Office rental growth in Asia flat/negative except China: Cushman & Wakefield

HONG KONG (AFX-ASIA) - Office rental growth is expected to be flat or negative in most Asian cities except Shanghai and Beijing, Cushman & Wakefield said.	    In a statement, the real estate company said it is projecting flat growth for prime office rentals in Hong Kong and Singapore this year compared to 20 pct and 15 pct growth forecasts made in December last year.	    Tokyo is expected to see a 5 pct contraction in office rental growth from an initial flat growth projection, while Mumbai is expected to see a 5.0 pct growth from the initial 15 pct.	    Seoul will see a 15 pct contraction in office rental growth from an initial forecast of a 10 pct contraction, the company said.	    Only Shanghai and Beijing are expected to see 25 pct and 10 pct growth respectively from an initial forecast of 15 pct and 25 pct.	    Cushman & Wakefield said prime effective rents in Hong Kong nearly doubled in 2000, while Beijing and Singapore appreciated by 60 and 30 pct respectively.	    In addition, Hong Kong and Singapore saw office space vacancy cut significantly last year.	    "The rapid turnaround in worldwide economic conditions since the end of last year has considerably weakened office space demand in Asia," chief executive officer Michael Thompson said.	    Shanghai however is expected to see higher growth due to accelerating foreign direct investment and robust local economic growth.	    In Hong Kong, prime rents fell by 3.2 pct in the first quarter, and there has been a noticeable increase in tenants seeking to sub-lease their existing space, the company said. 

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