The JLL Office Markets Sentiment Survey tracks and measures sentiment and outlook for key office leasing markets in Asia Pacific. See where our local experts feel tenant activity is expected to increase, in what sectors and why; where vacancies are set to fall, the likely impact on rents and the sentiment for the next 12 months.

1. Asia Pacific
Office Markets Sentiment Survey
The JLL Office Markets Sentiment Survey aims to capture, measure and track
the sentiment and outlook for key office leasing markets around the region.
Q2 2015

2. INCREASED ACTIVITY STABLE DECREASED ACTIVITY
Will leasing activity increase or decrease?

3. EXPANSIONARY
SLIGHTLY
CONTRACTIONARY
SLIGHTLY
EXPANSIONARY NEUTRAL
Will tenant activity be expansionary?

4. RENTS EXPECTED
TO RISE
STABLE RENTS EXPECTED
TO FALL
Will rents increase or decrease?

5. NEUTRALLANDLORD TENANT
Is it a landlord or a tenant’s market?

6. Limited Supply
Rising Rents
Strong Demand
Large incentives
Oversupply
Rents Falling
Weak Demand
Tenant MarketLandlord Market
No incentives
What are the key factors driving the market?

7. Which sectors are the most active?

8. RENT
INCREASED Q on Q STABLE
RENT
DECREASED Q on Q
$11.8
$7.9
$5.5
$4.2
$2.8
$3.6
$2.4
$2.1
$1.8
$1.7
$6.4
$6.2
$4.1
$2.6
$2.7

9. CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
AUCKLAND
$2.4
USD PSF PM
Building supply in the pipeline, but existing availability
restricted.
$1.7
USD PSF PM
BANGKOK
Call centres for insurance companies are very active in
terms of office demand - rental to increase steadily but at
a slower pace compared to last year.
BEIJING
Tenant quality remains a focus. Few options in core
locations. Companies interested more and more on air
quality filtration. Beijing's urban sprawl continues with new
submarkets coming, but few are willing to jump in.
$7.9
USD PSF PM
NEW
DELHI
Low grade A supply. Tenants in expansionary mode has
resulted in a high demand for office space and thus rental
values have increased.
$2.8
USD PSF PM
Asia Pacific Fast Facts

10. HO CHI
MINH CITY
$3.6
USD PSF PM
IT, FCMG, Pharmaceutical companies, Foreign banks,
and Logistics businesses are key occupiers and quite
active in terms of expansion. Asking still flat for now. Net
absorption vacancy rates decreasing
$11.8
USD PSF PM
HONG
KONG
Central vacancy is falling quite quickly with the activity on
Citibank Plaza. This will lead to the Landlord community in
this core location being more aggressive on raising rents.
JAKARTA
Under Government regulations, transactions have to be in
Rupiah effective 1st July 2015 instead of USD. Where 80%
of Grade A rents are in USD, this could force landlords to
change to Rupiah as requested by tenants.
$2.6
USD PSF PM
MANILA
Back office banking functions are expanding. Rents
are continuously rising in the major cities and
pre-commitments to space prior to building delivery
is still active.
$1.8
USD PSF PM
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
Asia Pacific Fast Facts

11. $4.2
USD PSF PM
Markets still tenant oriented and will move to Landlord
oriented market over the next 12 - 15 months. Absorbtion
likely to increase marginally over this quarter, and rentals
will also witness a minor increase.
$2.1
USD PSF PM
Limited Grade A space in the Umeda area is leading large
scale tenants to consider space in Yodobashi No large re-
development projects scheduled for the Umeda area till
2022.
New supply additions will decline and tenant demand is expected to
improve over the next 12 months (compared with the past year). As
a result, vacancy will fall causing tenant incentives to decline slightly
– although they will still remain generous as vacancy will remain
well above the historical average
$4.1
USD PSF PM
Domestic tenants are still active especially in the financial,
professional services and retail sectors. Possible upward
trend in rentals for 2H 2015.
$6.4
USD PSF PM
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
MUMBAI
OSAKA
SEOUL
SHANGHAI
Asia Pacific Fast Facts

12. $6.2
USD PSF PM
Vacancy starting to increase moderately due to handback
of space by large banking and finance occupiers.
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
$2.7
USD PSF PM
High level of net absorption, driven by the time lag of
transactions and the usual higher number of transactions
being completed by year end.
Limited new supply in the next few years and continuing
expansionary demand is expected to continue to drive
rental growth over the next few quarters.
$5.5
USD PSF PM
SYDNEY
TOKYO
SINGAPORE
Asia Pacific Fast Facts