Research & Forecast Report

Asia Market Outlook 2020

Prospects set to improve gradually after uncertain 2019

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Asia prime office market rent

Relative to prior period








Hong Kong


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Key Takeaways - Q1 2019

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The overall vacancy rate rose 90 basis points to 6.0 percent.

Overall weighted rents rose 2.1 percent to $87.15 per square foot.

The city experienced nearly 2.6 million square feet of closed transactions.

Eight investment sales closed this quarter for a total of nearly $1.2 billion in investment volume.

San Francisco posted approximately 105,000 square feet of negative absorption.

There was over 4.2 million square feet of office space under construction throughout San Francisco.

Investment markets: Big city grit

The property market’s resilience in Asia’s major cities is evident in total investment volumes, which registered only a 3% dip in the 10 largest urban property markets compared to a 13% fall in the overall regional market in the first nine months of 2019. This is a healthy outcome in light of the challenges of the past year. While growth continues to decelerate modestly, low to negative interest rates should help raise total investment volumes by 7% to USD124 billion in 2020.

Office Leasing


Asia Market Outlook Overview

  • Asian property market prospects brighten as US-China trade tension eases, despite ongoing protests in Hong Kong
  • Bangalore and Hyderabad should be two of Asia’s three fastest-growing cities over the next five years, with Shenzhen and Guangzhou also strong
  • Persistent very low real interest rates to support sentiment and confidence among occupiers and owners
  • Hong Kong, Singapore and Tokyo, followed by Shanghai, to remain Asia’s top occupier locations despite near-term pressures in Hong Kong and Shanghai
  • Bangalore, Manila and Singapore should see firm rent growth over five years; Hong Kong rents to decline further
  • Aggregate property investment volume for Asia to pick up in 2020: we predict a 7% increase to USD129 billion.
  • Singapore and Tokyo office, hotel and retail assets hold investment appeal
  • Logistics sector in China, South Korea and India and data centres promise higher returns, but investing in these areas requires expertise


Colliers’ Andrew Haskins​ discusses Asia Property Outlook 2020: “We think aggregate investment volume for Asia can pick up in 2020, and predict a 7% increase to USD129 billion. Office assets in Bangalore, Singapore, and Tokyo remain attractive, with Tokyo offices offering a yield spread of about 3.5pp over ten-year bonds.”

Research & Forecast Report

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For​ informationand​ inquiries,​ please​ contact​ us

Andrew Haskins

Executive Director | Research

+852 2822 0511

Sam Harvey-Jones

Managing Director | Occupier Services

+852 2822 0509

Terence Tang

Managing Director | Capital Markets

+65 6531 8565

CK Lau

Managing Director | Valuation & Advisory Services

+852 2822 0665

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