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1、Office ResearchBuyers remain highly selective with rising cost of debt and elevated economic uncertainty Asia Pacific|Q1 2023ContentsOffice marketsOffice Market Insights09 Hong Kong10 Beijing11 Shanghai12 Guangzhou13 Shenzhen14 Taipei15 Tokyo16 Osaka17 Seoul18 Singapore19 Bangkok20 Jakarta21 Kuala L

2、umpur22 Manila23 Hanoi24 Ho Chi Minh City25 Delhi26 Mumbai27 Bengaluru28 Chennai29 Sydney30 Melbourne31 Brisbane32 Perth33 Adelaide34 Canberra35 Auckland36 WellingtonJLL Asia Pacific Office Q1 2023206ForewordAsia Pacific office leasing conditions were challenging again in 1Q23 with macroeconomic and

3、 geopolitical headwinds giving corporates pause,delaying decision making and lengthening leasing negotiations.Activity was weak in Mainland China,in line with our view that a swift rebound in deal volume was unlikely.Japan lifted COVID-19 restrictions late last year and the market continued recoveri

4、ng last quarternew supply has provided occupiers with multiple options to consider.Demand in India has been broad based,and leasing has gone from strength to strength on the sub-continent though there are signs that demand from tech companies,a major contributor to leasing volumes,has slowed.We are

5、cautiously optimistic that Asia Pacific leasing volumes will continue to recover over the coming quarters as evidenced by the requirements clients are bringing to us and anecdotal reports from landlords;however,it is a tale of two office markets.Clients are prioritising employee wellness,amenities a

6、nd sustainability,and buildings which meet these requirements are outperforming the rest of the market in occupancy and rent growth and there are no signs this trend is abating.As always,we publish this report to inform you of market conditions and we hope that you find it both timely and useful.If

7、you have further questions about leasing markets,please reach out to our brokers or analysts.Jeremy SheldonHead of Markets Asia PacificJLL Asia Pacific Office Q1 20233Mainland China3.05.5Growth forecasts revised up with private consumption and fixed investment to lead the recovery while exports face

8、 dimmer prospects given a softer outlook for the global economy and external demand Indonesia5.33.9Challenging global backdrop are expected to weigh on momentum with exports slowing,while weaker confidence challenges domestic demand as the impact of monetary tightening flows through Japan1.00.6Domes

9、tic demand to increasingly carry growth momentum as the weak external environment is likely to drag on the performance of exports and the manufacturing sector South Korea2.60.5Ongoing downturn in the semiconductor cycle to drag on production with the global economy set to slow further.Domestic deman

10、d to feel the strain of tight financial conditions and soft business sentiment Singapore3.70.4Export weakness as soft external demand conditions drag on trade.Domestic demand is also likely to moderate as the uncertain growth outlook weighs on employment and incomes Australia3.71.6Higher interest ra

11、tes and cost pressures to curb household spending.Trade should remain a positive impetus of growth partly supported by strength from services exports amidst a greater return of students and tourists Hong Kong-3.52.2Recovery strengthening with support from domestic demand and the return of tourists,p

12、articularly from Mainland China.Export outlook,however,remains challenging against the backdrop of weaker growth in advanced economiesIndia6.74.8Consumption growth to slow but remain a positive driver.Global financial sector stress and softer global economy to feed through to weaker investment and e

13、xternal demand Real GDP(%y-o-y change)20222023F2023 OutlookMajor EconomiesOutlook for Major EconomiesSource:Oxford Economics,April 2023JLL Asia Pacific Office Q1 20234Office Market Insights Office marketsGrowthSlowingRentsRisingRentsFallingDeclineSlowingOsakaBrisbane,Canberra,Hong Kong,MelbourneMumb

14、ai,SydneyAdelaide,PerthChennai,Delhi,Kuala LumpurBangkok,WellingtonHyderabadPuneSeoulBengaluruShanghaiManilaBeijingHo Chi Minh CityAucklandHanoiTaipeiSingaporeShenzhenGuangzhouJakarta,Tokyo7.36.32.60.0-0.2-0.9-1.0-1.4-2.1-3.4-5.5-6.4-8.5-8.58.622.6-0.8-7.1-2.80.75.54.7-6.6-6.8-2.7-5.9-2.22.1Capital

15、ValuesRental ValuesManilaSydneyBangkokSeoulSingaporeGuangzhouMelbourneHong KongHo Chi Minh CityBeijingShanghaiMumbaiTokyoJakartaSingaporeSouth KoreaHong KongJapanAP OthersChinaAustralia2023USD millions20072008200920000022 YTD010,00020,00030,00040,00050,000

16、60,00070,00080,00090,000100,000Office Rental Property Clock,1Q23Office Rental&Capital Value Changes,Yearly%Changes,1Q23Direct Office Real Estate Investment 2007-1Q23Note:Clock positions for the office sector relate to the main submarket in each city.Source:JLL,Real Estate Intelligence Service,1Q23So

17、urce:JLL(Real Estate Intelligence Service),1Q23Figures relate to the major submarket in each citySource:JLL(Real Estate Intelligence Service),1Q23Figures refer to transactions over USD 5 millionJLL Asia Pacific Office Q1 20235Office Market Insights Office markets1New Zealand markets record physical

18、data only in Q2 and Q4Office Market InsightsLeasing activity slowed by global headwindsHeightened macroeconomic uncertainty dampened leasing activity as corporates,particularly those headquartered in Europe and the US,continued to delay decision making.Weakness in Mainland China was again a constrai

19、nt in 1Q23 and Asia Pacific quarterly leasing volumes were down 9%y-o-y(-10%q-o-q)in aggregate.Net absorption(750,000 sqm in aggregate)also pointed to softer demand as quarterly volumes were down 43%over 1Q22.Despite softer demand for the broader Grade A segment,flight to quality remains a theme and

20、 robust demand for premium space has sustained bifurcation in the market.Consistent with this theme,pre-leasing activity has remained resilient in many Australian markets providing some support to leasing volumes.However,Australia leasing volumes were down 5%y-o-y in 1Q23 and remain below pre-pandem

21、ic levels.India remained a bright spot amidst an otherwise lacklustre quarter and volumes were up 26%y-o-y in 1Q23.Demand from tech firms has slid due to hiring freezes and weakness in the tech sector globally,yet tech companies remain the largest contributor to leasing in India.Flexible space,finan

22、cials and professional services have picked up the slack in tech demand.Tokyo leasing demand continued to strengthen q-o-q following the relaxation of COVID-19 measures in late 2022,but leasing activity in the 5 kus was down 26%y-o-y and below pre-pandemic levels.New lettings in Seoul were again hea

23、vily constrained by exceptionally tight vacancy rates.Mainland China volumes(-43%y-o-y)remained subdued as markets were still recovering from strict COVID-19 controls and a wave of cases.But an uptick in enquiries and site inspections points to strengthening demand for office space in the coming qua

24、rters.Soft demand and elevated supply volumes a drag on rent growthSupply pressures were widespread with new completions recorded in all but 3 of the 251 Asia Pacific markets tracked for the 1Q23 office index.In aggregate over 1.5 million sqm was delivered,double the volume of net absorption,and the

25、 regional vacancy rate rose from 14.3%in 4Q22 to 14.7%.Yet Asia Pacific rents declined only 0.2%in aggregate despite soft demand and rising vacancy.High occupancy levels and robust demand gave Seoul landlords leverage to continue raising face rents for new lettings and renewals,albeit at a slower pa

26、ce in 1Q23.Positive net absorption and relocations to the Sydney CBD saw net effective rents rise;face rents increased while incentives rose slightly.Flight to quality,environmental sustainability requirements and proximity to amenities underpinned Brisbane CBD rent growth in 1Q23.Tokyo 5 kus landlo

27、rds maintained an accommodative stance amidst a rising vacancy rate and a packed supply pipeline;net effective rents fell as landlords lowered face rents and increased incentives.Decentralisation remained a key theme in Hong Kong as tenants sought space at higher quality buildings in more cost-effec

28、tive locations;Central rents declined for the third consecutive quarter.Beijing CBD rents continued to decline due to soft leasing demand;landlords continued to offer discounts to high-quality tenants with large requirements.Capital values decline on the back of buyer cautionAs the cost of debt rema

29、ined elevated,the wide gap in buyer-seller pricing expectations continued to restrict sales activity.Buyers have turned more cautious and Asia Pacific office investment volumes fell to historically low levels,totalling USD 12.7 billion in 1Q23,limiting evidence of changes in pricing.It was against t

30、his backdrop that we recorded a 0.7%q-o-q drop in capital values in aggregate.Amongst the major markets only Seoul recorded positive capital value growth,and pricing rose in line with rents in 1Q23 as market yields were flat q-o-q;however,investment volumes were down sharply limiting transactional e

31、vidence.JLL Asia Pacific Office Q1 20236Office Market Insights Office marketsCapital Values (USD psm)010,00020,00030,00040,00050,00060,000Kuala Lumpur(City Centre)Bengaluru(SBD)Jakarta(CBD)Chennai(SBD)NCR Delhi(SBD)Manila(Makati)Bangkok(CBA)Adelaide(CBD)Mumbai(SBD BKC)Canberra(CBD)Hanoi(CBD)Wellingt

32、on(CBD)Perth(CBD)Brisbane(CBD)Auckland(CBD)Ho Chi Minh City(CBD)Guangzhou(ZJNT)Melbourne(CBD)Shanghai(CBD)Seoul(CBD)Osaka(2 Kus)Sydney(CBD)Beijing(CBD)Taipei(Xinyi)Singapore(CBD)Tokyo(5 Kus)Hong Kong(Central)Net Effective Rents(USD psm pa)02004006008001,0001,2001,4001,600Kuala Lumpur(City Centre)Ade

33、laide(CBD)Chennai(SBD)Jakarta(CBD)Canberra(CBD)Brisbane(CBD)Perth(CBD)Bengaluru(SBD)Melbourne(CBD)Wellington(CBD)NCR Delhi(SBD)Manila(Makati)Bangkok(CBA)Auckland(CBD)Hanoi(CBD)Osaka(2 Kus)Mumbai(SBD BKC)Guangzhou(ZJNT)Sydney(CBD)Ho Chi Minh City(CBD)Seoul(CBD)Tokyo(5 Kus)Taipei(Xinyi)Shanghai(CBD)Si

34、ngapore(CBD)Beijing(CBD)Hong Kong(Central)Rental IndexCapital Value Index608001801Q133Q131Q143Q141Q153Q151Q163Q161Q173Q171Q183Q181Q193Q191Q203Q201Q213Q211Q223Q221Q231Q13=100Asia Pacific Office Rental Values,1Q23Asia Pacific Office Capital Values,1Q23Asia Pacific Office Rental and Capital

35、Value Indexes,1Q13-1Q23Source:JLL(Real Estate Intelligence Service)Note:The Indexes are stock-weighted averages of rental and capital value movements across Asia PacificJLL Asia Pacific Office Q1 20237Office Market Insights Office markets1Q23 Average Grade A Rent(USD psm pa)Quarterly Change 1Q23 vs

36、4Q22(Local Currency)Yearly Change 1Q23 vs 1Q22(Local Currency)1Q23 Average Grade A Capital Value(USD psm)Quarterly Change1Q23 vs 4Q22(Local Currency)Yearly Change 1Q23 vs 1Q22(Local Currency)Hong Kong(Central)1,484-1.0-3.452,059-1.3-5.9Beijing(CBD)901-0.9-1.418,125-1.9-6.8Singapore(CBD)883-0.47.325,

37、821-1.5-0.8Shanghai(CBD)7160.0-2.012,5790.0-2.7Taipei(Xinyi)6030.42.821,5250.73.5Tokyo(5 Kus)592-2.2-6.426,920-2.22.1Seoul(CBD)5882.322.513,3682.38.6Ho Chi Minh City(CBD)570-0.5-0.28,777-0.55.5Sydney(CBD)4702.26.316,080-3.4-7.1Guangzhou(ZJNT)416-0.5-5.510,1630.8-2.2Mumbai(SBD BKC)4150.30.04,7940.30.

38、7Osaka(2 Kus)400-0.6-4.213,792-0.6-4.2Hanoi(CBD)3951.810.35,4151.812.6Auckland(CBD)2980.7-3.77,155-1.9-13.5Bangkok(CBA)2571.72.64,5161.7-2.8Manila(Makati)246-0.8-0.93,3520.94.7NCR Delhi(SBD)2460.61.22,8130.61.8Wellington(CBD)241-1.1-12.55,777-4.5-16.6Melbourne(CBD)236-0.5-1.010,756-1.9-6.6Bengaluru(

39、SBD)1850.52.52,0810.53.6Perth(CBD)1851.51.56,613-1.0-7.5Brisbane(CBD)1802.02.57,052-0.1-0.7Canberra(CBD)170-1.7-2.94,975-4.4-9.9Jakarta(CBD)163-2.3-8.52,082-2.3-8.5Chennai(SBD)1380.05.82,2240.05.8Adelaide(CBD)1232.76.74,7780.8-0.3Kuala Lumpur(City Centre)1141.2-2.71,7951.5-2.2A handful of emerging S

40、outheast Asian markets recorded capital value growth as market yields compressed slightly in 1Q23.However,sales transactions are rare in these markets and the route to entry is typically through development.Sydney recorded the steepest drop in capital values of the major markets as yields softened d

41、ue to heightened uncertainty over interest rates and the cost of debt.Tokyo capital values declined in line with rents as yields were flat.Beijing capital values declined faster than rents as yields widened marginally.Rents to flatten out,capital values to extend declinesLeasing volumes are expected

42、 to remain subdued across the region in the first half of 2023 with demand from US and EMEA headquartered MNCs to remain tepid.The consensus view is for a gradual recovery in Mainland China with leasing activity picking up in the second half of the year the rise in enquiries and site inspections obs

43、erved in February and March supports this view.A record volume of supply(8 million sqm)in the 2023 pipeline has created challenging conditions for landlords but we expect to see rents flatten out in the second Christopher ClausenDirector,Asia Pacific RRoddy AllanChief Research Officer Asia PNotes:Al

44、l rents are net effective.Rents and capital values are on a net lettable area basis and pertain to the major submarket in each city.half of the year,registering a full-year decline of roughly 0.6%in 2023,in line with our view on rent growth last quarter.In aggregate,our forecast calls for further yi

45、eld expansion and for capital values to decline 1.5%in 2023.The outlook for capital markets remains challenging but there are reasons for cautious optimism.US banks are tightening lending and the US job market is softening slightly which may enable the Fed to pause rate hikes soon.Moreover,large cor

46、e office deals are expected to close soon,providing valuable benchmarks for market participants.JLL Asia Pacific Office Q1 20238Office Market Insights Office marketsPhysical IndicatorsFinancial Indices“Market sentiment improves amid economic recovery.”Cathie ChungSenior Director-Hong KongTenants aim

47、 for quality and upgrades Net absorption in the overall market amounted to 204,000 sq ft in 1Q23,mainly due to the commitment of some sizable spaces in Wanchai.Driven by the loosened pandemic measures since February,inspection activity has picked up notably.Tenants targeted building quality and upgr

48、ades,especially in decentralised submarkets with ample new high-quality supply.Among a handful of new lettings,professional service company Deloitte leased two floors(38,800 sq ft,GFA)at The Millennity in Kwun Tong,to consolidate a part of their office space at Admiralty.In addition,MUFG bank leased

49、 two floors(86,800 sq ft,GFA)at AIRSIDE in Kai Tak to consolidate its office in Central and Quarry Bay.One project completes in 1Q23 One project in Wong Chuk Hang,S22,was completed during the quarter,adding 116,300 sq ft to Grade A office stock.The overall vacancy rate dropped slightly to 12.0%as of

50、 end-March 2023,from 12.1%in the previous quarter.The vacancy rate in Central rose marginally to 9.0%while Wanchai/Causeway Bays vacancy rate dropped to 9.6%from 10.2%.Tsimshatsuis vacancy remained flat.Moderate rental declines across submarkets Rents in the overall market dropped 1.1%q-o-q as major

51、 submarkets recorded marginal declines.Notably,rents in Central and Wanchai/Causeway Bay dropped 1.0%and 1.8%respectively.Capital values in the overall market dropped by 1.4%q-o-q in 1Q23,while investment yields expanded marginally.Outlook:A brighter outlook is expected in 2H23 Entering into 2023,we

52、 expect the local economy to gradually recover from its previous sluggishness.Occupier demand is likely to recover somewhat as corporates configure business plans and formulate their real estate requirements accordingly.More leasing activities are expected to come to fruition in the second half.The

53、vacancy rate is likely to edge higher with 3.0 million sq ft of new office supply expected this year.While overall office rents are forecasted to rise 0%-5%in 2023,the emergence of new supply will likely keep some submarkets under rental pressure.sq ft per month,net effective on NLAHKD 90.2Rental Gr

54、owth Y-O-Y-3.4%Stage in CycleRents StableHong KongNote:Hong Kong Office refers to Hong Kongs overall Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for Central.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annua

55、l.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q235060708090100110CompletionsTake-up(net)Future SupplyVacancy RateThousan

56、d sqmPercent-8-40481216-300-3006005004002002120222023-12JLL Asia Pacific Office Q1 20239Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“The Beijing office market sees a demand recovery trend,with an enquiry peak after Chinese New Year.”Mi Yang Head

57、of Research,North ChinaRelocations at low rents contribute to demand recovery Following a quiet market in the second half of 2022,leasing activities have seen an uptick from the beginning of 2023.The number of site visits significantly increased after Chinese New Year,which improved landlords market

58、 confidence.More than 60%of the leasing demand was for less than 1,000 sqm.Demand for large space was rare as large-scale companies usually need more time for decisions.The financial industry contributed 40%of total leasing volume,especially domestic financial companies.The CBD area saw market recov

59、ery first,generating more than one-third of total leasing transactions.In addition,the volume of leasing transactions also increased in Wangjing and the Third Embassy Area due to competitive rents.Overall vacancy rate climbs up slightly due to a new project In 1Q23,overall net absorption turned from

60、 negative to positive,as space surrendered in the quarter was backfilled by increased demand.However,landlords were still under vacancy pressure due to the cumulative vacant space surrendered in the past several quarters,hence they have continued to provide competitive leasing offers.No.33 Xiaoyun R

61、oad,a new project located in the Third Embassy Area,entered the market in the quarter.The contractual occupancy rate of this project was approximately 30%.Due to its sizable vacant space,the overall vacancy rate was pulled up by 0.4 ppts,recording 10.4%.Rent declines slow down in the quarter Overall

62、 rents saw a continuous decline in 1Q23,recording-0.9%q-o-q growth and-2.5%y-o-y growth.The decline slowed as substantial price cuts had already been made in some projects by the end of 2022,leaving limited room for further rent declines.However,for most landlords,sizable demand and top-quality tena

63、nts still deserved considerable rent discounts.The investment market saw an increasing number of investors actively seeking opportunities in Beijing.CapitaLand established the China Opportunistic Partners Programme in February,aimed at pursuing opportunities in the China market.The fund acquired the

64、 Suning Life Plaza complex,consisting of office space and retail premises,for a total purchase price of RMB 2.81 billion.Outlook:Growing momentum is expected in leasing activities The considerable jump in leasing activities observed in 1Q23,including enquiries,site visits and negotiations,are expect

65、ed to boost leasing transaction volumes in the coming quarters.We also expect the demand recovery trend to persist.Overall rents are anticipated to further decrease during a vacancy-backfilling period in 1H23,then see an uptick during the rest of 2023.Cinda Centre,the 140,000-sqm new project in the

66、East Second Ring Road,has expedited its construction schedule and is expected to enter the market in 2023.A total of three new projects will enter the market in 2023,with an annual supply volume of 426,000 sqm.Therefore,the overall vacancy rate is expected to be pulled up by 1.2 ppts,recording 11.6%

67、at end-2023.sqm per month,net effective on GFARMB 351Rental Growth Y-O-Y-1.4%Stage in CycleDecline SlowingBeijingNote:Beijing Office refers to Beijings overall Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2

68、022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q23506070809010

69、00150160CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent024682004006008001,0001,2002002120222023JLL Asia Pacific Office Q1 202310Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Uptick in market activity as business and dai

70、ly life start to recover.”Daniel YaoHead of Research,ChinaTenants remain conservative despite pick-up in leasing enquiries Shanghais net absorption reached 54,600 sqm with tenants remaining conservative and leasing still relatively slow.That said,inspections and enquiries showed signs of recovery.Th

71、e majority of demand came from established firms,while cost-saving requirements continue to be a key trend in leasing.In the CBD,domestic financial services firms remained active in Pudong,while luxury retail and professional service firms were resilient in Puxi.Decentralised net absorption recorded

72、 around 59,300 sqm,driven by domestic financial services and life science firms.Cost-saving concerns led some firms to relocate from the CBD to new high-quality projects in fringe areas.Two new projects deliver 79,000 sqm In the CBD,LuOne delivered 45,872 sqm in Xintiandi.This project received stron

73、g pre-leasing,which helped to keep the CBD vacancy levels relatively stable at 10.8%,up only 0.6 ppts q-o-q.Part of New Bund Square City in Qiantan came on-stream,delivering 33,107 sqm.Robust leasing in the new project combined with leasing recovery in other fringe submarkets reduced the decentralis

74、ed vacancy by 0.4 ppts q-o-q to 24.1%.Overall rents edge downward amid large supply The decline in CBD rents has slowed,though rents still fell 0.1%q-o-q amid conservative sentiment.Some tenants took advantage of falling rents to negotiate more favourable terms.Rents in premium Grade A buildings wit

75、hstood the trend and edged up slightly.While some fringe areas and popular submarkets in decentralised Shanghai saw improved leasing demand,overall decentralised rents still fell 0.5%q-o-q.Large supply on the horizon put downward pressure on rent growth.Landlord confidence continued to be muted rega

76、rding projects and submarkets suffering from high vacancy.Outlook:Recovery is expected to pick up later in 2023 Over the short term,we expect domestic consumption to recover,boosting market confidence.The recent increase in inspections and enquiries also points to a recovery in leasing activity late

77、r in the year.That said,large supply will likely continue to put some pressure on rent growth.Domestic financial and professional services firms should remain resilient,while foreign firms are expected to remain conservative.Industries such as AI and other soft tech sectors have expansion potential

78、this year.In addition,retail firms,particularly luxury brands,are expected to expand as consumption recovers.sqm per day,net effective on GFARMB 9.16Rental Growth Y-O-Y-2.2%Stage in CycleDecline SlowingShanghaiNote:Shanghai Office refers to Shanghais overall Grade A office market,consisting of Pudon

79、g,Puxi and Decentralised areas.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the rema

80、inder of 2023.Physical Indicators are for the CBD.Source:JLLRental Value IndexCapital Value IndexIndex7080901001101204Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2002468300400500600JLL Asia Pacific Office Q1 202311O

81、ffice marketsOffice Market Insights Physical IndicatorsFinancial Indices“Leasing activity recovers;active enquiries observed.”Silvia Zeng Head of Research,South ChinaLeasing demand undergoes early recovery in 1Q23 During 1Q23,there has been an increase in economic activity in Guangzhou.City-wide tra

82、ffic quickly rebounded,benefiting the recovery of local consumption.Many companies thus showed rising confidence in the short-term future.The number of project enquiries and site visits substantially rose in 1Q23,indicating a more vibrant leasing market in 1Q23 compared to that of 2H22.Conversions f

83、rom enquiries to actual transactions in existing projects have been occurring at a gradual pace in 1Q23.Many companies have just restarted their study of the office leasing market after the shock of high COVID-19 cases in 4Q22,leading to a slowdown in vacancy absorption.Three Grade A office building

84、s complete in 1Q23 Three buildings,all located in emerging submarkets,were completed in 1Q23,adding more than 180,000 sqm to Grade A office stock.The total stock in Guangzhou has almost exceeded 8.0 million sqm by the end of 1Q23.Absorption did not significantly accelerate in 1Q23,and the vacancy in

85、 existing projects has changed little from that in 4Q22.As three new projects were completed,extra vacancy was added to the market,and the overall vacancy rate inevitably rose by 1.2 ppts to around 18.8%by the end of 1Q23.Landlords active promotions lead to rental decline Landlords confidence and ba

86、rgaining power have not recovered fully as leasing demand was still at an early recovery stage.As enquiries rose substantially,some landlords have become more active in promoting and boosting project occupancy,and were willing to make certain compromises during rent negotiation.Overall rent thus dec

87、reased moderately by 0.7%q-o-q in 1Q23.Investors tended to remain conservative during 1Q23 as the performance indicators of the leasing market,such as net absorption and rental growth,have yet to show significant improvements.The lack of active investment demand thus continued,leading the overall ca

88、pital value to drop by around 1.0%q-o-q.Outlook:Improved absorption is expected during 2023 As the local economy is now heading towards accelerating recovery,this should facilitate improvement in leasing demand.Recent enquiries may gradually convert into transactions in the coming months,boosting ma

89、rket absorption.Gaming and other digital economy companies are likely to maintain their high leasing activity,taking up vacant space in emerging submarkets.A substantial amount of new supply is still projected to enter the market in 2023.As the concentrated supply is likely to push overall vacancy f

90、urther up in the following months,it may also hinder certain landlords from reaching a stronger position in rent negotiation,imposing pressure on rental movement in the near term.sqm per month,net effective on GFARMB 167Rental Growth Y-O-Y-5.5%Stage in CycleDecline SlowingGuangzhouNote:Guangzhou Off

91、ice refers to Guangzhous overall Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the Zhujiang New Town.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as

92、 at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex808590951001051104Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent0246802002120222023

93、02004006008001,0001,200JLL Asia Pacific Office Q1 202312Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Shenzhens Grade A office market sentiment is on the path to recovery.”Silvia ZengHead of Research,South ChinaOffice leasing enquiries hike while transactions remain stabl

94、e With the recovery of Shenzhens economy in the quarter,business confidence has been boosted,and certain companies have reopened lease planning that was previously called off during the pandemic as a cost-saving measure.Therefore,both office leasing enquiries and site visits have soared in the quart

95、er.However,many enterprises adopted a wait-and-see approach to making leasing decisions,and hence transaction volumes did not rise as much.In fact,a considerable proportion of the actual leases completed in the quarter came from the pent-up demand from previous quarters.With less self-use demand,the

96、 net absorption stood at just over 100,000 sqm.Vacancy improves slightly with limited new supply Only one Grade A office building,Ping An Property Insurance Building located in Futian CBD,was completed in the quarter,contributing about 71,500 sqm of new supply.At the end of the quarter,the total sto

97、ck of Shenzhens Grade A office reached 12.2 million sqm.Due to the small amount of new supply and a relatively steady demand,the citywide vacancy rate dropped slightly by 0.4 ppts q-o-q to 22.7%.The decline in rents narrows significantly As the rising number of site visits has given some confidence

98、to office landlords with regard to pricing,there were no further rent discounts for more than half of the projects.As a result,the citys overall rental decline narrowed to 0.9%q-o-q in the quarter.After the comprehensive border reopening,the number of investors inspecting office buildings has increa

99、sed.However,considering the falling rents and large supply ahead,investors have remained cautious about Shenzhens office properties.As a result,all three transactions we recorded came from end-users.Outlook:Leasing demand to recover gradually as oversupply persists Benefitting from the acceleration

100、of Shenzhens economic recovery in the coming months,enterprises may start planning for business expansion movements,which is likely to bring about additional office leasing demand.Hence,Shenzhens net absorption this year is expected to greatly surpass that of the year before.Nonetheless,the recoveri

101、ng leasing demand may hardly absorb the 2.6 million sqm of new supply expected in the next 12 months.As a result,the citys vacancy rate is expected to climb over 25%.As the competition between existing and future projects intensifies,the average rent is still projected to decline.sqm per month,net e

102、ffective on GFARMB 191Rental Growth Y-O-Y-7.8%Stage in CycleDecline SlowingShenzhenNote:Shenzhen Office refers to Shenzhens Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the overall market.Source:JLLFor 2018 to 2022,take-up,completions a

103、nd vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex607080901001104Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)

104、Future SupplyVacancy RatePercent2002Thousand sqm5001,0001,5002,0002,500JLL Asia Pacific Office Q1 202313Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“The net absorption volume turns negative in 1Q23,indicating slowing leasing momentum.”Jos

105、h HsuHead of Research,TaiwanThe challenging economy slows down leasing activity The challenging economic environment has delayed the decision-making process of many companies concerning the allocation of office space.Moreover,affected by new work styles such as remote and work-from-home,many compani

106、es have also re-examined their office space allocation strategies.Some enterprises have shown signs of adjusting their office space in the quarter.Legislative Yuan passed the Climate Change Response Law in 1Q23,which would become the standard for carbon-related regulations in the future.Based on thi

107、s law,Taiwan is about to introduce a carbon emission fee as soon as 2024.Therefore,the demand for green-certified buildings is likely to increase,and potentially become a long-term trend for the office sector.Vacancy rate remains stable;some projects may be postponed The overall vacancy rate of Taip

108、ei as of 1Q23 has increased to 2.7%,which is 10 basis points higher than the previous quarter.Although the vacancy rate is rising,it is still relatively low since it is below 3%.The vacancy rates in the submarkets Xinyi and Dunhua S.are both still not greater than 2%,indicating that the office space

109、 in core areas is still short in supply.Two projects,namely the Taipei Dome in Xinyi and the Huang Hsiang Taipei Main Station Building in the Others submarket,which were scheduled to be completed by 2023,are expected to be postponed to 2024.As a result,the total office units that were anticipated to

110、 be available in Taipei in 2023 have been reduced from the initial 45,000 ping to 20,000 ping.NER breaks record high to hit NTD 2,803 per ping,per month Despite the deceleration in leasing momentum,rent in Taipei has continued to increase.This is possibly due to the stronger bargaining power of land

111、lords regarding the new leases.The net effective rent(NER)of prime offices in Taipei has reached NTD 2,803 per ping,per month.Notably,Xinyi District was the most significant contributor to rent growth,with a y-o-y increase of 2.8%.Office market rents have remained resilient despite the slowdown in l

112、easing activities.The upward trend is expected to persist until new supply is released into the market.Currently,landlords hold the bargaining advantage due to the shortage of supply.Since 20,000 ping of new supply will be released in 2H23,further observation is needed to determine if the current tr

113、end will continue.Outlook:Challenging environment amid economic uncertainties The office market is facing fluctuations due to macroeconomic uncertainties in 2023.The central bank has raised the discount rate by 12.5 basis points in 1Q23,bringing the current rate to 1.875%.Additionally,it has also re

114、vised the forecast GDP growth rate downward to 2.21%,indicating a slowdown in economic activities.Therefore,the office market may encounter some challenges in 2023.The negative absorption volume witnessed in 1Q23 indicates that the office market may also encounter some challenges.However,because off

115、ice spaces are currently in short supply,the market does not show any signs of a downward trend in demand.Further observation of the demand trend is needed,with regard to absorption volume,after new supply is released to the market in 2H23.ping per month,net on GFANTD 3,621Rental Growth Y-O-Y2.4%Sta

116、ge in CycleRents StableTaipeiNote:Taipei Office refers to Taipeis overall Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for Xinyi.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completion

117、s and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex9004Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-4-2024682018201920

118、202021200200JLL Asia Pacific Office Q1 202314Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Vacancy rate rises in the leasing market;activity increases in the investment market.”Takeshi AkagiHead of Research,JapanStrong net absorption as major new supply s

119、timulates demand According to the Tankan Survey in March,the diffusion index of large manufacturers recorded at 1,decreasing for the fifth consecutive quarter in response to high raw material costs and slowdowns in overseas economies.The index of large non-manufacturers continued to pick up,reaching

120、 20 and increasing for the fourth consecutive quarter as socioeconomic conditions continue to return to normal.As major new supply stimulated demand,net absorption in the Grade A office market in Tokyo totalled 116,000 sqm in 1Q23,equivalent to 120%of 2022s full-year figure in just one quarter.This

121、high figure was driven by the information and communications,professional services,and construction industries.Vacancy rate rises above 4%Three Grade A office buildings entered the market in 1Q23,increasing the stock by 2%q-o-q.These include Sumitomo Fudosan Tokyo Mita Garden Tower,Sumitomo Fudosan

122、First Tower and Dogenzaka-dori.The schedule of new supply for full-year 2023 is the second largest volume since JLL started tracking it,and 30%of it was completed in the quarter.Tokyos vacancy rate in the Grade A office market averaged 4.2%,increasing 40 bps q-o-q and 110 bps y-o-y.This was the firs

123、t increase in two quarters,in part reflecting the remaining vacancy in newly-supplied buildings.The vacancy rates in Otemachi/Marunouchi and Akasaka/Roppongi both saw decreases,albeit slightly.Capital values decrease,reflecting a decrease in rents Rents in Tokyos Grade A office market averaged JPY 3

124、4,302 per tsubo,per month,at end-1Q23,decreasing 1.0%q-o-q and 4.3%y-o-y.Rents edged downward for the 12th consecutive quarter.The rate of decline was mostly in line with the previous quarter.Both Otemachi/Marunouchi and Akasaka/Roppongi submarkets saw a slowdown in the decrease.Capital values in 1Q

125、23 increased 1.9%y-o-y,yet decreased 2.3%q-o-q,the first decrease in two quarters.This reflected negative rent growth as cap rates remained stable.Major transactions in the quarter included Angelo Gordons acquisition of Harumi Island Triton Square Office Tower X(co-ownership)for a confidential price

126、.Outlook:Capital values to decrease marginally in tandem with rents According to Oxford Economics forecast as of March 2023,the GDP growth for 2023 was revised downwards to 0.6%and the CPI was revised upwards to 1.5%.Risks include the downswings in overseas economies,inflation and volatility in the

127、financial markets.Under these circumstances,the leasing volume is expected to increase on the back of historically-high new supply scheduled for 2023.However,excess supply is expected to increase the vacancy rate and place downward pressure on rents.Capital values are expected to decrease on the bac

128、k of such rent decreases,as cap rates have limited room for further compression.tsubo per month,gross on NLAJPY 34,302Rental Growth Y-O-Y-4.3%Stage in CycleRents FallingTokyoNote:Tokyo Office refers to Tokyos 5 Kus Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Sourc

129、e:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex70809001404Q184Q194Q204Q214Q224Q23CompletionsTake-up(n

130、et)Future SupplyVacancy RateThousand sqmPercent-006007008002002120222023JLL Asia Pacific Office Q1 202315Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Vacancy rate increases slightly due to the low occupancy of the newly-completed bu

131、ilding.”Yuto OhigashiSenior Director-Research,JapanNet absorption continues to be positive According to the March Tankan survey for Greater Osaka,the sentiment of large manufacturers decreased by 9 points to 2 points,deteriorating for the first time in three quarters.The sentiment among large non-ma

132、nufacturers decreased 1 point to 18 points,deteriorating for the first time in 11 quarters.Net absorption totalled 5,000 sqm in 1Q23.While some large companies are downsizing or relocating to flexible spaces,more and more medium-sized companies with strong business performances are opening or expand

133、ing offices.Strong occupier demand was observed in manufacturing,finance and insurance,and medical,health care and welfare industries during the quarter.Vacancy rate increases to 3.4%One new project entered the market in 1Q23,namely,the Hommachi Garden City Terrace.The 19-storey building has a GFA o

134、f 19,000 sqm,with office space occupying the 2nd-18th floors,and an NLA of 10,000 sqm.The vacancy rate stood at 3.4%in 1Q23,increasing 30 bps q-o-q and decreasing 40 bps y-o-y.Despite the low occupancy of the newly-completed building,the vacancy rate rose only slightly as vacancies were taken up in

135、many existing buildings.Rent decline slows while cap rates remain flat Gross rents averaged JPY 22,419 per tsubo,per month at end-1Q23,decreasing 0.2%q-o-q and 2.8%y-o-y.Although the vacancy rate turned upward for the first time in four quarters due to the impact of the new completion,the rent decli

136、ne slowed.Capital values decreased 0.6%q-o-q and 4.2%y-o-y in 1Q23.The pace of decrease has slowed,reflecting the slowdown in rent decline.Cap rates were flat.There were no transactions for Grade A office buildings during the quarter.Outlook:Rents to continue a slight decline;cap rates to remain fla

137、t According to the Oxford Economics forecast as of March,Osakas real GDP is forecast to grow by 0.5%in 2023.Downside risks include weak global demand and its impact on Japanese exports and manufacturing.With limited new supply in 2023,a moderate rise in vacancy rates and a moderate decline in rents

138、are expected.Although rents are expected to continue to fall,cap rates are expected to remain almost flat as some properties may see an increase in rent,and there are investors showing a positive investment stance.tsubo per month,gross on NLAJPY 22,419Rental Growth Y-O-Y-2.8%Stage in CycleRents Fall

139、ingOsakaNote:Osaka Office refers to Osakas 2 Kus Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the r

140、emainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex809001401501604Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2002120-20020406080100120140JLL Asia Pacific Office Q1 202316Office marketsOffice Marke

141、t Insights Physical IndicatorsFinancial Indices“Investors become circumspect,with high cost of debt acting as a headwind.”Veronica ShimHead of Research,South KoreaLack of leasable spaces leads to a decrease in net take-ups Seouls quarterly overall net absorption recorded around 12,700 pyeong.While C

142、BD and Yeouido showed positive figures,the net absorption in Gangnam recorded about-800 pyeong.Overall net take-up decreased by 13.9%q-o-q and 73.2%y-o-y due to limited leasable spaces despite the strong leasing demand.The number of leasing deals also observed a downward trend for the same reason.In

143、 the quarter,CBD marked the highest net absorption in Seoul,reading about 11,500 pyeong,while Yeouido recorded a net take-up of about 2,000 pyeong.One notable leasing deal in the CBD was Volkswagen Group Koreas contract to occupy the Youngpoong Building.In Yeouido,TEC signed a lease at the Hana Inve

144、stment&Securities Building.Steadily decreasing vacancy rate since 2021 No new office buildings were introduced to the market in 1Q23.Overall,Seouls vacancy rate plummeted by 67 bps q-o-q,reaching a new record low of 1.1%.With the exception of Gangnam,all submarkets saw a drop in vacancy in the quart

145、er.Despite the strong leasing demand,Gangnams vacancy rate increased marginally by 12 bps q-o-q,which is expected to be a temporary uptick.The vacancy rate of CBD and Yeouido were within the 1%range in the quarter.Investment volume plunges amid difficulties in financing In the quarter,net effective

146、rent for overall Seoul increased by 3.3%q-o-q and 22.2%y-o-y,reaching KRW 125,344 per pyeong per month.The quarterly rent uptick was attributable to increased net rents while rent-free periods stayed flat q-o-q.Rents in all three submarkets experienced an upward trend and Gangnam witnessed the large

147、st quarterly uptick of 4.8%.The office investment volume in 1Q23 plunged,reaching KRW 1.3 trillion.Due to mismatched pricing between sellers and buyers,deals were often not closing as expected.One notable deal involved JoongAng Ilbo HQ Building and M Building.CTCore-Samsung SRA Asset Management cons

148、ortium acquired these buildings for KRW 290 billion,for redevelopment purposes.Outlook:Deal volume may decline despite strong investment appetite Although all three submarkets are expected to welcome new supply within a year,vacant spaces are anticipated to fill up quickly on the back of bullish lea

149、sing demand.There are already a number of pre-leases in the upcoming supply.Consequently,rents are likely to demonstrate an upward trend.Seouls office market is expected to remain resilient,backed by its healthy market fundamentals.However,liquidity issues arising from the high cost of debt are pred

150、icted to put some pressure on transaction volume.Nonetheless,core assets located in prime locations are expected to continue to attract investors who have ample liquidity.pyeong per month,net effective on GFAKRW 124,110Rental Growth Y-O-Y22.5%Stage in CycleRents RisingSeoulNote:Seoul Office refers t

151、o Seouls Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the rema

152、inder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q23900140150CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20024680200300400500600700JLL Asia Pacific

153、Office Q1 202317Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Rent growth slows for the second straight quarter on soft demand as occupiers stay wary.”Tay Huey YingHead of Research&Consultancy,SingaporeOffice net absorption contracts in 1Q23 as demand softens Overall CBD

154、investment grade office net absorption contracted in 1Q23.Weighed down by macroeconomic uncertainties,more companies have opted to right-size their offices to improve cost efficiency.At the same time,many businesses,especially large space users,have put expansion and relocation plans on hold.Leasing

155、 activity was mainly supported by small-to-medium-sized space occupiers with immediate requirements such as new market entrants and those looking to accommodate new workplace design.For example,German insurer Munich Re took up two floors at 18 Cross Street for its new office.Fine wine merchant Corne

156、y&Barrow also recently relocated to a new office at Hub Synergy Point.Take-up rates for projects nearing completion gain traction The office component at Guoco Midtown received its Temporary Occupation Permit in January 2023 and has secured tenants for over 80%of its space.IOI Central Boulevard Towe

157、rs remains on track for completion in 3Q23.An estimated 45%of its space is either pre-committed or under advanced negotiations as of 1Q23.This is up from 30%as of 4Q22.Slowing office rents add repricing pressure to capital values Overall CBD investment grade office rent growth decelerated for the se

158、cond straight quarter as more landlords scaled back their aggressive rent stance to focus on filling vacancies.Weighed down by repricing pressure caused by both the high interest rate environment and a challenging office leasing market,CBD investment grade office capital values continued their decli

159、ne from 4Q22.Outlook:Office property market to remain soft in 2023 Persistent economic headwinds will likely continue to dampen business confidence and office demand in the near term.Competition for tenants should keep rent growth modest for the rest of 2023.The downward pressure on capital values i

160、s expected to continue through 2023 as credit conditions remain tight and the office leasing market weakens due to developing macroeconomic turbulence.sq ft per month,gross effective on NLASGD 11.30Rental Growth Y-O-Y8.0%Stage in CycleRents StableSingaporeNote:Singapore Office refers to Singapores C

161、BD Grade A office market in Marina Bay,Raffles Place,Shenton Way and Marina Centre.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacan

162、cy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the CBD.Source:JLLRental Value IndexCapital Value IndexIndex809001401504Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-4-20246810-80-4004080

163、02120222023JLL Asia Pacific Office Q1 202318Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Demand concentrated towards new supply pressures older assets to restrategise.”Nichakamol HorungruangSenior Manager,ThailandDemand for new and recent completions strengthe

164、ns Prime net absorption totalled 12,600 sqm in 1Q23.The flight-to-quality trend continued to dominate the market.Large positive take-up figures were tracked in new and recent completions,while aged buildings struggled to maintain their occupancy level amid relocations to modern buildings.One City Ce

165、ntre opened with a moderate occupancy of 15%,though the project has leased out more than 40%.Known leasing volume in 1Q23 totalled 9,200 sqm,with the majority being signed to upcoming and recent developments.Two relocation deals were upgrades from old prime buildings,and another two new-let deals we

166、re from flex space and a standalone building.Vacancy increases to 19.9%One City Centre opened in the quarter and added 55,700 sqm to the market.With the wave of high-quality supply influx in the near term,five aged buildings were downgraded from the prime basket as they no longer match the new Grade

167、 A standard.Prime office stock in the CBA totalled 1,419,200 sqm.Prime vacancy rate increased by 196 bps q-o-q to 19.9%in 1Q23,mainly due to unoccupied space in new completions.The rate remained high among older office buildings after right-sizing and the flight-to-quality trend after the pandemic.R

168、ental growth accelerates in contrast to stable yields Prime gross rents increased by 2.1%q-o-q in 1Q23 to THB 955 per sqm per month,after remaining flat for five consecutive quarters.The growth was mainly due to premium rents in recent completions and downgrading activity.Net effective rents likewis

169、e increased by 2.1%q-o-q,though three buildings offered longer rent-free periods.Market yield stabilised at 5.7%in 1Q23.Capital values remained high after existing buildings continued to be renovated and sought to apply for green credentials.Outlook:New supply in 2023 to exceed record high seen in 1

170、999 Looking ahead to end-2023,upcoming supply will total 228,000 sqm.Total supply addition in 2023 alone reaches the annual completions record high last seen in 1999.This supply influx should push the vacancy rate up to 25.9%despite robust leasing activity.Upcoming high-quality supply should drive u

171、p average gross rents significantly.Both domestic and regional investors continued to show interest in office assets in Bangkok as the market improved further.However,the bid-ask spread remained wide,though on-sale assets in the market were over 25 years old.sqm per month,gross on NLATHB 955Rental G

172、rowth Y-O-Y2.5%Stage in CycleRents RisingBangkokNote:Bangkok Office refers to Bangkoks CBA Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate

173、 are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex909551201251304Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20020JLL Asia Pacific Office

174、Q1 202319Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“The opening quarter of 2023 undergoes positive net absorption despite ongoing suppressed market.”Yunus KarimHead of Research,IndonesiaVacancy rate increases due to limited demand and a new completion Positive net dema

175、nd was recorded at around 10,000 sqm,by the opening quarter of 2023.One consulting company made the highest contribution(19%)to the positive demand when it partially relocated from an older Grade A building in the same corridor.Companies in the technology and energy sectors were recorded as the main

176、 contributors to 1Q23 demand,with each sector contributing around 15%.In the quarter,one flex-space operator entered a Grade A building,taking up around 1,600 sqm in a joint operation with the landlord.An office building is the first new completion in 2023 One building,Jakarta Mori Tower,was added a

177、s a new completion in 1Q23.It has a total area of around 90,000 sqm and is located in the Sudirman corridor.The only expected new supply for the remaining quarters of 2023 is Thamrin Nine 2-Luminary Tower at around 40,000 sqm,located in the same office complex as Thamrin Nine 1-Autograph Tower.Rents

178、 continue to decline at the beginning of 2023 Rents continued to decline in 1Q23 and were recorded at-2.3%q-o-q and at-8.5%y-o-y due to limited demand and a low absorption rate for the newly-completed supply.Despite the removal of social restrictions and with most economic activities gradually retur

179、ning to their pre-pandemic levels,landlords of office buildings with lower occupancy are still expected to offer competitive rents.Outlook:Market pressures and downsizing trends likely to remain Enquiries are anticipated to remain healthy,but the demand is for smaller sizes,and decision-making is ta

180、king longer.However,vacancy rates are likely to continue rising,and falling rents are expected in the remaining three quarters of the year.Various sectors and industry lines will likely remain cautious due to global economic headwinds.Hence,cost-saving is expected to remain the theme,with flight-to-

181、quality as another continuing trend.sqm per annum,net effective on NLAIDR 2,450,664Rental Growth Y-O-Y-8.5%Stage in CycleRents FallingJakartaNote:Jakarta Office refers to Jakartas CBD Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,c

182、ompletions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex607080901001104Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand s

183、qmPercent20025400500300350400450500JLL Asia Pacific Office Q1 202320Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Rental growth driven by sustainable buildings and well-performing buildings in strategic locations.”Yulia Nikulich

184、evaHead of Research,MalaysiaMarket demand remains positive,largely led by DC locations Net absorption continues its recovery,largely driven by the financial services industry as well as owner occupancies.This is seen to be stemming largely from the insurance industry,as the industry went through a p

185、eriod of high M&A activity,resulting in these companies either expanding or consolidating spaces.Additionally,the tech industry has started picking back up with some of these companies beginning to re-absorb spaces that were let go during the pandemic.That said,tenants have been cautious with regard

186、 to expansion/re-absorption of office spaces in light of the cost-sensitive economic environment.One new completion brings total stock to about 54 million sq ft The quarter saw one new completion,Affin Banks new headquarters at TRX.As we understand it,the building has been 60%owner occupied with the

187、 remaining 40%being for the open market.Overall vacancy rates have recovered slightly.This was led by the Decentralised submarket,which has gained popularity amid changes to working cultures brought about by the pandemic,whereby companies increasingly want to be located closer to residential suburbs

188、 to accommodate hybrid working practices.Quiet investment market;no new transactions in the quarter Overall rental rates saw some growth,largely led by recently-completed buildings as well as well-performing buildings.This comes as market demand for newer,more advanced and more sustainable buildings

189、 grows stronger with the increasing importance of ESG in real estate.No new investment transactions were noted in the quarter.Interest in the office asset class among investors were seen to be increasing.However,most investors have maintained their wait-and-see approach as challenging economic condi

190、tions persist in a cost-sensitive market.Outlook:Transactions likely to be attributed to owner occupancies Kuala Lumpurs future supply pipeline is expected to deliver over 3 million sq ft by the end of 2023.This will likely keep rents suppressed and vacancy rates relatively high.However,with demand

191、recovering,we may see more sporadic positivity coming out of the market in 2023 as the trends of flight-to-quality and ESG requirements of occupiers take centre stage.Investment-related transactions in the market are likely to remain muted as the uncertain economic situation means that investors are

192、 likely to remain cautious.On the other hand,we have seen an increase in purchase requirements for owner occupancies as purchasers perceive more opportunities coming onto the market at somewhat attractive rates.sq ft per month,gross on NLAMYR 6.40Rental Growth Y-O-Y-1.4%Stage in CycleRents RisingKua

193、la LumpurNote:Kuala Lumpur Office refers to Kuala Lumpurs Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for KLC.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate

194、 are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for KLC.Source:JLLRental Value IndexCapital Value Index80901001101204Q184Q194Q204Q214Q224Q23IndexCompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2002120222023-0200250300350-

195、10-5055JLL Asia Pacific Office Q1 202321Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Sustained rightsizing and new supply with large vacancies dampen market momentum.”Janlo DelosreyesHead of Research,PhilippinesDownsizing still prevalent,weighing down on absor

196、ption Absorption cooled further to about 9,200 sqm,driven by continued rightsizing of occupiers as economic headwinds heated up and the effects of structural changes started to materialise.BPOs released spaces,such as an IT-centred firm releasing 10,000 sqm in Taguig City,and a pharmaceutical-centre

197、d BPO downsizing by 1,300 sqm as they transfer their registration to the Board of Investments.Traditional players continued to buoy the market as BPO activities started slowing,specifically in Makati and Taguig City.Notable transactions from the industry included a 4,700 sqm lease by a government of

198、fice in Makati City,and a consulting firm that took up 1,150 sqm in Taguig City.BPO activities continued to be a mixed bag,with select firms expanding and others downsizing operations.Completions of two developments adds new leasable spaces The completions of Makati Commerce Tower and Stiles Enterpr

199、ise East Tower in Makati City added about 90,000 sqm of new leasable spaces to the market in 1Q23.In the remainder of the year,an anticipated introduction of around 273,400 sqm may further challenge the recovery of vacancy levels amid a weaker market.Sustained space rationalisation among BPOs and co

200、rporate occupiers,coupled with fresh supply which went online with a large volume of vacant spaces,led to the expansion of vacancy levels which settled at 13.5%in 1Q23,up by 145.3 bps q-o-q.We may see vacancy further elevate in the near term largely due to supply pressures.Market and economic uncert

201、ainties dampen rents and prices Rents continued to dip and ended at PHP 1,116.3 per sqm per month,a contraction of 0.8%q-o-q,on the back of a lacklustre office market.The majority of landlords continued to retain rentals despite higher operating costs,while select developments reduced rates to spur

202、demand for long-vacated spaces.Capital values continued to hike and settled at PHP 182,236 per sqm,expanding by 0.9%q-o-q.Despite the sustained upticks,hikes were not as steep as previous levels,with escalating interest rates weighing down on investor sentiments.Outlook:Leasing volumes may stay lean

203、,challenging vacancy and rents Market activities are anticipated to remain cool in the near term where we may see the full effect of half of 1,000 BPO-locators transferring their registration to the Board of Investments to avail of the flexibility in work arrangements.Despite this,we may still see a

204、ctivities from BPOs as they achieve the industry target of USD 59 billion in revenue,and an additional 1.1 million jobs by 2028.The majority of landlords are expected to retain their rents in the near term to further buoy demand.Select landlords with healthy occupancy levels have been seen to hike u

205、p rentals incrementally,potentially raising the market average minimally.Capital values,on the other hand,are expected to record less aggressive upticks on the back of elevated interest rates.sqm per month,net effective on NLAPHP 1,116Rental Growth Y-O-Y-0.9%Stage in CycleDecline SlowingManilaNote:M

206、anila Office refers to the Makati City and Taguig City Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for

207、 the remainder of 2023.Source:JLLRental Value IndexCapital Value Index0901004Q184Q194Q204Q214Q224Q23IndexCompletionsTake-up(net)Future SupplyVacancy Rate2002120222023-8-40481216-300-300400500600PercentThousand sqmJLL Asia Pacific Office Q1 202322Office marketsOffi

208、ce Market Insights Physical IndicatorsFinancial Indices“A challenging year for both tenants and landlords.”Trang LeHead of Research,VietnamPositive absorption slows down due to economic uncertainty The Grade A office leasing market reported positive demand yet continued to slow down as businesses gr

209、ow cautious about relocating or expanding their offices in the face of economic uncertainty.Net absorption in 1Q23 was 3,637 sqm NLA,down 17.6%q-o-q and 16.8%y-o-y.Most new leases were from international firms,for space in Capital Place and Lotte Center,with a net absorption of 5,008 sqm.Despite bei

210、ng a new completion paired with intensive marketing effort,Lancaster Luminaire recorded only modest absorption,due to its inconvenient location and accessibility.Tracked assets updated as the market evolves After two years without any new for-lease Grade A supply,Hanois Office market welcomed the 23

211、,000-sqm(NLA)Lancaster Luminaire project in Dong Da District.In addition,as the market evolves,JLL has updated the tracked basket with 13 buildings that were downgraded to Grade B(seven owner-occupied,six for-lease).Accordingly,the Grade A basket has decreased to just more than 471,000 sqm NLA.With

212、the introduction of new supply and the weakened demand,the vacancy rate overall was temporarily pushed up to 23.3%,up by 3.4%q-o-q.Rents remain unchanged across the board In 1Q23,the average CBD Grade A net effective rent was USD 32.9 per sqm,per month,increasing 1.76%q-o-q due to a change in the tr

213、acked basket.On a project basis,rents remained unchanged q-o-q in most buildings.To attract tenants,some landlords have offered discounts or extended fit-out periods as incentives,especially for office plots with no view.No investment transaction was recorded.In the CBD,capital values inched up 1.76

214、%q-o-q while market yield remained stable q-o-q at 7.3%.However,supported by the economys solid long-term foundation,market yield for Grade A offices in CBD is expected to compress to 7.05%by end-2023.Outlook:Large new supply and weakening demand to impact vacancy In 2023,an addition of around 64,00

215、0 sqm to the Grade A office market from three new buildings is expected to push up vacancy,in the context of weak demand recovery.In the CBD area,Diamond Park Plaza and 36 Cat Linh will contribute around 43,000 sqm.In the non-CBD area,the office component of the mixed-use Lotte Mall Tay Ho will offe

216、r 21,000 sqm of premium office space.Given the expected diminishing number of newly-established firms amidst economic headwinds,CBD net absorption in 2023 is projected at around 19,000 sqm,down by 30%y-o-y.The CBD vacancy rate will likely increase to 24.3%at end-2023.Headline rents are expected to b

217、e stable while landlords offer incentives to retain occupancy rates.sqm per month,net effective on NLAUSD 32.9Rental Growth Y-O-Y10.3%Stage in CycleGrowth SlowingHanoiNote:Hanoi Office refers to Hanois Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018

218、 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex809001401501604Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future

219、 SupplyVacancy RateThousand sqm05406080902002120222023PercentJLL Asia Pacific Office Q1 202323Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Modest demand with limited transactions recorded.”Trang LeHead of Research,VietnamDemand slows down

220、,resulting in limited transactions After its renovation,Me Linh Point Tower was upgraded and added to the Grade A basket In 1Q23,resulting in an increase of 11,499 sqm in CBD net absorption.Aside from this,demand generally slowed down,as evidenced by the negative net absorption across existing build

221、ings,totalling approximately-3,200 sqm.In 1Q23,tenants opted for more cost-effective alternatives,such as Grade B buildings,in response to economic uncertainty,resulting in a subdued Grade A office market.This shift in tenants behaviour has led to slowing demand in the Grade A office market.Updated

222、Grade A supply basket as the market evolves Grade A office space for lease expanded to about 308,300 sqm,up 16,200 sqm q-o-q,primarily driven by the upgrade of Me Linh Point Tower to Grade A.The average vacancy rate experienced a slight uptick from 4.3%to 5.6%,largely due to the vacant space from ne

223、wly-added projects and the negative net absorption in existing buildings with vacancies.Remarkably,offices located in Saigon South office cluster-District 7,Mapletree Business Centre and Phu My Hung Tower,also obtained a Grade A classification in the quarter,making them the first Grade A office buil

224、dings in the non-CBD submarket,with a total supply of about 55,100 sqm and a vacancy rate of 6.6%.Rents remain stable q-o-q on a project basis In 1Q23,the Grade A CBD office net effective rent was USD 47.5 per sqm,per month,a drop of 0.5%q-o-q owing to the inclusion of upgraded supply with lower-tha

225、n-average rent.Despite the scarcity of premium supply,project-based net effective rent remained stable as demand slowed,suggesting tenant restraint amidst a volatile business environment.The ongoing investigations of local developers has resulted in a cautious investment market in 1Q23,with no offic

226、e buildings transacted.However,stabilised operating assets continued to appeal to investors seeking secured investment opportunities with stable yields,which as of 1Q23,were at 6.5%in the CBD area.Outlook:Thu Thiem NUA to be the HCMC office highlight in 2023 The Hallmark and The METT projects in new

227、 CBD will contribute 84,833 sqm of Grade A space by end-2023.Strong leasing pre-commitments have been observed in these two future developments,thanks to their affordable rents compared to similar-quality buildings in the existing CBD area.Net absorption for the entire year of 2023 is expected to ex

228、ceed 40,000 sqm in the CBD area.CBD net effective rent is set to go down 4.6%y-o-y to USD 45.6 sqm,per month,due to lower rents in the newly-added projects.The gap among Grade A clusters should narrow down,thanks to non-CBD building improvements.The performance divergence between old buildings and n

229、ew LEED-certified projects is likely to be pronounced,making asset enhancements vital for maintaining competitiveness.sqm per month,net effective on NLAUSD 47.5Rental Growth Y-O-Y-0.2%Stage in CycleGrowth SlowingHo Chi Minh CityNote:Ho Chi Minh City Office refers to Ho Chi Minh Citys Grade A office

230、market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value Index

231、Index90001804Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent02468920202020406080100120140JLL Asia Pacific Office Q1 202324Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“The year started

232、on a positive note with net absorption increasing by 3.8%q-o-q.”Dr Samantak DasExecutive Director and Head of Research&REIS,India&Sri LankaHealthy leasing activity in 1Q23 There was a substantial uplift in quarterly gross leasing volumes,led by a diverse range of occupiers such as BFSI,IT/ITeS,Flex,

233、Telecom and Healthcare,among others.Delhi NCR recorded the highest gross leasing volume amongst all major cities in 1Q23.Buoyant leasing demand was witnessed in 1Q23,with net absorption of 1.96 million sq ft,which increased by 3.8%q-o-q and 47%y-o-y.Gurgaon led with a 54%share of net absorption as i

234、t recorded some large-size transactions.Noida accounted for a 37%share with healthy traction from IT/ITeS and flex space operators.Supply additions of 1.80 million sq ft in 1Q23 Six projects were completed in 1Q23 across Delhi NCR.Two projects were completed in Gurgaon,including Magnum City Centre a

235、nd a refurbished project at Udyog Vihar.The completed buildings in Noida included NSL Techzone Tower 2 and Max Square.One project was completed in Delhi CBD,Commercial Tower-Plot No.2&3.Delhi SBD also witnessed one supply addition,Eldeco Centre at Malviya Nagar.By end-2023,6.92 million sq ft is expe

236、cted to become operational across Delhi NCR.Noida is expected to lead with 61%of this supply,with Gurgaon accounting for 32%.Rents increase in quality office projects Overall rents in Delhi NCR increased marginally in 1Q23.Rents rose in CBD and SBD as there were new completions with higher rents as

237、compared to the market average.In Noida,a rent increase was seen in quality office projects and institutionally-owned buildings.Superior quality assets and institutional landlords are expected to drive rent growth across key submarkets.Submarkets with a significant supply pipeline may see a stable r

238、ent trend.Outlook:Demand to stay robust with some softening in the short term Most companies expansion plans remain intact,albeit with an anticipated delay given the global headwinds.There may be a slight softening of demand in the coming quarters due to delayed decision-making by the corporates.How

239、ever,the long-term outlook for the office market remains bright given the stable macroeconomic conditions and the quality supply pipeline.By end-2023,around 6.5-7.0 million sq ft of supply will come online,mostly in the suburban markets of Noida and Gurgaon.The flight-to-quality trend is expected to

240、 continue generating healthy demand in upcoming supply by established developers who have focused on developing green and sustainable workspaces.sq ft per month,gross on GFAINR 148Rental Growth Y-O-Y1.1%Stage in CycleRents RisingDelhiNote:Delhi Office refers to Delhi NCRs overall Grade A office mark

241、et.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the SBD.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indic

242、ators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q2395100105110CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20022004006008001,0001,2001,400JLL Asia Pacific Office Q1 202325Office marketsOf

243、fice Market Insights Physical IndicatorsFinancial Indices“Lower demand from global firms amidst headwinds causes leasing activity to decline.”Dr Samantak DasExecutive Director and Head of Research&REIS,India&Sri LankaNet absorption down by 16%q-o-q and 39%y-o-y Occupier activity was driven by the BF

244、SI,IT/ITeS and consultancy businesses.Flex space operators remained active,in line with growing demand for managed workspaces.Major pre-commitments remained intact.However,net absorption of 0.89 million sq ft in 1Q23 was lower than the preceding five quarters as occupiers grew cautious and global ec

245、onomic headwinds impacted decision-making.Navi Mumbai accounted for the highest leasing activity,aided by recent completions.SBD BKC and SBD North followed,with a few large deals also seen in SBD Central.Increased leasing activity was seen in the peripheral submarkets.Occupiers preferred fully-fitte

246、d offices to avoid capex,and relocated to projects with lower rents.Expansion-driven enquiries for office space also emerged.Marginal supply addition of 0.15 million sq ft in 1Q23 Construction activity continued to be at the optimum level during the quarter.However,a few project completions have bee

247、n deferred to the next quarter as they await their occupation certificates.Only one project,Newa Non-IT Bhakti Knowledge Park Phase 1(0.15 million sq ft),in Navi Mumbai,was completed during the quarter.With quarterly net absorption higher than the net increase in stock,the vacancy rate saw a drop of

248、 50 bps q-o-q to 13.5%.Rents and capital values record marginal rise Overall city rents rose marginally in 1Q23.However,rents remained soft in SBD Central,with relatively higher existing vacancy levels and significant supply pipeline expected in the medium term.A noticeable rise in capital values wa

249、s seen in BKC,West and East Suburbs,where vacancy remains low amid a scarcity of quality assets.While key submarkets and quality buildings are witnessing rents holding up,and on an upward trajectory,occupiers continue to look for ways to rationalise occupancy costs by either renegotiating leases,red

250、ucing their footprint or relocating to more affordable corridors.Landlords are holding rents steady,but are willing to offer extended rent-free periods or fit-out amortisation for occupiers.Outlook:Office demand stable despite global headwinds About 7.1 million sq ft of office space is scheduled to

251、complete in 2023.An optimum pace of construction activity is expected,barring any unexpected,fresh COVID-19 outbreaks.Demand for flex space and managed workspaces is likely to be high as occupiers prefer fully-fitted options to save on costs while gaining flexibility in their portfolio as part of th

252、eir evolving workspace strategy.Demand is expected to be driven by medical technology,health analytics,online education,data centres,gaming,pharma and FMCG sectors.Towards end-2023,supply is expected to outpace demand,leading to an increase in vacancy rates.Capital values are expected to rise faster

253、 than rents due to rising investor interest,leading to a compression of yields in key submarkets for quality assets.sq ft per month,gross on GFAINR 221Rental Growth Y-O-Y0.0%Stage in CycleRents RisingMumbaiNote:Mumbai Office refers to Mumbais overall Grade A market.Dotted lines indicate near-term ou

254、tlookIndex base:4Q18=100Financial Indicators are for the SBD BKC.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.

255、Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q2390955120CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20024680500600700800JLL Asia Pacific Office Q1 202326Office marketsOffice Market Insights Phys

256、ical IndicatorsFinancial Indices“Consulting and flex operators support net absorption growth of 58.3%q-o-q.”Dr Samantak DasExecutive Director and Head of Research&REIS,India&Sri LankaNet absorption up 58.3%q-o-q Leasing activity in Bengaluru remained robust in 1Q23,driven by large-sized space take-u

257、ps by occupiers in the consulting and flex segments.While the slowdown in IT was visible,with its share of the quarterly leasing activity dropping to less than 10%,other segments made up for the lag.Net absorption was up 58.3%q-o-q and even higher on a y-o-y basis,indicating that the sluggishness pr

258、edicted for the office markets has yet to fully manifest.It is notable that no exits were recorded during the quarter,that occupiers beyond the conventional tech segment remained quite active,and that space take-up in existing tech parks remained healthy.Quarterly supply rises to a seven-quarter hig

259、h A spate of new completions spread over SBD ORR,Whitefield and PBD North were recorded in 1Q23,totalling 4.7 million sq ft.Most of the new completions came on-stream with no pre-commitments and,as a result,overall vacancy rose by 90 bps q-o-q to 13.0%.Prominent tech parks still continued to operate

260、 at high occupancy levels with limited vacancy in core markets.Rents up marginally by 0.7%q-o-q Rents rose marginally by less than 1%q-o-q on an overall basis.Rent growth was primarily visible on account of higher closure rents in key tech parks in the SBD corridors and in the CBD.Capital values hav

261、e also moved in tandem with investor interest remaining high in rent-yielding assets and portfolios.Bain Capital bought a 4%stake in Embassy REIT through a share purchase of INR 1,200-1,300 crore.Outlook:Tech slowdown and global headwinds impact likely ahead We continue to see a robust demand pipeli

262、ne of around 14-15 million sq ft,but some space requirements have been deferred or put on hold given global headwinds from the macroeconomic situation and the technology sector.Demand is expected to be driven by the flex,consulting and manufacturing/industrial segments while tech may remain sluggish

263、 in the short term.Pre-commitment rate for the 12-month supply pipeline is around 22%-25%,which should support the forecast net absorption numbers.Given the citys premier status as a global offshoring hub and its vast talent pool,we remain positive that demand will remain strong in the medium term e

264、ven as some short-term sluggishness,due to slower decision-making,may be seen.sq ft per month,gross on GFAINR 96.9Rental Growth Y-O-Y2.3%Stage in CycleRents RisingBengaluruNote:Bengaluru Office refers to Bengalurus overall Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=

265、100Financial Indicators are for the SBD.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value In

266、dexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q2380900140150CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2002004006008001,0001,2001,4001,60002468101412JLL Asia Pacific Office Q1 202327Office marketsOffice Market Insights Physical IndicatorsFin

267、ancial Indices“Demand bolstered by IT/ITeS and coworking operators.”Dr Samantak DasExecutive Director and Head of Research&REIS,India&Sri LankaDemand driven by fresh leases from IT/ITeS and Engineering sectors The year started on a positive note with the city recording a gross leasing volume of 1.25

268、 million sq ft in the quarter.Occupier apprehension due to global headwinds had an impact on deal closures and expansion plans.However,the spike in the number of employees working from offices led to renewed interest in office space within the city.The SBD and SBD OMR submarkets continued to drive m

269、arket traction,contributing 85%of the quarterly leasing activity cumulatively.Coworking spaces sustained demand from mid-sized IT companies with improved focus on employee wellbeing.The space take-up by Engineering and Manufacturing sectors as well as BFSI firms is expected to pick up pace as well.Q

270、uality project completions in PBD OMR The supply pipeline looks healthy,supported by developers bringing in quality projects to aid the low vacancy levels in key submarkets like CBD and SBD OMR.The quarter recorded a 0.7 million sq ft addition to the citys stock from KRC Commerzone 2 Block 2 along P

271、TR road,which is the growth corridor of the city.The overall vacancy level in the city remained stable at 10.7%with a marginal spike of 3 bps.SBD OMR and CBD submarkets continued to exhibit single-digit vacancy rates.Exits from MNCs like Amazon and Genpact pushed the vacancy level in SBD OMR to 7.4%

272、.Rents and capital values remain nearly stable q-o-q The overall rent growth in the city recorded 6.2%y-o-y,attributed to quality completions quoting higher rents and reinstated confidence among developers in commanding higher rents due to sustained demand,despite global headwinds.Among the key offi

273、ce corridors,the PBD OMR submarket has seen its rents grow by 13%y-o-y as quality supply and occupier interest have supported the rent increase,given the limited space availability in the SBD and SBD OMR submarkets.Outlook:Robust demand aided by RFPs and pre-commitments As work-from-home policies ar

274、e gradually lifted and occupancy levels increase,occupiers have reinstated their expansion plans in the city.In addition,the state government,by introducing several initiatives aimed at attracting investors and startups to the city,is also fuelling demand for space in the city.The vacancy level is l

275、ikely to rise owing to the supply pipeline,with fewer enquiries in place.However,factors like the affordable talent pool,quality completions,ongoing infrastructure projects,and connectivity are making the city more desirable among occupiers.The flex segment is gaining momentum as it becomes an integ

276、ral part of portfolio strategy for all major corporates.sq ft per month,gross on GFAINR 74.0Rental Growth Y-O-Y5.4%Stage in CycleRents RisingChennaiNote:Chennai Office refers to Chennais overall Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are

277、for the SBD.Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4

278、Q184Q194Q204Q214Q224Q2390955120125130CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent200246850200250300500450400350JLL Asia Pacific Office Q1 202328Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Sydney CBD reco

279、rds a positive result,but withdrawal activity has led to a decrease in total supply.”Andrew BallantyneHead of Research,AustraliaPositive net absorption driven by centralisation activity The Sydney CBD recorded positive net absorption of about 3,900 sqm over 1Q23.The positive result was driven by cen

280、tralisation activity from the North Shore and South Sydney markets,as well as small tenant demand(1,000 sqm).Positive demand and the withdrawal of 26-30 Lee Street(12,587 sqm)resulted in the vacancy rate decreasing from 14.0%in 4Q22 to 13.7%in 1Q23.Positive net absorption was recorded in four out of

281、 ten of Sydneys office markets.The largest positive result was recorded in the Sydney Fringe(5,413 sqm),driven by small tenant leasing activity(1,000 sqm).Parramatta recorded the largest negative result(-21,317 sqm),driven by consolidation activity in the finance and public sector.Office supply decr

282、eases due to withdrawal activity Office stock in the Sydney CBD marginally decreased to 5.2 million sqm over the quarter.This was due to the withdrawal of 26-30 Lee Street(12,587 sqm).There is currently about 212,100 sqm of stock under construction in Sydney CBD,with projected completion dates betwe

283、en 2022 and 2024.We recorded only two office completions across Sydneys office markets over 1Q23 totalling 30,888 sqm.These developments were 558 Pacific Highway,St Leonards(16,738 sqm)and Blue&William,2-4 Blue Street,North Sydney(14,150 sqm).The Sydney markets recorded three withdrawals totalling 2

284、2,537 sqm.These withdrawals were for demolition for redevelopment,demolition,and refurbishment.Prime rents lift as tenants compete for quality office space The Sydney CBD recorded prime net effective rental growth of 2.2%over 1Q23,mainly driven by an uplift in face rents.Average prime incentives inc

285、reased by a minor amount to 34.8%.Prime net face rents recorded growth of 3.3%over the quarter,driven by new additions to the basket as well as growth in higher-quality office stock.Prime yields softened across all Sydney office markets,with the Sydney CBD prime yield range expanding 12 bps on the u

286、pper end and 50 bps on the lower end to 4.50%-5.75%.The softening is a reflection of sentiment in the market in light of a rising cost of debt environment,as well as global economic headwinds which are impacting pricing levels.Outlook:Softer demand expected for poorer-quality stock A lull in develop

287、ment activity in the Sydney CBD is expected in 2023,with only 19,791 sqm of stock projected to complete.This year will record the lowest development activity in the market since 2012.In the Sydney metropolitan market,the vacancy rate is forecast to remain elevated over the foreseeable future,with te

288、nants gravitating towards newer stock.Yields are projected to soften further over the course of 2023.The spread between prime and secondary yields is likely to expand further as tenants continue moving into quality stock,which will likely increase the vacancy rate in secondary assets.There are a num

289、ber of sales campaigns currently active for quality prime stock in the Sydney CBD,which will provide insight into asset pricing.sqm per annum,gross effective on NLAAUD 934Rental Growth Y-O-Y5.2%Stage in CycleRents RisingSydneyNote:Sydney Office refers to Sydneys CBD office market(all grades).Dotted

290、lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194

291、Q204Q214Q224Q23808590955120125CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-20-15-10-505101520-300-3002002120222023JLL Asia Pacific Office Q1 202329Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“The Melbourne Office

292、 markets stalls amidst economic uncertainty.”Andrew BallantyneHead of Research,AustraliaMinimal CBD demand as the metro market records negative absorption The Melbourne CBD recorded a neutral net absorption result of 81 sqm in 1Q23.This was predominantly a result of the sub-1,000 sqm cohort contract

293、ing on their space requirements.CBD headline vacancy increased to 15.6%,the highest result since 1998.The Melbourne Fringe market recorded a weak net absorption result of about-16,300 sqm,as the attractive incentives within the CBD continued to attract tenants.The S.E.S recorded a similarly weak res

294、ult of about-16,700 sqm over 1Q23.Headline vacancy increased in the Fringe(16.9%)and S.E.S(12.5%).Six project completions in the CBD and Fringe Two projects reached completion in the CBD in 1Q23,with the delivery of 263 William Street(3,799 sqm)and 140 Lonsdale Street(22,750 sqm).Additionally,four p

295、rojects completed in the Fringe,which delivered 54,200 sqm.The most notable completion was Victoria Place in East Melbourne(25,180 sqm).JLL is currently tracking 9 projects under construction(230,400 sqm)in the CBD,with a further 18 in the Fringe(174,100 sqm)and 5 in the S.E.S(58,400 sqm).Lendleases

296、 69,500-sqm development at Melbourne Quarter in the CBD remains the largest project under construction throughout Melbournes office market.Effective rents weaken across all Melbourne markets CBD prime net effective rents(PNER)fell-0.5%over 1Q23 to now average AUD 352 per sqm per annum(-1.0%y-o-y).Fr

297、inge PNER fell a further-1.1%over the quarter to now average AUD 319 per sqm per annum(-0.8%y-o-y).PNER in the S.E.S fell-1.8%over the quarter to now average AUD 261 per sqm per annum(-2.9%y-o-y).Prime CBD yields softened 25 bps on the upper end to now range between 4.50%-5.75%.Prime Fringe yields s

298、oftened 12.5 bps on the upper end and 25 bps on the lower end to now range between 5.00%-5.75%.In the S.E.S,prime yields softened 25 bps on the upper end to range between 5.25%-6.00%.Outlook:Weak pre-commitments to impact vacancy in 2023 The office market continues to be influenced by the sharp incr

299、ease in the cash rate and the uncertainty which exists among businesses.Headline vacancy across all three office markets in Melbourne is likely to continue trending upward,as a result of the partially pre-committed supply pipeline in the CBD and Fringe.The rental market is expected to record subtle

300、growth throughout 2023,largely driven by the stabilisation in the incentive level.Prime yields are forecast to continue softening as investors continue to place increasing pressure on pricing levels throughout the market.sqm per annum,gross effective on NLAAUD 522Rental Growth Y-O-Y0.7%Stage in Cycl

301、eRents StableMelbourneNote:Melbourne Office refers to Melbournes CBD office market(all grades).Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Fu

302、ture supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q23808590955120125CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2002120222023-300400-10-505101520JLL Asia Pacific Office Q1 20233

303、0Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Leasing demand remains solid,although transaction activity has slowed.”Andrew BallantyneHead of Research,AustraliaHigh tenant activity in Brisbane The Brisbane CBD office market recorded positive net absorption of about 7,700

304、 sqm,with the total vacancy rate marginally decreasing 0.3 percentage points(ppts)to 13.6%.The Near City office market recorded positive net absorption of about 42,800 sqm,with total vacancy decreasing 0.4 ppts to 16.8%.The main driver of growth in the Near City was the pre-commitment of the Austral

305、ian Taxation Office(24,000 sqm)to 152 Wharf Street,Spring Hill,which reached practical completion in 1Q23.The drivers of tenant demand in Brisbane have been the overarching theme of flight-to-quality,assets with strong environmental credentials,and proximity to amenities.Two buildings reach completi

306、on in the Near City There were no new completions in the CBD for 1Q23.The Near City had two buildings reach practical completion:152 Wharf Street,Spring Hill(24,000 sqm)and 31 Duncan Street,Fortitude Valley(20,374 sqm).Both developments had a blended pre-commitment rate of 80%.Five major projects ar

307、e currently under construction in the CBD and the Near City market which will add approximately 200,000 sqm to the Brisbane office market.The largest of these projects is Waterfront Brisbane(69,000 sqm),which commenced construction over 1Q23.There are a further 22 projects with plans approved,which

308、have the potential to add 645,000 sqm to the market.Transactions stall in the quarter Overall macroeconomic uncertainty has weighed on investment activity.One asset traded in the quarter in the Brisbane market:70 Eagle Street,Brisbane,which was sold by Pembroke to Hancock Prospecting for AUD 110.0 m

309、illion.CBD prime yields softened 25 bps on the lower end to range between 5.25%-6.75%.Secondary yields softened 25 bps on both ends to range between 6.25%-7.50%.Near City prime yields softened by 25 bps on the lower end to range between 5.50%-7.50%.Secondary yields softened 25 bps on both ends to ra

310、nge between 6.50%-8.25%.Outlook:Macroeconomic uncertainty to impact leasing activity Leasing demand is high with multiple active briefs in the market.Tenants are likely to continue seeking quality spaces for their workforce.However,weighing in on whether it is feasible to relocate or stay in light o

311、f an uncertain macroeconomic environment could result in some organisations taking their lease options to see what transpires over the short term.Investors are expected to remain cautious as uncertainty around interest rates,inflation and the general cost of debt clouds the investment market.sqm per

312、 annum,gross effective on NLAAUD 416Rental Growth Y-O-Y6.1%Stage in CycleRents StableBrisbaneNote:Brisbane Office refers to Brisbanes CBD office market(all grades).Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end a

313、nnual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q23808590955120125130CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2002120

314、222023-60-40-20020406080-15-10-505101520JLL Asia Pacific Office Q1 202331Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Perth CBD office market conditions continue to strengthen.”Andrew BallantyneHead of Research,AustraliaPerth CBD office demand conditions on the up during

315、 1Q23 Headline vacancy in the Perth CBD increased by 0.9 percentage points(ppts)to 19.9%in 1Q23.However,net absorption totalled 27,200 sqm over the quarter,the highest quarterly reading since 3Q18.Expansionary activity resulting from Chevrons relocation into a new development(1 The Esplanade),as wel

316、l as new business entrants into the Perth market,were significant contributors to net absorption over 1Q23.Occupier activity was predominantly led by tenants within the mining and professional services sectors.Uptick in new office supply One significant office development(1 The Esplanade)completed i

317、n the Perth CBD over 1Q23,totalling 54,000 sqm.The existing supply pipeline is elevated,with three projects under construction totalling 34,800 sqm.Other than developments currently under construction,the supply pipeline for both the Perth CBD and West Perth office market remains limited given eleva

318、ted vacancy rates.Plans are approved for a further 12 projects in the CBD,totalling 309,000 sqm.Proposed new office projects are likely to require substantial pre-commitment to proceed.Declining incentives support effective rental growth Perth CBD prime net effective rents increased over the quarter

319、 to AUD 276 per sqm per annum(1.5%q-o-q),as incentives declined to 48.2%.Prime net face rents increased(0.8%q-o-q)to AUD 638 per sqm per annum,reflecting y-o-y growth of 1.7%.Rising cost of debt pressures saw Perth CBD prime office yields decompress by 13 basis points(bps)in 1Q23 to a mid-point of 6

320、.88%.Outlook:Robust WA economy to support demand for office space WAs economic growth has continued to outperform the national average,driven by ongoing strength within the resources sector.With a strong pipeline of resources projects approved,demand for office space is likely to be led by the minin

321、g and professional services sector.Economic instability from factors such as inflationary pressures and rising borrowing costs will undoubtedly reduce the attractiveness of office assets to buyers relying on leveraged capital sources.Investors are likely to be selective in terms of potential acquisi

322、tions as both buyers and vendors undergo a price discovery phase amongst shifting economic conditions.sqm per annum,gross effective on NLAAUD 453Rental Growth Y-O-Y1.0%Stage in CycleRents StablePerthNote:Perth Office refers to Perths CBD office market(all grades).Dotted lines indicate near-term outl

323、ookIndex base:4Q18=100Source:JLLFor 2018 to 2022,take-up,completions and vacancy rate are year-end annual.For 2023,take-up,completions and vacancy rate are as at 1Q23.Future supply is for the remainder of 2023.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q2380901001101201

324、30CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2002120222023-10-50510152025-20-5060JLL Asia Pacific Office Q1 202332Office marketsOffice Market Insights Physical IndicatorsFinancial Indices“Centralisation activity from suburban office locations supports po

325、sitive net absorption in 1Q23.”Andrew BallantyneHead of Research,AustraliaNet absorption returns to positive territory in 1Q23 Occupier demand was positive in 1Q23 with about 5,800 sqm of positive net absorption recorded over the quarter.Occupier centralisation from suburban office locations remaine

326、d a key driver of the positive quarterly result.More broadly,occupier demand has been patchy.Net absorption over the 12 months to 1Q23 totalled-1,900 sqm.As a result of the positive net absorption in 1Q23,overall vacancy decreased by 0.4 percentage points to 16.1%.Vacancy within the prime grade has

327、been trending upwards over the last 12 months as new supply creates churn in the market.Prime grade vacancy remains elevated at 17.5%.Adelaides largest supply wave in history is currently underway There is currently 101,300 sqm of projects under construction that is expected to complete by the end o

328、f 2023,equating to 7%of total stock.Occupiers have been quick to lease space in these new towers,with pre-commitments for this new supply reaching 71%in 1Q23.There is an additional 16,200 sqm of new office supply under construction that is likely to complete in 2024.The two largest projects under co

329、nstruction are Charter Halls 60 King William Street tower(40,000 sqm),which is 86%leased,and Walker Corporations Festival Tower development(40,000 sqm),which is 65%leased.Both projects were underpinned by large public sector pre-commitments.Average rents in modern,prime grade offices continue to inc

330、rease Average prime grade net face rents increased by 1.9%q-o-q in 1Q23.Occupiers are persistent with requirements for strong ESG credentials in their accommodation,which is supporting rental growth for modern,efficient prime grade office space.Prime incentives were broadly unchanged over the quarte

331、r.As a result,average prime net effective rents increased 2.7%q-o-q.The yield decompression cycle that commenced in mid-2022 continued in 1Q23 with prime grade yields softening by 12.5 basis points(bps)on the upper end to a new range of 5.25%-7.00%.The secondary yield range also shifted with the upp

332、er end of the secondary range softening by 25 bps to a new range of 6.50%-9.50%.Outlook:Occupier demand expected to remain positive in 2023 The stronger amenity in the CBD compared to suburban locations is expected to further support centralisation activity.Additionally,the tenant-friendly incentive

333、 levels currently offered in the market are expected to persist,supporting opportunistic upgrading of accommodation from occupiers.As at 1Q23,we are forecasting positive net absorption of 20,000 sqm in 2023.Investment activity is likely to slowly re-emerge after a lull over the first half of 2023.Yields should continue to decompress over the balance of 2023,before stabilising in 2024.sqm per annum