JLL has released its latest Office Market Sentiment Survey and results show that most office markets in Asia Pacific have a positive outlook with demand strongest in Melbourne, Sydney, Bangalore and Bangkok. The sectors leading the demand for office space are technology, professional services, pharmaceutical and real estate firms.
“The demand for space in much of the region is being driven by domestic companies seeking to enter or expand into prime CBD as well as growth in sectors such as technology and pharmaceutical,” says Jeremy Sheldon, Managing Director, Markets & IPS, JLL Asia Pacific.
According to JLL, 70 per cent of the top 10 technology firms globally have set up their regional headquarters in Singapore, with 57 per cent of the offices being located in the CBD area. One reason for this is because there is strong government support for the technology sector in the country.
Bangkok is another city where there is strong demand from e-commerce, call centre, IT firms and other technology companies for new office space. JLL predicts this trend will continue in 2017.
The pharmaceuticals industry is another one JLL says to watch. In August 2016, Thailand’s Board of Investment approved a five-year waiver of corporate income tax for pharmaceutical firms as the country looked to strengthen its position as a medical hub.
Other countries are following suit. In the Philippines, Manila’s One World Place in Bonifacio Global City has two pharmaceutical and medical firms occupying an office space of 1,000 square metre each. Singapore’s One-North is also set to be the new Asian headquarters for a medical giant later this year and other Southeast Asian cities are looking at ways to attract companies in this sector.
The global pharmaceutical market could be worth as much as USD 1.3 trillion BY 2018. JLL notes that Asia is outpacing other continents in terms of population growth and this means there is a bigger market for medical products and solutions putting pharmaceutical companies in a position to benefit.
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