Tuesday, August 07, 2012

Global property market on recovery track, says JLL

The global property market rebounded sharply in the second quarter, following a relatively quiet period in Q1, according to Jones Lang LaSalle’s (JLL) Global Market Perspective
In Q2, investment volumes increased 24 percent to US$108 billion (S$134 billion), an indication “that capital markets are on track to achieving US$400 billion (S$496 billion) volumes for full-year 2012”.

However, JLL noted that the global economic outlook “has weakened as euro strains re-emerge”.

Meanwhile, Asia Pacific markets are expected to drive growth globally this year but will likely face a slowdown.

“In a climate of uncertainty, corporate occupiers have adopted a ‘wait and see’ approach to expansion as global take-up volumes have fallen year-on-year. Corporates are trending towards sale and lease back transactions as they look to release capital,” the report added.

In the leasing market, numbers fared better than Q1 but are still below last year’s levels. For the entire 2012, gross leasing volumes could be 10 percent below that of 2011.

At the same time, vacancies dwindled to 13.3 percent in Q2, its lowest level since 2009.

As global office supply falls, the JLL Global Office Index
– which monitors prime office rentals in 90 major markets – inched up a further 0.6 percent in Q2.
Residential sales were vibrant in Hong Kong and China while Jakarta remained resilient, backed by low lending rates, rising rental returns and investor interest.

“Retail exhibited a mixed picture. While Greater China recorded strong demand and healthy rental growth, market conditions were relatively flat in the US,” JLL added.

View the original article here

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