UK commercial activity expands at “fastest pace since 2007”
The Total Commercial Development Activity Index shows that the UK commercial property sector saw 26.7 per cent growth in August 2013, up from the 20.1 per cent recorded in July 2013. Private commercial activity reached a 77-month high of 37.9 per cent, while activity in the public sector hit a 42-month high of 7 per cent.
Together, they signal the strongest growth in the UK commercial sector since March 2007.
Indeed, seven of the nine sectors monitored by Savills showed an increase in activity, with new build property enjoying the strongest increase. The South East region recorded the fastest rise, but activity expanded across all three regions.
Michael Pillow, Director of Building Consultancy at Savills commented: “Development activity is now rising across the whole of the UK, with markets outside London showing the strongest growth this month. This is a clear sign that developers are expecting a sustainable national recovery in tenant demand over the next few years.”
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Bucharest office demand on the up
Take-up of office space in Bucharest is on the up, according to new figures from The Advisers.
The data, from associates of Knight Frank, found that demand for the Romanian capital’s office space was healthy in the first half of 2013. Take-up totalled 65,000 square metres in the second quarter of 2013, amounting to a total of 125,000 square metres in the first six months of the year, 12 per cent higher than the same period in 2012.
Vacancy rates were lowest in the central areas of the city, while the Central Business District has seen prime office rents remain stable at €16 to €19 per square metre per month. Rents are predicted to stay broadly flat, as 41,500 square metres of new space is expected to come to market in the second half of the year.
Prime Asia Pacific office markets slow down
Prime office markets in the Asia Pacific region have witnessed a slowdown in the first half of 2013. Net take-up in the major cities was 22.8 per cent in the first half of the year, 13.9 per cent lower than the second half of 2012.
The slowdown of China’s economy caused rents to fall in Beijing, Guangzhou and Shanghai, reports Knight Frank. Indeed, the country’s raft of austerity measures has sparked some uncertainty in the Chinese economy, which in turn has impacted upon business expansions. As a result, rents declined.
Japan’s prime office market also edged down in the second quarter of 2013, despite two previous quarters of strong rental growth. Growth is expected to return in the next 12 months, though, as the country’s aggressive economic policies continue to drive confidence.
Other cities such as Seoul, Singapore and Kuala Lumpur are projected to be at the bottom of their rental cycle, with prime rates remaining stagnant.
Bangkok hotel room rates expected to rise
Bangkok hotel room rates are expected to rise this year.
The number of international passengers disembarking at AOT-managed airports jumped 17.5 per cent year-on-year in the Thailand capital. That growth was driven primarily by Chinese visitors, who grew 105.2 per cent, followed by Russians, who increased 44.3 per cent year-on-year. This growth is predicted by CBRE Thailand to drive up growth in economy hotels – “because Asians would like to save money on accommodation to spend largely on food and shopping”.
Indeed, the trend has also been fuelled by the rise of low cost carriers in Asia.
With Bangkok’s tourist industry still booming, occupancy rates rose 3.8 per cent in the second quarter of 2013 compared to the previous three months, while revenue per room climbed 10.8 per cent quarter-on-quarter.