HONG KONG-The Asia Pacific commercial real estate market is cruising at a time the rest of the world is wallowing, in large part because China’s fundamentals, such as high GDP, have led the region, according to a recent 2012 CBRE Market Outlook. In fact, the one worry for these markets is the too-large construction pipeline, a concern not even on the radar in Europe or the United States.

It’s clear that both corporate users and investment will continue to flow into the Asia Pacific market, said Nick Axford, head of Asia Pacific Research for CBRE, in a recent podcast discussion. “While the global uncertainty has created an unfavorable environment across the world, it’s a very different picture in the Pacific,” he said. “As long as the region doesn’t see another serious global setback, the expectations are that most of the local economies are going to see healthy levels of growth in the next year.”

Office supply issues are affecting India, Seoul, Singapore and the secondary markets of China, as developments now under construction and through the next few years will put a strain on vacancy and rent in 2012. In Singapore, for example, the pipeline holds about 10 million square feet of new construction through the next five years. “Class A office will likely see a 10% decline in the next year,” said Petra Blazkova, head of research for Singapore and Southeast Asia, during the podcast. “Class B and below office will likely see somewhat worse declines.”