Disconnect between commercial real estate leasing and investment continues

Jones Lang LaSalle's Asia Pacific Property Digest (APPD) for Q3 2013, providing the latest quarterly data and analysis of the office, retail, industrial, residential and hotel real estate markets for over 20 key cities across Asia Pacific

Jones Lang LaSalle has released its Asia Pacific Property Digest (APPD) for Q3 2013, providing the latest quarterly data and analysis of the office, retail, industrial, residential and hotel real estate markets for over 20 key cities across Asia Pacific.During the quarter, the region&#x;s property markets continued to record a mixed performance; leasing activity was subdued, whilst investment activity was strong, and is on track for a record year.Key highlights include:
  • Office leasing across the region remains slow as corporates exercise caution and focus on cost saving
  • Net effective rents declined in almost half of the region&#x;s major markets q-o-q with falls in Beijing, Seoul and Australia. Jakarta, once again, is the region&#x;s top performer with 33 per cent growth year on year&#x;
  • Retailer demand is mixed with some slowing in the luxury segment yet expansion from mid-tier brands. Modest rental increases in most markets with Jakarta (2.4 per cent) and Beijing (2 per cent) leading the q-o-q growth
  • High-end residential leasing demand remains in line with the office sector with mainly flat rents or slow growth
  • Retailers are driving leasing demand for industrial space with moderate rental growth (0.5 to 2.5 per cent) in most markets
  • Commercial real estate investment in the region is on track for a record year, up 33 per cent q-o-q, driven by Japan, China, Australia and Singapore. Transaction volumes are expected to reach USD$ 120 billion by the end of the year, matching the record of 2007
Limited rental and capital value growth for the remainder of the year but the forecast for 2014 is stronger with moderate rental increases expected across most sectors and markets.In addition to these succinct market overviews, the latest APPD includes a series of opinion pieces from across the region:
  • An overview of the Asia Pacific economy and property market - Dr Jane Murray, Head of Research Asia Pacific.
  • Debating the China property bubble: the effect of the Shanghai Tower &#x; Joe Zhou, Head of Research, Shanghai and East China
  • A look at Singapore&#x;s slowing population growth in relation to residential property demand &#x; Ong Teck Hui, Research & Consultancy, Singapore
  • &#x;A discussion on Thailand&#x;s status as a shopping paradise &#x; Anusorn Rotkanok, Research & Consulting Analyst, Thailand.
  • Is it bullish or bearish motivations that are driving the increase in Australian retail development? - Andrew Quillfeldt, Associate Director, Research, Australia
Jones Lang LaSalle&#x;s Asia Pacific Property Digest Q3 2013 now available