As occupier sentiment weakens across the Asia-Pacific (APAC) property sectors, a recent CBRE survey reveals a marked decline in tenant enquiries, particularly in the office market. The survey, conducted in the second quarter of 2025, indicates that this downturn is not confined to one segment but is felt across various property sectors, reflecting broader economic uncertainties affecting potential tenants.
The office market is experiencing significant challenges, with 24% of respondents reporting a decrease in office rents. This figure represents an increase from the 16% noted in the previous quarter, suggesting a growing trend toward falling rental prices. Additionally, only 26% of participants observed an increase in office rents, a sharp decline from 38% in the first quarter of 2024. This shift indicates a diminishing optimism regarding future rental growth, raising concerns among property owners and investors about the sustainability of current pricing strategies.
The retail sector is also showing signs of weakness, driven by economic volatility that has led to sluggish rent increases across most regional markets. While there is a more favorable sentiment in specific countries like India and Korea, the overall outlook remains cautious. In many markets, retailers are hesitant to commit to new leases or expansions, which contributes to the overall decline in tenant enquiries. The disparity in regional performance highlights the impact of localized economic conditions, but the prevailing trend suggests a significant degree of apprehension among tenants.
In Greater China, the industrial and logistics sectors are particularly affected, experiencing a notable decline in tenant enquiries. This region has recorded some of the lowest expectations for rental growth, and market incentives are increasing as landlords become more flexible in their negotiations to attract tenants. The cautious approach to expansion in these sectors indicates that businesses are reassessing their operational needs in light of the current economic landscape.
This trend reflects a broader shift in strategy as companies prioritize stability over aggressive growth, a sentiment that has permeated various markets within APAC.
The findings of this survey resonate with the ongoing global economic challenges, including inflationary pressures and geopolitical tensions. Such factors have contributed to a climate of uncertainty, prompting businesses to adopt a more conservative posture regarding their real estate decisions. The reported decline in tenant enquiries serves as a bellwether for the overall health of the property sectors in the region, signaling potential long-term implications for landlords and investors.
NEW CONDO LAUNCH: THE SEN CONDO
Discover modern living at THE SEN CONDO, a new residential development designed to meet urban housing demands.
Explore THE SEN CONDO Floor Plan and THE SEN CONDO Pricing options for available units.
View THE SEN CONDO ShowFlat & Get VVIP Discount.
Register or contact 6100 8822 to book showflat appointment.
News Source: Edgeprop
Images are not actual photos. For illustration purpose only.
