1、Office ResearchHeightened uncertainty weighs on investment activityAsia Pacific|Q3 202209 Hong Kong10 Beijing11 Shanghai12 Guangzhou13 Shenzhen14 Taipei15 Tokyo16 Osaka17 Seoul18 Singapore19 Bangkok20 Jakarta21 Kuala Lumpur22 Manila23 Hanoi24 Ho Chi Minh City25 Delhi26 Mumbai27 Bengaluru28 Chennai29

2、 Colombo30 Sydney31 Melbourne32 Brisbane33 Perth34 Adelaide35 Canberra36 Auckland37 WellingtonContentsOffice marketsOffice Market InsightsJLL Asia Pacific Office Q3 2022206ForewordAsia Pacific occupier markets returned a relatively resilient performance considering the unprecedented combination of h

3、eadwinds that local markets are contending with.Indias occupier demand continues to shine brightest in the region,supported by a broad base of demand for traditional space and steady end-user demand for coworking space.In Shanghai,COVID-19 containment policies were loosened,unleashing some occupier

4、demand;however,more targeted COVID-19 measures were a drag on leasing activity.Additionally,the heightened uncertainty around the global macro-economic outlook saw occupiers elsewhere turn more cautious.Several markets are taking delivery of new,high-quality supply,and both international and domesti

5、c occupiers are taking advantage of the new options presented to them to achieve their sustainability targets.This trend is driving polarisation in the market,with competition strongest for high-end buildings,and we expect to see this trend continue.As occupiers contend with a mix of challenges acro

6、ss the region and the world over the coming quarters,leasing activity is likely to remain flat and lopsided,but we are optimistic that organisations will meet these challenges head on.We hope this report helps you and your team make informed decisions about your real estate requirements.We encourage

7、 you to reach out to one of our brokers to discuss market conditions and your requirements.Jeremy SheldonHead of Markets Asia PacificJLL Asia Pacific Office Q3 20223Mainland China3.24.9Zero-COVID uncertainty and real estate sector challenges to see uneven performance persist.Policy measures and infr

8、astructure spending to provide impetus to growthIndonesia5.54.7Greater inflationary pressures following a recent fuel subsidy cut and tighter financial conditions are anticipated to drag on household and business spending.Softened global demand is also expected to temper export performanceJapan1.61.

9、4Global slowdown is expected to result in sluggish export performance and lead to more cautious business investment.Release of pent-up demand should still provide some support for consumptionSouth Korea2.71.3Deteriorating global demand to see export momentum slow,while consumer spending is likely to

10、 be sluggish against the backdrop of rising interest rates and softening real income growthSingapore3.61.3Global headwinds to see domestic export weakness persist.Domestic demand is likely to be resilient but should still face pressure from inflation and tighter financial conditionsAustralia3.81.7Co

11、st-of-living pressures are expected to see household consumption growth slow,while the higher-cost environment coupled with material and labour shortages may also drag on business investmentHong Kong-0.93.0Reopening should provide support to domestic demand,but rising interest rates are likely to ha

12、ve a somewhat dampening effect on private consumption.Worsening global outlook is expected to continue to challenge export performanceIndia7.04.4Price pressures and the lagged impact of monetary policy tightening are likely to see more muted consumption growth,while external demand should soften ami

13、dst gloomy prospects for advanced economiesReal GDP(y-o-y change)2022F2023F2023 OutlookMajor EconomiesOutlook for Major EconomiesSource:Oxford Economics,October 2022JLL Asia Pacific Office Q3 20224Office markets|Office Market Insights|GrowthSlowingRentsRisingRentsFallingDeclineSlowingOsakaAdelaide,B

14、angkok,Brisbane,Canberra,Hong Kong,Melbourne,PerthSydneyMumbaiChennai,DelhiWellingtonBeijingHyderabadSingaporePuneBengaluru,SeoulShanghaiColombo,Ho Chi Minh CityAucklandHanoiTaipeiKuala LumpurManilaJakarta,TokyoGuangzhou,ShenzhenCapital ValuesRental ValuesSingaporeSydneyManilaSeoulBeijingHo Chi Minh

15、 CityGuangzhouHong KongTokyoMumbaiBangkokMelbourneShanghaiJakarta1.319.311.24.73.02.51.60.50.4-0.3-0.5-5.8-7.57.96.33.77.2-0.4-0.54.74.37.92.21.8-2.8-9.7-9.70.5SingaporeSouth KoreaHong KongJapanAP OthersChinaAustralia010,00020,00030,00040,00050,00060,00070,00080,00090,000100,000200720082009201020112

16、0122013201420152016201720192018YTD 202220212020USD millionsOffice Rental Property Clock,3Q22Office Rental&Capital Value Changes,Yearly%Changes,3Q22Direct Office Real Estate Investment 2007-3Q22Note:Clock positions for the office sector relate to the main submarket in each city.Source:JLL,Real Estate

17、 Intelligence Service,3Q22Source:JLL(Real Estate Intelligence Service),3Q22Figures relate to the major submarket in each citySource:JLL(Real Estate Intelligence Service),3Q22Figures refer to transactions over USD 5 millionJLL Asia Pacific Office Q3 20225Office markets|Office Market Insights|Office M

18、arket InsightsLeasing volumes lopsided as occupier caution growsAgainst a backdrop of intensifying global macroeconomic headwinds,Asia Pacific quarterly leasing volumes declined 4%y-o-y in aggregate despite another strong performance from Indian markets.Delayed decision making in many markets,COVID-

19、19 controls in China and tight vacancy in some markets constrained leasing activity.After the strict lockdown imposed in 2Q22 was lifted,Shanghai saw leasing activity improve with support coming from financials and professional services firms;however,3Q activity was still subdued compared to previou

20、s years.Beijing volumes were down y-o-y due to base effects as well as measures imposed ahead of the October party congress.In aggregate,China volumes were down 60%y-o-y as the threat of future lockdowns and economic uncertainty weighed on leasing demand.Although India volumes declined q-o-q,3Q volu

21、mes were up 80%y-o-y in aggregate as occupiers from a wide range of industries expanded their footprint to accommodate staff returning to the office.Mumbai volumes rose a remarkable 150%y-o-y with support coming from financials,while Delhi volumes were up 70%.Australia quarterly volumes were down 8%

22、y-o-y as corporates remained cautious in the face of perceived economic headwinds.However,in Melbourne that weakness was offset by demand from the small tenant cohort,although volumes were down over 50%y-o-y.Sydney volumes were down about 20%y-o-y with some consolidation in the financial and tech se

23、ctors.Seoul leasing was down 80%y-o-y in 3Q22,with volumes sharply curtailed by a lack of available space in the market.The Seoul citywide vacancy rate stood at only 2.5%at quarter end.Tokyo quarterly leasing volumes declined y-o-y due to seasonal factors,but are performing well in a year-to-date co

24、ntext.Rents decline due to softer occupier market conditionsIn aggregate 1.5 million sqm of new supply was delivered in Asia Pacific markets in 3Q22 with half a million sqm each delivered in Greater China and India.Although quarterly net absorption improved slightly,only 900,000 sqm was recorded,pus

25、hing up the regional vacancy rate to 14.1%.In this context,Asia Pacific rents declined 0.4%q-o-q,erasing growth recorded in the first half of the year.The Seoul CBD returned another quarter of solid rent growth as tightening vacancy rates gave landlords the confidence to further slash incentives.Dri

26、ven by sustained tailwinds resulting from the reopening of the Singapore economy,vacancy rates continued trending down and landlords increased rents for the sixth consecutive quarter.The Sydney CBD recorded healthy rent growth as occupier demand remained strong for space in higher-quality buildings.

27、Tokyo rents continued to slide as new supply and rising vacancy exerted downward pressure on rents.Three completions in Hong Kong led to an uptick in net absorption and vacancy rates,and as such,rents declined in 3Q.In Shanghai,the lingering effects of the spring COVID-19 outbreak caused landlords t

28、o become more negotiable on rents to achieve better occupancy.Capital values decline as policy rate changes biteAsia Pacific capital markets remained divided in terms of monetary policy,with some central banks following the US Fed rate path and others following their own monetary path.As a result th

29、ere is a growing gap in price expectations which is weighing on capital values.In aggregate,Asia Pacific capital values declined 0.7%q-o-q in 3Q.Seoul capital values increased despite widening yields,with support coming from favourable supply-demand dynamics and rent growth.Investor appetite for Mum

30、bai product was strong with investors eagerly looking to acquire marquee commercial assets with good sustainability ratings.Manila capital values increased moderately on the back of healthy demand for a limited supply of assets for sale.Hong Kong capital values declined as investor sentiment towards

31、 office assets was relatively subdued,particularly compared to other JLL Asia Pacific Office Q3 20226|Office Market Insights|Office markets|Net Efective Rents(USD psm pa)04002008006001,2001,0001,4001,8001,600Hong Kong(Central)Beijing(CBD)Singapore(CBD)Shanghai(CBD)Ho Chi Minh City(CBD)Taipei(Xinyi)T

32、okyo(5 Kus)Seoul(CBD)Sydney(CBD)Mumbai(SBD BKC)Guangzhou(ZJNT)Osaka(2 Kus)Hanoi(CBD)Auckland(CBD)NCR Delhi(SBD)Manila(Makati)Bangkok(CBA)Melbourne(CBD)Wellington(CBD)Bengaluru(SBD)Perth(CBD)Jakarta(CBD)Canberra(CBD)Brisbane(CBD)Chennai(SBD)Adelaide(CBD)Kuala Lumpur(City Centre)Capital Values(USD psm

33、)010,00020,00030,00040,00050,00060,000Hong Kong(Central)Singapore(CBD)Tokyo(5 Kus)Taipei(Xinyi)Beijing(CBD)Sydney(CBD)Osaka(2 Kus)Shanghai(CBD)Seoul(CBD)Melbourne(CBD)Guangzhou(ZJNT)Ho Chi Minh City(CBD)Brisbane(CBD)Auckland(CBD)Perth(CBD)Wellington(CBD)Canberra(CBD)Mumbai(SBD BKC)Adelaide(CBD)Hanoi

34、(CBD)Bangkok(CBA)Manila(Makati)NCR Delhi(SBD)Chennai(SBD)Jakarta(CBD)Bengaluru(SBD)Kuala Lumpur(City Centre)Rental IndexCapital Value Index60801001201401601803Q121Q123Q131Q133Q141Q143Q151Q153Q161Q163Q171Q173Q181Q183Q191Q193Q201Q203Q211Q211Q223Q221Q10=100Asia Pacific Office Rental Values,3Q22Asia Pac

35、ific Office Capital Values,3Q22Asia Pacific Office Rental and Capital Value Indexes,1Q12-3Q22Source:JLL(Real Estate Intelligence Service)Note:The Indexes are stock-weighted averages of rental and capital value movements across Asia PacificJLL Asia Pacific Office Q3 20227|Office Market Insights|Offic

36、e markets|3Q22 Average Grade A Rent(USD psm pa)Quarterly Change 3Q22 vs 2Q22(Local Currency)Yearly Change 3Q22 vs 3Q21(Local Currency)3Q22 Average Grade A Capital Value(USD psm)Quarterly Change 3Q22 vs 2Q22(Local Currency)Yearly Change 3Q22 vs 3Q21(Local Currency)Hong Kong(Central)1,524-0.92.553,925

37、-2.6-0.3Beijing(CBD)886-0.33.019,2590.77.2Singapore(CBD)8113.311.224,5840.26.3Shanghai(CBD)699-0.61.612,332-0.9-0.5Ho Chi Minh City(CBD)5740.40.48,6632.27.9Taipei(Xinyi)5650.23.320,0910.24.4Tokyo(5 Kus)563-1.6-7.524,496-1.60.5Seoul(CBD)5074.919.312,0751.17.9Sydney(CBD)4381.24.716,381-2.63.7Mumbai(SB

38、D BKC)417-0.6-0.54,809-0.21.8Guangzhou(ZJNT)412-0.1-5.89,833-0.1-2.8Osaka(2 Kus)375-1.4-6.112,929-1.4-6.1Hanoi(CBD)3401.25.74,6231.99.6Auckland(CBD)2621.94.26,635-0.9-1.4NCR Delhi(SBD)2470.61.22,8250.61.8Manila(Makati)2321.11.33,0601.54.7Bangkok(CBA)2290.30.54,2380.34.3Melbourne(CBD)228-0.3-0.311,01

39、4-0.72.2Wellington(CBD)2190.0-1.25,6790.82.4Bengaluru(SBD)188-0.13.22,1151.06.6Perth(CBD)174-0.40.16,633-3.5-3.0Jakarta(CBD)168-2.3-9.72,137-2.3-9.7Canberra(CBD)167-0.31.35,313-0.53.7Brisbane(CBD)166-3.8-1.16,661-4.6-0.2Chennai(SBD)1380.15.22,2340.15.2Adelaide(CBD)1131.92.74,6250.04.5Kuala Lumpur(Ci

40、ty Centre)104-4.8-6.31,637-4.8-5.6sectors.Increasing cost of debt and uncertainty in the global economic outlook saw Sydney CBD capital values decline despite growth in market rents.Tokyo capital values declined in line with rents due to tenant-favourable occupier market conditions.Rents up marginal

41、ly in 2023,capital values flatGoing forward we expect to see growth in leasing volumes slow.Zero-COVID policies are likely to weigh on leasing activity in China through the first half of 2023 and intensifying global economic headwinds are likely to give occupiers pause in many parts of the region,le

42、ading to delayed decisions and circumscribing leasing activity.As such,we expect leasing volumes to be flat in 2023.A large volume of supply is expected to push the regional vacancy rate up further.Despite these headwinds,we expect rents to increase marginally in 2023;however,we believe risks to our

43、 rent Christopher ClausenDirector,Asia Pacific RRoddy AllanChief Research Officer Asia PNotes:All rents are net effective.Rents and capital values are on a net lettable area basis and pertain to the major submarket in each city.forecast are primarily to the downside.All eyes are on the Fed and where

44、 its terminal rate will peak as the ramifications of its efforts to tackle inflation are felt globally.Rate hikes and the subsequent rising cost of debt has led to a growing gap in buyer-seller price expectations.Our current forecast calls for capital values to remain flat in aggregate in 2023;howev

45、er,here too we believe risks are more to the downside.JLL Asia Pacific Office Q3 20228|Office Market Insights|Office markets|Physical IndicatorsFinancial Indices“Positive net take-up mainly driven by new completions.”Nelson WongExecutive Director,Hong KongLeasing momentum slows Overall Grade A offic

46、e net absorption recorded 344,000 sq ft in 3Q22,primarily due to completions in non-core submarkets.Leasing activities were limited.The real estate decision process was protracted due to a sluggish macro-environment,the summer season and increased overseas travel.Notwithstanding that,expansion cases

47、 were recorded at International Commerce Centre in West Kowloon.These included CICC,Far East Horizon,and IWG,which leased 47,500 sq ft,10,100 sq ft,and 33,000 sq ft(GFA)respectively.Three buildings complete during the quarter Three Grade A buildings were completed during the quarter,all located in K

48、owloon East.They are Boton Technology Innovation Centre(previously known as 368 Kwun Tong Road),AIRSIDE and Inland Revenue Tower in Kai Tak,which amounted to a total of 1,615,000 sq ft(NFA).A considerable quantity of new supply(approximately 2.3 million sq ft)is slated for completion in the remainde

49、r of the year,mostly in decentralised areas.Notable examples include Two Taikoo Place in Quarry Bay and 98 How Ming Street in Kwun Tong.Rents and capital values drop marginally A drop in rents was recorded in most submarkets,except in Tsimshatsui where rents rose a marginal 0.3%.Rents in Central dro

50、pped 0.9%in 3Q22,a reversal of the upward tilting trend since 3Q21.Capital values in the overall market dropped 3.5%q-o-q in 3Q22.Investment yields expanded marginally to 2.9%for the overall market.Outlook:Net absorption to remain positive despite rental pressure Office rents are expected to go larg

51、ely sideways in the near term.The positive impact from loosened travel restrictions is likely to drive a pick-up in office leasing activities,which in turn drives rental recovery,albeit in a modest manner.The large amount of new supply will likely keep rental recovery momentum moderate in 2022 and 2

52、023.Some submarkets are expected to be under more rental pressure as marketing campaigns of new builds intensify.sq ft per month,net effective on NLAHKD 92.6Rental Growth Y-O-Y1.0%Stage in CycleRents StableHong KongNote:Hong Kong Office refers to Hong Kongs overall Grade A office market.Dotted lines

53、 indicate near-term outlookIndex base:4Q18=100Financial Indicators are for Central.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators

54、are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex607080901001101204Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-8-40481216-300-200-1000100200300400201820192020202120222023-12JLL Asia Pacific Office Q3 20229Office markets|Off

55、ice Market Insights|Physical IndicatorsFinancial Indices“Leasing activity drops off in late 3Q22,after a slight uptick.”Mi Yang Head of Research,North ChinaMarket activity drops off after an uptick Demand was restrained by current market conditions.Leasing activity dropped off after an uptick at the

56、 beginning of 3Q22.Tenants,especially several large-scale companies,have become more cautious about making leasing decisions.In the quarter,deals under 2,000 sqm accounted for 83%of total transactions in terms of amount.One previously strong demand pillar,the TMT sector,has slowed down expansions in

57、 the past several quarters.Several TMT giants have entered the consolidation stage by moving into their self-use projects,including wholly leased and purchased buildings.The leasing market in 3Q22 was mainly supported by domestic financial companies,which contributed half of the leasing demand.Vacan

58、cy rate decline slows As the leasing market cooled down in the second half of 3Q22,quarterly net absorption saw a notable decline,recording a 70%q-o-q change.Despite weakening demand across the city,recent completions in the CBD Core Area continued to fill up,slowing the downward trend of vacancy ra

59、tes with a slide of only 0.1 ppts to 9.7%.No new projects completed in the quarter.Some recent completions in Lize and Olympic Area continued to report considerable unabsorbed space,which had significant impact on the overall vacancy rate.Landlords provide more flexible rental strategies The downwar

60、d trend in overall rents continued,with negative rent growth of-0.4%q-o-q.Seven out of a total of nine submarkets across the city reported negative rent growth.To attract tenants,some landlords have become more flexible,providing rent concessions or longer rent-free periods.The investment market was

61、 relatively quiet in the quarter.Sunshine Insurance,an existing partner at Beijing Shipbuilding Building in the Shilihe area,bought the remaining 50%stake of the office project from Landsea Green.Outlook:Challenge to maintain overall rent stability by end-2022 With the lag effect from the COVID-19 o

62、utbreak in May 2022,the outlook on overall rents was lowered for 4Q22.Rental value in 2023 is still expected to increase but at a lower growth rate.Approximately 500,000 sqm of future supply will enter the market before end-2023,and consequently,net absorption is predicted to improve to 260,000 sqm.

63、The consolidation of TMT giants in Wangjing since the beginning of 2022 has led to the surrender of sizable local space scattered across Wangjing,as the buildings they purchased or wholly leased near Wangjing become ready for occupancy.This trend is expected to continue in the coming quarters and la

64、ndlords will likely experience more vacancy pressure.sqm per month,net effective on GFARMB 356Rental Growth Y-O-Y3.0%Stage in CycleDecline SlowingBeijingNote:Beijing Office refers to Beijings overall Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators

65、 are for the CBD.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Val

66、ue IndexIndex50607080901001101201301404Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent02468101214161802004006008001,0001,200201820192020202120222023JLL Asia Pacific Office Q3 202210Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“R

67、ents continue to decline as sentiment remains affected by the spring COVID-19 outbreak.”Daniel YaoHead of Research,ChinaTenants remain conservative despite uptick in leasing After the COVID-19 outbreak in the spring,Shanghais overall net absorption rose to 104,000 sqm.In the CBD,diversified tenant d

68、emand helped the market remain stable.Financial services and professional services companies continued to drive leasing activity.Renewals also increased as tenants remained conservative on the whole.Decentralised net absorption reached 129,000 sqm.Enquiries continued to be concentrated in popular su

69、bmarkets such as Qiantan and Xuhui Bund.Firms in new strategic sectors such as life sciences and new energy vehicles supported the leasing momentum,and demand from financial services and TMT companies remained resilient.Three new projects deliver 277,800 sqm In the CBD,one new building delivered 115

70、,000 sqm to Xujiahui submarket,leading overall CBD vacancy to rise 1.7 percentage points(ppts)q-o-q to 9.1%.This new building is expected to upgrade Xujiahuis business atmosphere and maintain the submarkets competitive position in the Puxi CBD.Two decentralised projects with a combined GFA of 163,00

71、0 sqm reached completion in the quarter.High pre-commitment rates and active leasing in recent completions led decentralised vacancy to edge down 0.1 ppts q-o-q to 25.0%.Overall rents edge down as landlord sentiment softens In the CBD,overall rents edged down by 0.7%q-o-q as lingering effects of the

72、 spring COVID-19 outbreak caused landlords to be more amenable to rent negotiation,in order to achieve higher occupancy.Some experienced landlords have proactively adjusted leasing strategies in order to maintain competitiveness.Rents in the decentralised market continued to diverge between building

73、s,with landlords in high vacancy submarkets providing incentives such as rent-free periods.In this tenant-favourable market,rents fell by 1.3%q-o-q.Landlords rental expectations were also impacted by recent slow demand and a large upcoming supply.Outlook:Market to favour tenants as firms defer leasi

74、ng decisions With tenants remaining conservative and prolonging decision-making periods,time will likely be needed for demand to recover.That said,the expanding Grade A office footprint for new strategic industries like life sciences and advanced manufacturing may help speed the pace of recovery.Rec

75、overy in rents is expected to be slow,as tenants remain cautious and the market faces a large upcoming supply.Landlords are expected to continue to be conservative,with many likely to lower rental expectations,particularly in high-vacancy submarkets.sqm per day,net effective on GFARMB 9.24Rental Gro

76、wth Y-O-Y1.9%Stage in CycleDecline SlowingShanghaiNote:Shanghai Office refers to Shanghais overall Grade A office market,consisting of Pudong,Puxi and Decentralised areas.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2021,take-up

77、,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for the CBD.Source:JLLRental Value IndexCapital Value IndexIndex7080901001101204Q184Q194Q204Q214Q224Q23Completion

78、sTake-up(net)Future SupplyVacancy RateThousand sqmPercent20182019202020212022202302468101214-1000100200300400500600JLL Asia Pacific Office Q3 202211Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Vacancy absorption remains slow,rental decline continues.”Silvia Zeng Head of

79、 Research,South ChinaLeasing demand stays relatively weak in 3Q22 During 3Q22,as sporadic COVID-19 outbreaks in multiple cities impacted both the national and local economies,and pandemic prevention policies were subject to changes ahead,many companies remained conservative and cautious towards busi

80、ness expansion and leasing plans.Hence leasing demand continued to be restrained in 3Q22.Pazhou remained a major contributor to the overall net absorption as its ample supply of economical leasing options made it more affordable to cost-sensitive companies which had expansion needs,especially when c

81、ompared to core submarkets such as Zhujiang New Town(ZJNT).For example,a gaming company leased around 8,000 sqm of office space in the Pazhou submarket.Two Grade A office buildings complete in 3Q22 Two buildings,one in ZJNT and one in Guangzhou International Finance Town(GZIFT),were completed in the

82、 quarter,together adding over 250,000 sqm to Grade A office stock.The total stock in Guangzhou surpassed 7.7 million sqm by the end of 3Q22.Given the sluggish leasing demand in 3Q22,vacancy rates of most buildings were relatively consistent.As there were new completions entering the market,the overa

83、ll vacancy rate in Guangzhou continued to rise by approximately 2.0 ppts to around 17.6%by the end of 3Q22.Overall rents stay relatively consistent in 3Q22 After several quarters of decline,overall rents were relatively low,and room for any further drop was compressed.The lease withdrawals in ZJNT d

84、uring previous quarters did not impact many landlords in 3Q22;only a few of them lowered rents in the quarter due to consistent vacancy issues.Overall rents remained largely stable and fell marginally by 0.1%q-o-q in 3Q22.No en-bloc transaction was recorded in 3Q22.Existing end-users with active dem

85、and had likely already determined their targets and were no longer active in the market.Due to slowing economic growth,incremental demand from new end-users were lacking,and investors were cautious about investing in office properties.With weakening demand,overall capital values dropped marginally b

86、y 0.2%q-o-q.Outlook:Recovery of leasing demand still in progress In the short term,Guangzhous economy may still be affected by unstable factors such as potential COVID-19 flare-ups and changes in the external environment.Companies will take time to recover their confidence,which can impact leasing d

87、emand.In 2H22 especially,the leasing market is expected to maintain its current momentum,and is likely to lack bright spots.More than 800,000 sqm of office supply is scheduled to enter the market in the next 12 months,putting additional pressure on the overall vacancy.The rising vacancy could cause

88、anxiety for landlords,affecting their bargaining power.Given such expectations,overall rent growth is likely to be rather limited in the short term.sqm per month,net effective on GFARMB 170Rental Growth Y-O-Y-5.8%Stage in CycleDecline SlowingGuangzhouNote:Guangzhou Office refers to Guangzhous overal

89、l Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the Zhujiang New Town.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for t

90、he remainder of 2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex808590951001051104Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent0246810121416182001002003004005006007008009001,0002018201920202

91、02120222023JLL Asia Pacific Office Q3 202212Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Shenzhens Grade A office market suffers a slump.”Silvia ZengHead of Research,South ChinaLeasing demand deteriorates amid economic uncertainty Shenzhens export-oriented economy was h

92、eavily impacted by the ongoing complex international situation and regional COVID-19 flare-ups in the third quarter.Local enterprises have steered towards a more conservative business strategy,leading to a weakening office leasing demand.Of note,71%of the quarters 330,000 sqm net absorption was for

93、self-use.For the two pillar industries in the Shenzhen economy,while TMT firms have generally been adopting simplification initiatives,which led to a drop of over 60%q-o-q in its leasing volume,leasing demand from the financial industry has remained relatively steady with some notable transactions i

94、n the quarter.Vacancy rate increases slightly with five new completions In the third quarter,five Grade A office buildings were completed,including four headquarters and one for leasing,delivering about 480,000 sqm of new supply to the office market.By the end of 3Q22,the total stock of Grade A offi

95、ce buildings in Shenzhen had increased to 11.7 million sqm.Due to the considerable amount of self-use office space absorption in the quarter,overall vacancy has only increased slightly by 0.4 ppts q-o-q,to 21.7%.Notably,DJI Headquarters accounted for 200,000 sqm.Largest quarterly rental drop since t

96、he COVID-19 outbreak in 2020 Under speculations of gloomy economic conditions,a faltering office leasing demand,and combined with a consistent influx of supply,landlords of existing buildings who are facing tenant outflows had to concede rents for lease renewals and new lettings,so as to maintain a

97、relatively stable rental return.As a result,Shenzhens overall rents decreased by 2.8%q-o-q.Both self-users and investors have become more conservative with investing in Shenzhens offices,due to a tighter budget control and declining rental returns.Hence,overall capital values have slid further in th

98、e quarter.However,sales in high-quality properties,such as Shenzhen Metro Property Building,were recorded at reasonably stable prices.Outlook:Demand stagnation and oversupply to keep pressuring rents The uncertainty in the global and domestic economies will likely continue to weigh on companies reve

99、nue expectations,leading to a weaker office leasing demand for the coming year.Therefore,the net absorption of 2022 is expected to be under one million sqm,decreasing by around 30%y-o-y.In the next 12 months,Shenzhens Grade A office market is projected to have more than 2.5 million sqm of new supply

100、.Under such a large scale of new supply and the weakening demand,a soaring vacancy rate and a plunging rental level would seem inevitable.sqm per month,net effective on GFARMB 203Rental Growth Y-O-Y-2.9%Stage in CycleDecline SlowingShenzhenNote:Shenzhen Office refers to Shenzhens overall Grade A off

101、ice market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the overall market.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of

102、2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex7080901001104Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RatePercent20182019202020212022202305Thousand sqm101520253005001,0001,5002,0002,500JLL Asia Pacific Office

103、Q3 202213Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Leasing momentum slows amid rate hikes and insufficient supply.”Zac LiHead of Research,TaiwanLeasing demand constrained by limited available space Net absorption recorded at 257 ping in the quarter,mainly attributed

104、to refurnished options re-released to the market.Due to the rate hike,companies have to be more cautious when pricing extension plans.In addition,tenants have limited options for relocating as most buildings are already full,making it difficult to extend their leases or relocate.Known leasing volume

105、s in the quarter totalled 2,019 ping,with 1,948 ping located in Xinyi.A flight-to-quality trend is evident,from recent transactions during the quarter.Extremely low vacancy rate environment continues at 1.9%In the next five years until 2027,new supply delivery will likely reach 100,000 ping.Consider

106、ing the need to repurpose old offices and improve office spaces,there is optimism regarding the demand for new supply.The market will likely maintain a healthy vacancy rate of 3%-5%over the next three years.The estimated completion of Taipei Dome in 2022 was postponed to 2023.In addition,the estimat

107、ed completion of HOMAX Dunhua.S.financial building was adjusted from 2025 to 2027.Rents remain stable in 3Q22,with a slight increase of 0.2%Overall gross rents reached NTD 2,958 per ping per month in 3Q22,increasing 0.2%q-o-q and 3.8%y-o-y.Rental growth has slowed slightly with insufficient market m

108、omentum.Capital values increased by 0.01%q-o-q and 0.03%y-o-y in 3Q22.Cap rates were flat.The quarter saw no transactions involving Grade A office buildings.Outlook:Uncertainty in global economy to affect investment sentiment Affected by global market volatility and uncertainty,Taiwans investment ma

109、rket has adopted a wait-and-see attitude in the short term.However,commercial real estate still offers stable investment prospects due to abundant domestic cash,fundamentals of high-tech industries,and the development of rail economy brought about by transportation construction.With the demand for h

110、igh-quality real estate,builders and investors are still interested in the land around the MRT.In addition,the investment direction will likely also cover a variety of options,including commercial buildings with leases,technology headquarters,logistics centres,data centres,and other high-quality com

111、mercial real estate.ping per month,net on GFANTD 3,552 Rental Growth Y-O-Y3.4%Stage 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 2021,tak

112、e-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex901001101201304Q184Q194Q204Q214Q22

113、4Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-4-202468-50050100150200250201820192020202120222023JLL Asia Pacific Office Q3 202214Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Rising vacancy in the leasing market;investment market adopts a cautio

114、us stance.”Takeshi AkagiHead of Research,JapanNet absorption recovers on the back of new supply According to the Tankan Survey in September,the index of manufacturers saw deterioration in business confidence for the third consecutive quarter due in part to rising raw material prices that weighed on

115、profitability,while that of non-manufacturers improved for the second consecutive quarter as COVID-19 restrictions continued to be relaxed.Net absorption recorded 42,000 sqm in 3Q22,recovering to positive levels for the first time in two quarters,on the back of a new building entering Yaesu,a submar

116、ket adjoining Otemachi/Marunouchi.Its occupiers came from the manufacturing,finance and insurance,and wholesale and retail trade industries.Vacancy rate rises to 4%for the first time since 3Q13 Total stock increased 1%y-o-y in 3Q22.The Tokyo Midtown Yaesu Central Tower is an office-led,mixed-use,sup

117、er high-rise 45-storey building above ground,recording 127,000 sqm(office NLA).Located east of and linked directly to Tokyo Station,it entered the market with a healthy forward commitment rate.The vacancy rate increased for the second consecutive quarter and reached 4%for the first time since 3Q13,r

118、ecording 4.2%at end-3Q22,which was an increase of 80 bps q-o-q and 110 bps y-o-y.This was due in part to increased partial cancellations on the back of the work-from-home trend,and a vacant area of new supply.Rents and capital values decrease Rents averaged JPY 35,002 per tsubo per month in end-3Q22

119、,decreasing 1.2%q-o-q and 5.2%y-o-y.This marked the tenth consecutive quarter of decrease.The pace of decline was mostly in line with the previous quarter.However,Otemachi/Marunouchi and Akasaka/Roppongi saw declines accelerating compared to the previous quarter.Capital values decreased 1.6%q-o-q an

120、d increased 0.5%y-o-y in 3Q22,turning negative for the first time in two quarters.This reflected rent decline and stable cap rates.No Grade A office transactions were closed in the quarter.A portion of Otemachi Place(strata title)is scheduled to be acquired by Tosei Asset Advisors in November 2022 f

121、or an undisclosed price.Outlook:Rents and capital values expected to decrease According to Oxford Economics as of September 2022,Japans real GDP growth forecast was revised downwards to grow by 1.4%in 2022 and 1.7%in 2023.The CPI was stable at 1.7%in 2022,followed by a decrease of 0.8%in 2023.The ec

122、onomy is expected to pick up,but downside risks include the impact of global monetary tightening on overseas economies.The vacancy rate is expected to rise slightly in the next 12 months,with increases expected for both existing and new supply buildings.Meanwhile,rents are expected to decrease as ow

123、ners compete to attract occupiers given the major supply scheduled in the pipeline.In tandem with the decrease in rents,capital values are expected to decline.tsubo per month,gross on NLAJPY 35,002 Rental Growth Y-O-Y-5.2%Stage in CycleRents FallingTokyoNote:Tokyo Office refers to Tokyos 5 Kus Grade

124、 A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value Index

125、Capital Value IndexIndex7080901001101201301404Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-1012345678-1000100200300400500600700800201820192020202120222023JLL Asia Pacific Office Q3 202215Office markets|Office Market Insights|Physical IndicatorsFinancial

126、Indices“High occupancy of the newly completed building pushes down the vacancy rate slightly.”Yuto OhigashiSenior Director-Research,JapanNew supply completes with high occupancy According to the September Tankan survey for Greater Osaka,the sentiment score among large manufacturers was a 10,increasi

127、ng 2 points compared with the previous survey in June,the first improvement in three quarters.The sentiment score of large non-manufacturers also increased by 2 points to 10 points,improving for the ninth consecutive quarter.Net absorption totalled 35,000 sqm in 3Q22.The increase from 2Q22 was due t

128、o high occupancy of the newly completed building,which included the move-in of a key tenant,the Kansai head office of a major construction company.Vacancy rate declines to 3.4%One new building,the Nippon Life Yodoyabashi Building,entered the market in 3Q22.The 25-storey building has a GFA of 49,000

129、sqm,with office space occupying the 3rd to 25th floors,and an NLA of 35,000 sqm.The vacancy rate stood at 3.4%in 3Q22,decreasing 10 bps q-o-q and increasing 40 bps y-o-y.Vacancy rates declined slightly due to high occupancy of the newly completed building as well as decreased vacancy in existing bui

130、ldings.Rental price decline accelerates slightly Gross rents averaged JPY 22,667 per tsubo per month at end-3Q22,decreasing 1.0%q-o-q and 3.9%y-o-y.While the vacancy rate has declined for two consecutive quarters,rents continued to drop in anticipation of a further rent fall due to a large supply in

131、flux expected from 2024 onwards.Capital values decreased 1.4%q-o-q and 6.1%y-o-y in 3Q22.The decrease has accelerated,in tandem with an accelerating decline in rents.Cap rates were flat.There were no transactions for Grade A office buildings during the quarter.Outlook:Rents to continue slight declin

132、e while cap rates to remain flat According to the Oxford Economics forecast as of September,Osakas real GDP is forecast to grow by 1.7%in 2022.Downside risks include concerns about a decline in exports due to the global economic slowdown,and a deterioration in corporate earnings due to the weaker ye

133、n.As new supply should remain limited in 2023,a moderate rise in vacancy rates and a moderate decline in rents are expected.Investors are becoming cautious due to changes in global economic conditions.However,investment appetite is likely to remain robust,while cap rates are expected to remain almos

134、t flat.tsubo per month,gross on NLAJPY 22,667 Rental Growth Y-O-Y-3.9%Stage in CycleRents FallingOsakaNote:Osaka Office refers to Osakas 2 Kus Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end

135、annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex801001201401601802002204Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20182019202020

136、2120222023-1012345678-20020406080100120140JLL Asia Pacific Office Q3 202216Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Leasing market remains upbeat,despite investors becoming more selective during acquisitions.”Veronica ShimHead of Research,KoreaLandlords become picki

137、er when introducing new tenants The office market of the three core districts in Seoul remained active with strong demand in 3Q22.Vacancy rate hit an all-time low since 2Q09,recording 2.5%with a net absorption of around 26,200 pyung in 3Q22,given that there was no new supply.Space available for leas

138、e is extremely scarce,especially in Gangnam.The CBD recorded the highest net absorption of about 16,800 pyung in the quarter,due to the large lease contract for Centropolis concluded by Kakao Entertainment for about 3,450 pyung,which accounted for 17.7%of the CBDs transaction volume.Gangnams net tak

139、e-up returned to positive territory after reaching-100 pyung in 2Q22.Yeouidos net absorption posted about 8,500 pyung in the quarter.All submarkets record ten-year record-low vacancy rates No Grade A office supply was delivered in the quarter.The overall vacancy rate recorded at 2.5%,contracting fro

140、m 3.9%q-o-q.The vacancy rates of all three districts hover well below the natural vacancy rate.Yeouidos vacancy stood at 1.9%,decreasing by 179 bps q-o-q,and Gangnams was 0.3%,falling 14 bps q-o-q.The CBD submarket saw the largest vacancy contraction,dropping to 4.9%from 7.1%in 2Q22.Overall effectiv

141、e rents surge,surpassing inflation rate In 3Q22,overall rents in Seoul recorded at around KRW 118,505 per pyung,up 6.5%q-o-q and 21.4%y-o-y,largely driven by the reduction of rent-free periods,which contracted from 1.8 months to 1.4 months per year in Seoul.Notably,Yeouidos rent-free period was slas

142、hed to a little over one month,recording a meagre 1.3 months in the quarter.In addition,market yield climbed to 4.2%.Office investment volume recorded about KRW 3.7 trillion.The biggest transaction in 3Q22 was Shinhan Investment Building,which was sold to IGIS Asset Management from Shinhan Investmen

143、t for KRW 639.5 billion.GIC had also invested in this deal.In addition,IGIS Asset Management acquired Seoul City Tower from Koramco Asset Trust for KRW 490.1 billion,and PAG was an investor in this deal.Outlook:Office investment volume may fall due to financial volatility Given the limited leasable

144、space in Seoul,leasing demand is expected to stay robust and the landlord-favourable market may persist.As the interest rate sharply increases,further cap rate expansion is expected.Transaction volumes may decrease due to the headwinds of rising borrowing costs and market uncertainty.This may result

145、 in failed deals or price distress.Domestic investors are facing liquidity issues,causing them to be less bullish on pricing.Meanwhile,international investors are likely gauging the right time to acquire core assets,given the weakening South Korean won as well as the less intense competition among d

146、omestic investors.pyung per month,net effective on GFAKRW 117,605 Rental Growth Y-O-Y19.3%Stage in CycleRents RisingSeoulNote:Seoul Office refers to Seouls Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2021,

147、take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex9095100105110115120125130135140

148、1454Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20182019202020212022202302468101214160100200300400500600700JLL Asia Pacific Office Q3 202217Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Singapores office market outperforms in

149、 Q3,but some cooling off is foreseen in the near term.”Tay Huey YingHead of Research,SingaporeStrong net absorption pushes vacancy to its tightest in 2.5 years Driven by the tailwind of the economy re-opening,leasing activities remained healthy in 3Q22 despite growing concerns over the looming econo

150、mic slowdown.New take-ups in the quarter included Capgeminis recent move to a bigger office in Singapore after they relocated more key functions from Hong Kong to the city-state.Flexible workspace operators are also resuming their expansion plans after a couple of lean years due to the pandemic.For

151、example,WeWork recently opened its flexible workspace facility at 21 Collyer Quay,reportedly already 90%committed.The Executive Centre also expanded their facility at Ocean Financial Centre by taking up an additional floor in the building.Healthy pre-commitment rates for new office developments The

152、redeveloped Hub Synergy Point was completed in 3Q22,while Guoco Midtown is on track to be completed in 4Q22.The pre-commitment rate for Guoco Midtown rose from close to 30%as of 2Q22,to 50%as of 3Q22.IOI Central Boulevard Towers remains the only Grade A office project expected to complete in 2023.Cl

153、ose to 30%of the space has already been pre-committed as of 3Q22.Rents rise above their pre-pandemic peak to a near-14-year high CBD investment-grade office rent growth continued to trend upwards for the sixth consecutive quarter amid tightening vacancy rates,and is now at its highest level since 4Q

154、08.Capital value growth of CBD investment-grade offices decelerated to a near halt in 3Q22,as investors turned selective and cautious in the face of the slowing economic outlook and soaring interest rates.Outlook:Global economic headwinds could cool the market in 2023 Full-year 2022 office rents rem

155、ain on track to double that of 2021.However,rent growth is expected to slow in 2023,given the downcast economic outlook which could weigh on demand for office space over the next 12 months.This also takes into consideration the expected competition for tenants,as landlords try to backfill space vaca

156、ted by occupiers upgrading to new projects.The rising cost of debt and slowing near-term office rent growth outlook will continue to impact underwriting and returns,leading to more selective acquisitions.Nonetheless,investors still view Singapore as a safe haven,and remain keen on premium commercial

157、 acquisition opportunities on the back of the long-term value proposition of Singapores office assets.sq ft per month,gross effective on NLASGD 11.1Rental Growth Y-O-Y10.0%Stage in CycleGrowth SlowingSingaporeNote:Singapore Office refers to Singapores CBD Grade A office market in Marina Bay,Raffles

158、Place,Shenton Way and Marina Centre.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the

159、 remainder of 2022 and 2023.Physical Indicators are for the CBD.Source:JLLRental Value IndexCapital Value IndexIndex80901001101201301401504Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-4-20246810-80-4004080120160200201820192020202120222023JLL Asia Pacific

160、 Office Q3 202218Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Market recovery boosts leasing activity and rental growth.”Jeremy OSullivanHead of Research,ThailandTenants continue upgrading their spaces in the city centre Prime net absorption totalled 6,500 sqm in 3Q22.A

161、s the market recovered,a number of occupiers have begun upgrading their spaces by relocating into recent completions such as The PARQ and Mitrtown Office Tower.This,in turn,resulted in large vacant spaces in aged buildings.Known leasing volume in 3Q22 totalled approximately 7,200 sqm,with half being

162、 flight-to-quality deals and the rest being new lets.A key notable deal was the joint venture between the landlord of Park Silom and The Great Room to open a new centre.Stable vacancy amidst market recovery There were no new completions in the quarter.Total prime stock stood at 1,472,800 sqm.Prime v

163、acancy rate in the Central Business Areas(CBA)slightly compressed to 18.3%in 3Q22.Rents pick up as demand soars Prime gross rents grew by+2.8%y-o-y to THB 936 per sqm per month.Most landlords no longer offer significant discounts or incentives since the market began to recover.Capital values remaine

164、d high with a small growth of+0.3%q-o-q and+4.3%y-o-y.Market yields remained stable at 5.4%.Outlook:Supply surge to be a key vacancy driver Looking ahead to end-2023,pre-leases among upcoming supply will likely become more solid.Vacancy rate should improve slightly to 17.5%in 2022,before picking up

165、in 2023 after a supply influx.Rents should pick up significantly in 2023 when a wave of high-quality supply enters the market.Investors from other cities in the Asia Pacific region have continued to show interest in office investment in Bangkok.sqm per month,gross on NLATHB 936Rental Growth Y-O-Y2.8

166、%Stage in CycleRents StableBangkokNote:Bangkok Office refers to Bangkoks CBA Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q2

167、2.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex90951001051101151201251304Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent0246810121416182022050100150200250300350400201820192020202120222023JLL Asia Pa

168、cific Office Q3 202219Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Net absorption returns to positive territory.”Yunus KarimHead of Research,JakartaVacancy rate increases slightly due to new supply A positive net demand was recorded at around 11,000 sqm.The largest take

169、-ups were identified as coming from financial institutions and government-related sectors.Aside from the aforementioned sectors,around 15%of the take-up in the CBD area was recorded as coming from several technology-based companies.In addition,energy-related sectors have also been actively looking f

170、or spaces.First new building enters stock after a year with no new supply One building,Rajawali Place with a total area of 47,439 sqm,was added to stock in 3Q22.It is the first newly completed building after a whole year with no new supply.This addition has boosted total stock for the Grade A office

171、 market in the CBD area to around 3,480,000 sqm.Mori Building,Thamrin Nine Tower 1(Autograph),and Thamrin Nine Tower 2(Luminary)are three projects expected to complete by end-2022.While the Mori Building,at around 90,000 sqm,is located in the Sudirman area,the Thamrin Nine Towers,at around 134,000 s

172、qm,are located in the Thamrin area.The completion of those three projects is expected to further suppress occupancy rates.Rents continue to decline Despite overall rents continuing to decline by around-2.2%q-o-q and-9.6%y-o-y due to limited occupier demand,competition for tenants in the Grade A offi

173、ce market persisted.Affordable rents have become the essential factor to capture demand.The trend of decreasing rents has continued since mid-2015;it is the markets response to the rising vacancy rate and increasing new supply.Outlook:Market pressures likely to continue to the remaining quarter Mark

174、et pressures are anticipated to remain,with a significant number of landlords facing high vacancy rates due to the continued downsizing trend and massive upcoming supply.Falling rents are expected to continue from 4Q22 to the next nine months of 2023 as demand remains limited and high vacancy rates

175、persist.sqm per annum,net effective on NLAIDR 2,554,350 Rental Growth Y-O-Y-9.7%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 2021,take-up,completions and vacancy rate

176、 are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex607080901001104Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent201820192

177、0202021202220230510152025303540050100150200250300350400450500JLL Asia Pacific Office Q3 202220Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Demand recovery remains slow and staggered.”Yulia NikulichevaHead of Research,MalaysiaRecruitment firms emerge as a driver of leasi

178、ng market activity Net absorption remained positive across all submarkets in the quarter as demand was generated by owner occupancies as well as the recruitment and financial services industry.Notable movements included a major bank relocating to a new building,as well as several recruitment firms m

179、oving into the newly completed Pavilion Damansara Heights development.Demand continues to improve slowly for the year but the demand-supply mismatch remains apparent.Overall vacancy rates hold up well against new completions The third quarter saw new supply entering the market.Of the four new office

180、 towers completed,one is the owner-occupied UOB Plaza 1 and the other three are located in the highly anticipated Pavilion Damansara Heights.Collectively,Pavilion Damansara Heights new office towers contributed approximately 280,000 sq ft to the Kuala Lumpur Fringe(KLF)submarket.Marginal recovery in

181、 the vacancy rate was largely driven by the Kuala Lumpur City(KLC)and Decentralised(DC)submarkets.Several flight-to-quality movements were observed whereby the tenants,previously located in older buildings outside of the basket,relocated to newer buildings.In the KLF submarket,vacancy rates grew sli

182、ghtly due to a large influx of supply amid a struggling demand market.Investment activity show signs of picking up The investment market showed signs of picking up,and was led mainly by local investors with smaller-scale deals.This is reflected in the two office transactions that were indicated for

183、investment purposes,within the quarter.A decline in rents following the recent completions was observed in the quarter.These newly completed office assets faced stiff competition from the strong supply pipeline in the market over the past year.Outlook:Investment market to remain dominated by local i

184、nvestors Transactions in the office market are likely to remain driven by local investors for the next 12 months and likely beyond,as investor sentiment for office assets remains weak amid oversupply concerns and economic uncertainty.This uncertainty adds to the likelihood of foreign investors adopt

185、ing a wait-and-see approach for 2023.Kuala Lumpurs new supply pipeline is expected to deliver over 3 million sq ft by 2023.This will likely push rental rates to decline further and keep vacancy rates elevated.With hybrid working practices and flight-to-quality movements expected to remain in the mid

186、-to long-term period,demand recovery is anticipated to remain slow and staggered.sq ft per month,gross on NLAMYR 6.21Rental Growth Y-O-Y-4.2%Stage in CycleRents FallingKuala LumpurNote:Kuala Lumpur Office refers to Kuala Lumpurs Grade A office market.Dotted lines indicate near-term outlookIndex base

187、:4Q18=100Financial Indicators are for KLC.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for KLC.Source:JLLRental Value IndexC

188、apital Value Index80901001101204Q184Q194Q204Q214Q224Q23IndexCompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent201820192020202120222023-100-50050100150200250300350-10-505101520253035JLL Asia Pacific Office Q3 202221Office markets|Office Market Insights|Physical IndicatorsFinancial In

189、dices“Leasing volumes maintain momentum,driving compression on vacancy levels.”Janlo de los ReyesHead of Research,PhilippinesLeasing volumes expand as RTO rates and business expansion pick up Net absorption recorded 33,800 sqm,sustaining a positive trajectory as the return-to-office(RTO)trend contin

190、ued,and key market drivers expanded.Business process outsourcing(BPO)players accounted for most transactions,including a 20,000 sqm,a 16,000 sqm and a 11,500 sqm lease in Taguig City.Corporate occupiers and Philippine offshore gaming operators(POGOs)also contributed slightly.Move-out rates have slow

191、ed down,contributing to the contraction of vacancy levels despite added supply.Examples of downsizing and consolidation from corporate occupiers included a financial services firm vacating a 12,200 sqm space,and a FMCG company in Bonifacio Global City pulling out from a 2,800 sqm space.A BPO also va

192、cated a 8,500 sqm space in Bonifacio Global City.Completion of one development bumped up supply by 23,300 sqm The completion of Manta Corporate Plaza in Taguig City lifted supply by 23,300 sqm in 3Q22.Other developments set to go online in the quarter include Makati Commerce Tower and PMI Tower in M

193、akati City,as well as Sennett Corporate Center,and MKTan Centre in Taguig City,which are anticipated to expand end-2022 supply by 105,200 sqm.Vacancy levels recorded sustained recovery,settling at 11.5%,a contraction of 28.2 bps q-o-q.The relaxed mobility restrictions are driving accelerated RTO rat

194、es and continuous business expansion,and the stabilisation of the market encouraged firms to close leases during the quarter,improving vacancy rates.Rents and capital values continue to hike Office rents recorded an uptick of 1.1%q-o-q,settling at PHP 1,136 per sqm per month,as leasing demand improv

195、ed.The majority of landlords have maintained rents,although better performing assets increased their rates during the quarter.Select landlords are also narrowing the gap between their headline and transacted rents as the market stabilises.Capital values maintained momentum and settled at PHP 179,396

196、 per sqm,an improvement of 1.5%q-o-q,despite lacklustre sale demand.Although minimal movement in take-up was recorded,the limited office inventory for sale and nearing completion dates of pipeline developments have driven landlords to increase their prices.Outlook:Weaker leasing demand possible as B

197、POs allow WFH Slowing leasing volumes are anticipated as the Fiscal Incentives Review Board now allows BPOs to maintain hybrid work arrangements without tax repercussions until December 2022.BPOs are now also allowed to transfer their registration from the Philippine Economic Zone Authority to the B

198、oard of Investments,hence full work-from-home(WFH)can be implemented while still enjoying fiscal incentives.Rental and capital values are projected to maintain their upward trajectory,although this will likely be tempered on the back of a potential deceleration of demand.sqm per month,net effective

199、on NLAPHP 1,136 Rental Growth Y-O-Y1.3%Stage in CycleRents StableManilaNote:Manila 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 2021,take-up,completions and vacancy rate are year-end annual.For

200、2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value Index140130120110901004Q184Q194Q204Q214Q224Q23IndexCompletionsTake-up(net)Future SupplyVacancy Rate201820192020202120222023-8-40481216-300-200-100010

201、0200300400500600PercentThousand sqmJLL Asia Pacific Office Q3 202222Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“New completion drives 3Q22 demand.”Trang LeHead of Research,VietnamCapital Place drives 3Q22 net absorption Net absorption continued to increase,reaching abo

202、ut 7,000 sqm(NLA)in 3Q22,driven by large absorption in the Capital Place building.Capital Place reported the most notable leasing transactions,such as the 700-sqm office of Lazada and the relocation coupled with expansion of a services firm.Office buildings in the non-CBD area recorded an increase i

203、n vacancy as some of the buildings were older and no longer fit tenant requirements.Tenants tended to choose other new Grade B buildings in the vicinity,which had much lower rents.Only Techcombank building is scheduled to open in 2022 There was no new supply of Grade A buildings coming online in 3Q2

204、2.The Hanoi Grade A office market is expected to welcome Techcombank Tower,scheduled to open by the end of 2022.On the other hand,due to issues faced during construction,Lancaster Luminaire will be delaying its launch to the beginning of 2023.The vacancy rate in the Hanoi Grade A office market recor

205、ded 15.7%in 3Q22,a decrease of 1.3%q-o-q and 3.7%y-o-y,mostly due to strong take-up in Capital Place.Meanwhile,most long-standing buildings continued to maintain their vacancy levels.It is estimated that there are 7 out of 20 active Grade A buildings that could offer more than 1,500 sqm(NLA)vacant s

206、pace in 3Q22.Capital Place pushes up overall rents Capital Place,the first LEED-certified Grade A office building in Hanoi,had been increasing rents after achieving a sufficient occupancy rate,and this helped to push up the average rent in the Hanoi Grade A office market to USD 28.3 per sqm per mont

207、h,an increase of 1.2%q-o-q and 5.7%y-o-y.On the other hand,International Centre has decreased its asking rental price by 15%for office space on the 2nd and 3rd floors,to fill vacancy.Outlook:A new wave of supply is expected in 2023 The Hanoi office market should be welcoming 19,247 sqm(NLA)from Tech

208、combank Tower in 4Q22,bringing total stock to about 575,400 sqm(NLA).60%of the space in this building is reportedly for owner-use.Net absorption in 4Q22 is expected to be strongly driven by the new completion.A wave of new supply should be incoming in 2023,with four new buildings in both the CBD and

209、 non-CBD areas.Given high expectations for the Techcombank building,rental value is projected to increase by 1.2%q-o-q in 4Q22.In 2023,this is expected to increase by 3.6%y-o-y due to the introduction of high-quality new supply.In the meantime,landlords in existing buildings are likely to maintain s

210、table rents to keep their tenants,in the midst of a very competitive market.sqm per month,net effective on NLAUSD 28.3Rental Growth Y-O-Y5.7%Stage in CycleGrowth SlowingHanoiNote:Hanoi Office refers to Hanois Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLF

211、or 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex80901001101201301401501604Q184Q194Q204Q214Q224Q23CompletionsTa

212、ke-up(net)Future SupplyVacancy RateThousand sqm0510152025020406080100120201820192020202120222023PercentJLL Asia Pacific Office Q3 202223Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Strong leasing activity present in 3Q22,as vacancy rate falls to a record low.”Trang LeHe

213、ad of Research,VietnamStrong leasing demand in Grade A buildings Net absorption of Grade A office buildings surged to about 6,200 sqm in 3Q22.Leasing activity in the quarter was mostly driven by the banking,research&consultancy,law,and flexible space operator industries.Noteworthy international tena

214、nts included KBank,GroupM and Baker McKenzie.The occupancy rate of many Grade A buildings has risen above 95%.A further reduction in the vacancy rate across Grade A buildings in the CBD resulted in some occupants shifting focus to high-quality buildings in non-CBD areas.Vacancy rate hits its lowest

215、level since 2019 With the exception of the Techcombank Sai Gon Tower at 23 Le Duan,which will mostly be used for the landlords own needs,Grade A active supply in the city is expected to stay the same until the end of 2022.Total Grade A vacancy decreased to 5%in 3Q22,reaching its lowest level since 2

216、019.However,when faced with upcoming high-quality supply,landlords of aged properties have begun to search for solutions for asset management and to renovate their buildings,to ensure that they remain competitive in the market.High demand reduces need to offer rent-free incentives Grade A rents in t

217、he city rose 0.4%q-o-q to USD 47.8 per sqm per month.Due to increased demand in the CBD,new buildings,such as Lim III,are now able to scale back their rent-free offerings.As the end of the year approaches,landlords are likely to lower the asking rent in order to attract tenants and meet their annual

218、 goals.There were no Grade A office building transactions announced in 3Q22.Increased demand for quality assets across the market has pushed up cap value by 2.2%q-o-q.Investment demand remained strong,with both local and foreign investors exploring opportunities to acquire assets in good locations.T

219、he overall market yield declined by 12 bps to 6.62%in 3Q22.Outlook:A new office cluster is anticipated in Thu Thiem The new CBD in the Thu Thiem area is anticipated to become the next destination for Grade A office development,due to the completion of the Thu Thiem 2 Bridge,which connects directly t

220、o the current CBD.Two new buildings,including The Hallmark and The METT,in this area will contribute 84,833 sqm of NLA to total Grade A stock in 2023.In the next year,major office leasing transactions are expected to focus on two upcoming towers,and this will likely pressure landlords to retain tena

221、nts.Tight supply until end-2022 and an uncertain global economy should keep rents stable q-o-q.Rents will likely favour tenants in 2023,and is projected to drop to USD 46.6 per sqm per month by end-2022,due to new and more affordable suppliers.sqm per month,net effective on NLAUSD 47.8Rental Growth

222、Y-O-Y0.4%Stage in CycleGrowth SlowingHo Chi Minh CityNote:Ho Chi Minh City Office refers to Ho Chi Minh Citys Grade A office market.Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completio

223、ns and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex901001101201301401501601701804Q184Q194Q204Q214Q224Q23CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent02468101202040608010012020182019202020212

224、0222023JLL Asia Pacific Office Q3 202224Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Positive occupier sentiment leads to sustained leasing momentum.”Dr Samantak DasHead of Research,India&Sri LankaNet absorption increases by 22%q-o-q In 3Q22,net absorption was recorded

225、at 1.6 million sq ft,an increase of 22%on a quarterly basis and 15%on a yearly basis.It was driven largely by pre-commitments in a new completion in Gurgaon.Gross leasing was higher,at 2.48 million sq ft,with many churn deals and some pre-commitments in upcoming supply.Gurgaon accounted for 76%of th

226、e quarterly net absorption,with Noida following with a share of 21%.IT/ITeS,flex providers,manufacturing and BFSI were the major contributing occupier sectors to leasing activity.More than 5,000 seats were also leased by enterprises from flex space operators in 3Q22.Addition of 3.55 million sq ft to

227、 Grade A office stock Six new office buildings,totalling 3.55 million sq ft,were completed in 3Q22,taking Delhi NCRs total stock to 142.5 million sq ft.Gurgaon saw the bulk of these completions with a 95%share while the rest were in Noida.The completions included two towers of DLF Downtown in Gurgao

228、n that were 95%-100%pre-committed.Vacancy increased by 70 bps q-o-q to reach 28.5%,led by new completions in select corridors that had no pre-commitments.In 2022,9.68 million sq ft of supply is expected to be completed for the full calendar year.Rental growth driven by new completions Rents increase

229、d marginally in a few quality office buildings with limited vacancy levels.It also increased in some submarkets due to the completion of prime office projects coming on stream at higher rents.Rents are expected to increase,further driven by office projects and portfolios that have low vacancy and th

230、at are owned by established developers and institutional landlords.Outlook:Upbeat occupier sentiment to support robust leasing Robust leasing activity is expected in the next six months in both conventional office workplaces as well as flex spaces.Managed office space will continue to see increasing

231、 demand from big enterprises and new-age occupiers.In the medium term,around 38.5 million sq ft of supply is expected across Delhi NCR between 2023 to 2026.With occupiers in an active state,healthy net absorption of around 29 to 30 million sq ft has been forecasted in the same period.Occupiers are e

232、xpected to follow a hybrid real estate strategy.However,physical office space will likely remain central to their overall workplace strategy.sq ft per month,gross on GFAINR 147Rental Growth Y-O-Y1.0%Stage in CycleRents RisingDelhiNote:Delhi Office refers to Delhi NCRs overall Grade A office market.D

233、otted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the SBD.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical

234、Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q239095100105110CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20182019202020212022202305101520253002004006008001,0001,2001,400JLL Asia Pacific Office Q3 202225Office ma

235、rkets|Office Market Insights|Physical IndicatorsFinancial Indices“Demand for offices shows healthy growth.”Dr Samantak DasHead of Research,India&Sri LankaNet absorption up 37%q-o-q Healthy net absorption of 1.82 million sq ft was recorded in 3Q22,nearly double that from a year ago.Occupiers from BFS

236、I,consulting,manufacturing and healthcare&biotech sectors were the most active.Flex operators remained active as well,as occupiers were keenly looking at managed office formats.Enquiries were received for new office space,and expansion-driven demand was present as well.SBD Bandra Kurla Complex(BKC)s

237、aw the highest leasing activity followed by Thane and SBD Central.The majority of space taken up in the city was for new buildings completed in the past few quarters.The quarter saw a few large deals in BKC Fringe,Thane and SBD Central,while Core BKC and West Suburbs recorded churn activity.Absorpti

238、on in SBD North was mostly from a completion in 1Q22.Supply addition of 1.7 million sq ft in 3Q22 Construction activity was at an optimal level as pandemic restrictions were fully eased.Along with a couple of refurbishments,three new projects were completed.These were Arihant Aura-Tower C(0.6 millio

239、n sq ft)in Navi Mumbai,Avighna House(0.1 million sq ft)in SBD Central and ABR Emerald(0.3 million sq ft)in SBD North,pushing the citys Grade A office stock to 146.9 million sq ft.With new supply being almost on par with net absorption,vacancy declined marginally by 30 bps q-o-q to 14.3%.Rents and ca

240、pital values increase marginally Overall city rents increased marginally in 3Q22.However,some softening was visible in a few projects in SBD North,SBD Central and Navi Mumbai,where vacancy was high and assets were of lesser quality.A negligible rise in capital values was seen in submarkets like BKC

241、and the suburbs,where vacancy was low and quality assets scarce.Consequently,compression in yields was also seen.Occupiers continued to optimise real estate costs by renegotiating rents,rationalising their portfolio and relocating to buildings with lower rents within the submarket.In most cases,land

242、lords did not reduce rents but adopted strategies like early renewals without rent escalations,extended rent-free periods,and offering to bear the fit-out capex for occupiers.Outlook:Office demand looks stable despite global headwinds About 5.2 million sq ft of office space is scheduled to complete

243、in 2022.An optimum pace of construction activity is expected with all COVID-19 restrictions removed.Demand for flex space and managed workspaces is likely to be high as occupiers prefer fully-fitted options to save costs,and look to implement the hub-and-spoke model as de-densification and BCP gain

244、importance.Demand is expected to be driven by the medical technology,health analytics,online education,data centres,gaming,pharma and FMCG sectors.Towards the end of 2022,supply is expected to outpace demand,leading to an increase in vacancy.Capital values are expected to rise faster than rents due

245、to rising investor interest,leading to a compression of yields in key submarkets.sq ft per month,gross on GFAINR 220Rental Growth Y-O-Y-0.5%Stage in CycleRents RisingMumbaiNote:Mumbai Offices refers to Mumbais overall Grade A market.Dotted lines indicate near-term outlookIndex base:4Q18=100Financial

246、 Indicators are for the SBD BKC.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value I

247、ndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q239095100105110115120CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent2018201920202021202220230246810121416180100200300400500600700800JLL Asia Pacific Office Q3 202226Office markets|Office Market Insights|Physical IndicatorsFinancia

248、l Indices“Bengaluru office market exhibits stable performance in the quarter.”Dr Samantak DasHead of Research,India&Sri LankaSupply and demand in equilibrium Net absorption recorded at 1.7 million sq ft,falling by 62%q-o-q,but up by 38%y-o-y as a large share of the quarterly demand came from pre-com

249、mitments in the newly completed buildings.About 89%of the new completions were already pre-leased by tenants like Adobe at Nucleus Tech Park IV,Apple at Prestige Minsk Square and Smartworks at Vaishnavi Tech Park.Significant deals of over 100,000 sq ft were recorded from companies like Incubex,VMWar

250、e and Allegis,among others.Several deals in the quarter were also recorded in the Whitefield submarket after a brief slowdown over the last few quarters.IT/ITeS and flex space providers were the leading occupier segments in terms of demand in 3Q22.Five new completions add 1.6 million sq ft to stock

251、Around 79%of the new completions were recorded in the SBD submarket,with key projects being Nucleus Tech Park and Vaishnavi Tech Park-North and South Towers.Prestige Minsk Square,entirely pre-committed to by Apple,completed near Cubbon Park,and was a new completion in the CBD after a gap of several

252、quarters.At the end of 3Q22,Bengalurus Grade A office stock stood at 187 million sq ft with the SBD constituting 64%of total stock.Supply and demand were in equilibrium and pre-commitments held vacancy rate in check.The vacancy rate fell by 20 bps q-o-q and stood at 11%,a positive sign given the qua

253、ntity of office stock in the city.Rents remain largely stable,up only by a marginal 0.2%q-o-q Bengaluru office rents remained flat as only the leading developers,such as Prestige,Embassy and Bagmane,were able to justify a q-o-q increase in rents.While the CBD and SBD are more mature,with correspondi

254、ngly slower rent movement,Whitefield posted the highest q-o-q jump in rents largely due to the number of leases recorded there after a gap of a few quarters.Due to the devaluation of the rupee in the quarter,prime corridor rents remained at USD 1.00 to USD 1.25(INR 55 to INR 127)per sq ft per month,

255、which continued to be beneficial considering the kind of tenant mix present in the city,made up largely of MNCs and IT/ITeS firms.Outlook:Bengaluru to remain popular among global office occupiers By the end of 2022,Bengaluru is expected to have Grade A completions totalling about 12.3 million sq ft,

256、as most key developers in the city,like Brigade,Bagmane,Embassy,Prestige and L&T,are optimistic regarding project completion timelines.As most of the occupiers in Bengaluru are MNCs,demand from them is expected to remain stable,albeit tempered by caution as concerns about global macroeconomic headwi

257、nds grow.By the end of 2022,net absorption is set to clock in at 9.4 million sq ft,on par with the citys average annual net take-up.sq ft per month,gross on GFAINR 97.5Rental Growth Y-O-Y3.0%Stage in CycleRents RisingBengaluruNote:Bengaluru Office refers to Bengalurus overall Grade A office market.D

258、otted lines indicate near-term outlookIndex base:4Q18=100Financial Indicators are for the SBD.Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical

259、Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q238090100110120130140150CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20182019202020212022202302004006008001,0001,2001,4001,600024681012JLL Asia Pacific Office Q3 2022

260、27Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Office demand sees sustained momentum.”Dr Samantak DasHead of Research,India&Sri LankaFlex emerges as a key occupier category The Chennai office market sustained its momentum with around 1.1 million sq ft of gross leasing a

261、ctivity in 3Q22.The SBD Old Mahabalipuram Road(OMR)and SBD submarkets together contributed to 62%of leasing activity in the quarter.Net absorption was marginally higher at 0.54 million sq ft during the quarter,and was also already higher for the period of Jan-Sep 2022 compared to full-year 2021.The

262、new completion in the CBD was fully pre-committed,reflecting the undeterred appetite for office space in the CBD.Flex space providers(43%)and consultancy firms(17%),along with tech(14%),emerged as major demand drivers,together contributing 74%of the leasing activity in 3Q22.Quality supply additions

263、in CBD and PBD OMR A total of 1.1 million sq ft was added to the citys Grade A office stock in the quarter.Prestige Metropolitan and Featherlite The Address were the major completions in 3Q22,in the CBD and post-toll(PBD)OMR,respectively.Vacancy was up by 57 bps q-o-q to reach 10.27%at the end of th

264、e quarter.Vacancy remained tight in the SBD and SBD OMR submarkets,while occupier demand picked up traction in the PBD OMR.Rents and capital values up marginally q-o-q The revival of occupier demand since the start of the year has allowed landlords to quote higher rents.However,on the ground this wa

265、s mostly only applicable for quality projects and new completions.Rents were up by 5.4%y-o-y while capital values have moved by 7%y-o-y.The PBD OMR recorded a 10%rent escalation y-o-y,owing to quality new completions and proximity to the IT corridor.The rent escalation in submarkets with tight vacan

266、cy levels,like the CBD and SBD OMR,was around 1%on a y-o-y basis.Outlook:Demand outlook is steady but global headwinds visible Developers are optimistic about demand prospects,especially for Special Economic Zones(SEZs),in anticipation of the revised SEZ bill that will allow for greater occupier tra

267、ction.Proposed policies encouraging startups should also support demand for space.Improving office re-entry rates are expected to support expansion plans and create further demand for office space.The resurgence in the market is expected to make room for rent escalations in the near to medium term.V

268、acancy is expected to remain stable at around 10%,with a trend of healthy demand and supply.Global headwinds may cause slight sluggishness in occupier decision making,but this should not be a long-term trend given Indias growth as a tech as well as emerging manufacturing destination.sq ft per month,

269、gross on GFAINR 73.5Rental Growth Y-O-Y4.8%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 for the SBD.Source:JLLFor 2018 to 2021,take-up,completions and vacancy r

270、ate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q239095100105110115120125130CompletionsTake

271、-up(net)Future SupplyVacancy RateThousand sqmPercent201820192020202120222023024681012050100150200250300350400JLL Asia Pacific Office Q3 202228Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Early signs of a steady market are evident during the quarter.”Dr Samantak DasHead

272、of Research,India&Sri LankaAbsorption turns negative despite heightened market activity Leasing activity picked up pace in 3Q22,with many projects receiving increased enquiries and inspections,particularly for small spaces in Grade A properties.This indicates that the market is stabilising,following

273、 a period of volatility.Despite the higher leasing activity,negative net absorption was recorded during 3Q22 as more vacant space re-entered the CBD micro-market.Overall vacancy soars during 3Q22 During the quarter,the overall vacancy rate inclined by 2.82%from the previous quarter to 19.5%.While th

274、is reflected only a negligible 0.63%y-o-y growth,it was the highest volume indicated since 1Q21.Although no new supply entered the market during 3Q22,the completion of ongoing projects is expected to accelerate as the government relaxes import restrictions on several construction-related items.Rents

275、 signal stability as exchange rate volatility eases Although average overall Grade A rents increased 27.9%y-o-y to LKR 399.7,this represented a marginal q-o-q decline of 0.5%from LKR 401.8 in 2Q22.With many landlords switching to USD-quoted rentals,tenants with local operations have appeared not to

276、be very receptive to the exchange rate risk,especially for long-leasing tenures.As a result,these occupiers are finding the market less alluring.Outlook:New supply is set to enter the SBD market in 4Q22 The highly-anticipated Mireka tower,which will add 600,000 sq ft(GFA)to the SBD market,is schedul

277、ed to debut in 4Q22.This is poised to change the Grade A SBD micro-market dynamics,currently saturated with only 0.56%vacancy.Increased leasing demand from international occupiers is expected in high-end projects,as rates remain competitive to peer economies with the depreciation of the LKR.However,

278、given the anticipated short-term changes in the countrys fiscal policy,these tenants continue to make cautious decisions.sq ft per month,gross on GFALKR 431Rental Growth Y-O-Y32.2%Stage in CycleGrowth SlowingColomboNote:Colombo Office refers to Colombos overall Grade A office market.Dotted lines ind

279、icate near-term outlookIndex base:4Q18=100Financial Indicators are for the CBD.Source:JLLFor 2018 to 2021,completions are year-end annual.For 2022,completions are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Physical Indicators are for the overall market.Source:JLLRental Value Inde

280、xIndex4Q184Q194Q204Q214Q224Q238090100110120130140CompletionsFuture SupplyThousand sqm20182019202020212022202301020304050607080JLL Asia Pacific Office Q3 202229Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Large corporates hand back space but demand remains for higher qua

281、lity stock.”Andrew BallantyneHead of Research,AustraliaLarge corporates continue to offer space to the market The Sydney CBD recorded negative net absorption of-33,200 sqm over the quarter.Larger consolidations included Westpac,vacating 16,100 sqm at 275 Kent Street,and AMP offering 6,600 sqm of sub

282、lease space to market at Quay Quarter Tower.As a result,total vacancy rose to 13.7%.However,positive demand in Grade A space(6,900 sqm)was recorded,driven by centralisation moves.Positive net absorption was recorded in four out of ten Sydney office markets.Some positive demand was recorded in Sydney

283、 South(9,900 sqm),driven by large occupiers leasing space,while Parramatta recorded the largest negative result(-42,700 sqm)as governments and large corporates consolidated or offered space for sublease.Office supply largely stable across Sydney Total stock in the Sydney CBD was stable at 5.2 millio

284、n sqm over the quarter.Upcoming projects at Salesforce Tower,180 George Street and 210 George Street are scheduled to reach practical completion in 4Q22.There is currently 256,700 sqm of stock under construction in the CBD,with completion dates between 2022 and 2024.Supply was largely stable across

285、the Sydney metro markets,with only one completion recorded at 151-153 Crown Street,Darlinghurst(2,632 sqm).There is 207,500 sqm under construction in the Sydney metropolitan office markets,with Victoria Cross(60,000 sqm)in North Sydney being the largest office project that is under construction outs

286、ide of the Sydney CBD.Prime rents lift as tenants compete for quality office space The Sydney CBD recorded prime face rental growth of 1.6%over the quarter,as occupier demand remains strong for premium and higher quality Grade A office space,particularly high rise space with desirable view corridors

287、.Prime effective rents rose by 1.2%,driven by the uplift in face rents as average prime incentives were largely stable at 34.3%in 3Q22.Prime yields softened across all Sydney office markets,with the Sydney CBD prime yield range expanding 12 bps on the upper end and 25 bps on the lower end to 4.25%-5

288、.00%.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 The completion of new office stock in 4Q22 will be supportive of

289、 positive levels of demand.However,larger corporates continue to reassess their space requirements,which could result in further consolidation activity over the short term.The vacancy rate is forecast to remain elevated as new supply enters the market.Prime face rental growth is expected to continue

290、 its upward trajectory.Yields are expected to soften further over the next 12 months.Secondary and poorer-quality prime assets with greater capital expenditure requirements and vacancy risk are likely to see the greatest fall in capital values.Transactions expected to complete by the end of 2022 wil

291、l provide further insights into asset pricing in the current macroeconomic environment with higher cost of debt pressure.sqm per annum,gross effective on NLAAUD 914Rental Growth Y-O-Y3.8%Stage in CycleRents StableSydneyNote:Sydney Office refers to Sydneys CBD office market(all grades).Dotted lines i

292、ndicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q1

293、94Q204Q214Q224Q2380859095100105110115120125CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent-20-15-10-505101520-300-200-1000100200300201820192020202120222023JLL Asia Pacific Office Q3 202230Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Melbournes office

294、 markets were upheld by small tenant demand and strong investor confidence in 3Q22.”Andrew BallantyneHead of Research,AustraliaStrong quarterly demand from the small tenant cohort The Melbourne CBD recorded positive net absorption of about 20,200 sqm.This was driven by strong activity within the sma

295、ll tenant cohort.Headline vacancy improved to 14.6%.Melbournes Fringe submarket recorded a strong quarterly result of about 30,700 sqm,partially offset by the weaker SES result of about-17,600 sqm.Vacancy subsequently tightened in the Fringe to 14.8%,and increased for the second consecutive quarter

296、to 12.9%in the SES.Supply pipeline remains strong in the CBD and Fringe markets No projects reached practical completion in the CBD and SES over the quarter.The Fringe recorded three developments reaching completion,delivering 17,008 sqm of new stock into the market.The largest Fringe development de

297、livered 9,448 sqm at 20-30 Mollison Street,Abbotsford(52.9%pre-committed)across nine levels,with Fred IT as the anchor tenant.The recently completed development at 236 Coppin Street in Richmond delivered 5,660 sqm across seven storeys and completed with no pre-commitments.Face rents and incentives i

298、ncrease over the quarter CBD prime net effective rents(PNER)edged lower over 3Q22 to AUD 355 per sqm per annum(-0.3%y-o-y)as a result of prime net face rents and incentives increasing.PNER decreased in the Fringe to AUD 322 per sqm per annum(-0.5%q-o-q),yet recorded a strong y-o-y result of 4.0%.PNE

299、R remained stable in the SES at 267 per sqm per annum(1.4%y-o-y).Prime CBD yields softened 12.5 bps on the lower end to now sit at a range of 4.25%-5.25%.Prime Fringe yields softened 12.5 bps on the upper end and 25 bps on the lower end to now sit a range of 4.75%-5.50%,as SES prime yields softened

300、25 bps on the upper end to 5.00%-5.75%,supported by transactional evidence and general market sentiment in all three markets.Outlook:CBD demand expected to moderate in 4Q22 Melbournes office market is expected to plateau in terms of leasing transactions over the next 12 months,as lease expiries rema

301、in the main driver of tenant activity.Headline vacancy is expected to increase in the CBD and Fringe market in the short term,as a result of new supply entering the market and economic uncertainty.Prime net face rents are expected to accelerate in 2023,while incentives are anticipated to stabilise o

302、ver the remainder of 2022 and 2023.Prime yields are forecast to continue softening,having already reached its cyclical low in 1H22.sqm per annum,gross effective on NLAAUD 519Rental Growth Y-O-Y0.0%Stage in CycleRents StableMelbourneNote:Melbourne Office refers to Melbournes CBD office market(all gra

303、des).Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Valu

304、e IndexIndex4Q184Q194Q204Q214Q224Q2380859095100105110115120125CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent201820192020202120222023-200-1000100200300400-10-505101520JLL Asia Pacific Office Q3 202231Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Tenan

305、ts increase their demand for a better work environment.”Andrew BallantyneHead of Research,AustraliaPremium and Grade A buildings perform well The Brisbane CBD office market recorded about 7,900 sqm of positive net absorption,while the Near City market recorded about 3,300 sqm of net absorption over

306、3Q22,with high interest in full-floor tenancies.The drivers of demand for premium spaces included companies trying to entice staff back to the office,the need for a better work environment and corporates implementing ESG policies.Total vacancy for premium and Grade A stock decreased in the CBD over

307、the quarter from 15.4%in 2Q22 to 14.9%in 3Q22.For Near City,this decreased from 18.5%in 2Q22 to 18.2%in 3Q22.Proposed supply is on track Completion of the Queens Wharf major project,totaling 24,000 sqm,has been pushed to the next quarter.Two other projects in the Near City are also due for completio

308、n at the end of 2022,totalling 50,885 sqm.All three projects are in the Near City market.The future supply pipeline remains strong with plans approved for 12 ongoing projects,totalling about 108,800 sqm for CBD and about 74,100 sqm for Near City.However,not all of the projects are expected to commen

309、ce,given the current economic uncertainty,constrained labour markets and high construction costs.Face rents increase while incentives remain high CBD prime gross effective rents(PGER)increased by 1.4%over the quarter to AUD 404 per sqm per annum,marking an annual growth of 3.3%.PGER remained stable

310、from the previous quarter in the Near City.However,incentives continue to remain elevated.The prime yield range softened by 25 bps in the CBD(5.25%-6.50%),while the Near City market remained stable at 5.50%-7.25%for the quarter.Outlook:Market sentiment plays a large factor The current uncertain econ

311、omic environment has seen market sentiment decrease.Landlords continue to push for increasing rents,while tenants demand for better space continues as they try to entice their employees back to the office.However,landlords have also increasingly begun to factor in costs associated with occupancy.sqm

312、 per annum,gross effective on NLAAUD 404Rental Growth Y-O-Y3.3%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 2021,take-up,completions and vacancy rate are year-e

313、nd annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q2380859095100105110115120125130CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent20182

314、0192020202120222023-60-40-20020406080-15-10-505101520JLL Asia Pacific Office Q3 202232Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Perth CBD office market conditions continue to strengthen.”Andrew BallantyneHead of Research,AustraliaDemand for Perth CBD offices on the u

315、p during 3Q22 Headline vacancy in the Perth CBD decreased by 0.9 percentage points(ppts)to 19.3%in 3Q22,with quarterly net absorption totalling 16,200 sqm over the quarter.The centralisation of tenants from outer suburban markets as well as new business entrants into the Perth market were significan

316、t contributors to net absorption over 3Q22.Occupier activity was predominantly led by tenants within the professional services sector.Uptick in the short-term supply pipeline No significant office developments were completed in the Perth CBD over 3Q22.Nevertheless,the existing supply pipeline is ele

317、vated with four projects under construction,totalling 88,800 sqm.Other than developments currently under construction,the supply pipeline for both the Perth CBD and West Perth office market remains limited given elevated vacancy rates.Plans are approved for a further 12 projects in the CBD,totalling

318、 343,800 sqm.Proposed new office projects are likely to require substantial pre-commitment to proceed.High incentives continue to limit effective rental growth Prime net effective rents in the Perth CBD office market declined marginally(down 0.4%)in 3Q22.On the other hand,prime net effective rents i

319、n the West Perth office market increased by 0.8%over the quarter.Rising cost of debt pressures saw Perth CBD prime office yields decompress by 25 basis points(bps)in 3Q22 to a midpoint of 6.50%.Outlook:Robust WA economy to support demand for office space WAs economic growth has continued to outperfo

320、rm 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 mining and professional services sector.Office investment demand is expected to remain elevated,with several existin

321、g well-capitalised groups in the market seeking long WALE prime grade assets with a strong covenant as well as value-add opportunities.sqm per annum,gross effective on NLAAUD 447Rental Growth Y-O-Y0.1%Stage in CycleRents StablePerthNote:Perth Office refers to Perths CBD office market(all grades).Dot

322、ted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexI

323、ndex4Q184Q194Q204Q214Q224Q2380859095100105110115120125130CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent201820192020202120222023-10-50510152025-40-20020406080100JLL Asia Pacific Office Q3 202233Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Leasing act

324、ivity supported by centralisation activity and small tenant demand.”Andrew BallantyneHead of Research,AustraliaMultiple large tenants centralise Quarterly net absorption rebounded to about 5,100 sqm,after a negative previous quarter.Headline vacancy increased to 16.1%.Prime vacancy increased by 2.5%

325、to 15.5%while secondary vacancy decreased to 16.6%.The small tenant cohort continued to drive strong demand in prime grade assets,as multiple large tenant(1,000 sqm)centralisations also positively contributed to quarterly net absorption.Stable incentives support effective rental growth The CBUS 83 P

326、irie Street development reached completion over the quarter,totalling 30,000 sqm.The project completed with a pre-commitment level of 62%,with the Department for Infrastructure and Transport(DPTI)as the anchor tenant.One project,266-274 Pulteney Street(1,975 sqm),is set to complete in 4Q22.The devel

327、opment currently has no pre-commitments.A further six office projects totalling 107,500 sqm are being tracked,and have projected completion dates over 2023 and 2024.The largest of these projects is 52-62 King William Street(40,000 sqm).Investment volumes subside in 3Q22 CBD prime net effective rents

328、(PNER)increased over the quarter to AUD 175 per sqm per annum(1.9%q-o-q),as incentives remained broadly stable at 38.8%.As a result,prime net face rents increased(1.1%q-o-q)to AUD 428 per sqm per annum,reflecting y-o-y growth of 3.4%.Prime yields softened 12.5 bps on the upper end to now range betwe

329、en 4.88%-6.75%.The softening is a reflection of overall market sentiment amid rising cost of debt and in an uncertain macroeconomic environment.Outlook:Positive demand anticipated to continue into 4Q22 Positive demand in 4Q22 is expected to be a result of leasing activity from the technology and hea

330、lth sectors,and government departments.New stock completing in 2023 is anticipated to have an uplift in pre-commitment activity as these developments near practical completion and some corporates look to upgrade into better quality office accommodations.Although sustained face rental growth is proje

331、cted over the short term,the ongoing pressures of elevated vacancy in older prime grade assets is expected to increase leasing incentives over the short term,resulting in a decrease in effective rents.sqm per annum,gross effective on NLAAUD 299Rental Growth Y-O-Y2.2%Stage in CycleRents StableAdelaid

332、eNote:Adelaide Office refers to Adelaides CBD office market(all grades).Dotted lines indicate near-term outlookIndex base:4Q18=100Source:JLLFor 2018 to 2021,take-up,completions and vacancy rate are year-end annual.For 2022,take-up,completions and vacancy rate are as at 3Q22.Future supply is for the

333、remainder of 2022 and 2023.Source:JLLRental Value IndexCapital Value IndexIndex4Q184Q194Q204Q214Q224Q238090100110120130140CompletionsTake-up(net)Future SupplyVacancy RateThousand sqmPercent201820192020202120222023-10-5051015202530-40-20020406080100120JLL Asia Pacific Office Q3 202234Office markets|Office Market Insights|Physical IndicatorsFinancial Indices“Sustained government demand drives positi