Asia Pacific office rents and prices to stay flat
China continues to buck the trend with growth expected in its office market.
Continued growth of local enterprises in Asia Pacific is anticipated to keep the region’s overall office demand stable in the near term, despite the deepening sovereign debt crisis in Europe and the slowdown of China’s overall growth pace, according to Colliers International’s Asia Pacific Office Market Overview 3Q 2011.
In 3Q 2011, office leasing demand from multi-national corporations slowed due to the lack-luster growth prospects around the globe. However, local enterprises in Asia Pacific continued aggressive expansion plans resulting in mixed and uneven rental trends in the region during 3Q 2011. This is largely reflected in the average Greater China office rental growth of 4.5% quarter-on-quarter (QoQ) which out-paced the region’s overall growth of a mere 1.3%.
Sales transaction activity in Asia Pacific was relatively quiet in 3Q 2011. Around the region, the Colliers report noted the lack of en-bloc office sales transaction in Beijing in 3Q 2011, while the office sales transaction volume plummeted almost 70% in Hong Kong. However, on the flip side, other individual markets in the region, underpinned by local private investors’ buying interest, registered exceptionally encouraging sales volume in the quarter. They included Guangzhou in which a number of office projects in Pearl River New City were launched, and Brisbane where strong sales volume of large and prime assets was recorded.
“Looking forward, the continued positive support from sustained capital inflows and private consumption in Asia Pacific is anticipated to hold steady the region’s overall office demand,” said Mark Lampard, Managing Director of Corporate Solutions, Asia Pacific at Colliers International. “In the near term, office rents and prices are anticipated to move flatly, while sales volumes will be reduced in most markets in the region except China that will see continued demand from local investors.”
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Tags: Asia Pacific office rents, Asia Pacific office prices, Asia Pacific office market
