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.
Q2 2015
INCREASED ACTIVITY STABLE DECREASED ACTIVITY
Shanghai
Ho Chi M
inh
Aucklan
d
Manila
Bangko
k
Sydney
Beijing
Delhi
Toky
o
Jaka
rtaSeo
ul
Singapore
Mumbai
Osaka
Hong Kong
Will leasing activity increase or decrease?
EXPANSIONARYSLIGHTLY CONTRACTIONARY
SLIGHTLY EXPANSIONARY NEUTRAL
Shanghai
Bangko
k
Manila
Aucklan
d
Beijing
Delhi
Ho Chi M
inh
Hong Kong
Jaka
rta
MumbaiOsa
kaTo
kyo
Singapore
Sydney
Seoul
Will tenant activity be expansionary?
RENTS EXPECTED TO RISE
STABLE RENTS EXPECTED TO FALL
Aucklan
d
Manila
Sydney
Beijing
Delhi
Toky
o
Osaka
Mumbai
Shanghai
Ho Chi M
inh
Hong Kong
Bangko
kSeo
ul
Jaka
rta
Singapore
Will rents increase or decrease?
NEUTRALLANDLORD TENANT
Is it a landlord or a tenant’s market?
Bangko
k
Jaka
rta
Ho Chi M
inh
Beijing
Aucklan
d
Shanghai
Sydney
Toky
o
Hong Kong
Manila
Osaka
Delhi
Seoul
Mumbai
Singapore
Limited Supply
Rising Rents
Strong Demand
Large incentives
Oversupply
Rents Falling
Weak Demand
Tenant Market Landlord Market
No incentives
What are the key factors driving the market?
Which sectors are the most active?
Tech
nology
Pharmac
eutic
al
Real E
state
Consumer
Transp
ort
Profes
sional
Service
s
Bankin
g
RENTINCREASED Q on Q STABLE
RENTDECREASED Q on Q
Hong Kong
New D
elhi
Singapore
Bangko
k
Manila
Mumbai
Toky
o
Shanghai
Jaka
rta
Osaka
Beijing
Ho Chi M
inh City
Seoul
Sydney
Aucklan
d
$11.8
$7.9
$5.5
$4.2
$2.8$3.6
$2.4$2.1 $1.8
$1.7
$6.4
$6.2
$4.1
$2.6$2.7
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
AUCKLAND $2.4USD PSF PM
Building supply in the pipeline, but existing availability restricted.
$1.7USD PSF PM
BANGKOKCall centres for insurance companies are very active in
terms of office demand - rental to increase steadily but at a slower pace compared to last year.
BEIJING
Tenant quality remains a focus. Few options in core locations. Companies interested more and more on air
quality filtration. Beijing's urban sprawl continues with new submarkets coming, but few are willing to jump in.
$7.9USD PSF PM
NEWDELHI
Low grade A supply. Tenants in expansionary mode has resulted in a high demand for office space and thus rental
values have increased.
$2.8USD PSF PM
Asia Pacific Fast Facts
HO CHI MINH CITY
$3.6USD PSF PM
IT, FCMG, Pharmaceutical companies, Foreign banks, and Logistics businesses are key occupiers and quite
active in terms of expansion. Asking still flat for now. Net absorption vacancy rates decreasing
$11.8USD PSF PM
HONG KONG
Central vacancy is falling quite quickly with the activity on Citibank Plaza. This will lead to the Landlord community in this core location being more aggressive on raising rents.
JAKARTA
Under Government regulations, transactions have to be in Rupiah effective 1st July 2015 instead of USD. Where
80% of Grade A rents are in USD, this could force landlords to change to Rupiah as requested by tenants.
$2.6USD PSF PM
MANILA
Back office banking functions are expanding. Rents are continuously rising in the major cities and
pre-commitments to space prior to building delivery is still active.
$1.8USD PSF PM
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
Asia Pacific Fast Facts
$4.2USD PSF PM
Markets still tenant oriented and will move to Landlord oriented market over the next 12 - 15 months. Absorbtion likely to increase marginally over this quarter, and rentals
will also witness a minor increase.
$2.1USD PSF PM
Limited Grade A space in the Umeda area is leading large scale tenants to consider space in Yodobashi No large re-development projects scheduled for the Umeda area till
2022.
New supply additions will decline and tenant demand is expected to improve over the next 12 months (compared with the past year). As
a result, vacancy will fall causing tenant incentives to decline slightly – although they will still remain generous as vacancy will
remain well above the historical average
$4.1USD PSF PM
Domestic tenants are still active especially in the financial, professional services and retail sectors. Possible upward
trend in rentals for 2H 2015.
$6.4USD PSF PM
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
MUMBAI
OSAKA
SEOUL
SHANGHAI
Asia Pacific Fast Facts
$6.2USD PSF PM
Vacancy starting to increase moderately due to handback of space by large banking and finance occupiers.
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
$2.7USD PSF PM
High level of net absorption, driven by the time lag of transactions and the usual higher number of transactions
being completed by year end.
Limited new supply in the next few years and continuing expansionary demand is expected to continue to drive
rental growth over the next few quarters.
$5.5USD PSF PM
SYDNEY
TOKYO
SINGAPORE
Asia Pacific Fast Facts
