By Regina Lim, Head of Capital Markets Research, SEA, JLL
HO CHI MINH 22 June 2018 – Office take-up in Southeast Asia accelerated over the last five quarters
Due to slower economic growth, office take-up in Southeast Asia grew at a slower pace of 5.5% annually in 2014-2016, compared to circa 8% annually in 2010-2013. However, over the last five quarters, office demand started to recover. In 1Q18, office take-up in the region grew by 6.8% yoy.
Looking forward to 2018-2022, we expect office take-up in Southeast Asia to stay strong, growing at 6% annually, amid GDP growth of 5% p.a.
|Chart 1: Office net absorption in Southeast Asia (yoy)|
|Source: JLL Research|
Strongest demand growth came from Singapore and Jakarta
The sharpest turnaround in office take-up in the last four quarters came from Jakarta and Singapore. Both markets have experienced high supply growth in 2016-2017 but also strong absorption as occupiers move into the newer buildings from 2017 onwards. Smaller tenants moved into some of the vacant spaces while some of the older buildings have been adapted for other uses.
For more information, click http://www.joneslanglasalle.com.vn/vietnam/en-gb/news/441/southeast-asia-office-demand-surges
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