, -1.1% HoH and -2.8% HoH, respectively, due to the weak economy. 

Prime Hotels 

• The prime hotel market remained resilient in H2/2024. The upward trajectory in room rates persisted across most markets, thanks to a sustained rebound in tourism and business travel. Rental movements ranged from -12.4% HoH (Hanoi) to 12.6% HoH (Tokyo).
  
  
• Only five markets, including Hanoi (-12.4% HoH), Seoul (-6.1% HoH), Ho Chi Minh (-5% HoH), and Shenzhen (4.2% HoH), saw a decline in room rates due to either a normalization from previously extreme highs or the tourism market has not fully recovered yet.

Notes:  

All % changes are compared to H2 2024 and in local currency terms unless otherwise stated. The prime hotel data is an exception, compared to H2 2023 to account for seasonal variations.  

Due to strong US currency in the H2 2024, there may be a significant difference in results of reported in USD terms compared to those in local currency terms.