The central business district in Sydney may experience a more balanced situation for landlords of commercial real estate office property next year, as both rents and capital values should improve, according to Jones Lang LaSalle.
In 2012, the office market has favored tenants, overall. However, in 2013 and 2014, the market will begin its transition, as rents could rise by approximately 5 percent, while capital values may improve by the same valuation, Property Observer reported, citing JLL's Global Market Perspective Third Quarter 2012 report. With this in mind, the Sydney commercial real estate office market would be in the same category as London, Mumbai, Paris and Los Angeles.
The Asia-Pacific region should experience other booms, as well, the report explained. Beijing will likely have the best performing market this year, as rental values could jump 20 percent. In addition, its capital growth rate could rise between 10 and 20 percent this year.
JLL added that Hong Kong and Singapore could experience depressed office rental values, as these may drop by 20 percent this year.