Cushman & Wakefield Research is delighted to present our second quarter 2016 Asia Pacific Office Overview. The key highlights of the report are:
- The first half of 2016 was generally healthy with Asia Pacific economies posting steady growth despite global headwinds. Meanwhile, central banks in India and Indonesia have lowered their rates in the second quarter to spur growth.
- Tenant activity has been largely driven by India, Tokyo, Australia and tier 1 markets in China. However, the large incoming supply through 2017 will keep market conditions neutral. The services sector, particularly financial and technology-related services have been supporting office demand in China and Australia.
- Rentals in most markets are either stable, or on an upward trend this year, with the exception of a few supply-heavy markets. Jakarta witnessed the highest annual rental decline (19.0%), followed by Singapore (10.4%). Rentals in Jakarta will continue to slide going forward due to substantial new completions. However, Singapore is expected to stabilize by the end of the year or in the first quarter of 2017 due to an expected pickup in absorption.
The region witnessed the highest growth in global financial technology (fintech) investments in 2015. In the first quarter of 2016, fintech start-ups from the region accounted for over half of global venture capital raised.
For more information, click Q2_2016_Office_Overview.
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