Investment Rating - The report indicates a cautious outlook for the office market in the Asia-Pacific region for 2026, reflecting ongoing geopolitical and technological shifts [11]. Core Insights - Prime rental growth in the Asia-Pacific region has lost momentum, remaining largely unchanged quarter-on-quarter in Q3 2025, with a decline from 0.2% in Q2 2025 [4]. - The Chinese mainland markets experienced an accelerated decline in rental growth due to a supply-heavy quarter, while Southeast Asia also saw flatlining rents as landlords focused on maintaining occupancy levels [4][5]. - In contrast, landlords in India and Australia remained optimistic, with rents rising by 1.7% quarter-on-quarter in India despite increased vacancies from new supply [5]. - Brisbane led the region in annual rental growth, driven by strong demand from the Professional Services sector, while Melbourne showed significant quarterly growth [6]. - The overall vacancy rates in the region increased due to robust new space deliveries, particularly in the Chinese mainland and Indian markets, which supported a flight-to-quality trend [7]. - Premium spaces in Hong Kong SAR are witnessing an increase in new leases, indicating long-term commitments from occupiers despite a sluggish economy [8]. - The financial and tech sectors accounted for nearly half of the major leases in the region, with professional services firms making up over 10% [9]. - Rental growth is expected to remain subdued due to strong construction deliveries over the past two years and the backfill space created [10]. Summary by Sections Rental Growth - The Asia-Pacific Rental Index showed a year-on-year change of -1.4% in Q3 2025, with 16 out of 23 tracked cities recording stable or increasing rents year-on-year [11]. - Melbourne recorded the highest quarter-on-quarter rental growth in Q3 2025 [11]. Market Outlook - Occupier priorities are evolving, with a focus on space solutions that support higher density and strategic value, emphasizing flexibility and resilience in lease terms [11]. - The report anticipates that conditions in Seoul will become tenant-favorable with over 4 million sq ft of new office spaces completing in the next two years [10]. Regional Insights - In Australia, prime net effective rents rose 5.5% year-on-year, with Brisbane leading at a 14.9% increase [31]. - In Southeast Asia, rental growth remained weak, with Ho Chi Minh City experiencing a 1.7% quarter-on-quarter decline as landlords adjusted rents to align with new supply [56].

Investment Rating - The report indicates a favorable outlook for the Melbourne CBD office market, with expectations of future rental growth supported by a contraction in development [1]. Core Insights - Melbourne recorded its highest annual net absorption since 2018, with a total of +29,475 sqm in 2025, marking the first positive annual result since 2020 [3][25]. - The vacancy rate in Melbourne's CBD rose to 19.0%, primarily due to the completion of several largely vacant refurbished assets [6][36]. - Prime net face rents increased by 5.2% in 2025, the highest growth in three years, with significant increases in the Eastern Core [11][48]. Demand - Tenant demand accelerated in 2025, with net absorption reaching +29,475 sqm, driven by a flight-to-quality trend where prime net absorption totaled +40,070 sqm [25][28]. - The Professional Services sector was the most active in leasing, accounting for 31% of total deal volume [28]. - Robust lease requirement volumes were noted, with 210 CBD lease briefs released, totaling over 300,000 sqm of active requirements [27]. Supply - The CBD vacancy rate increased due to the reintroduction of major refurbished assets, with the Eastern Core experiencing a rise in vacancy to 18.0% [36]. - Development is expected to slow markedly in 2027, with only two major developments forecasted beyond 2026, leading to a projected fall in supply and upward pressure on vacancy [38]. Rental Growth - Prime net face rents in Melbourne's CBD rose by 5.2% in 2025, with the Eastern Core seeing a 10.4% increase [11][48]. - Despite growth in other precincts, a significant pricing gap remains between the Eastern Core and the broader market, with rents averaging $1,010/sqm in the East compared to $503–$747/sqm in other areas [48]. Investment Market - Investment volumes increased by 33% in 2025, supported by major CBD transactions, with prime yields averaging 6.8% [56]. - The report highlights that as yields stabilize, transaction volumes are expected to continue to rise [56]. Southbank Update - Prime net face rents in Southbank averaged $692/sqm, remaining flat quarter-on-quarter but increasing 2.5% year-on-year [64]. - Southbank recorded a total vacancy rate of 15.0%, outperforming most Melbourne CBD precincts [65].

Group 1 - The March Canadian dollar futures are currently presenting a selling opportunity due to recent price weakness, having hit a four-week low and showing a downward trend [1] - The U.S. economy is performing better than the Canadian economy, contributing to a stronger U.S. dollar amid increased geopolitical tensions [2] - A decline in the March Canadian dollar below the support level of 0.7200 would empower bearish traders and create a selling opportunity, with a downside target of 0.7080 [3]