Office Market Rebounds in Melbourne, Remains Stable in Sydney, Singapore Sees Fourth Consecutive Rental Growth in CBD
Office markets are rebounding globally, with Melbourne and Sydney rents rising and Singapore seeing its fastest growth rate in rents since 2021.
Globally, office markets are gradually recovering as workers begin heading back into the workplace. In Melbourne, CBD office rents started rising for the first time in two years as leasing activity continues to rebound after pandemic-induced declines. Rents in the Sydney also remained steady, while demand in square metres trended higher with tenants in the market looking for more space than last year.
Meanwhile, Singapore saw office rents across its CBD rise by 2.3 percent in the first quarter to post the market’s fastest growth rate since 2021, with industry analysts projecting a continued upswing this year as the city-state gains in stature as a regional business hub. The first quarter performance marked the fourth consecutive quarter of rental growth in the CBD and the most dynamic increase since rates dipped 0.3 percent in the first three months of 2021.
What caught our eyes this month?
Melbourne Office Rents Outpace Sydney, Brisbane
The Urban Developer – The Melbourne CBD office market has begun to rebound with office rents rising for the first time in two years as leasing activity recovers. According to Cushman and Wakefield, prime net effective rents in the Melbourne CBD rose by 6 per cent to $411 in the first quarter following a number of significant leasing deals.
Tech Tenants Power Singapore CBD Office Rents to Fourth Straight Growth Quarter
Mingtiandi – Data from JLL Singapore showed average gross effective rents for grade A offices in the CBD grew to S$10.46 per square foot this quarter from S$10.23 in the preceding three months. Leasing rates in Singapore’s downtown core this year are on track to grow at double 2021’s 4.3 percent increase, the agency predicts.
Australia’s House Price Growth Tops Global Market
The Urban Developer - Australia’s residential market has chalked up the biggest price growth in the world with a further 8 per cent tipped to the end of this year. Knight Frank research shows Australian property increased an average of 17.5 per cent in real terms, which is adjusted for inflation.
UK House Prices Grow at Fastest Rate for 17 Years
The Guardian – UK house prices grew in March at the fastest rate since 2004, continuing the ascent to new record levels – with the price of an average home now a fifth higher than at the start of the coronavirus pandemic. Prices rose by 14.3% in the year to March, the strongest pace of increase since November 2004.
Read also: Investing in the UK Real Estate Market
Double-digit Growth Projected for APAC Property Investment Through 2023
Mingtiandi – Asia Pacific’s real estate transaction volume is on track for double-digit growth in 2022 and 2023 as an economic recovery invigorates the occupier sector, according to a report from Cushman & Wakefield. The forecast comes after global deal volume jumped 55 percent to hit a record high last year, driven by a 92 percent surge in the Americas.
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