Strong demand fundamentals, and continued rental increases in Q3
In Q3, renewals dominated leasing activity, as space for relocation was limited. Rents continued to increase, and we expect additional rental growth through year-end. In 2022, with only another 10,000 ping (about 33,000 sq m) scheduled for completion, we do not expect new supply to have much impact on the market and for rents to continue to rise at a moderate pace.
- We anticipate tech sector growth to continue to be the major driver of demand, particularly among software companies, streaming platforms and e-commerce.
- 150,000 ping (495,000 sq m) of CBD new supply is scheduled from 2023 to 2025. Coupled with supply in Nangang and Neihu, we expect the market to shift in favour of tenants. We recommend landlords offer flexible lease terms and upgrade their facilities to retain tenants.
