APAC Grade A office supply falls 38% in H1

September 21, 2026 - 10:24

New Grade A office supply in mature Asia Pacific markets fell 38 per cent year-on-year in the first half of 2026, according to fresh market data. The sharp decline marks a significant shift for a region that has spent the past few years absorbing waves of new construction.

Developers have pulled back on speculative projects as financing costs remain elevated and tenant demand stays uneven. Several major markets that were once pipeline heavy, including parts of Australia, Japan and South Korea, are now seeing fewer shovels in the ground. In some cities, projects have been delayed rather than cancelled outright, which could push supply into later periods.

The pullback comes as leasing activity in prime buildings holds steadier than the broader market. Occupiers continue to favor newer, well located towers with strong environmental credentials, leaving older stock increasingly exposed. That split has kept vacancy rates in top tier assets relatively contained even as secondary buildings struggle.

Analysts expect availability to tighten further through the second half of the year. With limited new completions on the horizon and steady demand from finance, technology and professional services firms, landlords in prime locations may regain some pricing power. The question is whether that momentum can spread beyond the best buildings, or whether the market remains divided between winners and laggards for some time.