SINGAPORE (EDGEPROP) - The technology sector is the key driver of office leasing demand in major Asia Pacific cities, and should account for 20% to 25% of office leasing demand in the region in the next five years, highlights Colliers in a report. (See also: Office leasing activity in Asia Pacific on pause in April as occupiers face cash flow uncertainty)

“Asia’s technology giants, in particular, are expanding quickly, and have become a major driver of leasing demand,” it states, adding that “many Asian technology companies, especially Chinese technology firms, have also become very active in investment and development of real estate.”

In 2020 alone, technology companies acquired nearly US$10 billion ($13.5 billion) in Asia Pacific real estate assets.

In the region, cities like Singapore, Beijing, Shanghai, Bengaluru and Shenzhen currently rank as the top five technology centres, offering a balance of infrastructure and talent for occupiers, and are well positioned to deliver future growth and investment opportunities for owners, notes Colliers.

Meanwhile, other cities are developing strengths in specific areas of tech. For instance, Seoul and Hong Kong, in fintech. New centres are also emerging in cities like Hyderabad and Sydney, it notes.

Colliers identifies emerging submarkets in Yangpu in Shanghai, Whitefield and North Bengaluru in Bengaluru, and Sydney’s CBD South, while established technology submarkets in the major Asia Pacific cities include Shangdi in Beijing.

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