Join us for FREE and access exclusive investments and property investment resources
Join IPIN here
Access exclusive opportunities that are only available to IPIN Members
Find out more
We never share your data with any third parties.
*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.
Jones Lang LaSalle
Commercial Property Markets Asia
Despite uncertainties in the global economy, the Asia Pacific property market remains largely resilient due to strong investment volumes, according to Jones Lang LaSalle's (JLL) Asia Pacific Property Digest (APPD) for Q2 2012.
However, despite high investor appetite, the slowdown in leasing activity suggests that the region "is not completely immune".
The strong direct commercial property investment market in the second quarter (Q2) of this year was reflected by a 26% year-on-year rise in volumes to around £16.3 billion. As stronger investment volumes came in, capital values also increased across most major markets.
On the contrary, office leasing activity fell by approximately 10% in Q2 this year compared to the same period last year, mainly due to "corporate caution and the flow-on effects of on-going economic uncertainty".
Dr Jane Murray, head of research at JLL Asia Pacific said: "The Asia Pacific property markets are holding up relatively well given the global economic backdrop. Leasing activity levels should continue to trend moderately lower than last year's record levels, while we expect investors will continue to search out opportunities, particularly in prime locations."
Moving forward, JLL generally expects capital values and rents to increase in most Asian markets, albeit at a slower rate compared to 2011.
Jeremy Sheldon, managing director for Markets Asia Pacific at JLL, commented: "There has been a decline in the established financial markets, however we are seeing strong demand in key South East Asian markets, and certain cities in China. While this pattern is likely to continue through the remainder of the year, we are optimistic that leasing will remain largely stable."
Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.