Gao Li: By 2025, the total leasing activity in 11 major office markets in the Asia-Pacific region reached 9.8 million square meters, an increase of 11% year-on-year.

According to the latest research by Colliers, the office market in the Asia-Pacific region will enter a new stage in 2026, where the success of companies will no longer depend on expanding their size, but on their strategic direction. Although demand in the region rebounded strongly in 2025, Colliers' "Insights into the Asia-Pacific Office Market" report points out that the market is entering a new phase, where corporate decision-making no longer solely focuses on the rental area, but places more emphasis on the location, use, and selection strategy of office space. In 2025, total leasing activities in the 11 major office markets in the Asia-Pacific region reached 9.8 million square meters, an 11% year-on-year increase. This was mainly driven by improved business confidence and the expansion of major economies such as India, Mainland China, and Japan. Office supply also rose by 19% year-on-year, roughly in line with demand. However, as vacancy rates in core areas tighten and supply distribution becomes uneven, companies are becoming more cautious, selective, and competitive in making real estate decisions. Colliers' Hong Kong Director of Corporate Solutions, Vicky Yim, said: "The momentum in the Asia-Pacific office market remains strong this year. With intensifying competition for quality assets and decreasing vacancy rates in major markets, companies are becoming increasingly cautious and strategic in planning their office space in terms of ways, timing, and location. It is now not just about returning to the office, but a comprehensive review and adjustment of the property portfolio. While we have seen a decrease in cases of companies relocating, each decision is of higher quality and more precise." Although the overall supply and demand in the Asia-Pacific region are roughly balanced, the quality of assets has become a watershed in the market. India, Mainland China, and Japan continue to lead demand in the region, accounting for approximately 90% of total leasing activities in 2025. Meanwhile, the Philippines, New Zealand, and Hong Kong recorded the strongest growth momentum, reflecting the region's entry into a more comprehensive phase of market restart, rather than a one-way, synchronized recovery. Investment activities in the region also reflect an improvement in market sentiment. In 2025, institutional investment in Asia-Pacific office properties rose by 21% year-on-year to USD 58.6 billion, indicating a resurgence of market confidence. South Korea and Japan together accounted for over half of the total investment in the region, with India recording the strongest growth for the whole year. Vicky Yim concluded: "Institutional investors are no longer just looking at short-term cyclical rebounds, but are aligning with companies' high-quality, well-located, future-oriented property needs, reflecting the gradual convergence of corporate strategies and capital allocation. The new round of growth in the office market will be driven by companies and investors who understand how to execute strategies and view real estate as a competitive advantage rather than a cost."