Asia Pacific Figures Q4 2023

January 31, 2024 10 Minute Read

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Office: The recovery in office demand that began in Q3 2023 continued into this quarter, with quarterly net absorption registering 14.0 million sq. ft. NFA. Leasing demand was driven by tech and finance. Grade A Office rents strengthened in H1 2023 but then declined in H2 2023, leaving the rental index down slightly by 0.3% y-o-y for the full-year.

Retail: Expansionary demand remained solid as numerous retailers completed expansionary moves. Vacancy continued to decline over the quarter, particularly in prime locations, tilting the market somewhat in favour of landlords as leasing demand continued to improve. Rents grew by 0.2% q-o-q in Q4 2023, bringing full-year growth to 0.9%.

Logistics: With the e-commerce industry experiencing slower growth and online consumption normalising, logistics leasing activity weakened in Q4 2023. Rents increased by 0.6% q-o-q, representing slower growth from the previous quarter.

Investment: Asia Pacific commercial real estate investment volume remained muted in Q4 2023, totalling just US$21.5 billion. This quarter’s subdued investment activity was primarily due to a y-o-y decrease in office investment. Full-year investment volume amounted to US$93 billion, marking a 28% full year decline and the lowest total since 2013.