Tuesday, August 29, 2006
[RealEdge] BT : Office rentals in Asia rise sharply on robust conditions
| Published August 29, 2006  | |||
| Office rentals in Asia rise sharply on robust conditions Report finds biggest Q2 increase in Tokyo, with rates up 10.8% (SINGAPORE) Office rentals in Asia's key cities increased sharply in the second quarter ended June, underpinned by strong economic conditions in the region, an industry report said yesterday. 'Upbeat occupier demand continued to be witnessed across Asia's leading office markets within the second quarter of 2006,' real estate consultancy CB Richard Ellis said in the report. Tokyo showed the sharpest rental rise, with rates up 10.8 per cent in the June quarter compared with the three months to March as the vacancy rate in Japan's capital city dropped to an all-time low of 0.6 per cent. 'Underpinned by the upbeat economic outlook, the second quarter of 2006 saw further acceleration in occupier plans to upgrade to superior quality office space,' CB Richard Ellis said. 'Requirements for Grade A office space continued to outstrip market availability. In Shanghai, office rentals in the main Pudong business area were up 1.9 per cent from the March quarter while the Puxi district rose 3.4 per cent. 'Market activity was dominated by tenants taking the opportunity to move to better quality office premises provided by the surge in office completions, particularly attracted by the larger floor (area) and improved design and technical infrastructure, In Hong Kong, rentals increased 6.8 per cent in the June quarter, marked by financial institutions' willingness to pay for top grade space. In South-east Asia, leasing rates in the key cities were higher, with Jakarta the only exception where rentals fell 3.6 per cent in the June quarter due to ample supply, CB Richard Ellis said. In Kuala Lumpur, rentals were steady while in Singapore, rates rose 7.1 per cent, the highest of six South-east Asian cities monitored by CB Richard Ellis. 'Broad-based growth of the economy, with the financial services sector being the main driver, and buoyant business sentiment have contributed to driving office occupancy rates and rentals to higher levels,' it said. Rentals in Manila were up 7.0 per cent, while Bangkok increased 1.4 per cent and Vietnam's business hub of Ho Chi Minh City was flat. - AFP 'Upbeat occupier demand continued to be witnessed across Asia's leading office markets within Q2 of 2006.' |
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