Demand for office space in Asia Pacific shrank considerably during Q4 2011 as the fragile recovery in the United States and the ongoing Eurozone dept crisis weighed on occupier sentiment. Annual aggregate net absorption in Asia Pacific held firm but much of the activity took place in the first half of the year and momentum subsequently tapered off in September.
Rental growth eases further as tenants turn more cost sensitive
The CBRE Asia Pacific Office Rental Index recorded a marginal increase of 0.3% q-o-q as rental growth continued to ease across the region. Tenants turned more sensitive over rental costs as the economic backdrop continued to deteriorate whilst new supply pressures in a number of markets further discouraged landlords from raising rents. Rents in Hong Kong, Singapore and Tokyo were all under downward pressure as multinationals sough to keep occupancy costs under control. Read More
