Cap rate movement across Asia Pacific markets is being driven by the office sector, according to Colliers’ Asia Pacific Cap Rates Report Q3 2024, with eight out of 18 cities covered in the research recording changes in their office sectors. This was driven by the Australian CBD markets of Adelaide, Brisbane, Canberra, Melbourne, Perth and Sydney, as well as Hong Kong.

CK Lau, Colliers’ managing director of valuation and advisory services in Asia, says the steadying of interest rates across major markets was leading to increased sentiment in all sectors.

According to the report, Australia has experienced an uptick in transaction activity, indicating a potential softening of yields. In Bangkok, the office sector has seen stable cap rates quarter-over-quarter. However, the growing supply of grade A developments, coupled with limited new market entrants, may exert downward pressure on occupancy levels in the near term.

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