|Among 30 cities in Asia, Tokyo will have the highest office absorption in 2014, expected to be 706,603sq.m. It remains the region's top location for office absorption and is followed by Bengaluru, India with 585,289sq.m. The third city is Manila with 557,418sq.m of net absorption.— VNS Photo Nguyen Manh Ha
HCM CITY (VNS)— Office building demand is likely to reach 5.5 million square metres in all 30 major cities tracked within Asia Pacific.
The latest Asia Office Forecast report "14 for 2014 - Top Trends to Watch" by the US real estate firm Cushman & Wakefield, released on December 27, revealed the figures.
Among 30 cities in Asia, Tokyo will have the highest office absorption in 2014, expected to be 706,603sq.m. It remains the region's top location for office absorption and is followed by Bengaluru, India with 585,289sq.m. The third city is Manila with 557,418sq.m of net absorption.
Manila also ranks the first among seven cities in Southeast Asia. Despite the impact from on, Manila Central Business District (CBD) and off CBD market would witness 22 per cent increase over the total absorption in 2013.
Among Southeast Asia, Jakarta follows Manila with net absorption of 250,838sq.m. Given the projected positive performance of the Indonesian economy and improved business climate, total office absorption in 2014 is estimated to increase 34 per cent over 2013.
With 37,161sq.m and 27,871sq.m projected net absorption in Ha Noi and HCM City respectively, Viet Nam is expected to see a positive trend in the net absorption of office space in 2014.
While Ha Noi will see a rise of approximately 15 per cent in total absorption, HCM City will be recording an approximate increase of 14 per cent in 2014 over 2013.
Market conditions will remain favorable to occupiers as supply continues in HCM City and Ha Noi.
Stable supply, increased availability of space options and flexible leasing opportunities, along with cheaper rents, will help occupiers (both in Ha Noi and HCM City) and the leasing activity could pick up as the economy gains momentum next year.
Sanjay Dutt, executive managing director of South Asia's Cushman & Wakefield, said, "the demand for commercial office space will strengthen going forward in 2014 and 2015. —VNS