• Asia office net absorption fell further in Q2 2020, bringing the total for the first half of the year to the lowest in a decade. Occupiers remained in wait-and-see mode or opted for renewals owing to the absence of budgets for capex. Grade A rents fell by 1.8% q-o-q.

 

  • Retail vacancy increased across the region as the quarter saw a wave of store closures, led by right-sizing and market exits by several global fashion brands. Pre-leasing activity in new supply was weak amid subdued overall demand. Rents declined by 2.3% q-o-q.

 

  • The quarter saw a mild improvement in industrial sentiment along with the resumption of industrial activity. Warehouse space continued to attract robust demand in most markets, led by e-commerce related platforms. Rents were largely unchanged.

 

  • Asia Pacific commercial real estate investment volume fell 48% y-o-y to US$17 billion in Q2 2020, the lowest quarterly turnover since Q2 2012. The decline was due to lockdown measures and the continued imposition of travel restrictions, both of which inhibited cross-border deals.