Leasing activity slowed in Q3 2018 as the U.S-China trade conflict and P2P crackdown prompted more caution among selected occupiers in China and Hong Kong. However, leasing activity in most other major cities remained solid, led by Bangalore, Tokyo, and Singapore, which continued to see flight to quality relocations.
Financial sector leasing activity picked up in Singapore as Asian and European banks turned more active. The sector also accounted for a large portion of leasing activity in Beijing and Shanghai.
Tech firms remained active in India, with several large transactions completed. Domestic and international coworking operators continued to implement aggressive expansion plans, particularly in Hong Kong, Seoul and Singapore.
Leasing demand is set to soften further along with weakening market sentiment. The U.S.-China trade conflict and its possible negative effect on global economic growth is expected to ensure occupiers retain a cautious approach and focus on integrating flexibility into their portfolios.