Major global office markets continued to report tightening vacancies and rising rents in 2007. While strong tenant demand has continued to drive the prime vacancy rate down in Sydney, total occupancy costs continue to be considerably less than in other major business locations. Total office occupancy costs in Sydney are lower than Singapore, and a third of those in Hong Kong, Mumbai and Tokyo. The typical rent-free period in Sydney's office market of almost 14 months is also one of the best internationally.

Rental increases in Sydney in the 12 months to November 2007 have been well below those of most other major cities.

Other office markets in the Asia Pacific have been more volatile than Sydney's in 2007. In both Hong Kong and Tokyo, local currency rents for prime office space jumped by around 22% in the 12 months to November 2007 due to shrinking availability and rising demand, which is forecast to continue in 2008. Additionally, rents spiralled over 80% in Singapore, and over 50% in Mumbai, where demand for office space has outstripped supply.