by: Sarah Joson
Thursday, August 27, 2015 |
A research report done by global property research consultancy firm Jones Lang Lasalle (JLL) showed that leasing volumes in the Asia-Pacific region during the second quarter of this year are 40 percent higher than the same period last year.
The region’s real estate industry continues to accelerate as market activity increased during the second quarter. The key factor identified is the sharp growth in office leasing.
JLL said growth is seen in various occupier types with technology as an active segment, and IT outsourcing and e-commerce pushing office space take-up in many markets.
More than half (60 percent) of the total leasing deals are seen in Delhi and Bangalore, India with over 600,000 square meters prepared for new deals. As for Shanghai, China, the region posted its strongest year of office space take-up on record.
Improvements and consolidation to newer quality buildings, and IT operations are also boosting office space occupancy in Tokyo, Japan.
As for Southeast Asia, activity in the property sector was mediocre during the same quarter except for Manila, Philippines because of the high demand for offshoring and outsourcing.
The study also noted that Grade A office supply in Asia-Pacific, particularly China and India, rose by 120 percent year-on-year to 1.6 million square meters in this year’s second quarter.
Also, as more buildings and projects are being launched, vacancies in Beijing, Tokyo, Manila, Kuala Lumpur, and Jakarta increased.
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