Commercial property

Occupier demand for commercial property rose further in

December with rental growth firming to 3.6%, up from

2.6% at the start of the year. Rental growth during 2006

has been mostly driven by the office market where rents

have climbed to 6.2%, up from 1.1% in January. Industrial

rental growth was relatively flat in 2006 despite

stronger occupier demand, as rising export orders have

boosted manufacturing activity.