Asian office market slows further: CBRE
A CB Richard Ellis’ Asia Pacific Office Market Review for Q3 2008 has stated that the Asian office market has slowed further as the fallout from the global economic crisis.
The quarter saw a further easing of momentum in office leasing and the remainder of 2008 is likely to see the end of the upward cycle as potential occupiers grow cautious about committing to premium space.
Prime office rentals in Q3 2008 were static in major central business districts (CBD) including those in Beijing, Hong Kong, Seoul, Ho Chi Minh City and Singapore.
Vacancies across the region started to increase with a rise observed in 12 out of the 17 markets tracked by CBRE.
Anshuman Magazine, chairman & managing director, CB Richard Ellis, South Asia wrote in his report that leasing activity in India has slowed down during the third quarter.
This was because businesses began to feel the impact of global financial turmoil.
The low volume of leasing led to a marginal correction in quoted rentals for the New Delhi CBD. Rentals across premium buildings in Mumbai also underwent a correction while rentals in Bangalore stayed static.
In Singapore, several occupiers are seeking to lower costs and relocating to decentralized locations, built-to-suit facilities and business park space.
In China, the positive effects of hosting the Beijing Olympics and Paralympics could not prevent the office rental growth from slowing as leasing activity took a backseat to the games.