Colliers AsiaOffice Leasing Survey3Q 2012
executive                                        Colliers International is delighted to present the results of our 3Q 2012...
NEW INQUIRY  GROWING AT  SLOWER PACENew Leasing InquiryThe overall level of new office leasing inquiry decreased in 3Q 201...
BANKING AND FINANCE IS THE MOST ACTIVEMost Active Tenant GroupsSimilar to the preceding quarter, the most active office te...
LESS AGGRESSIVE IN EXPANSIONSClients’ Real Estate RequirementsAbout 41.5% of our brokers saw an increase of real estate re...
VENDORS  BECAME  CAUTIOUSVendors’ ExpectationsIn 3Q 2012, over half of the vendors (ie. 54.7%) offered the same level of l...
POSITIVE  EXPECTATIONS  ON RENTAL  GROWTHRental ExpectationsOn a forward-looking basis, fewer brokers (46.2% in 3Q 2012 vs...
methodologyShort questionnaires comprising five key questions had been sent to our office leasing brokers in the Asian reg...
Real Estate RequirementsData is taken from the responses to the question – “In view of your clients’ requirements, what ar...
For further details, please contact:GREATER CHINA                         Taipei, Taiwan                          Lahore, ...
Hanoi, Vietnam                                 New Delhi, India                           Perth, Australia10F, Capital Tow...
www.colliers.comCopyright © 2012 Colliers International.You are receiving this collateral because you either subscribed fo...
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We surveyed our office leasing professionals in Asia in early September 2012. Based on the findings of our Survey, Colliers Asia Office Leasing Market Confidence Index was at 55.1% in 3Q 2012 (2Q 2012: 64.2%), indicating that market participants are holding positive views on market outlook but their confidence is not as strong as previous quarter.

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  1. 1. Colliers AsiaOffice Leasing Survey3Q 2012
  2. 2. executive Colliers International is delighted to present the results of our 3Q 2012 Asia Office Leasing Survey. We surveyed all of our office leasing professionals in Asia through an on-line questionnaire in earlysummary September 2012.Based on the findings of our Survey and the methodology of Diffusion Index (DI), Colliers Asia Office Leasing Market Confidence Index wasat 55.1% in 3Q 2012 (2Q 2012:64.2%), indicating that market participants are holding positive views on market outlook but their confidenceis not as strong as previous quarter.The sub-index of real estate requirements decreased to 60.4% in 3Q 2012 from 78.9% in 2Q 2012. It indicates the office tenants are seekingfor expansion while the pace of expansion was less aggressive. In terms of rental expectations, market expectation is less strong whencompared with 2Q 2012 since the reading of the rental expectations sub-index decreased to 67.0% in 3Q 2012 from 72.2% in 2Q 2012. Colliers Asia Office Leasing Market Confidence Index MAIN-Index 1Q 2012 2Q 2012 3Q 2012 Market Confidence 62.9% 64.2% 55.1% sub-Index 1Q 2012 2Q 2012 3Q 2012 New Leasing Inquiry 52.8% 54.4% 51.4% Real Estate Requirements 79.3% 78.9% 60.4% Vendors’ Expectations 49.4% 51.1% 41.5% Rental Expectations 70.0% 72.2% 67.0% The readings of the Index and Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.Colliers Asia Office Leasing Survey3Q 2012
  3. 3. NEW INQUIRY GROWING AT SLOWER PACENew Leasing InquiryThe overall level of new office leasing inquiry decreased in 3Q 2012. As reported, there were 25.5% of our brokers sayingthe level of inquiry was an increase, up from 23.3% in 2Q 2012. However, 22.6% of our brokers saw a decline in new leasinginquiry (2Q 2012: 14.4%). The diffusion index of clients’ new leasing enquiry was at 51.4% in 3Q 2012, decreased from the54.4% in 2Q 2012. Compared to last quarter, how do you see the level of new leasing inquiries in 3Q 2012? New Leasing Inquiry Sub-Index The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.Colliers Asia Office Leasing Survey3Q 2012
  4. 4. BANKING AND FINANCE IS THE MOST ACTIVEMost Active Tenant GroupsSimilar to the preceding quarter, the most active office tenants groups remained “Banking, Finance, Insurance (FIRE)” and“IT” sectors during 3Q 2012.Breaking down by key business sectors, rise in activity happened in “Banking, Finance, Insurance (FIRE)”, “IT” and“Professional Consultants” sectors. Which of the following tenant groups are the most active in your market?Colliers Asia Office Leasing Survey3Q 2012
  5. 5. LESS AGGRESSIVE IN EXPANSIONSClients’ Real Estate RequirementsAbout 41.5% of our brokers saw an increase of real estate requirements from their clients; the percentage was lower thanthat in 2Q 2012 (i.e. 62.2%). Across the various key markets in the region, 20.8% of our brokers said a contraction of theirclients’ real estate requirements during 3Q 2012, compared with 4.4% in previous quarter.The reading of diffusion index of clients’ real estate requirements was at 60.4% in 3Q 2012 as compared to 78.9% in 2Q2012, suggesting the clients are less aggressive in taking on additional space in 3Q 2012. In view of your clients’ requirements, what are their real estate requirements? Real Estate Requirements Sub-Index The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.Colliers Asia Office Leasing Survey3Q 2012
  6. 6. VENDORS BECAME CAUTIOUSVendors’ ExpectationsIn 3Q 2012, over half of the vendors (ie. 54.7%) offered the same level of leasing incentives as previous quarter. Morevendors (31.1% in 3Q 2012 vs 23.3% in 2Q 2012) were being more generous in offering leasing incentives.The reading of diffusion index of vendors’ expectations was at 41.5% in 3Q 2012. Since it was below the 50%-mark, it signifiedthat vendors generally took a cautious view on the market and were being more generous in offering lease incentives. Looking at leasing incentives (free rent, cash, etc), are landlords in your market : Vendors’ Expectations Sub-Index The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.Colliers Asia Office Leasing Survey3Q 2012
  7. 7. POSITIVE EXPECTATIONS ON RENTAL GROWTHRental ExpectationsOn a forward-looking basis, fewer brokers (46.2% in 3Q 2012 vs 56.7% in 2Q 2012) expected rents to increase over thenext 12 months. Meanwhile, more brokers (41.5% in 3Q 2012 vs 31.1% in 2Q 2012) believed rents will remain stable over thenext 12 months.The reading of diffusion index of rental expectations was at 67.0% in 3Q 2012, decreased from 72.2% in 2Q 2012. Since itwas above the 50%-mark, our brokers remain positive on prospective trend of office rentals in the next 12 months. Over the next 12 months, do you expect rents in your market to: Rental Expectations Sub-Index The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.Colliers Asia Office Leasing Survey3Q 2012
  8. 8. methodologyShort questionnaires comprising five key questions had been sent to our office leasing brokers in the Asian region via an on-line survey platform during the first week of September 2012.Using the technique of * Diffusion Index (DI), the results were used to develop four sub-indices covering (1) New LeasingInquiry, (2) Real Estate Requirements, (3) Vendors’ Expectations and (4) Rental Expectations. After all, Colliers Asia OfficeLeasing Market Confidence Index is a composite index based on the above four diffusion indexes with equal weights. * Diffusion Index (DI) = (P1*1) + (P2*0.5) + (P3*0) P1 = Percentage number of respondents that reported an improvement P2 = Percentage number of respondents that reported no change P3 = Percentage number of respondents that reported a deterioration A reading above 50 percent indicates the market trend is generally improving; below 50 percentage indicates that it is generally declining.The Main IndexColliers Asia Office Leasing Market Confidence Index (“Leasing Confidence Index”) is the main index. It is constructed byusing the methodology of Diffusion Index (DI) and the consolidation of four component sub-indices - New Leasing Inquiry,Real Estate Requirements, Vendors’ Expectations and Rental Expectations. Applying equal weighs to the four sub-indices, theLeasing Confidence Index with reading above 50% indicates the Asia leasing market confidence is general improving. TheIndex indicates the market confidence is deteriorating when it reads below 50%. Colliers Asia Office Leasing Market Confidence Index = (DI1 + DI2 + DI3 + DI4 )/4Four Sub-indicesThe construction of the four sub-indices is based on the each of the following four questions.New Leasing Inquiry IndexData is taken from the responses to the question – “Compared to last quarter, how do you see the level of new leasinginquiries in the current quarter?” P1 = Percentage number of respondents that reported an improvement of inquiries P2 = Percentage number of respondents that reported no change P3 = Percentage number of respondents that reported a deterioration of inquires Diffusion Index (DI1) of New Leasing Inquiry = (P1*1) + (P2*0.5) + (P3*0)This is a measurement of the change of clients’ inquiries during the quarterly period. Based on the methodology of DiffusionIndex, the reading above 50% indicates the level of new leasing inquiries is improving during the quarter, and it is decliningwhen it read below 50%.Colliers Asia Office Leasing Survey3Q 2012
  9. 9. Real Estate RequirementsData is taken from the responses to the question – “In view of your clients’ requirements, what are their real estaterequirements? P1 = Percentage number of respondents that reported an expansion of clients’ requirements P2 = Percentage number of respondents that reported no change P3 = Percentage number of respondents that reported a contraction of clients’ requirements Diffusion Index (DI2) of Real Estate Requirement = (P1*1) + (P2*0.5) + (P3*0)This is a measurement of the change of clients’ requirements. Based on the methodology of Diffusion Index, the reading above50% indicates the level of clients’ requirement is expanding during the quarter, and it is contracting when it read below 50%.Vendors’ ExpectationsData is taken from the responses to the question – “Looking at leasing incentives (free rent, cash, etc), are landlords in yourmarket are being more generous, about the same or being less generous? P1 = Percentage number of respondents that reported landlords are less generous P2 = Percentage number of respondents that reported about the same P3 = Percentage number of respondents that reported landlords are more generous Diffusion Index (DI3) of Vendors’ Expectations = (P1*1) + (P2*0.5) + (P3*0)This is a measurement of vendors’ expectations on the leasing market with reference to the change of lease incentives beingoffered to their tenants. Based on the methodology of Diffusion Index, the reading above 50% indicates vendors’ expectationsare improving during the quarter, but it is contracting when it read below 50%.Rental ExpectationsData is taken from the responses to the question – “Over the next 12 months, do you expect rents in your market to increasequickly, increase slowly, remain fairly flat or decrease slowly? P1 = Percentage number of respondents that reported rents to increase either quickly or slowing in the next 12 months P2 = Percentage number of respondents that reported rents to remain fairly flat in the next 12 months P3 = Percentage number of respondents that reported rents to decrease slowly in the next 12 months Diffusion Index (DI4) of Rental Expectations = (P1*1) + (P2*0.5) + (P3*0)This is a measurement of rental expectations on the leasing market with reference to the read of brokers. Based on themethodology of Diffusion Index, the reading above 50% indicates rental expectations over the next 12 months are positiveduring the quarter, but it is negative when it read below 50%.Colliers Asia Office Leasing Survey3Q 2012
  10. 10. For further details, please contact:GREATER CHINA Taipei, Taiwan Lahore, PakistanBeijing, China 49F TAIPEI 101 TOWER Suite 2, Mezzanine 2, Executive Floors502 Tower W3, Oriental Plaza No. 7 Xin Yi Road Sec 5, Taipei 110 Al-Qadir Heights, Main BoulevardNo 1 East Changan Avenue Tel : 886 2 8101 2000 New Garden Town, Lahore, PakistanDongcheng District Fax : 886 2 8101 2345 Tel : 92 42 3584 3474-6Beijing 100738 Andrew Liu Fax : 92 21 3563 6382Tel : 86 10 8518 1633 Managing Director Ahmed KhanFax : 86 10 8518 1638 andrew.liu@colliers.com Country ManagerAmanda Gao ahmed.khan@colliers.comManaging Director, North China NORTH ASIAamanda.gao@colliers.com Islamabad, Pakistan Seoul, South Korea ONE Constitution Avenue, Adjacent Convention 10F Korea Tourism Organization Bldg. Centre & Diplomatic Enclave Islamabad,Chengdu, China 10 Da-dong PakistanUnit 1504 Yanlord Landmark Jung-gu, Seoul 100-180 Tel : 92 51 834 74331 Renmin South Road Section 2 Tel : 82 2 6740 2000 Fax : 92 51 831 4737Chengdu 610016 Fax : 82 2 318 2015 Waleed MurrawatTel : 86 28 8658 6288 Jay Yun Regional Sales ManagerFax : 86 28 8672 3226 Senior Director & General Manager waleed.murrawat@colliers.comJacky Tsai jay.yun@colliers.comGeneral Managerjacky.tsai@colliers.com Manila, Philippines Tokyo, Japan 10F Tower 2 RCBC Plaza Halifax Building Ayala Avenue, Makati CityGuangzhou, China 3-16-26 Roppongi Philippines1226702 Teem Tower Minato-ku, Tokyo 106-0032 Japan Tel : 63 2 888 9988208 Tianhe Road Tel : 81 3 5563 2111 Fax : 63 2 845 2612Guangzhou 510620 Fax : 81 3 5563 2100 David YoungTel : 86 20 3819 3888 James Fink Managing DirectorFax : 86 20 3819 3899 Senior Managing Director david.a.young@colliers.comEric Lam james.fink@colliers.co.jpManaging Directoreric.lam@colliers.com Singapore SOUTH EAST ASIA 1 Raffles PlaceShanghai, China #45-00 One Raffles Place Jakarta, Indonesia16F Hong Kong New World Tower Singapore 048616 10F and 14F World Trade Centre300 Huaihai Zhong Road Tel : 65 6223 2323 Jl Jenderal SudirmanShanghai 200021 Fax : 65 6222 4901 Kav 29-31 Jakarta 12920Tel : 86 21 6141 3688 Dennis Yeo Tel : 62 21 521 1400Fax : 86 21 6141 3699 Managing Director Fax : 62 21 521 1411Lina Wong Singapore & Industrial Services | Asia Mike BroomellManaging Director dennis.yeo@colliers.com Managing DirectorEast and South West China mike.broomell@colliers.comInvestment Services, China Bangkok, Thailandlina.wong@colliers.com 17/F Ploenchit Center Kuala Lumpur, Malaysia 2 Sukhumvit Road c/o Mark Lampard*Hong Kong, HKSAR Klongtoey, Bangkok 10110 Managing Director5701 Central Plaza Tel : 66 2 656 7000 Corporate Solutions | Asia Pacific18 Harbour Road Fax : 66 2 656 7111 Te : 65 6531 8601Wanchai, Hong Hong Simon Landy Fax : 65 6557 0649Company Licence No: C-006052 Executive Chairman mark.lampard@colliers.comTel : 852 2828 9888 simon.landy@colliers.com * Based in SingaporeFax : 852 2828 9899Richard Kirke (E-279867) Ho Chi Minh City, Vietnam Karachi, PakistanManaging Director Ho Chi Minh City, Vietnam Suite 2-A, level 2, Harbour Houserichard.kirke@colliers.com 7F Bitexco Building 37-A, Lalazar AvenuePiers Brunner (E-183614) 19-25 Nguyen Hue Street Beach Hotel Road, Off. M.T Khan RoadChief Executive Officer - Asia District 1, Ho Chi Minh City, Vietnam Karachi, Pakistanpiers.brunner@colliers.com Tel : 84 8 827 5665 Tel : 92 21 3561 2550-2 Fax : 84 8 827 5667 Fax : 92 21 3563 6382 Peter Dinning Mohammed Yasir Qidwai General Director Senior Manager, Corporate Solutions & peter.dinning@colliers.com Research research.khi@colliers.comColliers Asia Office Leasing Survey www.colliers.com
  11. 11. Hanoi, Vietnam New Delhi, India Perth, Australia10F, Capital Tower Building 204/205, 2nd Floor Level 19, 140 St Georges Terrace109 Tran Hung Dao Street Kanchenjunga Building Perth WA 6000Hoan Kiem District, Hanoi, Vietnam 18 Barakhamba Road Tel : 61 8 9261 6666Tel : 84 4 3941 3277 New Delhi 110 001 Fax : 61 8 9261 6665Fax : 84 4 3941 3278 Tel : 91 11 4360 7500 K. Imran MohiuddinDane Moodie Fax : 91 11 2335 6624 State Chief ExecutiveManaging Director Ajay Rakheja imran.mohiuddin@colliers.comdane.moodie@colliers.com Office Director ajay.rakheja@colliers.com Sydney, Australia Level 12, Grosvenor PlaceINDIA Pune, India 225 George StreetBengaluru, India Bramha Luxury Hotels Ltd. Sydney NSW 2000Prestige Garnet, Level 2, Unit No. 201/202 (Le Meridien Pune) Tel : 61 2 9257 022236 Ulsoor Road, Bengaluru 560 042 101 R.B.M. Road Fax : 61 2 9251 3297Tel : 91 80 4079 5500 Pune 411 001, Maharashtra Malcom TysonFax : 91 80 4112 3131 Tel : 91 20 4120 6435 State Chief ExecutiveGoutam Chakraborty Fax : 91 20 4120 6434 malcom.tyson@colliers.comOffice Director Suresh Castellinogoutam.chakraborty@colliers.com Office Director Auckland, New Zealand suresh.castellino@colliers.com SAP Tower, Level 27Chennai, India 151 Queen StreetUnit 1C, 1st Floor, Heavitree Complex Auckland 114023 Spurtank Road, Chetpet AUSTRALASIA Tel : 64 9 358 1888Chennai 600 031 Adelaide, Australia Fax : 64 9 358 1999Tel : 91 44 2836 1064 Level 10, 99 Gawler Place Mark SynnottFax : 91 44 2836 1377 Adelaide SA 5000 Chief Executive Officer, New ZealandKaushik Reddy Tel : 61 8 8305 8888 mark.synnott@colliers.comOffice Director Fax : 61 8 8231 7712kaushik.reddy@colliers.com James Young Wellington, New Zealand State Chief Executive Level 10, 36 Customhouse QuayGurgaon, India james.young@colliers.com Wellington 60111st Floor, Technopolis Building Tel : 64 4 473 4413DLF Golf Course Brisbane, Australia Fax : 64 4 499 1550 (Agency)Main Sector Road Level 20 Central Plaza One : 64 4 470 3902 (Valuation)Sector 54, Gurgaon 122 002 345 Queen Street Richard FindlayTel : 91 124 4375807 Brisbane QLD 4000 Managing DirectorFax : 91 124 4375806 Tel : 07 3229 1233 richard.findlay@colliers.comAjay Rakheja Fax : 07 3120 4555Office Director Simon Beirneajay.rakheja@colliers.com State Chief Executive simon.beirne@colliers.comKolkata, IndiaInfinity Business Centre, Infinity Benchmark Canberra, AustraliaLevel 18, Room No 13, Plot G - 1 Ground floor, 21-23 Marcus Clarke StreetBlock EP & GP, Sector V, Salt Lake Canberra ACT 2601Kolkata 700 091, West Bengal Tel : 61 2 6257 2121Tel : 91 33 2357 6501 Fax : 61 2 6257 2937Fax : 91 33 2357 6502 Paul PowderlySoumya Mukherjee State Chief ExecutiveOffice Director paul.powderly@colliers.comsoumya.mukherjee@colliers.com Melbourne, AustraliaMumbai, India Level 32 367 Collins Street31-A, 3rd Floors, Film Centre Melbourne VIC 300068 Tardeo Road Tel : 61 3 9629 8888Mumbai 400 034 Fax : 61 3 9629 8549Tel : 91 22 4050 4500 John MarascoFax : 91 22 2351 4272 State Chief ExecutivePrabhu Raghavendra john.marasco@colliers.comOffice Directorprabhu.raghavendra@colliers.comGeorge McKaySouth Asia DirectorOffice & Integrated Servicesgeorge.mckay@colliers.comColliers Asia Office Leasing Survey www.colliers.com
  12. 12. www.colliers.comCopyright © 2012 Colliers International.You are receiving this collateral because you either subscribed for it or expressed your interest to receive it at some point to Colliers International. Ifyou do not wish to receive future communications from us, please contact Colliers International by email at unsubscribe.hongkong@colliers.com withyour name and item to unsubscribe.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy,we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to actingon any of the material contained in this report.

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