Leasing and investment activity in Asia weaken further as full impact of pandemic emerges

Asia Pacific commercial real estate investment volume fell 48 percent year-over-year to $17 billion in the second quarter 2020, the lowest quarterly turnover since second quarter 2012, reported CBRE. The decline was due to lockdown measures and the continued imposition of travel restrictions, both of which inhibited cross-border deals.

Asia office net absorption fell further in the second quarter, 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. Class A rents fell by 1.8 percent quarter-over-quarter.

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 percent from the previous quarter.

The quarter saw a mild improvement in industrial