–Office: Regional net absorption fell from Q4 2021’s 15.4 million to 11.8 million sq. ft. NFA in Q1 2022, primarily due to weaker leasing activity in mainland China. Regional demand continued to be driven by flight-to-quality relocations and tech firms. Rents increased by 0.3% q-o-q, marking the first quarterly growth since Q2 2019.
–Retail: Leasing activity weakened in Q2 2022 owing to the spread of the Omicron variant. Most retailers remained in wait-and-see mode amid elevated economic uncertainty. New demand was driven by F&B retailers. Rents fell by 1.2% q-o-q.
–Logistics: Demand remained healthy but pulled back from the previous quarter’s peak due to limited availability. Leasing was driven by omni-channel retailers and related 3PLs. Net absorption totalled 10.8 million sq. ft., a decline of 27% y-o-y, but matching pre-pandemic levels. Rents grew by 2.1% q-o-q, the strongest quarterly hike on record.
–Investment: Although Asia Pacific commercial real estate investment volume fell by 24% q-o-q to US$31.2 billion, this still represented growth of 15% y-o-y and marked the second strongest first quarter on record. Most gateway markets reported strong growth, particularly Singapore and Australia, which continue to be favoured by foreign investors.