Asia Pacific MarketView Q1 2019
02 May 2019
Investment Activity Weakens Slightly Amid Muted Occupier Demand
Softer demand and limited occupier movement in tight markets weighed on office leasing momentum in Q1 2019, with net absorption declining by 1.5% q-o-q to 10.8 million sq ft. NFA. Tech firms and coworking operators continued to drive office space take-up.
Retail leasing markets were quiet this quarter as most retailers adopted a cautious approach to expansion amid downcast sales performance. Demand was led by cosmetics amd personal care stores.
Logistics demand was stable in Q1 2019, driven by Third-Party Logistics (3PL) companies. Net absorption in Asia totalled 12.5 million sq.ft.. New logistics supply was led by Greater Seoul and Greater Tokyo, which saw the addition of 8.9 million sq.ft. and 7.2 sq.ft. respectively.
Investment activity weakened this quarter amid growing economic uncertainty. Transaction volume registered US$26.3 billion, a decline of 4.5% y-o-y. China saw an uptick in investment, led by overseas buyers, while Korea continued to see sustained purchasing activity.
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