Asia Pacific Figures Q2 2023 (CBRE)

Office: Office leasing volume slightly improved on a q-o-q basis but most deals involved renewals, relocations, and consolidations. All markets tracked by CBRE (except Seoul) saw vacancy increase over the quarter. Rents were flat despite solid growth in Sydney, Perth, Seoul and selected micro-markets in major cities of India.

Retail: Retail leasing activity continued to recover as retailers stayed cautiously optimistic. Site inspections by retailers rose to their highest levels in June since surveys began, thanks to resilient upgrading demand and requirements from new market entrants. Occupancy in core retail districts gradually recovered over the period, pushing up rents by 0.2% q-o-q.

Logistics: Subdued regional export demand, slowing manufacturing activity and weak e-commerce growth strained logistics leasing demand. New supply remained elevated while rents increased by 1.1% q-o-q, marking a second consecutive quarter of weaker growth.

Investment: With interest rates yet to reach their peak and property yield expansion insufficient to reflect the rising cost of finance, investment volume contracted by 37% y-o-y to US$19.2 billion. Cross-border investment volume totalled just US$4.1 billion. Negative carry continued to make investors hesitant to invest in Asia Pacific commercial real estate.

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-figure