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.

Q1 2015

Will leasing activity increase or decrease?

INCREASED ACTIVITY STABLE DECREASED ACTIVITY

Will tenant activity be expansionary?

EXPANSIONARY

SLIGHTLY

CONTRACTIONARY

SLIGHTLY

EXPANSIONARY NEUTRAL

Will rents increase or decrease?

RENTS EXPECTED

TO RISE STABLE RENTS EXPECTED

TO FALL

Is it a landlord or a tenant’s market?

NEUTRAL LANDLORD TENANT

What are the key factors driving the market?

Limited Supply

Rising Rents

Strong Demand

Large incentives

Oversupply

Rents Falling

Weak Demand

Tenant Market Landlord Market

No incentives

Which sectors are the most active?

Grade A rents around the region

RENT

INCREASED Q on Q STABLE RENT

DECREASED Q on Q

$11.65

$7.9

$5.39

$4.2

$2.80 $3.63

$2.43 $2.05

$1.82 $1.65

Source: JLL Real Estate Intelligence Service Q4 2014 Rents

$6.36

$6.33

$4.17

$2.59 $2.76

Asia Pacific Fast Facts

AUCKLAND $2.43

USD PSF PM

Lack of large scale floor plate availability is limiting choice

and options for Tenants, however the development pipeline

is building and we're seeing low large scale movement and

rental increases.

$1.65 USD PSF PM

BANGKOK

Tight supply coupled with robust tenant demand has led to

a declining vacancy rate. Slow paced rental increases are

expected as we move towards 2017.

BEIJING

Tight supply in the CBD along with some new buildings in

non-core areas will lead some companies to more

seriously consider relocating out of the CBD, especially

with new subway lines operational.

$7.9 USD PSF PM

DELHI

Contracting supply of Grade A space and expansionary

tenant activity underpins the move to a Landlord

favourable market.

$2.76 USD PSF PM

CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY

Asia Pacific Fast Facts

HO CHI

MINH CITY

$3.63 USD PSF PM

Many larger occupiers are looking to save on OPEX costs

through decentralization activity or front office/back office

splits. CBD demand is still fairly active.

$11.65 USD PSF PM

HONG

KONG

An uptick in activity in Q1 2015 is likely a reflection of 'new year,

new budget, new strategy' implementation rather than explicit

new demand. We broadly expect more of the same as 2014 this

year, although a slightly more stable economy should lead to

rental uplift.

JAKARTA

Rents have stabilised, with occupancy remaining at 94%.

Landlords are willing to provide competitive deals for pre-

commitment tenants. Space availability and cost saving

opportunities drive a shift from CBD to non-CBD.

$2.59 USD PSF PM

MANILA Pre-commitment for buildings still under construction

continues. Strong demand to continue throughout 2015. $1.82

USD PSF PM

CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY

Asia Pacific Fast Facts

MUMBAI $4.17

USD PSF PM

Strong economic sentiment is resulting in companies

making quicker real estate decisions.

$2.05 USD PSF PM

OSAKA

Limited currently available Grade A space in the Umeda

area is leading large scale tenants to consider space in the

Yodobashi area.

SEOUL

Landlords are providing good incentives for Tenants, but

we are seeing a slight decline due to occupancy rates

rising in major buildings and a large number of deals

concluded in Q4 2014.

$4.2 USD PSF PM

SHANGHAI Domestic companies are very active and a wave of

increased new supply about to hit the market. $6.33

USD PSF PM

CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY

Asia Pacific Fast Facts

SINGAPORE $6.36

USD PSF PM

Singapore has seen tightening supply and strong pre-

commitment on a couple of new developments due for

completion in December 2014 and February 2015.

$2.8 USD PSF PM

SYDNEY

Positive net absorption for Sydney CBD off the back of a number

of deals closing and growth in the technology sector.

Centralisation from surrounding suburban markets continuing

along with the strong appetite from offshore investors for older

CBD assets that can be converted to residential.

TOKYO

A combination of flight to quality and a lack of available

space has driven rental growth in Tokyo’s central Grade A

office market over 2014 and expect to see this trend

continue into 2015.

$5.39 USD PSF PM

CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY