KUALA LUMPUR: The Asia-Pacific prime office rental index has increased by 0.8% quarter-on-quarter (q-o-q) in the first quarter of 2022 (1Q22), compared to the 0.3% growth in 4Q21, said independent global property consultancy firm Knight Frank.

       In a statement, it said the growth indicates a sustained economic recovery, despite rising inflation and the Russian invasion of Ukraine weighing down the market sentiment.

       “Vacancy remains elevated at 13.1%, similar to that of 4Q21.

       “This should start to reduce further with the reopening of more Asia-Pacific markets and tenants in the tech industry continuing to seize opportunities for premium quality spaces in the central business district at low rents,” it said.

       Knight Frank global head of Occupier Strategy and Solutions, Tim Armstrong said optimism at the start of the year was tempered by resurgences of Covid-19, which resulted in Hong Kong and several tier-1 Chinese mainland markets re-tightening movement restrictions.

       “The sustained economic recovery post-Covid-19 in the region was also challenged by the Russia-Ukraine war which led to the surge in energy prices and inflationary pressure.

       “As such, the growth forecasts for the region could be lower than what had been projected, but the Asia-Pacific market is not as directly impacted by the macroeconomic uncertainties as other regions,” he said. — Bernama