APAC new Grade A office supply breaches 5-year average

New supply hit 26.5m sq ft in H1 2021.

According to a recent report by CBRE, new Grade A supply in Asia Pacific remained high at 12.9 million sq ft, with total H1 2021 supply of 26.5 million sq ft, surpassing the five-year first half average of 23.2 million sq ft.

Here’s more from CBRE:

New stock continued to be concentrated in India and mainland China tier 1 markets. In the former, quarterly completions in Mumbai and Bangalore rebounded to 4.5 million sq ft following a gradual decline in COVID-19 infections towards quarter’s end. H1 2021 new supply in mainland China tier 1 cities, most of which is in non-prime submarkets, accounted for just 39% of the 2021 full-year forecast. 

The supply-demand imbalance ensured Asia Pacific Grade A vacancy rose 10bps to 18% this quarter. Vacancy in Taipei rebounded from 3.7% to 4.8%, ending the long downward trend witnessed since Q1 2018. The rise was limited as new completions have been fully pre-committed but tenants have not yet moved in. 

Get the full report here.