Asia Pacific Office Market Rents Holding Steady in Q2

According to Jones Lang LaSalle's regional market experts, office rents in Asia Pacific are holding steady in Q2 while more companies are maintaining a 'wait and see' approach to location decisions.

Jones Lang LaSalle's Asia Pacific office leasing markets report for the second quarter of 2012 says those markets that were experiencing office rental declines in previous quarters are anticipating a slowdown in the rate of decline.

For example, a three to four percent fall in Grade A office rents this quarter in Hong Kong compared to an actual 6.3 percent decline in the first quarter. Similarly, in Singapore a fall of three percent is anticipated by the end of the current quarter, compared to an actual 5.2 percent decline in Q1 2012.

Elsewhere in the region it is once again a mixed picture; the Jones Lang LaSalle markets teams are predicting:

• Some growth in Grade A office rents in Shanghai, Beijing, Jakarta, Manila, Mumbai and Delhi.

• Grade A office rents to remain stable and show little movement in Tokyo, Seoul, Sydney and Melbourne.

• Some declines in Singapore and Hong Kong but at a slower pace than previous months; three percent and 3-4 percent respectively. A decline of around two percent is expected in Ho Chi Minh City.