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Office Rents in Asia Pacific Hold Steady in Q2 (Jones Lang LaSalle)

Companies are looking at more creative ways to fit more people in their current space and overall rental increases are being impacted by deals being agreed with rental caps in place. Jones Lang LaSalle’s market experts have shared their expectations for the office leasing markets in Asia Pacific in the second quarter of 2012. In the markets that were experiencing office rental declines in previous quarters, the teams 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 per cent 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

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A Thailand representative office is essentially a branch of a foreign corporation

Companies are looking at more creative ways to fit more people in their current space and overall rental increases are being impacted by deals being agreed with rental caps in place. Jones Lang LaSalle’s market experts have shared their expectations for the office leasing markets in Asia Pacific in the second quarter of 2012.

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Office Rents in Asia Pacific Hold Steady in Q2

Thailand Real Estate Outlook

Although the Thai real estate industry has continued growing significantly since 2008, we have not seen a real estate bubble environment manifesting. The industry seems to have learned its lessons during the 1997 financial crisis and has successfully implemented the following safeguards: The banking industry has become much more cautious providing project financing and mortgage loans.
Being a developing country, the cost of property in Thailand is much lower than in the more developed European markets. But, on the other hand, prices for Thai property, in general, are rising at a much faster rate.

Many Real estate developers in Thailand have developed and implemented market research technologies and monitor the market closely.

Factors that indicate the 2008 Thai real estate market is not experiencing a bubble- like boom include:
1. Property prices have not changed dramatically in most areas.
2. Interest rates are continuously rising In the overall housing market, speculation is not significant even though there is some speculation in condominium markets and tourist area properties.
3.Low consumer confidence because of unstable political and economic environments.
4. Global Financial Crisis discourages overall property speculation

The real demand for residential real estate stems from local residents and foreigners living or working in Thailand. The latter group will definitely be affected by the weak global economy but what about local Thai residents? The Thai domestic economy will also be adversely affected by the crisis, especially the export sector. The investment sector and domestic consumption in Thailand Real Estate Market will also be affected by political instability – resulting in lower sentiment and confidence. Potential home- buyers will have less money for down payments and may delay purchasing decisions.

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Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving average. The Philippines and Malaysia are not far off their daily infection peaks reached in the second quarter of 2021.

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