The office sector in the Asia Pacific continued to expand in the third quarter, with occupier demand increasing as a result of sustained economic growth, according to a report by DTZ Research on Thursday.
The property researcher found that aggregate net absorption across the region has now reached pre-financial crisis levels, totalling 1.9 million square metres, compared with a low of 200,000 square metres in the second quarter of 2009.
China and India dominated leasing activity in the third quarter, with demand being driven by foreign companies.
The Singapore office market has made a strong recovery, with island-wide occupancy increasing 1.7 percentage points to 94.9 per cent at the end of September.
Singapore witnessed increased demand for office space in all districts during the third quarter, and rents are expected to rise further by December, DTZ said.
Rentals for prime office space in Raffles Place are forecast to grow 13.9 per cent in 2010.
In Hong Kong, too, demand for office space is pushing down vacancy levels that are already low.
DTZ predicts that rentals for prime office properties in Hong Kong will grow 21.7 per cent this year. That is a substantial increase from the 11.8 per cent rental growth for 2010 that DTZ had forecast in the second quarter.
Source : Channel NewsAsia – 28 Oct 2010