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BEIJING: Overall office rents in Asia, led by strong growth of Greater China and Singapore, rose 3.2% in 3Q2010, the second consecutive quarter growth confirming the recovery of overall office demand in the region, according to a statement released by CB Richard Ellis (CBRE) recently.
"Demand for quality space arising from relocation and expansion activities grew noticeably, a trend which manifested itself in the decline of vacancy in new office buildings in selected markets across the region," the statement said. The Hong Kong office market recorded the highest rental growth in the region, while rental growth in Singapore in the same quarter posted the biggest jump since 2008 on the back of strong net absorption.
Concerns over the large volume of secondary stock in Singapore to come on stream when major occupiers relocate to the major developments now nearing completion in the Marina Bay area have cooled — a consequence of deals signed in the past months as well as substantial volume of ongoing leasing negotiations.
Meanwhile, take-up in Beijing returned to the peak levels as seen in 2007, marking the rapid pace of recovery in the city's office market. However, rental growths in cities such as Guangzhou, Shanghai and a number of major cities in India did not do as well despite solid demand for office space in these locations aside from a large number of new supply coming onto the market in the short to medium term.
Several markets experiencing downward pressure on rents such as Seoul and Kuala Lumpur is likely to increase, as tenants commonly perceive the emergence of oversupply in these markets over the short to medium term future, it said.
"Demand for quality space arising from relocation and expansion activities grew noticeably, a trend which manifested itself in the decline of vacancy in new office buildings in selected markets across the region," the statement said. The Hong Kong office market recorded the highest rental growth in the region, while rental growth in Singapore in the same quarter posted the biggest jump since 2008 on the back of strong net absorption.
Concerns over the large volume of secondary stock in Singapore to come on stream when major occupiers relocate to the major developments now nearing completion in the Marina Bay area have cooled — a consequence of deals signed in the past months as well as substantial volume of ongoing leasing negotiations.
Meanwhile, take-up in Beijing returned to the peak levels as seen in 2007, marking the rapid pace of recovery in the city's office market. However, rental growths in cities such as Guangzhou, Shanghai and a number of major cities in India did not do as well despite solid demand for office space in these locations aside from a large number of new supply coming onto the market in the short to medium term.
Several markets experiencing downward pressure on rents such as Seoul and Kuala Lumpur is likely to increase, as tenants commonly perceive the emergence of oversupply in these markets over the short to medium term future, it said.
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