Asia Pacific Office Markets Sentiment Survey Q3

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  • Asia Pacific

    Office Markets Sentiment Survey

    The JLL Office Markets Sentiment Survey aims to capture, measure and track

    the sentiment and outlook for key office leasing markets around the region.

    Q3 2014

  • Leasing activity is expected to increase around the region

    INCREASED ACTIVITY STABLE DECREASED ACTIVITY

  • Tenant activity is slightly expansionary in majority of markets

    EXPANSIONARY

    SLIGHTLY

    CONTRACTIONARY

    SLIGHTLY

    EXPANSIONARY

  • Rents are expected to rise in 10 out of 15 Asia Pacific markets

    RENTS EXPECTED

    TO RISE STABLE RENTS EXPECTED

    TO FALL

  • Is it a landlord or a tenants market?

    NEUTRAL LANDLORD TENANT

  • What are the key drivers?

    Limited Supply

    Rising Rents

    Strong Demand

    Oversupply

    Large Incentives

    Weak Demand

    Falling Rents

    Tenant Market Landlord Market

  • Technology sector is the most active in Asia Pacific

  • Grade A rents around the region, in USD psf per month

    RENT

    INCREASED Q on Q STABLE RENT

    DECREASED Q on Q

    $11.6

    $8.0

    $6.6 $6.3

    $5.9

    $4.4 $4.4

    $3.6

    $3.0 $2.8 $2.6 $2.5 $2.2 $1.8

    $1.6

    Source: JLL Real Estate Intelligence Service

  • Asia Pacific Fast Facts

    AUCKLAND $2.5

    USD PSF PM

    Auckland has seen a lack of new supply, however

    the development pipeline is starting to build

    momentum.

    $1.6 USD PSF PM

    BANGKOK

    Bangkoks northern area the secondary business hub, is becoming an attractive option

    with modern specs, cheaper rentals, retail and

    transport facilities.

    BEIJING

    Beijing is a relatively tight market at present with

    limited space for expansion. Tenants are looing at

    developing submarkets to alleviate pricing

    pressure.

    $8.0 USD PSF PM

    DELHI

    Vacancy is falling in select micro markets and

    there is limited Grade A supply in Delhi. The

    market is expected to shift to a Landlord

    favourable market.

    $2.8 USD PSF PM

    CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY

  • MANILA

    In Manila, strong demand continues from the

    outsourcing industry and shipping/logistics

    companies are upgrading.

    $1.8 USD PSF PM

    $2.6 USD PSF PM

    JAKARTA

    Rents remain stable for Jakartas Grade A buildings. Banking, insurance, financial services

    are the most active sectors.

    Asia Pacific Fast Facts

    HO CHI

    MINH CITY $3.6

    USD PSF PM

    Ho Chi Minh is still favourable towards Tenants,

    although we expect rents to rise in the next 12

    months.

    $11.6 USD PSF PM

    HONG

    KONG

    Vacancy rate for Hong Kong central remains

    relatively low at 3.6%. The market will remain

    stable into the last quarter of 2014.

    CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY

  • MUMBAI

    Quality stock in Mumbai is being absorbed quickly,

    with technology and pharmaceutical companies

    increasing activity.

    $4.4 USD PSF PM

    OSAKA $2.2

    USD PSF PM

    Grade A rents in Osaka are expected to recover

    from next quarter. Tenants are focused on

    relocating to Umeda area, but availability is

    limited.

    $6.6 USD PSF PM

    SINGAPORE

    Pre-commitment on the only two new completions

    slated for the next 18 months has picked up

    strongly. Singapore CBD rents likely to continue to

    rise into early 2015.

    SEOUL

    Tenant demand has been weaker in Q2/Q3 than

    expected. New developments are pushing rental

    boundaries so pre-commitment is slow.

    $4.4 USD PSF PM

    Asia Pacific Fast Facts

    CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY

  • SHANGHAI

    MNCs are still cautious in terms of relocations,

    however domestic companies are actively making

    the move to good quality buildings.

    $6.3 USD PSF PM

    Asia Pacific Fast Facts

    SYDNEY $3.0

    USD PSF PM

    Sydney is seeing some growth in the technology

    sector and with smaller tenants, however overall

    tenants are still in a broader consolidation mode

    seeking more efficiency from their existing space.

    $5.9 USD PSF PM

    TOKYO

    Rental growth is being driven by expansionary

    demand and lack of supply in the market. IT and

    SMEs are the most active, but manufacturers are

    also expanding their operations in Tokyo.

    CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY

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