SOUTHEAST ASIA OUTLOOK 2025

Southeast Asia Outlook 2025: Long-Term Growth Prospects Remain Intact

Office supply pressure ease Investments into offices have slowed as investors’ concerns about the long-term impact of hybrid work continue to persist. SEA’s office investment sales market continued to

with a view to deleverage amidst a higher-for-longer interest rate environment and recycle capital. With the exception of Singapore, vacancy rates across most markets remain elevated though they are gradually easing. Landlords, especially for new office stock, have also continued to hold on to their asking rents as operating costs have gone up amidst

higher construction costs and inflation. This has led to office rents steadily edging up higher across most of Southeast Asia. Singapore and Jakarta will be key markets to watch, with a dearth of new office supply over the next few years. Jakarta’s office rents could potentially grow by 8.5% annually over 2025 to 2029 amidst a very tight supply situation.

face challenges with volumes dropping by more than 20% in 2024 as compared to that in 2023. That said, there were pockets of activity with a few big-ticket office deals in Singapore, as some asset owners divest non-core assets

SEA Office Rental Growth

-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

2024 2025F Average 2025F - 2029F

Source: Cushman & Wakefield Research

16

17

CUSHMAN & WAKEFIELD