According to the Knight Frank Asia-Pacific Prime Office Rental Index, rents in Asia-Pacific office markets increased 0.6% quarter-on-quarter and 1.0% year-on-year at the end of the third quarter 2016.

“Donald Trump’s election victory and the certainty that the US will pull out of the long awaited Trans-Pacific Partnership (TPP) is likely to dampen the region’s economic prospects with a subsequent impact on office demand.” stated in report.

“Following a stable quarter for the majority of the Asia-Pacific office markets, the probable end of the far reaching trade deal, and other policy uncertainties emanating from the US will continue to provide mixed signals for many occupiers, and while some could seize the opportunity to upgrade into superior space, many are likely to take a more cautious approach.” said Nicholas Holt, Asia Pacific Head of Research.

Tokyo ranked first in office rents with 6.5% increase quarter-on-quarter in Asia-Pacific office markets.A slowing global economy continued to cloud over the Singapore office market, with rents down 2.8% from the last quarter and 12.8% year-on-year.In Greater China, Beijing and Shanghai experienced rental declines, due largely to the significant new coming into the market.

Over the next 12 months, Knight Frank expects rents in 14 cities out of the 19 tracked to either remain steady or increase, which is the same as last quarter’s forecast.

Asia-Pacific prime office rent changes ;

Local 12-month % change 3-month% change

Brisbane 0.9% 0.2%

Melbourne 5.9% 0.8%

Perth -3.4% 0.0%

Sydney 10.0% 1.4%

Phnom Penh 0.7% 0.0%

Beijing 1.9% -1.1%

Guangzhou -0.6% 0.1%

Shanghai 5.0% -2.1%

Hong Kong 7.8% 1.1%

Bengaluru 3.2% 0.0%

Mumbai 1.6% -1.3%

New Delhi 7.9% 0.0%

Jakarta -15.4% 0.0%

Tokyo -5.5% 6.5%

Kuala Lumpur -0.7% -0.4%

Singapore -12.8% -2.8%

Seoul 2.3% 1.5%

Taipei -0.5% -0.1%

Bangkok 3.9% 1.0%

Source:Knight Frank