Industrial

Rental growth has slowed as tenants become financially stretched.

Nearly US$2b has already been invested in H1.

Vacancy declined to 2.1% in Q2.

Vacancy rate was at sub-1% for the seventh consecutive quarter.

Business park and factory rents are expected to rise 0.5% and 0.7%, respectively.

Leasing volume increased 43.7% to 3,381 transactions in Q2 2021.

Net absorption reached 35.6 million sq ft, driven by expansions by 3PLs and e-commerce firms.

The mismatch in price expectations is driving sellers to keep the properties rather than sell them at a huge discount.

Rents are proving resilient, slipping only by a marginal 0.1% in the first half of the year.

Data centre vacancy is already approaching zero in the Seoul Metropolitan Area. 

Greater Jakarta is the key market in the country with over 70MW of capacity as of 2020.

The industrial markets have been robust over the last 12 months.

Projects by Microsoft, Google, Amazon, Alibaba, and more will be completed over the next two years.

JLL says there is now a mismatch between supply and demand.

Several industrial areas in the region are expected to be further developed.

Warehouse assets offering stable yields lured investors in.