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 But experts predict a softening in occupier demand and associated indicators across the region this year.

In the latest issue of the Asia-Pacific Property Digest, Jones Lang LaSalle Leechiu said while occupational demand has been steady, capital markets and investment volumes have been affected.

"Occupier demand held up well in the region's office markets over the first quarter of 2008," Jones Lang LaSalle Asia-Pacific research head Dr Jane Murray said. "Office tenants have a renewed focus on costs, but this is yet to be reflected in headcount reductions. Combined with minimal new supply in most markets in the Asia-Pacific, vacancy levels in the office sector have remained at low, often sub-frictional, levels. Rentals have reached new highs in key financial markets."

The effect of the sub-prime crisis on Asia-Pacific's office markets has varied in degree. A sharp slowing in rental growth is under way in Tokyo; Singapore is seeing the beginnings of a softening in pre-let rates, while Shanghai is bracing itself for a slowdown in demand from its vital financial-services tenants in Pudong.

The office market in Manila, on the other hand, has witnessed strong demand from the business-process outsourcing sector. With the trend on the rise, many corporations have moved from expensive central business districts to cheaper peripheral sites.

Singapore, for example, is seeing strong demand for built-to-suit options in business park locations, driving up rentals in the districts.

Jones Lang LaSalle (Thailand) market head Caroline Murphy said the mass-transit BTS and MRT lines in Bangkok are attracting corporations to move to fringe locations as the occupational costs are 30 to 40 per cent lower than in prime-grade buildings in the central business district.

Meanwhile, buoyant labour-market conditions and solid domestic spending have continued to support the retail sector across the Asia-Pacific. The high-end residential sector has seen strong leasing and sales activity.

Early this year, the region's capital markets felt some impact from the sub-prime crisis. The effect on asset pricing and transaction volumes has been most evident in the region's more mature markets. In Tokyo, Singapore, Sydney and Melbourne, office-capital values appear to have peaked, while a slowing of price growth is likely in Hong Kong.

"As these markets account for the lion's share of investment activity, we expect a decline in overall transaction volumes in Asia-Pacific this year. That said, there is still plenty of equity looking to be placed in real-estate assets by investors less reliant on debt funding and a more general pick-up in investment activity levels is expected toward the end of the year. Another interesting trend is the re-emergence of Japanese investors in developing markets such as China, India and Vietnam," Murray said.

Underpinned by rapidly changing economic and financial environments, the next 12 months promise to be a particularly interesting period for the global and regional property markets. While some softening in occupier demand in Asia-Pacific is likely, the underlying market fundamentals remain in good shape.

"Together with the relatively attractive returns on offer and significant structural changes under way, these will help shore up regional investment activity over the short to medium term," Murray said.