Property Leasing Market Sentiment Index in APAC (CBRE)

CBRE’s latest leasing market sentiment index reveals that leasing sentiment in most major Asia Pacific markets cooled but stayed in positive territory:

• The lower level of tenant enquiries and site visits was mainly contributed by the mainland China office sector. Other markets, particularly India and Japan, continue to record robust enquiries from the retail sector.
• While expansionary retail demand is supporting market activity, office space demand has softened since the previous survey. Demand for flexible office space weakened, especially in Australia and Southeast Asian markets.
• Following the trend witnessed in the previous quarter, half of respondents anticipate rents and incentives to remain unchanged. Respondents in Japan held the most positive views regarding the office and retail rental outlook, while those in Greater China expected further declines in office rents.
• Mainland China and Hong Kong SAR remain laggards in leasing sentiment, with around 40% of respondents in the former currently engaged in “stay vs go” analysis or renewal exercises, indicating low intentions to expand.