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Sydney and Tokyo surge with steady growth elsewhere

2 July 2018

Office markets in Sydney and Tokyo are racing ahead of the rest of the region but other major cities are showing solid performance.

Savills office rental indices for the first quarter of 2018 show Sydney rents dramatically outpacing the rest of the region, however all markets have seen rental growth in the past two quarters, including Singapore, where rents fell from 2015 to mid-2017. Seoul saw a slight but notable rise in office rents in the first quarter of this year.

Tokyo has lagged behind Sydney on rental growth but made up for it in capital value appreciation. The Japanese capital has seen values rise strongly but steadily for the past five years, while Sydney values began to take off in 2016.

Meanwhile Hong Kong has seen strong capital value growth, overshadowing Singapore, where values have remained flat for the past three years.