The Asia-Pacific real estate market looked at 2022 with optimism. But the first quarter of the year saw weaker leasing activity in some markets and segments. Nonetheless, investment in the region remained strong during the same period.
CBRE has a bright outlook for the APAC real estate market this year. The commercial real estate services and investment firm expected leasing demand to recover, which would end the downward rental cycle in the office and retail segments, and another strong year of growth for the logistics sector.
However, as of CBRE’s data for Q1 2022, weaker leasing activity was seen in the office and retail sectors.
The regional net absorption of the office segment dropped from 15.4 million in the last quarter of 2021 to 11.8 million sq. ft. NFA in Q1 2022, primarly dragged by China’s weaker leasing activity, where net absorption in tier I cities decreased 46% quarter-on-quarter (q-o-q).