Gentrified locations, life sciences and IT.

Many cities across APAC (Asia Pacific) continue to grow at an aggressive pace. And with this growth has come the emergence of new and exciting urban locations including in Sydney, Melbourne, Brisbane, Seoul and Fukuoka. These locations are often the home of rapidly expanding business clusters – centred around growth sectors, such as technology or life sciences – and supported by improving infrastructure.

Higher investability of office stock and superior amenities are characteristics of particular importance to a new breed of tenant. These factors coupled with rental affordability are expected to attract a new generation of employees through the development of innovative and flexible workspace, particularly in the technology and creative hubs.

Exhibit 1: stock and rent level

Australia

North Sydney and Macquarie Park

The North Sydney office market is a natural extension of the Sydney CBD and in recent years has emerged as a media and technology hub. Given the availability of good quality office stock and public transport accessibility, including the upcoming Sydney Metro line (Victoria Cross Station) in 2024, have seen major firms including Microsoft, SAP and Nine Entertainment establishing their headquarters in this precinct. Improvement in retail amenities is expected to increase the attractiveness of the submarket over the long term.