theSun Property April 2016

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theSun ON FRIDAY | MARCH 11, 2016 22 theSun ON FRIDAY | APRIL 15, 2016
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RECENTLY, JLL Property
Services (Malaysia) Sdn
Bhd (JLL ) presented its
report on the real estate
outlook in the Asia Pacific region.
Below is a summary of a study led
by the company’s Asia Pacific head
of researchDrMeganWalters.
According to past trends and
data compiled from 1995, the
company anticipates Asia to remain
as the engine of global growth. This
observationwas based on the
analysis of the gross domestic
product (GDP) growth of countries
that included India, China, Malaysia,
Singapore, Australia, theUS, Europe
and Japan. GDP growthwas
reported accordingly, in the above
mentioned order, fromhighest to
lowest.
By 2022, it is estimated that the
Asia Pacific nominal GDPwill
supersede that of the US, a huge
percentage coming fromChina.
Asia Pacific real estate market
> Summary of the
2016 report by JLL
PropertyMalaysia
investment. According to
reports, the strongest
leasingmarkets will be in
China and India, with
investments in China and
Hong Kong bouncing back.
Rents are recorded to be
on the rise in the global
officemarkets. Themost
expensive office space are
reported to be located in
(highest to lowest) Hong
Kong, London, Beijing,
NewYork and Shanghai.
Space is also a constraint in
thesemajor cities, where
lowvacancy rates are
reported – Shanghai’s
Pudong, Raffles Place in
Singapore, London’sWest
End, Tokyo’sMarunouchi
and Central Hong Kong.
In all, the Asia Pacific
tops the rank in global office
rents. Hong Kong
commands the world’s
highest cost, although
China’s Tier I cities are close
behind. Occupancy costs in Beijing
(third) and Shanghai (fifth) are now
ahead of the establishedworld cities
of Tokyo (sixth) and Singapore
(11th). See figures in the chart below.
According to JLL forecasts, office
rental growth in the Asia Pacific will
see Kuala Lumpur take a dip, sliding
1%by the end of this year in
comparison to 4Q15. Other cities
expected to follow the downtrend
include Jakarta, Mumbai and
Singapore. Shanghai, Sydney and
Hong Kong on the other hand, are
expected to see growth in prime
office rentals.
Based on JLL data, office rents in
somemarkets still remain below
their peak. These include rentals in
cities like Singapore, Hong Kong
and Tokyo. Still, most markets are
expected to experiencemoderate
rental growth fromnowuntil 4Q17.
On the other hand, most office
markets are now reporting higher
capital values (except Singapore
and Tokyo) compared to pre-global
financial crisis (GFC), on the back of
strong investment demand.
(*Note: All charts/graphs courtesy of
JLL Asia Pacific Research Team.)
Cassia’s final phase launch
THOSE interested in an
exceptional piece of property in
the famed BatuMaung in Penang
are invited to the exclusive launch
of the final phase of Sunway
Cassia.
There are only 10 limited units
of Cydonia+ which offers
expansive built-up space of 3,770sf.
Also available are 38 units of
Cydonia that comes with a
spacious built-up area of 3,196sf –
both designs set upon lush green
landscapes.
Those attending the launch
from 10am to 6pmon April 17 will
get a special chance to view the
semi-detached showunits.
Sunway Cassia showcases a
contemporary-designed
neighbourhood for individuals
with an affinity for life and all it has
to offer. In conjunctionwith the
developer’s recent Sunway
Property Certainty Campaign
launch, the companywill be
offering innovative home packages
for its Sunway Cassia designs.
Drop by the launch to find out
While the demand for office
space is slowly rising within the
Asia Pacific region, growing at 33%
in 2015, leasing is catching upwith
IMPORTANT POINTS WORTH NOTING
Occupier demand for space underpins investment demand.
Asia Pacific low interest rate environment to continue despite
US rate lift-off.
Divergent interest rates between Japan and the US pose risks.
The gap between interest rates and real estate yields drives
investors to real estate.
Currencyweakness against the US dollar in Asia Pacific is likely
to continue.
Investors to seek core products.
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about the irresistible deals that
come with owning a part of
Sunway Property’s pride and joy of
the region.
“Sunway Cassia is nestled in a
quiet, green-lung corner of Batu
Maung with access to nearby
amenities. There are also
upcoming infrastructure that will
benefit future residents, from
capital appreciation to greater
accessibility, especiallywith the
lack of landed developments on
the island at present,” said Sunway
Berhad’s managing director of
property development for
Malaysia and Singapore, TanWee
Bee.
In line with its “Living Sunway,
Living Community” campaign,
Sunway Property inspires growth
and engagement, urging people to
be involved in its community-
driven undertakings such as the
upcomingWorld Environment
Day inMay. For more information
on the exclusive launch, visit the
developer’s website or the project
web page.
Walters at themarket report
presentation.
Growth
Slowing
Rents
Falling
Decline
Slowing
Rents
Rising
Guangzhou Jakarta
Singapore
Kuala Lumpur
Perth
Brisbane
Hanoi
Seoul Canberra, Adelaide
HoChiMinhCity,Mumbai
Osaka
Melbourne
Chennai
Shanghai, Sydney
Delhi
Bangalore
Manila, Tokyo
HongKong
Beijing
Bangkok
Taipei
Office rents risingondemandexceeding supply
Primeoffice rent clock
SOURCE: JLL ASIA PACIFIC RESEARCH TEAM
Asia Pacific tops global office rents
HongKong
London
Beijing
NewYork
Shanghai
Tokyo
SanFransisco
Moscow
Delhi
Dubai
Singapore
Mumbai
WashingtonDC
Paris
Boston
LosAngeles
Frankfurt
Seoul
Chicago
Sydney
Toronto
Houston
Madrid
Amsterdam
NetRent AdditionalCosts
US$0 US$50 US$100 US$150 US$200 US$250 US$300
US$171
US$136
US$128
US$114
US$106
US$105
US$93
US$93
US$91
US$82
US$81
US$73
US$68
US$68
US$64
US$61
US$60
US$59
US$55
US$52
US$43
US$262
US$240
US$199