Commercial Office

This brings total leasing volume in H1 to 6.5msf.

Savills expects the market to remain stable over the short to medium term.

Despite firms’ plans to reduce office footprint, there will still be a net increase in office demand.

This brings total rental growth to 2.5% in H1 2023.

Vacancies in Central rose to 9.2%.

Two office projects were postponed to 2024.

Though only one completion was recorded in Q1.

Net absorption totalled 116,000sqm in Q1.

It is a 23,000sqm project located in Dong Da District.

The city’s absorption hit 27,200sqm in Q1 2023.

The largest project spanning 69,000sqm began construction in Q1.

Meanwhile, the vacancy rate increased to 19.9%.

Only 19,791sqm of new office stock is expected to be completed in the CBD this year.

Though submarkets are still expected to endure some rental pressure.

Rents in fringe areas fell a further 1.1% in the same period.

The vacancy rate has been steadily decreasing since 2021.