APAC office leasing demand holds firm amidst 37% drop in new supply
Constrained supply and sustained preference for high-quality offices could keep vacancies broadly stable and place upward pressure on average rents across most markets.
Office leasing across 11 Asia Pacific markets reached 4.6 million sq. m. in H1 2026, while new supply fell 37% year on year.
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Leasing activity hit 4.6m sqm in the first half of 2026.
Asia Pacific office markets remained resilient in the first half of 2026, with healthy occupier demand and leasing activity despite heightened geopolitical and trade uncertainty, according to Colliers' latest Asia Pacific Office Market Insights H1 2026 report.
Leasing activity reached 4.6 million sq. m. across 11 Asia Pacific markets during the six months, supported by steady business momentum and occupiers' continued preference for high-quality office assets, Colliers said.
India, Mainland China and Japan accounted for more than 95% of regional leasing activity and more than 90% of new office supply. Hong Kong and Taiwan recorded strong growth in demand, while leasing volumes declined significantly year on year in New Zealand, Indonesia and Singapore.
Supply remained comparatively constrained, with 3 million sq. m. of new office space completed during H1, down 37% year on year. India and Mainland China accounted for more than 80% of completions.
"The APAC office market is entering the second half of 2026 with growing momentum," said Mike Davis, managing director, occupier services, Asia Pacific, at Colliers. He said occupiers were increasingly concentrating demand on best-in-class assets to attract talent, improve productivity and support business growth.
Colliers said limited supply in several gateway markets, combined with improving investment sentiment, was creating a favourable environment for continued leasing activity.
The report also highlighted Asia Pacific's role as a key contributor to global economic expansion. A resilient regional growth outlook and likely stability in interest rates are expected to support business confidence and investment, although geopolitical risks and trade uncertainty remain potential headwinds.
Looking ahead, Colliers expects supply and demand to remain healthy, supported by strong occupier activity and continued demand for high-quality offices. Vacancy rates are expected to remain broadly stable across most markets, while sustained demand is likely to put upward pressure on average rents, Davis said.