Asia Pacific to see strong office rentals

The Asia Pacific real estate market has continued to see positive sentiment and increased activity in the first quarter of this year, according to Jones Lang LaSalle’s Asia Pacific Property Digest.

It added that rents have increased across most markets.

Jones Lang said positive business sentiment and continued corporate hiring underpinned the Asia Pacific office leasing market, as occupancy levels improved on higher corporate space requirements in most markets.

The market observer added that 1.5 million square metres of new Grade A office space was completed in the Tier 1 markets of Asia Pacific, with over 80 per cent of the total being delivered to cities in China and India.

Among the major financial centres, Hong Kong and Singapore both recorded strong net take-up, largely due to relocation and expansion of financial and professional service firms.

But a notable exception was Japan where the March earthquake has resulted in a slowdown in expansion activity in Tokyo and a reassessment of accommodation strategy by some corporates.

Looking forward, rents are expected to grow more strongly this year in markets such as India, although rental growth in Singapore, Shanghai and Hong Kong may moderate slightly from the hectic pace seen in 2010.

The highest growth, of up to 30 per cent, is expected in Hong Kong.

Source : Channel NewsAsia – 18 May 2011

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