Investment Rating - The report indicates a positive outlook for the Australian office market, with prime yields stabilizing and an expectation of continued recovery, particularly in Sydney and Brisbane [1][20]. Core Insights - There is a notable improvement in sentiment within the office investment market, with significant transactions occurring primarily in Sydney, leading to stabilized prime yields for core assets [1][20]. - Net absorption across all CBD markets returned to positive territory in 2024, with a total of 81,000 sqm recorded nationally, indicating strong tenant demand, especially for high-quality assets with strong ESG credentials [2][30]. - Rental performance is improving, with Brisbane experiencing an 18.3% increase in net effective rents year-over-year, while Adelaide saw a 10.5% increase [3][48]. - The report highlights a divergence in performance by location, with major CBDs outperforming non-CBD markets, and a focus on high-quality, well-located premises [30][48]. Summary by Sections Leasing and Capital Markets - Prime yields have stabilized, particularly in Sydney, with significant deal volumes indicating a recovery in the market [1][20]. - The average prime yields remained unchanged in Sydney and Brisbane, confirming the stabilization of core asset values [20]. Demand and Absorption - Net absorption returned to growth, with all capital cities recording positive absorption except for Melbourne CBD [30]. - The demand for newly built products remains high, driven by occupiers focusing on high productivity and employee well-being [30]. Rental Performance - Brisbane led the rental growth with a 14.2% increase in net face rents, while Adelaide followed with a 9.1% increase [48]. - Sydney's average incentives decreased for the first time since 2019, indicating a shift in the rental market dynamics [48]. Vacancy Rates - The overall vacancy rate across Australian capital cities was 13.7% at the end of 2024, with Canberra and Brisbane having the lowest rates at 9.2% and 10.2%, respectively [39]. - The development pipeline in major CBDs is forecasted to deliver approximately 970,000 sqm of new supply over the next three years, which is expected to tighten leasing markets and drive rental growth [39].

Investment Rating - The report indicates a challenging start for the UK hotel market in Q1-2025, with a marginal increase in occupancy and declining average daily rates (ADR) and revenue per available room (RevPAR) [5][7][34]. Core Insights - The London hotel market's occupancy averaged 73.1%, showing a slight increase of 0.7% compared to Q1-2024, while luxury hotels experienced a more significant rise of 1.4 percentage points [5][6]. - ADR in London decreased by 2.3% to €198, with RevPAR declining by 1.3% to €145, indicating a softening demand across various hotel segments [6][7]. - Payroll costs rose by 4.6% year-on-year, accounting for 34.6% of total revenue, which is a 1.9 percentage point increase, reflecting the impact of rising costs and declining revenues [8][37]. - Operational efficiencies have been implemented to manage costs, with total departmental costs increasing by only 1.4% despite falling revenues [10][11]. Summary by Sections London Hotel Market - Occupancy rates reached 73.1%, with luxury hotels at 65%, still below pre-pandemic levels [5][6]. - ADR decreased to €198, while RevPAR fell to €145, with upper-midscale and select service hotels facing the most significant declines [6][7]. - Payroll costs increased by 4.6% year-on-year, significantly impacting profitability [8][13]. Regional UK Hotel Market - The regional UK hotel market saw occupancy levels at 67.4%, with marginal revenue growth and a decline in ADR for certain segments [34][35]. - TRevPAR growth outpaced RevPAR growth, driven by increased leisure spending, particularly in golf and spa hotels [36]. - Payroll costs rose by 4.9% year-on-year, with total departmental costs increasing by 3.5%, leading to a decline in operating margins [37][38]. Investment Volumes - In Q1-2025, hotel investment volumes reached £800 million, with over 50 transactions, primarily in the luxury and upper-upscale segments [68][69]. - The geographical capital flows indicate a strong market share for London, accounting for 60% of transactions [68][70].

Investment Rating - The report indicates a positive investment outlook for the student accommodation sector, particularly in the context of converting underperforming hotels into student dormitories [3][51]. Core Insights - The increasing demand for affordable and convenient student housing, driven by a rise in non-local student enrollment, presents significant investment opportunities [3][4][51]. - The report highlights successful case studies of hotel conversions into student accommodation, demonstrating financial viability and the importance of strategic planning [3][4][51]. - The anticipated growth in non-local student numbers, projected to exceed 80,000 by the 2024-2025 academic year, underscores the urgent need for additional student housing [6][12][15]. Summary by Sections Student Accommodation Demand - The student accommodation market in Hong Kong is characterized by a diverse range of options, including on-campus dormitories and private student housing, with a notable demand-supply gap [9][12]. - Current university dormitory capacity is approximately 42,093 beds, while the number of approved student visa applications in 2023 indicates a shortfall of around 17,006 beds [12][13]. Supply Situation - The report notes that the slow delivery of new accommodation projects has led to a significant shortfall in available beds for students, prompting investors to explore hotel conversions as a viable solution [12][15]. - As of the fourth quarter of 2024, there are 10 completed student accommodation projects providing 2,980 beds, highlighting the potential for further investment in this area [12][14]. Future Supply Projections - Government initiatives are underway to address the shortage of student accommodation, with approximately 7,900 new beds expected to be available from 2024 to 2027 [15][16]. - The total supply of student accommodation is projected to reach 55,000 beds by 2028, yet demand will continue to outpace supply as non-local student numbers rise [15][16]. Financial Viability - Converting hotels to student accommodation is financially feasible, with expected returns ranging from 4.5% to 8%, depending on the hotel's current performance and renovation costs [24][51]. - The report emphasizes the lower operational costs associated with student housing compared to traditional hotel operations, making it an attractive investment option [21][24]. Regulatory Considerations - The report outlines the regulatory flexibility for converting hotels into student accommodation, particularly in areas with "virtually unrestricted leases," which allows for easier compliance with zoning and licensing requirements [25][27][28]. Successful Case Studies - The transformation of Hotel Sav into Y83 student accommodation serves as a successful example, achieving high occupancy rates and strong rental demand despite slightly higher rental prices compared to surrounding units [30][32][34]. - The report identifies additional hotel properties with potential for conversion into student accommodation, emphasizing their strategic locations near educational institutions [34][36][39]. Recommendations - The report suggests that the government should expedite the approval processes for student accommodation projects and consider regulatory adjustments to facilitate the conversion of underutilized properties [50][51].

Investment Rating - The report indicates a bearish outlook for the Beijing Grade A office market, with expectations of continued downward pressure on rental prices and rising vacancy rates in the near term [2][3]. Core Insights - The demand for Grade A office space in Beijing remains sluggish, with rental prices declining to RMB 251.7 per square meter per month, a decrease of 8.8% quarter-on-quarter and 14.7% year-on-year. The average vacancy rate has reached 18.4%, up 0.8 percentage points from the previous quarter and 2.6 percentage points year-on-year [2][3][11]. - The market is expected to face significant competition in the coming years, with over 600,000 square meters of new projects anticipated to enter the market by 2025, amidst a backdrop of weak demand [3][7]. - The report highlights a shift in the buyer profile in the investment market, with domestic self-use buyers becoming the main players in large transactions, focusing on long-term value and strategic fit [14][15]. Supply and Demand - In Q4 2024, two new projects were completed, adding a total of 140,000 square meters to the market, bringing the total stock of Grade A office space in Beijing to 13.256 million square meters [2][7]. - The net absorption for Q4 2024 was -17,828 square meters, indicating a trend of relocation and lease renewals rather than new leases [2][4]. - The average vacancy rate for Grade A offices in Beijing is projected to rise to approximately 23.5% in the coming year, with rental prices expected to decline by about 8% year-on-year [3][4]. Rental Trends - The rental price for Grade A office space has seen a significant decline, with the average rent dropping to RMB 251.7 per square meter per month in Q4 2024. This reflects a broader trend of oversupply in the market and insufficient new leasing demand [11][13]. - Owners are increasingly offering incentives such as rent reductions, flexible lease terms, and renovation subsidies to attract and retain tenants, further contributing to the downward pressure on rental prices [11][13]. - Specific submarkets, such as the CBD and Financial Street, have also experienced notable declines in rental prices, with the average rent in the CBD falling below RMB 300 per square meter [13][17].

2024年 第三季度 本报告重点关注广州甲级写字楼市场，包括供应和需求、租金、空置率以及 knightfrank.com.cn/research 写字楼投资市场等方面相关信息 概览和展望 市场逐步修复但增长动能仍需积蓄 广州甲级写字楼市场 季度报告 租金走势 租金逐步止跌企稳 第 三 季 度，广 州 市 写 字 楼 市 场 租 金 虽 然依旧处于下行通道，但已初现企稳的苗 头。全市写字楼平均租金下跌至每月每平 方米134.9元，环比下滑0.1个百分点，年内 租金跌幅持续收窄。 除珠江新城以外，剩余子市场租金表现 相对平稳，租金环比变幅温和，显现出止 跌回稳的迹象。相比之下，珠江新城子市 场则主要因挽留和吸引租户，采取了更为 积极的定价策略，本季度租金环比跌幅达 2.2个百分点。 第三季度，广州写字楼租赁需求略有降 温，净吸纳量回调至22,073平方米。全市 甲级写字楼租金逐步企稳，环比仅小幅下 降0.1个百分点至134.8元。受新增供应入 市与需求放缓的双重影响，整体空置率较 上一季度上升0.5个百分点，达到12.6%。 从交易类型来看，新设立企业展现出的 需求韧性及扩租需求的增长，体现出广州 全市写字楼市场 ...

上海甲级写字楼市场 季度报告 2023年 第四季度 本报告重点关注上海甲级写字楼市场，包括供应和需求、租金、空置率以及 knightfrank.com.cn/research 写字楼投资市场等方面相关信息 概览和展望 整体经济恢复不及预期，市场复苏仍需时日 由于整体经济恢复不及预期，市场租赁 需求持续萎缩，导致第四季度上海写字楼 市场继续下行。第四季度，上海写字楼市场 迎来供应高峰，六个新项目竣工交付，总计 为市场带来437,177平方米的办公面积，环 比增幅7.1%，推升全年新供至136.9万平方 米。 业主为留住租户和吸引预算有限企业 的迁入而进行的减租和租赁折扣措施导致 市场平均租金环比大幅下跌3.1%至每天 每平方米人民币7.93元。业主与租户之间 的租金谈判空间进一步放大，续租以及企 业搬迁活动在本季度都十分活跃。 第 四 季 度，市 场 平 均 空 置 率 小 幅 增 加 0.9个百分点至19.2%。市场净吸纳面积为 129,528平方米，全年市场净吸纳量达到 509,855平方米，同比下跌8.4%。 第 四 季 度，市 场 租 赁 需 求 仍 然 来 自 于 TMT、金融和专业服务。市场未有新的 ...

Investment Rating - The report indicates a bearish outlook for the Shanghai Grade A office market, with expectations of continued rental declines and rising vacancy rates [2][3]. Core Insights - The overall market remains weak, with average rents continuing to decline and vacancy rates increasing. The average rent fell by 3.3% to RMB 7.03 per square meter per day, while the vacancy rate rose to 21.6%, an increase of 0.5 percentage points [2][3]. - In 2025, approximately 1.7 million square meters of office space is expected to be added to the market, posing significant challenges for landlords in terms of absorption [2]. - The low economy sectors, driven by capital investment and policy incentives, are anticipated to become new growth points for leasing demand [2]. Supply and Demand - In Q4 2024, three new projects added a total of 189,145 square meters of office space, contributing to a total annual supply decrease of 19.3% year-on-year to 1,104,521 square meters [8]. - The net absorption for Q4 was only 34,991 square meters, leading to a total annual net absorption of 256,413 square meters, a 50% decline year-on-year [8]. - Over 65% of leasing transactions in Q4 were due to corporate relocations, with financial, TMT, retail, and automotive manufacturing sectors being the primary demand sources [11]. Rental Trends - The average rent for Grade A offices continued to decline, with the core business district experiencing the largest drop of 3.8% to RMB 9.56 per square meter per day [8][14]. - The rental gap between core and emerging business districts has narrowed to RMB 3.66 per square meter per day, indicating a shift in tenant preferences towards more cost-effective options [8]. - Emerging business districts saw a rental decline of 1.8% to RMB 5.90 per square meter per day, with some areas like Qiantan showing a decrease of 2.3% to RMB 7.02 per square meter per day [14]. Investment Market - In Q4 2024, the Shanghai office investment market recorded 12 major transactions totaling over RMB 5.5 billion, with annual investment transactions nearing RMB 40 billion [15]. - 40% of market transactions were attributed to domestic financial institutions and high-tech companies, indicating a strong demand for self-use properties among newly listed tech firms [15].

Investment Rating - The report indicates a cautious outlook for the Shenzhen Grade A office market, with a focus on supply and demand dynamics, rental rates, and vacancy rates [1]. Core Insights - The phenomenon of rising supply and falling prices is expected to continue into the next quarter, with significant new supply and demand observed in Q4 2024. The total stock of Grade A office space in Shenzhen has surpassed 10 million square meters for the first time, with net absorption reaching approximately 146,000 square meters [2][3]. - Average rental rates have declined by 1.4% to 159.1 RMB per square meter per month, while the vacancy rate has decreased by 0.6 percentage points to 24.5%, indicating a mild recovery in the overall market [2][4]. - The TMT sector, professional services, and finance are identified as the three main drivers of demand in the Shenzhen Grade A office leasing market, with TMT showing strong stability [2][13]. Supply and Demand Summary - In Q4 2024, the market saw an increase in supply of approximately 119,000 square meters, leading to a total stock of Grade A office space exceeding 10 million square meters. The net absorption for the quarter was about 146,000 square meters, marking a significant increase [4][13]. - The demand sources for the quarter were primarily from the TMT sector (29.3%), professional services (22.2%), and manufacturing (18.7%), with relocation demands dominating the leasing transactions [13][14]. - The report anticipates continued pressure on the market due to the backlog of supply and the expected delivery of projects delayed from 2024 [3][16]. Rental Trends - The average rental rate for Grade A offices in Shenzhen has decreased to 159.1 RMB per square meter per month, marking a 1.4% decline from the previous quarter. This decline has been ongoing for ten consecutive quarters [7][10]. - Specific submarkets such as the Futian CBD and Chegongmiao have shown slight rental increases of 1.1% and 2.7%, respectively, while other areas like Qianhai have experienced a significant drop of 6.3% due to new supply [7][10]. - The report forecasts that rental rates may continue to decline in Q1 2025, influenced by the influx of new supply and the lack of clear demand drivers [9][16]. Investment Market Overview - The report notes that there were no significant transactions in the large-scale investment market for Grade A offices in Q4 2024, with a total transaction volume of approximately 2.7 billion RMB for the year, reflecting a more than 50% decline year-on-year [17]. - The cautious approach of large buyers is attributed to ongoing economic uncertainties and the pressure on asset values due to declining rental incomes [17].

Investment Rating - The report indicates a cautious outlook for the Shenzhen Grade A office market, with expectations of continued downward pressure on rental prices and high vacancy rates in the upcoming quarters [2][3]. Core Insights - The Shenzhen Grade A office market experienced a significant increase in both supply and demand in Q4 2024, with new supply reaching approximately 118,595 square meters and net absorption at about 145,599 square meters, marking a recovery from previous lows [2][4]. - Average rental prices fell by 1.4% to RMB 159.1 per square meter per month, continuing a downward trend that has persisted for ten consecutive quarters [2][7]. - The overall vacancy rate decreased by 0.6 percentage points to 24.5%, indicating a mild recovery in the market despite ongoing challenges [2][4]. Supply and Demand - The supply side saw the introduction of over 11,000 square meters from the China Venture Capital Building, pushing the total stock of Grade A offices in Shenzhen past 10 million square meters for the first time [13][20]. - The demand was primarily driven by the TMT sector, professional services, and manufacturing, with TMT accounting for 29.3% of the total demand [13][14]. - The report highlights that relocation demand remains dominant, while new establishment demand constituted 32.4% of the market transaction area [14]. Rental Trends - The average rental price for Grade A offices in Shenzhen has been on a downward trajectory, with a cumulative decline of 10 quarters, reflecting ongoing market adjustments [7][9]. - Specific submarkets like Futian CBD and Chegongmiao showed slight rental increases of 1.1% and 2.7%, respectively, while other areas, particularly Qianhai, experienced the largest decline of 6.3% due to new supply [10][11]. Market Outlook - Looking ahead to Q1 2025, the report anticipates continued pressure on rental prices and vacancy rates due to the influx of new supply and the lack of significant demand drivers [3][16]. - The overall economic environment and market confidence remain weak, which may hinder demand growth and exacerbate the challenges faced by the market [16][17]. Investment Market - The report notes that there were no significant transactions in the bulk investment market during the quarter, with total transaction volume for the year dropping to approximately RMB 2.7 billion, a decline of over 50% year-on-year [17][18]. - The cautious approach of bulk buyers is attributed to ongoing economic uncertainties and the pressure on asset values due to declining rental incomes [17][18].

Investment Rating - The report indicates a cautious outlook for the Shanghai Grade A office market, with expectations of continued downward pressure on rental rates and rising vacancy rates [1][2]. Core Insights - The Shanghai Grade A office market is currently in a downward phase, with both new supply and average rental rates declining. The overall vacancy rate has increased to 21.1%, up by 0.3 percentage points from the previous quarter [1][2]. - In Q3 2024, four new projects were completed, adding a total of 190,221 square meters of office space, which is a 50.4% decrease from the previous quarter. The net absorption rate fell to 51,346 square meters due to weak demand and declining transaction volumes [1][2]. - Average rental rates for Grade A offices decreased by 3.2% to RMB 7.27 per square meter per day, although the rate of decline has slowed compared to previous quarters [1][2][8]. - The report anticipates nearly 700,000 square meters of office space to be released in Q4, suggesting that flexible leasing options and negotiation space will be crucial for landlords to manage market absorption [1][2]. Summary by Sections Supply and Demand - The market continues to experience weak demand, with a significant reduction in leasing activities. The demand from new leases, renewals, and relocations has decreased [5][6]. - TMT (Technology, Media, and Telecommunications), finance, and professional services remain the primary sources of market demand [5][6]. Rental Trends - The average rental rate for Grade A offices has continued to decline, with a 3.2% drop in Q3 2024. The core business district's rental rate has fallen below RMB 10, reaching RMB 9.94 per square meter per day, marking a recent low [8][12]. - Emerging business districts have shown some resilience, with rental rates supported by demand from finance and professional services sectors [8][12]. Investment Market - The investment market for Grade A offices recorded 17 major transactions in Q3 2024, totaling over RMB 7.5 billion. Investment buyers accounted for nearly 40% of the transaction volume, reflecting a significant increase in demand for office property investments [10][11]. - The report highlights that domestic asset price disparities and favorable monetary policies are expected to attract more capital into the domestic investment market [10][11].