APAC Office space fastest growing market in 2018
Its no secret the APAC Office space market is hot property right now, but according to Instant Offices annual survey, the region is experiencing the highest growth rate globally. Hong Kong with 340 centres experienced growth of 19% nearly double that of London which is seen as one of the most mature markets in the world.
The demand for APAC Office Space continues to fuel significant growth and seems to have continued beyond the expected uplift associated with moving office leases onto the balance sheet. The number of individuals placed in flexible office space increased over 40% in the past 12 months according to Instant Offices.
Sames markets, new entrants
It’s easy to think that its the same old faces fuelling the expansion such as Regus, Servcorp or WeWork but landlords are increasingly entering directly into the market. Take a look at CapitaLand in Singapore who last month launched it’s “Office of the future” initiative. Under this new venture, CapitaLand is blending the space in its own property portfolio to include flexible workspaces alongside traditional office space.
What’s different about CapitaLand is that they’re focussing on their existing tenants, and providing them with flexible swing space that can be used on a short-term flexible basis. If their tenant has a project, or a team visiting from overseas or interstate they can easily be accommodated with the same building. If you don’t think they’re serious then think again because they’re throwing 177,000 sqft at it!
What about Down-under?
With crushing rents & home affordability in Sydney and Melbourne, things are heating up north of the border in Brisbane. BIS Oxford Economics predicts a 13% property price growth by 2021, so if you’re looking to expand your current footprint Brisbane is the place to be.
Don’t be put off by the big boys in town with Servcorp, Regus and The Executive Centre dominating the Brisbane river skyline. There’s a healthy secondary market quietly prospering in lifestyle regions like the Gold Coast where rents are significantly lower, and people are looking to escape the commute to the big smoke.
Wherever you chose to expand if you have a great product, at the right price and it’s easily accessible to customers you are sure to do well. If 2018 growth is anything to go by our APAC Office space market is set for a bright 2019!