Osaka investment-grade office rents grow by 2.3% in H1 2024

Vacancy loosened slightly by 0.2ppts during the same period.

Regional investment-grade office markets in Japan have enjoyed moderate improvements over the past half-year. According to data from Savills, Osaka, Nagoya, and Fukuoka all recorded rental growth of 2.3% HoH, 0.9% HoH, and 0.6% HoH, respectively. 

Meanwhile, investment-grade vacancy in Nagoya tightened considerably by 2.2ppts HoH and by 1.2ppts HoH in Fukuoka, while Osaka vacancy loosened marginally by 0.2ppts HoH. 

Here’s more from Savills:

With a handful of significant new developments completed in 2024, some temporary weakness is to be expected, though further improvements in business sentiment and growing rates of office participation should enable further tightening of vacancy rates and sustained rental growth moving forward. 

Similarly, the situation has been positive across all-grade office markets over the past half-year. Moderate rental growth was observed among all regional markets, with the largest growth observed in Sapporo at 2.8% HoH. 

Meanwhile, all-grade vacancy differed across submarkets over the past half-year, tightening slightly in Fukuoka, remaining flat in Nagoya, while some minor weaknesses were observed elsewhere. That said, many instances of loosening were triggered by large new additions in respective submarkets, which should be gradually absorbed over the coming year with the strong business sentiment.