The economic outlook and business sentiment are two undeniable factors that dictate the trends in the global office market. As economic growth in Asia-Pacific began to gather pace in the first quarter of the year, the region's office market outlook is turning more positive following a period of cooling, particularly in leasing activity in the banking and finance sectors.
In recent years, the average gross domestic product growth across Asia-Pacific has been 4.5% a year. This has been bolstered by figures from China, which has spent heavily on infrastructure and seen a run-up in its housing market, though growth in the world's second-largest economy has been slowing. In contrast, there are signs that Japan is emerging from two decades of deflation, with indications of recovery in industrial output, exports and retail sales, all of which improves the outlook for its large office sector.
In Southeast Asia, economic growth remains strong with steadily rising domestic demand, a fast-rising middle class and business confidence high, all of which are supporting the office market.
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