Demand for office space across Asia Pacific’s top markets has surged 15.9% annually to 8.8 million sqm, according to new research from leading global  diversified professional services company Colliers.  

Colliers’ latest report, Asia Pacific Office Market Insights H2 2024 and Outlook 2025, found the  significant increase in annual demand to be driven by corporate expansion, return-to-office and  the growth of global capability centres. The report captured the key markets of Australia,  Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, Philippines, Singapore, South  Korea and Taiwan.  

“Office demand across Asia Pacific showed resilient growth in 2024, with markets like India,  Australia, and Japan leading the charge,” Mike Davis, Colliers’ Managing Director of Occupier  Services, Asia Pacific, said. “The region is poised for continued growth in 2025 fueled by the  expansion of global capability centres and supportive market dynamics including conducive  government measures, controlled inflation, and easing borrowing costs. The outlook for the office occupier market remains positive, with strong demand set to drive further market shifts in  the year ahead.” 

While demand growth in H2 2024 was notable in markets such as India, Japan and particularly  Australia, it remained relatively subdued in New Zealand, Philippines, South Korea, Hong Kong,  and Taiwan.  

Although new office supply largely kept pace with demand in absolute terms, it declined by  16.9% year-on-year. Most markets saw a moderation in supply compared to the same period last year, except for India and Indonesia. India recorded 7% year-on-year growth in new supply  during H2 2024 and accounted for over 60% of the new supply in APAC during H2 2024. 

Colliers research estimates both demand and supply to strengthen across most markets in first half of 2025, with vacancy rates expected to remain rangebound.  

“High-activity markets may witness continued rental growth, particularly in peripheral business  districts. The overall outlook for 2025 indicates a sustained momentum for the APAC office  leasing market,” Mr Davis said. "We expect to see steady growth and continued resilience, driven  by stable economic growth, corporate expansions and the return-to-office trend.  

“The flight-to-quality will dominate, with occupiers seeking modern, flexible and sustainable  spaces that foster collaboration and productivity. Easing lending rates and rising demand from  global capability centres will further stabilise the market, ensuring steady rental growth in key  high-activity areas."  

More Office Reading:

Office fit out costs Asia Pacific continue to rise at slower pace - Cushman & Wakefield | Commo.

$1.3 billion Parkline Place officially opens in Sydney's Midtown | Commo.

Bayley Stuart Counter-Cyclical $42.55 m office acquisition - Colliers & Knight Frank | Commo.