News: Leasing activity on the rise as Asia Pacific office market gains momentum
Singapore (Press Release) -- The Asia Pacific office market is entering a new phase of growth, with renewed momentum expected to build through the remainder of 2025 as occupiers increasingly prioritise flexible and sustainable office spaces.
According to Colliers' new report, Asia Pacific Office Market Insights H1 2025, leasing activity across 11 key markets reached 4.5 million square metres in the first half of the year – a 9.6% year-on-year increase – reflecting a broader recalibration of workplace strategies. Markets monitored included Australia, Mainland China, Hong Kong, India, Indonesia, Japan, New Zealand, Philippines, Singapore, South Korea and Taiwan.
Singapore, the Philippines and Japan led the growth in demand, with Singapore recording an impressive twelvefold increase in leasing volumes. The Philippines and Japan recorded robust year-on-year gains of 56% and 55% respectively.
Meanwhile, India, Mainland China and Japan continued to anchor regional activity, collectively accounting for more than 90% of total office demand. New supply also gained traction, increasing 45.4% year-on-year to 4.8 million square metres and outpacing demand in most markets.
"Across Asia Pacific, we're witnessing a pivotal shift in how occupiers engage with office space," Mike Davis, Colliers' Managing Director of Occupier Services, Asia Pacific, said. "The resurgence in demand, led by dynamic markets like Singapore, the Philippines and Japan, signals not just recovery but reinvention.
"As flexibility and sustainability priorities take centre stage, organisations are gravitating toward prime Grade A assets that reflect their values and future ambitions. This flight to quality is reshaping the region's office landscape, and we expect this momentum to build through H2 2025 and beyond."
Demand is expected to continue its upward trajectory in the second half of the year, although ongoing supply additions may exert pressure on vacancy rates. Nonetheless, rental growth is anticipated in select high-performing markets.
"The structural shift toward premium Grade A properties is set to define the next phase of growth, as occupiers seek spaces that support evolving business needs and sustainability goals," Mr Davis said. "Investor interest in green-certified buildings will remain strong, reinforcing the region's transition to a more resilient and future-ready office landscape."
To view the full report, CLICK HERE
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Media Contact
- Laura Phillips
- PR & Communications Lead | Asia Pacific
- laura.phillips@colliers.com
- +61 438 952 520
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