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 tenant’s 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
Bangkok’s 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 Jakarta’s 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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