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Office leasing market in Asia-Pacific most resilient to Covid-19 fallout than other regions: Report

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SINGAPORE (THE BUSINESS TIMES) - The Covid-19 recession will have a more benign and shorter-lived impact on the office leasing market in the Asia-Pacific (APAC), excluding Greater China, than elsewhere around the world, while the region will take just a marginal hit from the work-from-home phenomenon.. Read more at straitstimes.com.

SINGAPORE - The Covid-19 recession will have a more benign and shorter-lived impact on the office leasing market in the Asia-Pacific , excluding Greater China, than elsewhere around the world, while the region will take just a marginal hit from the work-from-home phenomenon.

Net absorption in APAC this year will plunge by 70 per cent from last year to about 21 million square feet under the baseline scenario, the firm predicted. This represents an absorption rate of 2 per cent, the lowest since record-keeping began in 2007.From 2022 to 2030, the firm foresees net office demand growing by 729 million sq ft in the region.

In terms of APAC's office employment base, the demographic growth in emerging markets helps to mitigate overall office-job losses. A sharper peak-to-trough rental decline of 21.3 per cent is forecast over the next 21 months for offices in the region's advanced markets, after factoring in the more severe employment declines and more elastic rent responses to declining occupancy levels.

 

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