KCRE Corporate Real Estate Solutions

the office markets in the region showed further encouraging signs of recovery during 3Q2009.  Amid the gradual improvement of global economic fundamentals, there were positive notes showing market stabilisation and significant improvement in market confidence.

During the quarter, the strong office sales performance in both the volume of activity and the achieved price level strengthened market confidence.  Office investment sales transactions were especially active in the Greater China region due to the positive sentiment among a number of state-owned enterprises.  Benchmark sales transactions were registered in the major office markets in China.  For example, three en-bloc sales transactions were recorded in Beijing..  In Shanghai, domestic investors and end-users, including SOHO China, the Shanghai Rural Commercial Bank and the Agricultural Bank of China, acquired either en-bloc or strata-title office buildings located in Jing’an and Pudong districts. 

On the leasing front, office rentals registered increased stabilization.  “For most of the centres in Asia Pacific, there were more signs that office rentals are edging closer toward their cyclical trough during 3Q2009.Across the region, the pace of rental decline tapered off further from 3.6% quarter-on-quarter  in 2Q2009 to 2.0%  in 3Q2009.”