Find out where tenant activity is expected increase, in which sectors and why; where vacancies are set to fall and the likely impact on rents and market sentiment in key office leasing markets throughout Asia Pacific with our latest animated infographic.

1. Asia Pacific
Office Markets Sentiment Survey
The JLL Office Markets Sentiment Survey aims to capture, measure and track
the broker sentiment and outlook for key office leasing markets around the
region.
Q3 2015

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

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

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

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

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

7. Which sectors are the most active?

8. RENT
INCREASED Q on Q STABLE
RENT
DECREASED Q on Q
$12.5
$8
$5.5
$4.1
$2.7
$3.6
$2.2
$2.1
$1.8
$1.7
$6.6
$6
$4.1
$2.6
$2.7
Grade A rents around the region

9. Asia Pacific Fast Facts
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
AUCKLAND
$2.20
USD PSF PM
Increased leasing activity is expected as the development
pipeline comes on stream and begins to allow some
movement in the market.
$1.7
USD PSF PM
BANGKOK
Insurance, telecommunications and on-line business are
driving robust demand in Bangkok’s office market, despite
a limited availability of Grade A space.
BEIJING
Landlords are being selective on tenant quality, and we are
still seeing more activity from domestic companies, with
the exception of IT and domestic startups.
$8
USD PSF PM
NEW
DELHI
Demand is increasing from start-ups and e-commerce
organisations who are price-sensitive but seeking large
spaces. Supply will continue to be strained, leasing to
rental increases in some micro-markets.
$2.7
USD PSF PM

10. Asia Pacific Fast Facts
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
HO CHI
MINH CITY
$3.6
USD PSF PM
There are early signs of market recovery and MNCs have
started to review their real estate portfolios more actively.
Some may have demand for expansion and / or relocate to
newer buildings; however, CAPEX remains a concern and
impacts their relocation strategy. Saving costs on
operations remains crucial to corporates, IT and Insurance
companies. FMCG are still key occupiers and are actively
expanding.
$12.5
USD PSF PM
HONG
KONG
Strong demand continues from PRC companies expanding
into HK. Vacancy in Central has reached its lowest level
since 2007 and Landlords are starting to drive rents
upwards.
JAKARTA
A new government regulation as of 1st July ensures that
USD buildings will be marketed in Rupiah currency. As the
Rupiah continues to depreciate, rental rates in USD terms
will decrease but increase in Rupiah because of the
exchange rate.
$2.6
USD PSF PM
MANILA
Leasing activity has continued to grow despite rents rising
in key locations. Vacancy rates in existing locations are still
below 5% due to high office demand.
$1.8
USD PSF PM

11. Asia Pacific Fast Facts
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
$4.1
USD PSF PM
Absorption increase likely to be unsustainable as tenants
seek out decreasing levels of Grade A supply. Decision
making at a global level is taking place tepidly given that
India has not yet seen the huge boost expected from the
Modi government.
$2.1
USD PSF PM
Vacancies have become limited in the Umeda prime office
area and some landlords are increasing the rent or
decreasing the free rent period as Osaka transitions to a
Landlord favourable market. As tenants return to the CBD,
Umeda continues to be an attractive destination while
Yodoyabashi is gaining popularity with large scale tenants.
Poor economic conditions and the effects of MERS are
leading to a lack of new demand in Seoul’s office market.
$4.1
USD PSF PM
Domestic tenants still active especially in the finance
sector. Pudong market rents are increasing rapidly due to
low vacancy when compared with Puxi.
$6.6
USD PSF PM
MUMBAI
OSAKA
SEOUL
SHANGHAI

12. Asia Pacific Fast Facts
CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY
$6
USD PSF PM
Office rents are slowly falling in Singapore, and we expect
this trend to continue – although it’s neither a Landlord nor
Tenant favourable market at this point in time.
$2.7
USD PSF PM
Sydney is seeing significant activity from the technology
sector in the Grade A market. Broad demand has led to
increasing competition for space resulting in a reduction in
incentives and growth in effective rents.
Market sentiment is improving as tenant demand and low
new office supply in 2016 have contributed to help drive
rental increases. The overall improvement in demand has
maintained office vacancies at low levels and landlords are
looking to take advantage at renewal. Competition for
tenants looking to relocate remains healthy however.
$5.5
USD PSF PM
SYDNEY
TOKYO
SINGAPORE