Asia Pacific office leasing narrows to a three-market core
Colliers' first-half data shows occupier demand concentrating in India, China and Japan as new supply drops 37 percent.
Office tenants across Asia Pacific leased 49.5 million square feet in the first half of 2026, Colliers reported. That volume, spread over 11 markets, looks healthy given the geopolitical noise. But the regional total splits into a core three and the rest. India, mainland China and Japan took more than 95 percent of new leases. The same trio accounts for over 90 percent of new supply coming online. Hong Kong and Taiwan posted strong demand growth. New Zealand, Indonesia and Singapore saw volume fall sharply from a year earlier.
Colliers credits steady business momentum and a persistent preference for high-quality offices. Its mid-year report, first covered by IREI, puts new supply at 32.3 million square feet. That is 37 percent below last year's level. With constrained supply and occupiers fixated on best-in-class assets, the firm expects the second half to keep that momentum. Mike Davis, Colliers' managing director for occupier services in Asia Pacific, said occupiers are doubling down on premium workplaces to attract talent and lift productivity, and that regional demand is concentrating in the best buildings.
For private real estate capital, the regional average hides a wide gap. Prime office in India, China and Japan has occupancy momentum and less new supply in the pipeline. New Zealand, Indonesia and Singapore are seeing tenants retreat, and that gap determines which office portfolios are safe and which warrant distress monitoring. With new supply down 37 percent regionwide, bids for existing top-tier product in gateway markets should firm up, even if overall office sentiment stays cautious. The second half will show whether Colliers' projected momentum becomes sustained leasing in the lead markets. For investors sizing office exposure, the data supports two distinct underwriting approaches: prime assets in the lead markets on their leasing momentum, and the laggards stressed for rising vacancy. Asia Pacific office is not one trade; the gap between leaders and laggards is wide enough to price separately.