Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Fri
Nov 28th
Lost Password? Register
Home arrow News arrow Europe arrow Office market in Asia Pacific likely to see more activity in 2013, says Knight Frank

Office market in Asia Pacific likely to see more activity in 2013, says Knight Frank

Monday, 01 April 2013
Image
Concerns surrounding the world economy continued to have an influence on the office occupier property markets in Asia Pacific in the final months of last year, according to the latest index

The Knight Frank Asia Pacific Prime Office Index rose 2% in the fourth quarter of 2012, up from a 0.8% increase in the previous quarter and the firm says that with some of the constraints holding back international corporates dissipating, a less uncertain outlook is expected to lead to more leasing activity in 2013.

Jakarta saw the strongest quarterly increase of 14.3% as very tight supply was met with robust demand and Beijing and Jakarta have now seen prime office rents double over the last three years.

The index shows that rents decreased in eight of the 18 markets tracked, with the more open markets of Singapore, Hong Kong, Shanghai and Seoul feeling a drop in demand from the banking and finance sectors.

Banking and financial institutions continued to cut costs in the last quarter of 2012, impacting the major financial centres of Hong Kong, Singapore, Shanghai, Seoul and Tokyo. This has been reflected in softening rents in the first four of these markets, while the latter, Tokyo, has seen strong demand in the central three wards, as corporates have continued to trend towards centralisation.
 
The index shows that the vacancy rate across the region increased marginally to 11% on the back of negative net absorption in a number of markets, and new supply coming to the market. Notably Beijing saw its vacancy rates increase for the first time since the fourth quarter of 2009 as the market approaches its mid term peak.

Australia saw rental levels remain steady, with sentiment in the leasing markets remaining relatively subdued. Incentive levels remain high, edging up in Sydney, as effective rents remain significantly lower than headline figures.

In India, rents remained stable in Delhi and Bangalore, while Mumbai saw a significant fourth quarter rental increase of 4.5% as net absorption in all three markets bounced back from a subdued third quarter.

Across the region, certain sectors have remained very active over the quarter. The legal sector has seen an increase in foreign law firm activity, most notably in Singapore and Seoul, where increasing liberalisation has presented expansion opportunities.

‘Significant new supply, cost attentive corporates and expansion delays due to global uncertainty will continue to have a dampening impact on office rental levels in some of the key gateway cities of Asia Pacific,’ said Nicholas Holt, Knight Frank research director for Asia Pacific.

‘However, as the US kicks the can down the road to avoid the fiscal cliff, the threat of a crisis in the Eurozone recedes, and Chinese growth speeds up again, corporates in the Asia Pacific region are likely to gradually become more bullish in their expansion plans as the economy moves into a new cycle,’ he added.

 

This story relates to: Property  property market  retail  uk  [SEE ALL]


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here



Europe: Top Headline

Councils in England urged to sell off high value properties to fund more affordable homesCouncils in England urged to sell off high value properties to fund more affordable homesCouncils in England should sell vacant buildings and reinvest the money in more affordable homes, according to a government minister.



West Tower

West Tower

Car park

West Tower

home rental guide

Barratt Homes

West Tower

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

Winkworth opens new office in Spain near Marbella

Winkworth is opening a new office in Guadalmina, Spain, near to the popular resort of Marbella on the southern coast of Spain.

Finance Update

Nationwide resumes access to Help to Buy for home movers

Nationwide Building Society has announced that it is resuming access for home movers looking to participate in the government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our Europe property and real estate news feed (RSS)