Foreign companies lured by growth in Asean office market
Companies are shifting their focus from the mainland to the rising Southeast Asian market
International occupiers have shifted their focus from the mainland to the Asean office markets, lured by better economic growth and lower costs, according to property consultant DTZ.
"This is impacting the China markets, and cautionary sentiment saw Shanghai drop out of our top five biggest risers in terms of rental growth in 2013, while Beijing has made way for Jakarta at the top of the ranking," DTZ said in the report.
According to the consultants, the rental growth of Jakarta office space was about 13 per cent in 2013, against 10 per cent growth in Beijing.
"As we move into 2013, it is clear that the dynamic growth witnessed in many Chinese markets over the last two years has begun to taper off, with weak rental growth across most locations in the first quarter," DTZ said in the report.
"Whilst this was partly due to the traditional seasonal slowdown as a result of the Chinese New Year festivities, it also reflects ongoing concerns as to whether the Chinese economy can recover its strength," the company added.