Property Leasing Market Sentiment Index in APAC

This quarter witnessed a moderate increase in enquiries and site inspections across most markets, partly due to seasonal factors. Rents continued to rise in India, Japan and Korea, with lease negotiations increasingly favouring landlords. While regional leasing activity continued to be dominated by renewal vs. relocation decisions, expansionary appetite for office space increased in India and Japan.

Solid expansionary demand for prime space in core locations underpinned improved leasing sentiment this quarter. However, rents in most markets were largely unchanged as retailers adopted a more cautious attitude towards real estate planning. Except for mainland China, Hong Kong SAR, and Australia, the regional leasing market remains in favour of landlords.

The overall market remains predominantly in favour of tenants amid slower leasing activity in mainland China and Hong Kong SAR. However, the period witnessed a moderate increase in site enquiries as selected occupiers sought cost-saving options for consolidation and downsizing. Incentives have been largely consistent over the last month.