The Asia Pacific (APAC) office market is witnessing a significant rebound, with demand for office space rising by 15.9% year-on-year to 8.8 million square meters in 2024, according to new research from Colliers. This growth is primarily fueled by corporate expansion, a strong return-to-office trend, and the rise of global capability centres (GCCs).

“Office demand across Asia Pacific showed resilient growth in 2024, with markets like India, Australia, and Japan leading the charge,” said Mike Davis, Managing Director of Occupier Services, Asia Pacific at Colliers. The study covered key markets, including Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, the Philippines, Singapore, South Korea, and Taiwan.

India emerged as a standout, accounting for over 60% of new office supply in the second half of 2024 and posting a 7% increase in new supply year-over-year. Meanwhile, Indonesia was the only other market to show supply growth. In contrast, other markets saw a 16.9% decline in new supply overall, reflecting a cautious approach despite the growing demand.

Australia and Japan also saw strong demand, reflecting business confidence and a push for modern, collaborative workspaces. “The flight-to-quality will dominate, with occupiers seeking modern, flexible and sustainable spaces that foster collaboration and productivity,” Davis noted.

The broader region shows continued momentum despite uneven performance across countries—such as subdued activity in New Zealand, the Philippines, South Korea, Hong Kong, and Taiwan. Colliers anticipates that supply and demand will strengthen in early 2025, with steady vacancy rates.

Favourable market conditions such as easing borrowing costs, stable inflation, and supportive government policies are expected to drive the office sector forward. “We expect to see steady growth and continued resilience, driven by stable economic growth, corporate expansions and the return-to-office trend,” Davis said.

Rental growth is expected to persist in high-activity zones, especially peripheral business districts. With global capability centres expanding their footprint and companies seeking quality workspace, the APAC office market appears set for another robust year in 2025.