Real Estate News, Reviews and Investment
News: grade A office rental growth increased in Asia in 2012.
With the global crisis seemingly in check and the economy starting to move into forward gear, premium office occupancy has seen a checkered affair. Nevertheless there are encouraging signs that companies are stacking their hold on the Asian real estate rental quarter.
The status quo of premium office rental occupancy
For premium office occupancy, the earlier part of 2012 was definitely not a good year for companies seeking rental accommodation for their businesses in the region. However, in a report on the leasing of office space, Knight Frank asserts that there has been a marked change during 4Q of 2012 in some real estate markets despite continuing contracting trends in others. Some have managed to maintain their operation at a stable level.
Performances of individual markets in the region.
The specter of the global crisis right now has somewhat dissipated and businesses are again seeking to gain a foothold in the region. This has been reflected by:
In the midst of this uplifting trend in Q4 of 2012, the performances of individual cities have varied.
Rents however, have decreased in 8 of the 18 city markets with the markets of Singapore, Hong Kong, Shanghai and Seoul experiencing a downturn of demand by banking and financial fields. The decline in rented office space in these markets reflect the scaling down of costs by these banking and finance sectors which in turn has led to a fall in rental earnings to real estate owners. Nevertheless, despite these negative trends, sectorial activities have shown signs of recouping lost ground in Singapore and Seoul. Law firms have intensified their operating activities and have modified negative trends.
In the middle ranks stands Australia which has managed to hold its leasing markets at a stable level. India has also maintained stable rents with Delhi, Bangalore and Mumbai witnessing an impressive Q4 upturn of 4.5% when compared to Q3.
There is no doubt that the Asian market is experiencing a comeback from the tumultuous period following the outbreak of the global economic crisis and there are healthy signs that the region is on the verge of a recovery which, given the resilience and forward looking optimism of the region as a whole, will enter 2013 with a more confident