Rents are tipped to rise 8% by year-end and 5% in 2020.

This chart from Colliers International shows that CBD Grade A rents grew to 1.5% QoQ to $10.08 psf in Q3. As a result, vacancy increased to 3.3%.

Net absorption also decreased by 104,000 sqft, bringing the full year total to 897,000 sqft. Nonetheless, the supply pipeline remains tight, averaging 3% of stock per annum over 2019-2021, the report noted.

Colliers expects CBD Grade A office rents to grow 8% in 2019 and 5% in 2020, moderating from a strong 15% in 2018.

The report added that tenants reportedly remained resistant to further rent hikes.