Cushman & Wakefield: Office Property Fundamentals Holding Firm across Asia Pacific for Q1 2012

HONG KONG, May 11, 2012 /PRNewswire-Asia/ -- Economic conditions for most markets in the region remain stable, according to Cushman & Wakefield's latest Asia Pacific Office Marketbeat.

China tabulated an 8.1% expansion albeit slower than previous quarters; the manufacturing sector also supported Singapore's 1.6% year-on-year economic expansion whilst South Korea grew 0.9% from the fourth quarter due to a pick-up in industrial output, private consumption and government spending. Indonesia and Japan was also on the growth track as foreign direct investment in Indonesia jumped a record 30% in the first quarter and Japan generated a continued rise in industrial production and reconstruction spending. On the other hand, apart from Indonesia, Hong Kong, Singapore and Japan where higher than expected rates were noted, inflation eased or has remained tame for the rest of the region thus allowing room for monetary easing in economies where inflationary pressures still remain.

Steady leasing activity this quarter that resulted from declining Grade A vacancies was also seen whilst rental rates eked out modest advances in most markets. The average Grade A vacancy rate for all 29 markets that C&W tracked in Asia Pacific slipped to 10.0% in the first quarter reporting flat to declining vacancies. On the other hand, strong property fundamentals pushed up Grade A rents in most markets.

Sigrid Zialcita, Asia Pacific Managing Director for Research reports, "Bangalore and Jakarta posted double-digit gains while Beijing recorded yet a higher record nearly in line with Tokyo's rents albeit moderated growth as compared to the past two quarters". Office investment also got off to a slow start but is expected to pick up over the course of the year with some deals being closed in the first quarter of about US$11.6 billion, close to 30% lesser compared to the same period in the last two years.

Overall, the regional economy is expected to continuously grow. Rents are steady but growing in most of the 29 markets tracked by C&W in Asia Pacific. Cushman and Wakefield anticipates the pace for property performance to pick up and get back to higher growth track coupled with several positive economic initiatives for next year.

To read more on the office market activity for the first quarter of 2012, please visit our Knowledge Centre at: www.cushmanwakefield.com.

About Cushman & Wakefield

Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world's major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 235 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, fully-integrated on a global basis, including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $5.5 billion in assets under management through its wholly-owned subsidiary Cushman & Wakefield Investors.  A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge. In China, Cushman & Wakefield maintains six market-leading offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen and Hong Kong. More information is available at www.cushmanwakefield.com.

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