Asia pacific office market overview 3Q 2012

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Colliers International Research has just released the Asia Pac Office Market Overview 3Q 2012. The report provides real estate office market trends in Asia Pac region. The office sector in the Asia …

Colliers International Research has just released the Asia Pac Office Market Overview 3Q 2012. The report provides real estate office market trends in Asia Pac region. The office sector in the Asia Pacific region continued to be challenging in 3Q 2012 with a slowing economic growth and the unresolved European debt crisis; market participants are holding positive views on market outlook but confidence is not as strong as the previous quarter. Looking ahead, the prospective trend of office rents in most cities will remain positive in the next 12 months, despite a substantial supply projected to enter the market in individual cities.

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  • 1. Asia PacificOffice Market Overview3Q 2012Accelerating success.
  • 2. table of contentsasia pacific office market overview | 3q 2012Regional Overview 3Greater China 4-6Beijing, China.....................................................................................................................................4Chengdu, China..................................................................................................................................4Guangzhou, China..............................................................................................................................5Shanghai, China.................................................................................................................................5Hong Kong SAR, China......................................................................................................................6Taipei, Taiwan....................................................................................................................................6North Asia 7Seoul, South Korea............................................................................................................................ 7Tokyo, Japan...................................................................................................................................... 7Southeast Asia 8-11Jakarta, Indonesia..............................................................................................................................8Kuala Lumpur, Malaysia.....................................................................................................................8Karachi, Pakistan...............................................................................................................................9Manila, Philippines.............................................................................................................................9Singapore......................................................................................................................................... 10Bangkok, Thailand............................................................................................................................ 10Hanoi, Vietnam.................................................................................................................................. 11Ho Chi Minh City, Vietnam................................................................................................................ 11 India 12-13Bengaluru (Bangalore).................................................................................................................... 12Chennai............................................................................................................................................ 12Mumbai............................................................................................................................................. 13 New Delhi......................................................................................................................................... 13 Australasia 14-17Adelaide, Australia........................................................................................................................... 14Brisbane, Australia.......................................................................................................................... 14Canberra, Australia.......................................................................................................................... 15Melbourne, Australia........................................................................................................................ 15Perth, Australia................................................................................................................................ 16Sydney, Australia............................................................................................................................. 16Auckland, New Zealand....................................................................................................................17Wellington, New Zealand..................................................................................................................17Prime Office Supply, Rents and Net Take-up 18-19Trends & Forecasts 20-21Definition & Terminology 22-23Contacts 24-25
  • 3. regional overviewEconomic OverviewThe office sector in the Asia Pacific region continued to be challenging in 3Q 2012 witha slowing economic growth and the unresolved European debt crisis. Although overallmarket sentiment was weakening, it remained positive in 3Q 2012. Following two roundsof quantitative easing (QE1 and QE2), the US Federal Reserve announced a third round(QE3) on 13 September 2012. With the US Federal Reserve instigating the third round ofbond purchases, commodity prices have been pushed up and this has spilled over to realestate costs and pricing.Based on the findings of Colliers Asia Office Leasing Survey for 3Q 2012, market participantsare holding positive views on market outlook but confidence is not as strong as the previousquarter.Leasing MarketThe overall level of new office leasing inquiries decreased in 3Q 2012. However vacancyrates and rentals remained strong throughout the quarter due to the limited supply of officespace. Firms in the IT/communication and Finance industries continued to be the majorsource of leasing demand in 3Q 2012.Most cities in Australia and China continued to exhibit positive rental growth. The averagerent increased 2.3% QoQ during 3Q 2012. Individual markets like Guangzhou, Hanoi, HoChi Minh City, New Delhi and Singapore on the other hand, are expected to face growingdownward pressure for the coming months despite the solid demand for Grade A officespace. The Colliers Asia Office leasing Survey for 3Q 2012 found that most tenants areseeking expansion however the pace will be less aggressive.Sales MarketOn the sales front, average transacted office prices edged up by 2.1% QoQ. The office marketbecame more active compared to the first half of 2012. This is mainly due to high qualityprojects receiving encouraging sales performance in the last quarter, especially in Auckland,Sydney, Perth and Brisbane which all saw an increase in sales activities. Institutions andforeign investors remained active to source quality office developments in prime locations.Market OutlookMarket sentiment remained positive in 3Q 2012 and market players are holding an optimisticview on the market outlook. Therefore looking ahead, the prospective trend of office rents inmost cities will remain positive in the next 12 months, despite a substantial supply projectedto enter the market in individual cities.With the expectation of the low interest rate trend to continue and the Chinese governmentto continue stimulate growth, investment in office real estate in the region is expected toremain strong. Colliers International | p. 3
  • 4. asia pacific office market overview | 3Q 2012 CHINA BEIJING OFFICE SUPPLY, TAKE-UP & Beijing VACANCY RATE • Supply remained tight in Beijing’s Grade A office property market during 3Q12, with the 1.00 25.0% total stock resting at 5.17 million sq m, due to a lack of new completions for the third 0.80 20.0% consecutive quarter. • Overall, demand remained strong throughout the quarter. However, due to the limited Vacancy Rate 15.0% Million sq m 0.60 0.40 10.0% letting space available on the market, leasing transaction volume continued to decrease. 0.20 5.0% Net absorption of the Grade A office property market in 3Q12 totalled 1,888 sq m, down 85.6% QoQ and the overall average vacancy rate edged down by 0.04 percentage points 0.00 0.0% 2009 2010 2011 2012 F 2013 F to 3.51%. Supply Take-up Vacancy Rate • Rentals continued with its upward trend during this quarter, with the average net effective rent growing by 7.47% QoQ to RMB325.1 per sq m per month. The expansion of rental growth, was mostly a result of the epidemic of reduced or even withdrawal of rent free BEIJING OFFICE CAPITAL AND RENTAL VALUES periods provided by most landlords. 800.00 80,000 • Office investment market activity increased in 3Q 2012. A domestic B2B enterprise 700.00 70,000 600.00 60,000 acquired a 57,000 sq m Grade A office building in the Wangjing area for owner-occupancy. 500.00 50,000 Moreover, a private equity investor acquired four blocks of Grade A office buildings or Capital Values Rentals 400.00 40,000 a total of 26,000 sq m for investment purpose. 300.00 30,000 200.00 20,000 major transactions 100.00 10,000 0.00 0 Building Lease (L) / Tenant / Purchaser Area 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 3Q 2013 F 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Sale (S) (sq ft) Parkview Green L Roche 71,000 Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) Gateway Plaza L Nanyang Commercial Bank NCB 48,400 Oriental Plaza L Cheung Kong Graduate School 32,300 of Business SK Tower L Black & Veatch 16,100 Tengda building L China State Construction 16,100 CHENGDU OFFICE SUPPLY, TAKE-UP & chengdu VACANCY RATE • Raffles City, the Grade A office building comprising 74,024 sq m, was introduced in 0.50 50.0% September, thus boosting the total stock of Grade A office space in Chengdu to 718,922 sq m. 0.40 40.0% • The average rent decreased 0.38% QoQ to RMB137.28 per sq m per month. The overall Vacancy Rate 0.30 30.0% vacancy rate edged 3.75% QoQ, to 24.42% in 3Q 2012. Million sq m 0.20 20.0% • The average vacancy rate of the Grade A office buildings remained steady, signifying 0.10 10.0% the solid demand for Grade A office space. 0.00 0.0% 2009 2010 2011 2012 F 2013 F • In view of the current supply cycle and the continued slowdown of economic environment, Supply Take-up Vacancy Rate the local office market is expected to face growing downward pressure over the coming months. CHENGDU OFFICE CAPITAL AND RENTAL VALUES major transactions 225.00 22,500 Building Lease (L) / Tenant / Purchaser Area 200.00 20,000 Sale (S) (sq ft) 175.00 17,500 Western Tower L Ganzi Shangshan Water 12,900 150.00 15,000 Capital Values 125.00 12,500 Aerospace Technology Plaza L Starbucks Coffee 10,800 Rentals 100.00 10,000 75.00 7,500 Square One L Kasikorn Bank of Thailand 7,500 50.00 5,000 Square One L Jintai International Investment 9,700 25.00 2,500 0.00 0 China Overseas International L Chengdu Runfu Properties 12,200 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Centre China Overseas International L Yusen Agriculture 9,900 Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) Centrep. 4 | Colliers International
  • 5. asia pacific office market overview | 3Q 2012CHINA GUANGZHOU OFFICE SUPPLY, TAKE-UP & guangzhou VACANCY RATE • Evergrande Center and Poly V Plaza in Pearl River New City and Lavendome Hui in 2.00 40.0% Pazhou, were launched in 3Q 2012, providing a total of 266,627 sq m new stock. The total stock of Grade A office grew to 2.80 million sq m. The overall vacancy rate increased 1.50 30.0% 1.6 percentage points to 22.2% in 3Q 2012. Vacancy RateMillion sq m 1.00 20.0% • The average rental recorded RMB157.6 per sq m per month, down 2.3% Q-o-Q, due to 0.50 10.0% the weak demand and large supply. Enterprises from IT/communication, pharmaceuticals and professional services were the major source of leasing demand in 3Q 2012. 0.00 0.0% 2009 2010 2011 2012 F 2013 F Supply Take-up Vacancy Rate • High quality projects such as R&F Yingkai Plaza and Bravo Plaza received encouraging sales performance. The achievable price of R&F Yingkai Plaza reached about RMB50,000 per sq m in 3Q 2012. The average sales price of Guangzhou Grade A office further edged up by 1.61% QoQ to RMB32,586 per sq m. GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES 36,000 180.00 major transactions 160.00 32,000 28,000 140.00 Building Lease (L) / Tenant / Purchaser Area 120.00 24,000 Sale (S) (sq ft) Capital Values 100.00 20,000Rentals 80.00 16,000 International Financial L Alcatel Lucent 16,000 60.00 12,000 40.00 8,000 Center (IFC) 20.00 4,000 China International Center L Guangzhou City Telecom 23,500 0 0.00 Centra Plaza L Qianhai Life Insurance 13,600 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Leatop Plaza L Lukadilong Clothes 5,400 Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) R&F Yingkai Plaza S ANGLEE 51,700 SHANGHAI OFFICE SUPPLY, TAKE-UP & shanghai VACANCY RATE • Shanghai remained the worlds sixth-most competitive financial center in 2012, according 1.20 20.0% to Xinhua-Dow Jones International Financial Centers Development Index released in August 2012. 0.90 15.0% • Five new projects were launched in 3Q 2012, adding a total of approximately 330,256 Vacancy RateMillion sq m 0.60 10.0% sq m new supply to Shanghai’s Grade A office market. 0.30 5.0% • Average Grade A office rental rates increased 1.2% QoQ to RMB 8.7 per square meter 0.00 2009 2010 2011 2012 F 2013 F 0.0% per day. Supply Take-up Vacancy Rate • In 3Q 2012, the overall vacancy rate increased from the previous quarter’s 6.7 to 9.5%. Among the six major central business districts, Jing’an recorded the lowest vacancy rates, at 5.3%. Zhuyuan and Changning posted the highest vacancy rates, at 14.9% and SHANGHAI OFFICE CAPITAL AND RENTAL VALUES 14.2% respectively. 18.00 72,000 15.00 60,000 major transactions 12.00 48,000 Building Lease (L) / Tenant / Purchaser Area Capital ValuesRentals 9.00 36,000 Sale (S) (sq ft) 6.00 24,000 International Commerce Center L Adidas 187,300 3.00 12,000 Kerry Parkside L Danone Group 76,400 0.00 0 LAvenue L 3M 72,000 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 3Q 2013 F 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Jin Mao Tower L MWE China Law Office 22,900 Rentals (RMB / sq m / Day) Capital Values (RMB / sq m) CITIC Square L Nike China 16,800 Colliers International | p. 5
  • 6. asia pacific office market overview | 3Q 2012 h o ng ko ng HONG KONG OFFICE SUPPLY, TAKE-UP & hong kong VACANCY RATE • In view of uncertain economic outlook, individual large tenants downsized their premises 4.50 9.0% but still prefer to stay in the same district. The overall net take up fell 80% QoQ to 111,000 4.00 8.0% 3.50 7.0% sq ft in 3Q 2012, which reflects the slowdown in leasing activity especially in Central/ 3.00 6.0% Admiralty. Vacancy Rate Million sq ft 2.50 5.0% 2.00 4.0% • The overall Grade A office rent rebounded in 3Q 2012 after falling for three consecutive 1.50 3.0% 1.00 2.0% months, rising a solid 1.5% QoQ. Meanwhile, the average Grade A office rent in Cetral/ 0.50 1.0% Admiralty showed its first quarterly gain since 3Q 2011, rising 0.8% QoQ in 3Q 2012 to 0.00 0.0% 2009 2010 2011 2012 F 2013 F HK$ 98.8 per sq ft. Supply Take-up Vacancy Rate • The outlook for the Hong Kong Grade A office market has been brighten up due to the positive market sentiment and increased leasing enquires. On the back of scare supply and positive demand, overall Grade A office rents are projected to climb 4% over the HONG KONG OFFICE CAPITAL next 12 months. AND RENTAL VALUES 175.00 35,000 major transactions 150.00 30,000 Building Lease (L) / Tenant / Purchaser Area 125.00 25,000 Sale (S) (sq ft) Capital Values 100.00 20,000 Rentals China Resources Building L Regus 10,300 75.00 15,000 50.00 10,000 Grand Century Place Tower 1 L Covidien 12,800 25.00 5,000 Exchange Tower L Parsons Brinckerhoff (Asia) Ltd 12,200 0.00 0 4 floors, Kowloon Commercial S China Shipping Logistics 105,200 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Centre Tower B 5 floors, Kowloon Commercial S The Open University of Hong 124,800 Rentals (HK$ / sq ft / Month) Capital Values (HK$ / sq ft) Centre Tower B Kong Park Building S Billion Mart Dec Ltd 145,000 ta i wan TAIPEI OFFICE SUPPLY, TAKE-UP & Taipei VACANCY RATE • With a net take-up of Grade A office at 3,111 ping in 3Q 2012, vacancy rate was down 40,000 40.0% 58 basis point to 9.42% - the lowest point since 1Q 2009. 35,000 35.0% 30,000 30.0% • The total net take up of Hsin-Yi district amounted to 2,160 ping in 3Q 2012. The key 25,000 25.0% contributor was Shin Kong Bank who leased 2,400 ping in Shin Kong Xin Yi Financial Vacancy Rate Ping 20,000 20.0% 15,000 15.0% Building. 10,000 10.0% 5,000 5.0% • Thanks to the net take up of 680 ping at the Pacific Century Tower in West district, the 0 2009 2010 2011 2012 F 2013 F 0.0% average vacancy in the district decreased 1.45 percentage points to 4.92%. -5,000 -5.0% Supply Take-up Vacancy Rate • The average effective Grade A office rent edged up mildly to NT$ 2,441 per ping per month in 3Q 2012. The effective rent of Hsin-Yi district was NT$ 2,824 per ping per month, an increase of 0.32% QoQ. However, MS-TN district fell 0.30% to NT$ 2,247 TAIPEI OFFICE CAPITAL AND RENTAL VALUES per ping per month. 3,500 1,400,000 major transactions 3,000 1,200,000 2,500 1,000,000 Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) Capital Values 2,000 800,000 Rentals 1,500 600,000 Prince Financial Building S Cathay Life Insurance Co. 262,000 1,000 400,000 CEC Tun Nan Building L 3M Taiwan Ltd. 113,500 500 200,000 Taipei 101 Tower L Bayer Taiwan Ltd. 69,900 0 0 Shin Kong Xin Yi Financial L Kraton Polymers International 10,700 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Building Limited Rentals (NT$ / Ping / Month) Capital Values (NT$ / Ping) Cathay Xin-Yi Trading Center L China Construction Bank 10,100 Exchange Square Two L Bates Asia Pacific Taiwan Ltd. 9,200 Taipei 101 Tower L Christian Dior Taiwan Ltd 8,900p. 6 | Colliers International
  • 7. asia pacific office market overview | 3Q 2012s o u t h ko r e a SEOUL OFFICE SUPPLY, TAKE-UP & seoul VACANCY RATE • During 3Q 2012, a total of two buildings covering 122,147 sq m came in market including 800,000 16.0% Two IFC in YBD of 78,031 sq m. The launch of State Gwanghwamun Building of 40,972 sq m is delayed to next quarter. 700,000 14.0% 600,000 12.0% 500,000 10.0% • The average rent increased 8.85% QoQ in 3Q 2012 to KRW 24,103 per sq mper month. Vacancy Ratesq m 400,000 8.0% 300,000 6.0% The YBD showed a rental increase of 2.15% due to completion of A+ office building Two 200,000 4.0% IFC. 100,000 2.0% 0 2009 2010 2011 2012 F 2013 F 0.0% • The overall vacancy rate rose 0.92 percentage points QoQ in 3Q 2012 to 7.88%. Despite -100,000 -2.0% Supply Take-up Vacancy Rate the large new space from Two IFC, the vacancy rate in YBD witnessed marginal increase of 0.50 percent points QoQ owing to the successful take-up in One IFC. • The net take-up in 3Q 2012 softened from the previous quarter to 44,956 sq m. Net SEOUL OFFICE CAPITAL AND RENTAL VALUES take-up increased in the GBD and YBD, but decreased in the CBD. 40,000 8,000,000 35,000 7,000,000 major transactions 30,000 6,000,000 25,000 5,000,000 Building Lease (L) / Tenant / Purchaser Area Capital ValuesRentals 20,000 4,000,000 Sale (S) (sq ft) 15,000 3,000,000 Rinnai Korea Bldg S Private 186,600 10,000 2,000,000 5,000 1,000,000 CJ E&M Bundang Building S Gongpyung Savings Bank 73,700 0 0 Junghak Building S Vestas Investment Manage- 902,200 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014 F ment Rentals (Won / sq m / Month) Capital Values (Won / sq m) Hyundai Group Building S KORAMCO REITS & Trust 564,800 Asia Tower L GS Construction 53,400 Banpo Building L Sanofi Aventis 80,600 IFC L Citrix 29,500japan TOKYO OFFICE SUPPLY, TAKE-UP & tokyo VACANCY RATE • New supply declines after significant completion during the first half of 2012. 240,000 12.0% 200,000 10.0% • Vacancy increase has slowed and may begin to decline modestly in the near term. 160,000 8.0% • Corporate restructuring continues keeping rents low and vacancy high. Vacancy RateTsubo 120,000 6.0% 80,000 4.0% • Relocation to higher grade and more efficient space continues. 40,000 2.0% • Value for money, cost reduction and workplace modernization are key factors. 0 0.0% 2009 2010 2011 2012 F 2013 F Supply Take-up Vacancy Rate • Some rent stabilization on an individual building basis, but overall market remains weak. TOKYO OFFICE CAPITAL AND RENTAL VALUES major transactions 50,000 10,000,000 Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) 40,000 8,000,000 Otemachi Financial City L Morgan Stanley MUFG 248,500 Capital Values 30,000 6,000,000 North Tower SecuritiesRentals 20,000 4,000,000 Mita Bellju L Japan Marine United 63,900 10,000 2,000,000 Lunesite Tower L TDK 63,900 Roppongi First Building L Nuclear Regulatory Agency 71,000 0 0 Shinjuku Eastside Square L Citibank Japan 177,500 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014 F Rentals (Yen / Tsubo / Month) Capital Values (Yen / Tsubo) Colliers International | p. 7
  • 8. asia pacific office market overview | 3Q 2012 i nd o n es i a JAKARTA OFFICE SUPPLY, TAKE-UP & jakarta VACANCY RATE • The authority of Jakarta province issued a new environmental policy. As such, more 500,000 20.0% new buildings in compliance with environmental guidelines can be seen in the future. 400,000 16.0% • The absorption level is expected to remain high as the rental rates are anticipated to climb further due to a scarce supply of good quality office space. Vacancy Rate 300,000 12.0% sq m 200,000 8.0% • Up to 3Q 2012, the mining, oil & gas related companies and other business sectors like 100,000 4.0% consumer goods, agribusiness, insurance and finance related industries continued to 0 2009 2010 2011 2012 F 2013 F 0.0% expand their business operation. Supply Take-up Vacancy Rate • With the increasing office demand from business expansion, competition for office space can be expected for 2013. JAKARTA OFFICE CAPITAL AND RENTAL VALUES 270,000 45,000,000 major transactions 240,000 40,000,000 210,000 35,000,000 Building Lease (L) / Tenant / Purchaser Area 180,000 30,000,000 Sale (S) (sq ft) Capital Values 25,000,000 150,000 The East L Net Mediatama Indonesia 54,800 Rentals 120,000 20,000,000 90,000 15,000,000 Eighty 8 L Prudential 53,800 60,000 10,000,000 Eighty 8 L Huawei 32,300 30,000 5,000,000 Menara 165 L PT. Rajawali Swiber Perkasa 19,400 0 0 Eighty 8 L Regus 14,000 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014F Menara 165 L PT. Feni Haltim 13,000 Menara Mulia L Trijaya Pratama Futures 12,900 Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m) m a l ays i a KUALA LUMPUR OFFICE SUPPLY, TAKE-UP kual a lumpur & VACANCY RATE • New completion in 3Q 2012 include Menara Darulssalam and Menara Binjai and 3.50 35.0% contributed a total of 564,000 sq ft of net lettable area 3.00 30.0% 2.50 25.0% • Tun Razak Exchange (TRX) was launched in July to promote Malaysia as an international Vacancy Rate financial hub and to attract foreign investment. It is estimated to generate a gross Million sq ft 2.00 20.0% 1.50 15.0% development value of RM26 billion. 1.00 10.0% 0.50 5.0% • TRX-status companies will be given 10 years income tax exemption, stamp duty exemption, 0.00 2009 2010 2011 2012 F 2013 F 0.0% industrial building allowance and accelerated capital allowance for TRX Marquee-status Supply Take-up Vacancy Rate companies while tax exemption is also available for property developers • Although the office market was generally subdued, it is noted that tenants have been taking the opportunity to relocate and / or expand to better quality buildings within city KUALA LUMPUR OFFICE CAPITAL AND centre. RENTAL VALUES 12.00 1,200 major transactions 10.00 1,000 8.00 800 Building Lease (L) / Tenant / Purchaser Area Capital Values Sale (S) (sq ft) Rentals 6.00 600 Menara MBF L BostonWeb College of 12,400 4.00 400 2.00 200 Technology & Management Hampshire Place L Tioman Drilling Co Sdn Bhd 70,800 0.00 0 Menara Prestige L KFH (Malaysia) Berhad 133,100 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014F Data sourced from C H Williams Talhar & Wong Sdn Bhd Rentals (Ringgit / sq ft / Month) Capital Values (Ringgit / sq ft)p. 8 | Colliers International
  • 9. asia pacific office market overview | 3Q 2012pa k i stan KARACHI OFFICE SUPPLY, TAKE-UP & Karachi VACANCY RATE • The office market is not expected to revive over the medium term due to the political 1.60 80.0% scenario in the country. As a result, many companies have adopted a cautious approach 1.40 70.0% in the office market. 1.20 60.0% 1.00 50.0% • No major office leasing deals were concluded in 3Q 2012. The office sector has been Vacancy RateMillion sq ft 0.80 40.0% 0.60 30.0% stable and showed no signs of demand growth. 0.40 20.0% 0.20 10.0% • Asking rent in the recently launched Bahria Complex IV has been reduced by nearly 40% 0.00 2009 2010 2011 2012 F 2013 F 0.0% in order to attract tenants. Supply Take-up Vacancy Rate KARACHI OFFICE CAPITAL AND RENTAL VALUES 160 16,000 140 14,000 120 12,000 100 10,000 Capital ValuesRentals 80 8,000 60 6,000 40 4,000 20 2,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 1Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014F Rentals (Rupee/ sq ft / Year) Capital Values (Rupee / sq ft) ph i l i pp i n es MANILA OFFICE SUPPLY, TAKE-UP & manil a VACANCY RATE • The Grade A office stock in Makati CBD reached 922,944 sq m with Zuellig Building 120,000 12.0% (57,000 sq m) completed in 3Q 2012. In 2013, Alphaland Makati Tower and V Tower will 100,000 10.0% be completed, thus adding about 61,400 sq m new space to the total stock. 80,000 8.0% Vacancy Rate 60,000 6.0% • Amongst the various sub-markets, Makati CBD remains the preferred office location bysq m 40,000 4.0% tenants. In 3Q 2012, the overall vacancy rate increased by 4.28% due to the inclusion 20,000 2.0% of Zuellig Building. However, it is forecast to taper off to 3.2% by late 2012. 0 0.0% 2009 2010 2011 2012 F 2013 F • Average prime rental rate was at P755 per sq m per month in 3Q 2012. It is projected -2.0% to increase above P800 per sq m by 2Q 2013 due to the limited supply of office space. -20,000 Supply Take-up Vacancy Rate MANILA OFFICE CAPITAL AND RENTAL VALUES major transactions Building Lease (L) / Tenant / Purchaser Area 1,200 120,000 Sale (S) (sq ft) 1,000 100,000 Aseana One L Seven Tall Trees Events, Inc. 62,400 800 80,000 Q-Plaza L Results Manila 25,800 Capital ValuesRentals 600 60,000 Science Hub 2 L Factset Philippines Inc. 22,900 400 40,000 Net Cube Bonifacio L Shore Solutions Inc. 12,100 200 20,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 1Q 2013 F 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014F Rentals (Peso / sq m / Month) Capital Values (Peso / sq m) Colliers International | p. 9
  • 10. asia pacific office market overview | 3Q 2012 s i ngapo r e SINGAPORE OFFICE SUPPLY, TAKE-UP & singapore VACANCY RATE • The rent of Grade A office buildings in the CBD continued to decline under the slowing 2.50 25.0% global economy in 3Q 2012. Nonetheless, the average rent decline slowed for the second 2.00 20.0% consecutive quarter due to an increasing number of foreign companies setting up entities in Singapore and existing companies relocating to higher quality office space. Vacancy Rate 1.50 15.0% Million sq ft 1.00 10.0% • The average occupancy rate of Grade A office in the CBD increased from 92.0% in 2Q 0.50 5.0% 2012 to 93.1% in 3Q 2012, which is the highest level in the last five consecutive quarters. 0.00 2009 2010 2011 2012 F 2013 F 0.0% • Supported by a stronger occupancy rate, the drop in rents slowed marginally to 1.0% Supply Take-up Vacancy Rate QoQ in 3Q 2012, from 1.1% QoQ in 2Q 2012. By the end of September 2012, monthly gross rents for CBD Grade A office space averaged at S$8.37 per sq ft. • With the long-running Eurozone debt crisis and the risk of an office supply overhang, SINGAPORE OFFICE CAPITAL AND office rents in the CBD are expected to continue on a downtrend for the rest of 2012. RENTAL VALUES 30.00 3,000 25.00 2,500 major transactions 20.00 2,000 Capital Values Building Lease (L) / Tenant / Purchaser Area Rentals 15.00 1,500 Sale (S) (sq ft) 10.00 1,000 Marina Bay Financial Centre L Goldin 16,000 5.00 500 Tower 3 0.00 0 Marina Bay Financial Centre L Lego 20,000 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014F Tower 3 Ocean Financial Centre L Freshfields 8,300 Rentals (Singapore$/ sq ft / Month) Capital Values (Singapore$ / sq ft) One Raffles Place Tower 2 L Virgin Active 33,000 t ha i l and bangkok BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE • In 3Q 2012, many international companies have been looking for Grade A office space 120,000 24.0% in the CBD area. 100,000 20.0% 16.0% • During the last quarter some companies have expanded their office space or have 80,000 relocated to CBD area. Vacancy Rate sq m 60,000 12.0% 40,000 8.0% • The rental rate of Grade A office buildings in the CBD area has increased over the year 20,000 4.0% due to the limited supply. 0 0.0% 2009 2010 2011 2012 F 2013 F Supply Take-up Vacancy Rate major transactions Building Lease (L) / Tenant / Purchaser Area BANGKOK OFFICE CAPITAL AND RENTAL VALUES Sale (S) (sq ft) Ploenchit Center L Bumrungrad Hospital Pcl. 28,000 1,400 140,000 1,200 120,000 Sathorn Square L Ford Sales & Service (Thailand) 43,100 1,000 100,000 Co., Ltd. Asia Centre L Ipsos Thailand Co., Ltd. 32,100 Capital Values 800 80,000 Rentals 600 60,000 400 40,000 200 20,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 3Q 2013 F 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014F Rentals (Baht/ sq m / Month) Capital Values (Baht / sq m)p. 10 | Colliers International
  • 11. asia pacific office market overview | 3Q 2012v i e t na m hanoi HANOI CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE • The total stock of Grade A office market was unchanged at 298,000 sq m in 3Q 2012. 160,000 80.0% 140,000 70.0% • In 3Q 2012, the average occupancy rate was 78.3%, up by 2.90 percentage points against 120,000 60.0% 2Q 2012. The average rent decreased by 1.55% to US$40.59 per sq m month. 100,000 50.0% Vacancy Rate 80,000 40.0% • Developers have been offering various promotions and incentives to attract new tenants.sq m 60,000 30.0% 40,000 20.0% 20,000 10.0% • The supply of two major Grade-A office buildings, namely EVN Tower and Indochina 0.0% 0 2009 2010 2011 2012 F 2013 F -10.0% Plaza Hanoi, will add pressure to the office market in 3Q 2012. Both asking rents and -20,000 -40,000 -20.0% occupancy rate are expected to fall in both the CBD and non-CBD sub-markets. Supply Take-up Vacancy Rate major transactions HANOI OFFICE RENTAL VALUES Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) 60 Crown Plaza S Viettel Group 195,900 50 Keangnam Landmark L Nissan Vietnam 104,400 40 Keangnam Landmark L Fujitsu Vietnam 6,500Rentals 30 Capital Tower L Lien Viet Securities 4,100 20 Capital Tower L HR2B Hanoi 1,600 10 Pacific Place L Sumitomo Mitsui Bank Corp. 4,800 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014F Rentals (US$/ sq m / Month) HO CHI MINH CITY OFFICE SUPPLY, ho chi minh cit y TAKE-UP & VACANCY RATE • The total supply of Grade A office space in prime location was approximately 140,000 180,000 45.0% sq m NFA. 160,000 40.0% 140,000 35.0% 120,000 30.0% • No new Grade A office buildings were completed in 3Q 2012. Vacancy Rate 100,000 25.0%sq m 80,000 20.0% • Occupancy rate and rental rate of Grade A office buildings remained the same, with 60,000 15.0% respectively 87% and US$34 per sq m per month. 40,000 10.0% 20,000 5.0% 0 0.0% • Approximately 48,000 sq m NFA of Grade A office space is expected to enter HCMC’s 2009 2010 2011 2012 F 2013 F -20,000 -5.0% market in the 3Q 2012. Due to the current uncertain economic situation and the supply Supply Take-up Vacancy Rate glut, vendors are anticipated to compete for tenants in order to fill their space in both Grade A and B office buildings. HO CHI MINH CITY OFFICE RENTAL VALUES major transactions 70 Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) 60 50 Bitexco Financial Tower L Viet Capital Securities JSC 10,600 40 Bitexco Financial Tower L Viet Hong Investment General Co 1,800Rentals 30 Kumho Asiana Plaza L Accadent International Holding 3,500 20 GMBH 10 Kumho Asiana Plaza L TMI Associates HCMC Branch 1,400 0 REE Tower L Marina Logistics 900 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 3Q 2013 F 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 1Q 2014 F 2Q 2014F REE Tower L Petroleum Network Company Ltd 3,200 Rentals (US$/ sq m / Month) Colliers International | p. 11
  • 12. asia pacific office market overview | 3Q 2012 i nd i a BENGALURU OFFICE SUPPLY, TAKE-UP & bengaluru (Bangalore) VACANCY RATE • In 3Q 2012, Bengaluru’s Grade A new supply totalled approximately 0.8 million sq ft, 12.00 24.0% including Prestige Tech Park II – Etamin Block, VRC Tower and Condor. 10.00 20.0% 8.00 16.0% • Due to cautious occupier sentiments in an uncertain economy, the commercial office space market witnessed subdued tenant demand compared to the previous two quarters, Vacancy Rate Million sq ft 6.00 12.0% resulting in stable rents. 4.00 8.0% 2.00 4.0% • Looking ahead, rental values are expected to remain stable as substantial supply is 0.00 0.0% projected to enter the market in the near future. 2009 2010 2011 2012 F 2013 F Supply Take-up Vacancy Rate BENGALURU OFFICE CAPITAL AND major transactions RENTAL VALUES 80 8,000 Building Lease (L) / Tenant / Purchaser Area 70 7,000 Sale (S) (sq ft) 60 6,000 Chambers@Mantri L Exilant Technologies 40,000 50 5,000 Capital Values Independent Building L Happiest Mind 50,000 Rentals 40 4,000 30 3,000 Prestige Corniche L Dexler 8,900 20 2,000 Bearys Global Research L Loreal 25,000 10 1,000 0 0 Triangle Brigade Hulkul L PWC (PRTM Management 8,600 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 3Q 2013 F 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 1Q 2014 F 2Q 2014 F Consultancy) Rentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft) Brigade Hulkul L Mitsubishi 8,600 CHENNAI OFFICE SUPPLY, TAKE-UP & chennai VACANCY RATE • In 3Q 2012, Chennai Grade A new supply totalled more than 0.8 million sq ft, including 16.00 32.0% Prestige Polygon and Design Square. 14.00 28.0% 12.00 24.0% • In this quarter, due to a slowdown in the economy, especially the IT sector, demand 10.00 20.0% for Grade A office space has been reduced compared to the previous two quarters. Vacancy Rate Million sq ft 8.00 16.0% 6.00 12.0% Companies were following a wait and see policy for expansion or consolidation. 4.00 8.0% 2.00 4.0% • Average rental values for Grade A office premises remained stable in almost all of the 0.00 0.0% micro-markets and are expected to remain stable as significant supply is projected to 2009 2010 2011 2012 F 2013 F Supply Take-up Vacancy Rate enter the market in the near future. major transactions CHENNAI OFFICE CAPITAL AND Building Lease (L) / Tenant / Purchaser Area RENTAL VALUES Sale (S) (sq ft) 80 8,000 70 7,000 Agnito Park L GE Capital Services 58,000 60 6,000 MCTM L Raffles Millennium 25,000 50 5,000 International Capital Values Rentals 40 4,000 Ramanujam SEZ L VIT Consulting 25,000 30 3,000 20 2,000 AKDR L Ajuba Solutions India Pvt Ltd 30,000 10 1,000 Tek Towers L ISGN 33,000 0 0 Tek Towers L Sutherland Global Services 33,000 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014 F Rentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft)p. 12 | Colliers International
  • 13. asia pacific office market overview | 3Q 2012 i nd i a MUMBAI OFFICE SUPPLY, TAKE-UP & mumbai VACANCY RATE • The completion of The Capital, in 3Q 2012, contributed approximately 1.2 million sq ft of 15.00 20.0% prime office space to the current supply. 12.00 16.0% • With sustained demand from the banking and financial services sector, absorption in Mumbai remained upbeat. Vacancy RateMillion sq ft 9.00 12.0% 6.00 8.0% • Despite increased absorption, average rents for Grade A office premises remained stable 3.00 4.0% in almost all of the micro-markets due to the ample stock availability. 0.00 0.0% 2009 2010 2011 2012 F 2013 F • Looking ahead, rental values are expected to remain stable with substantial future supply. Supply Take-up Vacancy Rate MUMBAI OFFICE CAPITAL AND RENTAL VALUES major transactions 300 60,000 Building Lease (L) / Tenant / Purchaser Area 250 50,000 Sale (S) (sq ft) 200 40,000 Indiabulls Finance Centre L Rediffusion 30,000 Capital Values Peninsula Business Park S Tata AIG 32,000Rentals 150 30,000 20,000 FCH House S Delta Corp. 55,000 100 Boomerang L Technip KTI 56,000 50 10,000 Peninsula Business Park L Cipla 250,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 1Q 2013 F 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014 F Rentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft) NEW DELHI OFFICE SUPPLY, TAKE-UP & new delhi VACANCY RATE • The total new supply of Grade A office space during the quarter was around 2 million 12.00 24.0% sq ft. The projects contributing to this new supply were Platinum Tower, Digital Green 10.00 20.0% Techno Heights, NSL, SB TOWER, Koneectus and Ambiance Corporate Tower. 8.00 16.0% • Absorption increased moderately while rents remained stable across the micro-markets Vacancy RateMillion sq ft 6.00 12.0% during 3Q 2012. 4.00 8.0% 2.00 4.0% • Looking ahead, the absorption momentum is likely to continue but overall rents are 0.00 0.0% expected to increase moderately due to ample stock availability. 2009 2010 2011 2012 F 2013 F Supply Take-up Vacancy Rate major transactions Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) NEW DELHI OFFICE CAPITAL AND RENTAL VALUES Logix Cyber Park L Emeter 15,000 350 35,000 Spaze Tech Park L CapGemini 40,000 300 30,000 Urbtech NPX L Infoedge 100,000 25,000 250 Prestige Corporate Park L Ammerprise 140,000 Capital Values 200 20,000 NKG Tower L Naukri.com 150,000Rentals 150 15,000 100 10,000 50 5,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 1Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Rentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft) Colliers International | p. 13
  • 14. asia pacific office market overview | 3Q 2012 aust r a l i a ADELAIDE OFFICE SUPPLY, TAKE-UP & adel aide VACANCY RATE • Leasing transaction has been growing since the last quarter. 100,000 10.0% 90,000 9.0% • As demand for Grade A space continues to intensify, there may be some pressure on 80,000 8.0% 70,000 7.0% rental values and incentives. Vacancy Rate 60,000 6.0% sq m 50,000 5.0% • Major tenant relocations are expected in the near future with one of the city’s major 40,000 4.0% 30,000 3.0% developments getting close to completion and another two due next year. 20,000 2.0% 10,000 1.0% 0.0% • Core located assets with present value added opportunities are attractive to institutional 0 2009 2010 2011 2012 F 2013 F investors, syndication groups and high net worth individuals. Supply Take-up Vacancy Rate • Yields are likely to hold in the short term and compress further in early 2013. ADELAIDE OFFICE CAPITAL AND RENTAL VALUES major transactions 700 7,000 Building Lease (L) / Tenant / Purchaser Area 6,000 600 Sale (S) (sq ft) 500 5,000 132 Grenfell Street S Primewest Funds Ltd 34,000 Capital Values 400 4,000 Rentals 3,000 141 - 143 Rundle Mall S Private 176,300 300 200 2,000 70 Franklin Street L MIGA 14,000 100 1,000 431 - 439 King William Street L LogiCamms 9,100 0 0 30 Flinders Street L Jacobs Engineering 13,600 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 3Q 2013 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F 30 Flinders Street L Santos 27,200 Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m) BRISBANE OFFICE SUPPLY, TAKE-UP & brisbane VACANCY RATE • With deferred expansion of large mining companies, the number of large lease transactions 180,000 18.0% declined. 160,000 16.0% 14.0% • An escalation in vacancies and subdued market confidence led to constrained rental 140,000 120,000 12.0% growth in 1H 2012 across all grades of office space. Vacancy Rate 100,000 10.0% sq m 80,000 8.0% 60,000 6.0% • Institutions and foreign investors have made approximately AU$371.25 million worth of 40,000 4.0% 20,000 2.0% major purchases in the first half of 2012. 0 0.0% 2009 2010 2011 2012 F 2013 F • Vacancy is forecast to tighten slightly in the second half of 2012 and reach 8.2% by Supply Take-up Vacancy Rate mid-2013 as a result of limited new development in the near term. major transactions BRISBANE OFFICE CAPITAL AND RENTAL VALUES Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) 1,200 12,000 111 Eagle Street L Arrow Energy 159,300 1,000 10,000 145 Ann Street L Grant Thornton 48,600 800 8,000 12 Creek Street S Dexus 346,500 Capital Values Rentals 600 6,000 40 Creek Street S PGA Group 133,000 400 4,000 150 Charlotte Street S CIMB 119,100 200 2,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m)p. 14 | Colliers International
  • 15. asia pacific office market overview | 3Q 2012aust r a l i a CANBERRA OFFICE SUPPLY, TAKE-UP & canber ra VACANCY RATE • Foreign investors have driven demand for prime office assets over the last two years 80,000 16.0% and this trend is likely to continue for the next 12 months. 70,000 14.0% 60,000 12.0% • Secondary asset yields are now at the bottom of the market cycle and will remain steady 50,000 10.0% for the next 12 months. Vacancy Rate 8.0%sq m 40,000 30,000 6.0% 20,000 4.0% • Grade A office rents have recorded 2 - 3% annual growth over recent years and this is 10,000 2.0% likely to continue for the next 21 months before growing at an annual rate of 3 - 4 %. 0 0.0% 2009 2010 2011 2012 F 2013 F -10,000 -2.0% Supply Take-up Vacancy Rate major transactions Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) CANBERRA OFFICE CAPITAL AND RENTAL VALUES 10 - 12 Mort Street L Department of Education, Employment, 166,300 800 8,000 and Workplace Relations 700 7,000 Garema Court L Department of Regional Australia 116,600 600 6,000 NewActon Nishi L Department of Climate Change 131,900 500 5,000 Capital Values and Energy EfficiencyRentals 400 4,000 300 3,000 Penrhyn House S Quintessential Equities Pty. Ltd 135,900 200 2,000 100 1,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m) MELBOURNE OFFICE SUPPLY, TAKE-UP & melbourne VACANCY RATE • The first half of 2012 saw a total of 55,868 sq m of new supply. 160,000 16.0% 140,000 14.0% • Investment demand from both domestic and offshore institutions remained strong over 120,000 12.0% the first half of 2012. 10.0% Vacancy Rate 100,000sq m 80,000 8.0% • There is approximately 277,000 sq m of new space set to enter the market over the next 60,000 6.0% two years, and 74% of it has been pre-committed. 40,000 4.0% 20,000 2.0% • The rising vacancy rate has had limited impact on pre-commitment activity with two 0 0.0% 2009 2010 2011 2012 F 2013 F deals announced during the first half of 2012. Supply Take-up Vacancy Rate major transactions Building Lease (L) / Tenant / Purchaser Area MELBOURNE OFFICE CAPITAL AND Sale (S) (sq ft) RENTAL VALUES City West Police Complex, 313 L Victorian Police 306,800 700 7,000 600 6,000 Spencer Street, Melbourne 500 5,000 11 Exhibition Street L BUPA 126,400 360 Collins Street L LaTrobe University 13,600 Capital Values 400 4,000Rentals 300 3,000 120 Collins Street L Gresham Partners 6,800 200 2,000 459 Collins Street L Medibank 11,900 100 1,000 720 Bourke Street L Medibank 322,900 0 0 242 Exhibition Street, S Investa Office Fund 709,500 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 1Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F Melbourne Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m) 150 Collins Street, Melbourne S GPT Wholesale Office Fund 215,300 Colliers International | p. 15
  • 16. asia pacific office market overview | 3Q 2012 aust r a l i a PERTH OFFICE SUPPLY, TAKE-UP & perth VACANCY RATE • Recent resource sector developments have resulted in some subleased space coming 200,000 12.0% onto the market. 9.0% 150,000 • Premium Grade vacancy and available stock remain relatively tight. Vacancy Rate 100,000 6.0% sq m • Investment expenditures in the resources sector, the main driver of growth for the state, 50,000 3.0% remains relatively independent of the recent global economic and financial environment. 0 0.0% 2009 2010 2011 2012 F 2013 F • The new supply cycle momentum has eased due to short- to medium-term economic -50,000 -3.0% uncertainty. Supply Take-up Vacancy Rate major transactions PERTH OFFICE CAPITAL AND RENTAL VALUES Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) 1,200 12,000 66 St Georges Terrace, Perth S Investa 123,200 1,000 10,000 45 St Georges Terrace, Perth S Credit Suisse 121,300 800 8,000 1 Adelaide Terrace, Perth S GDI 211,300 Capital Values Rentals 600 6,000 255 & 267 St Georges Terrace, S Primewest 43,900 400 4,000 Perth 200 2,000 108 St Georges Terrace, Perth L Apache 43,100 0 0 108 St Georges Terrace, Perth L Aurecon 17,200 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014 F 50 St Georges Terrace, Perth L AMCOM 7,000 197 St Georges Terrace, Perth L Undisclosed 50,000 Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m) SYDNEY OFFICE SUPPLY, TAKE-UP & sydney VACANCY RATE • Prime Grade yields have stabilised, while the yield spread between high- and low-quality 200,000 12.0% Secondary Grade assets has continued to widen. 150,000 9.0% • The sales volumes for Prime and Grade A offices remain low due to limited supply. 100,000 6.0% Vacancy Rate sq m 50,000 3.0% • Demand is strong for Secondary Grade properties of less than AU$25 million, while 0 0.0% weak for those above AU$25 million and with weighted average lease expiry less than 2009 2010 2011 2012 F 2013 F four years. -50,000 -3.0% -100,000 -150,000 -6.0% • Prime office rents remained stable however incentives have begun to rise due to an Supply Take-up Vacancy Rate increase in vacancy and softer tenant enquiry levels, despite growth in demand for CBD space from metro and fringe based tenants. SYDNEY OFFICE CAPITAL AND RENTAL VALUES major transactions 1,600 16,000 Building Lease (L) / Tenant / Purchaser Area 1,400 14,000 Sale (S) (sq ft) 1,200 12,000 6 - 10 OConnell Street S MGPA 175,600 1,000 10,000 60 Castlereagh Street L Centric Wealth 27,600 Capital Values Rentals 800 8,000 600 6,000 175 Pitt Street L VMware Australia 22,200 400 4,000 133 Castlereagh Street L Sydney University 18,400 200 2,000 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 4Q 2013 F 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 1Q 2014 F 2Q 2014 F Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m)p. 16 | Colliers International
  • 17. asia pacific office market overview | 3Q 2012 n e w z e a l and AUCKLAND OFFICE SUPPLY, TAKE-UP & aUckl and VACANCY RATE • According to the latest updates from the Investment Property Databank / Property Council 40,000 16.0% of New Zealand (IPD / PCNZ), the total return on office investment has increased slightly 35,000 14.0% from 6.6 to 7.0% in 2Q 2012, which is made up of 8.1% income return and negative 1.1% 30,000 12.0% 10.0% capital return. Vacancy Rate 25,000sq m 20,000 8.0% 15,000 6.0% • Leasing activity has been steady since the beginning of 2012, due to sustained higher- 10,000 4.0% than-expected tenancy demand for prime office space. Prime and secondary rents 5,000 2.0% remained stable in the past 12 months but prime rents have begun to move upwards as 0 2009 2010 2011 2012 F 2013 F 0.0% a result of the recent easing of incentive packages. Supply Take-up Vacancy Rate • Office vacancy in the Auckland CBD has fallen 1.3% in the past 12 months, sitting at 10.9% in June 2012 and tracking just below the 15-year average of 11.8%. The prime office building vacancy rate has dropped 2.4% in the past six months. AUCKLAND OFFICE CAPITAL AND RENTAL VALUES • Yields have been relatively stable and are anticipated to hold over the next 12 months. One 600 6,000 notable sale during 3Q 2012 was the ASB Bank Centre, 135 Albert Street, to Auckland 500 5,000 Council for NZ$104 million. 400 4,000 Capital ValuesRentals 300 3,000 major transactions 200 2,000 100 1,000 Building Lease (L) / Tenant / Purchaser Area Sale (S) (sq ft) 0 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F ASB Bank Centre, 135 Albert Street S Auckland Council 356,000 106 Albert Street S New Development Group 47,500 Rentals (New Zealand $/ sq m / Year) Capital Values (New Zealand $ / sq m) Vero Centre, 48 Shortland Street L Bell Gully 70,100 WELLINGTON OFFICE SUPPLY, TAKE-UP & wellington VACANCY RATE • Leasing market remained active as a growing number of office tenants seeking to move 60,000 6.0% from those buildings perceived to be earthquake-prone. 50,000 5.0% 40,000 • CBD office vacancy has increased by 4.9 percentage points YoY to 14.9% in June 2012, 4.0% the highest level since June 1995. Vacancy Ratesq m 30,000 3.0% 20,000 2.0% • Due to concern over earthquake, the institutional and private owners have focused on 10,000 1.0% strengthening their existing buildings. Consequently, new office supply is anticipated to 0 0.0% slowdown in near term. 2009 2010 2011 2012 F 2013 F Supply Take-up Vacancy Rate • Office investment activity in CBD was relatively strong in the first half of 2012 with the notable transaction of Bowen Campus from AMP Capital Property Portfolio to Precinct Properties New Zealand (formerly AMP Office NZ Limited) for NZ$50.4 million, at an initial yield of 10.7%. WELLINGTON OFFICE CAPITAL AND RENTAL VALUES 6,000 major transactions 600 500 5,000 Building Lease (L) / Tenant / Purchaser Area 400 4,000 Sale (S) (sq ft) Capital Values Bowen Campus, S Precinct Properties 324,700Rentals 300 3,000 34 & 38 Bowen Street New Zealand (former 200 2,000 AMP Office NZ) 100 1,000 49 Tory Street, Te Aro L ANZ Bank 155,900 0 0 Telecom Central, L AMP Financial Services 25,400 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 3Q 2013 F 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 F 1Q 2013 F 2Q 2013 F 4Q 2013 F 1Q 2014 F 2Q 2014 F 42 - 52 Willis Street Rentals (New Zealand $/ sq m / Year) Capital Values (New Zealand $ / sq m) Vodafone on the Quay, L Baldwins Intellectual 16,100 L14 - 15, 157 Lambton Quay Colliers International | p. 17
  • 18. asia pacific office market overview | 3Q 2012 pr i m e o ff il i a EW s upp ly aust r a c e N FLOOR AREA (MILLION SQ FT) 0.00 5.00 10.00 15.00 20.00 25.00 Guangzhou Bengaluru New Delhi Chengdu Tokyo Mumbai Seoul Chennai Shanghai Jakarta Beijing Melbourne Kuala Lumpur Ho Chi Minh City Hanoi Manila Hong Kong Perth Sydney Taipei Singapore Brisbane Karachi Adelaide Canberra Auckland Bangkok 2012F 2013 F Note: Floor area in each of the above centre is the sum of the various key sub-markets outlined under the section of “Definitions and Terminology” pr i m e r a c e r austo ff il i a e n ta l RENTALS (US$ / SQ FT / YEAR) 0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 Hong Kong Tokyo Singapore Perth Sydney Beijing Brisbane Shanghai Hanoi Mumbai New Delhi Ho Chi Minh City Canberra Adelaide Melbourne Taipei Guangzhou Wellington Auckland Kuala Lumpur Bangkok Chengdu Seoul Jakarta Manila Chennai Bengaluru Karachi Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology"p. 18 | Colliers International
  • 19. asia pacific office market overview | 3Q 2012n e t ta k e - up 3 q 2 0 1 2 ( s q f t ) Beijing Seoul Shanghai Chengdu Taipei Guangzhou Hanoi Hong Kong Bangkok Manila Ho Chi Minh City Kuala Lumpur Singapore Jakarta Over 1 million sq ft Shanghai 1,888,720 Guangzhou 1,791,404 500,000 - 1,000,000 sq ft Kuala Lumpur 852,314 Bangkok 750,954 Jakarta 655,134 Canberra 100,000 - 500,000 sq ft Seoul 483,906 Manila 469,758 Melbourne Chengdu 342,229 Singapore 225,641 Melbourne 134,549 Auckland Hong Kong 110,679 Taipei 110,673 Hanoi 104,926 Wellington Below 100,000 sq ft Auckland 81,655 Beijing 20,322 Canberra 11,302 Wellington 6,383 Ho Chi Minh City 4,865 Source: Colliers Colliers International | p. 19
  • 20. asia pacific office market overview | 3Q 2012 TRE N D S & FOREC A STS City New Supply Take-up Average Vacancy Total Stock Average Rentals (sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year) 2012 F 2013 F 2012 F 2013 F 2012 F 2013 F 2012 F 2013 F 2012 F 2013 F Beijing CBD 0 2,152,780 588,570 1,125,915 5.4 9.4 20,543,097 22,695,877 65.43 69.36 Zhongguancun 0 0 4,951 0 1.0 1.0 8,095,529 8,095,529 45.01 51.01 Financial Street 0 645,834 -22,680 519,434 0.4 1.6 9,700,524 10,346,358 66.93 70.35 Lufthansa 0 0 70,902 11,216 2.0 1.9 7,477,089 7,477,089 53.14 55.16 East Chang An Avenue 0 0 -58,782 25,231 1.9 1.5 6,307,064 6,307,064 49.91 51.28 East 2nd Ring 0 1,521,251 -641,076 760,631 2.3 20.8 2,409,736 3,930,987 46.68 45.52 Other areas 0 0 854,223 11 0.2 0.2 1,151,307 1,151,307 45.58 47.00 Chengdu Renmin Road 463,224 1,614,585 221,306 1,086,120 30.8 31.4 3,412,027 5,026,612 26.37 29.01 CBD 814,235 0 215,859 332,707 22.1 10.5 2,861,637 2,861,637 24.61 27.25 Financial Street 914,932 430,556 301,389 551,877 49.0 31.0 1,415,733 1,846,289 28.13 29.01 Tianfu Avenue 2,230,377 4,090,282 344,445 2,514,275 68.0 44.7 1,076,390 5,166,672 21.10 24.61 Guangzhou Yuexiu 0 0 109,544 83,474 6.8 5.1 4,683,244 4,683,244 19.69 19.66 Tianhe 8,215,299 10,554,391 5,973,512 6,881,480 23.4 26.8 25,544,156 36,098,547 29.85 29.10 Haizhu 557,010 0 373,497 64,476 33.6 30.7 2,244,693 2,244,693 17.58 17.23 Shanghai Huangpu 0 0 1,709,114 128,488 6.6 5.2 9,177,699 9,177,699 51.56 55.01 Jingan 539,067 1,216,321 370,533 1,005,674 7.3 8.6 8,157,131 9,373,452 56.58 60.37 Lujiazui-Pudong 0 823,438 -91,187 784,597 9.1 9.0 17,222,305 18,045,743 47.54 50.73 Zhuyuan-Pudong 2,259,687 0 1,111,335 275,342 20.3 15.6 5,858,349 5,858,349 36.57 39.02 Changning 1,295,156 1,197,484 505,078 1,363,781 14.2 9.8 6,446,597 7,644,080 35.01 37.35 Xuhui 0 0 86,051 19,488 6.0 5.6 4,871,881 4,871,881 46.89 50.03 Hong Kong Central 170,000 0 -154,268 77,940 5.7 5.3 21,686,414 21,686,414 166.74 175.08 Wanchai 343,740 0 171,870 50,777 3.4 3.0 11,439,007 11,439,007 98.99 102.94 HK Island East 0 0 152,029 25,118 2.7 2.5 10,854,774 10,854,774 66.20 68.85 Tsim Sha Tsui 0 0 134,400 5,600 0.9 0.8 6,361,390 6,361,390 83.31 87.48 Kowloon East 619,245 886,684 704,109 837,343 9.7 9.4 9,297,402 10,184,086 54.85 57.59 Taipei CBD 177,874 1,250,700 447,571 777,173 9.8 11.5 19,327,543 20,578,242 28.12 28.35 Seoul CBD 1,342,893 1,431,825 30,978,763 31,763,020 12.1 13.4 35,222,866 36,654,691 27.67 28.33 GBD 1,499,164 0 27,155,943 27,458,593 5.4 4.3 28,697,841 28,697,841 24.26 25.35 YBD 1,989,266 1,815,676 15,580,471 13,764,875 14.8 31.5 18,288,081 20,103,758 21.54 22.68 Tokyo CBD 7,354,834 3,091,006 N/A N/A 8.5 8.2 79,330,004 82,421,010 107.80 108.67 Jakarta CBD 4,070,164 430,556 3,893,731 3,145,987 5.8 5.5 50,970,360 51,400,916 24.79 28.22 Non-CBD 2,533,779 1,192,436 2,549,570 1,230,357 7.3 6.8 22,772,860 23,965,296 16.93 18.38 Kuala Lumpur KLCA 1,989,000 509,000 2,000,000 1,100,000 12.3 10.0 33,109,111 33,617,696 25.44 25.44p. 20 | Colliers International
  • 21. asia pacific office market overview | 3Q 2012TRE N D S & FOREC A STSCity New Supply Take-up Average Vacancy Total Stock Average Rentals (sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year) 2012 F 2013 F 2012 F 2013 F 2012 F 2013 F 2012 F 2013 F 2012 F 2013FKarachi CBD 440,000 145,000 100,000 100,000 40.0 40 15,231,929 15,376,929 1.05 1.04Manila Makati 617,342 660,903 676,016 695,778 3.8 3.2 9,934,477 10,595,380 20.63 21.96Ortigas 0 876,074 115,002 727,338 2.6 4.8 4,961,404 5,837,489 14.91 15.44Singapore CBD 806,000 586,036 1,055,498 118,843 7.0 8.8 23,514,057 24,100,093 81.06 77.53BangkokCBD 0 0 645,834 0 16.9 14.5 17,580,646 17,580,646 24.84 25.56Hanoi CBD 491,060 279,861 74,917 188,368 17.5 16.5 2,027,510 2,307,371 46.97 45.88Non-CBD 190,521 1,205,083 489,757 602,778 45.0 57.0 1,862,736 3,067,819 31.74 28.47Ho Chi Minh City CBD 1,033,334 1,301,528 519,369 539,304 27.0 38.0 2,552,723 3,854,251 36.88 33.34Bengaluru Overall 6,000,000 8,000,000 5,000,000 6,500,000 14.0 14 83,227,175 91,227,175 10.70 11.16ChennaiOverall 3,500,000 4,000,000 4,000,000 4,500,000 21.0 20 42,512,483 45,512,483 10.93 10.93Mumbai Overall 4,200,000 5,000,000 6,000,000 5,000,000 15.0 16 98,658,000 103,658,000 41.22 41.22New DelhiOverall 7,000,000 5,800,000 5,000,000 4,000,000 16.5 16 71,404,158 77,204,158 39.40 39.17AdelaideCBD 193,750 215,278 312,153 269,098 7.7 9.5 14,031,551 14,584,170 33.74 35.07BrisbaneCBD 1,110,372 200,209 857,947 136,691 4.6 4.3 11,364,536 11,485,092 55.49 57.27CanberraCBD 226,042 0 193,750 107,639 6.0 8.0 3,013,892 3,013,892 36.40 36.85MelbourneCBD 1,467,647 1,442,363 408,049 1,137,271 7.1 7.1 26,601,752 28,044,114 30.36 32.23PerthCBD 1,871,067 92,397 1,243,230 0 5.0 4.6 17,132,824 17,158,119 67.56 72.80SydneyCBD 484,376 1,044,098 458,962 565,105 7.3 7.7 27,118,301 27,844,422 66.97 67.22AucklandCBD 157,691 46,984 81,655 93,420 9.0 9.4 4,581,277 4,570,729 25.93 26.70Wellington CBD 0 0 6,383 25,833 4.6 4.0 3,119,841 3,256,973 26.47 26.93 Colliers International | p. 21
  • 22. asia pacific office market overview | 3Q 2012 d e f i n i t i o n and t e r m i n o lo gyGREATER CHINA NORTH ASIABeijing SeoulPrime office market in Beijing consists of 6 sub-markets – CBD (Central Major office districts in Seoul include the traditional central business areaBusiness District), Lufthansa, East 2nd Ring, Financial Street, East Chang (CBD), Gangnam Business District (GBD) and Yeouido Business DistrictAn Avenue and Zhongguancun. (YBD).Rents are quoted in RMB per sq m per month on gross floor area basis, Rents are quoted in Won per sq m per month on gross floor area basis.and exclusive of management fees and rent free period. Capital values are Generally, a deposit equivalent to 10 months is required, and is usuallyquoted on RMB per sq m. paid up front. Management fees are excluded from quoted rents. Space is measured on gross floor area basis. Capital values are quoted in WonChengdu per sq m.Prime office buildings in Chengdu are mainly located in 3 sub-markets,Renmin Road, CBD and Financial Street. Tokyo The quality office buildings in Tokyo are located in the central businessRents are quoted in RMB per sq m per month on gross floor area basis, and area (CBD) area covering six wards namely, Chiyoda-ku, Chuo-ku,exclusive of management fees. Capital values are quoted on RMB per sq m. Minato-ku, Shinjuku-ku, Shibuya-ku and Shinagawa-ku.Guangzhou Rents are asking rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month,Prime office buildings in Guangzhou are located in 3 principal sub-markets which are inclusive of service charges. Office space is measured on an– Haizhu, Yuexiu and Tianhe. internal floor area basis. Capital values are quoted in Yen per tsubo.Rents are quoted in RMB per sq m per month on gross floor area basis,and exclusive of any management fees. Capital values are quoted on RMB SOUTHEAST ASIAper sq m. Jakarta The quality office buildings in Jakarta are located in the CBD coveringShanghai the districts Thamrin, Sudirman, Gatot Subroto, Rasuna Said and MegaPrime office buildings in Shanghai are located in 6 principal sub-markets – Kuningan. The areas outside the above districts are collectively called asHuangpu, Jingan, Lujiazu-Pudong, Zhuyuan-Pudong, Changning, and Xuhui. “non-CBD”.Rents are quoted in RMB per sq m per day on gross floor area basis, and Rents are commonly quoted in Rupiah per sq m per month, which areexclusive of any management fees. Capital values are quoted on RMB inclusive of service charges but exclusive of government taxes. Officeper sq m. space is measured on lettable floor area basis. Capital values are quoted in Rupiah per sq m.Hong KongPrime office properties in Hong Kong are concentrated in 5 sub-markets Kuala Lumpur– Central, Wanchai / Causeway Bay, Island East, Tsim Sha Tsui and Prime office buildings located in the Kuala Lumpur Central Area (KLCA) only.Kowloon East. The KLCA comprises areas generally within the central business district.Rents are commonly quoted in HK$ per sq ft per month on either gross, net Rents are commonly quoted in Ringgit Malaysia (RM) per sq ft per monthor lettable floor area basis, which are exclusive of management fees, and on net floor area basis, which are inclusive of service charges and propertygovernment tax. Prices are quoted in HK$ per sq ft, and are measurable taxes. Capital values are quoted in Ringgit per sq ft.on gross floor area basis. KarachiTaipei Prime office buildings in Karachi are located in the central business areaPrime office properties in Taipei are concentrated in 7 districts, comprising (CBD) covering 4 sub-markets – I.I Chundrigar Road, Shahrah-e-Faisal,Nanking Sung Chiang (NK-SC), Minsheng Tun Hwa North (MS-TN), Hsin Yi, Clifton and Mai Kolachi.West, Tun Hwa South (TUN-S), Jen Ai Hsin Sheng (JA-HS) and NankingEast Road (NK-4/5). Rents are quoted in Rupee per sq ft per year on gross floor area basis and are exclusive of service charges or management fee. Capital ValuesThe local unit of measurement is a “ping” (i.e. 3.3 sq m). Rents and prices are quoted in Rupee per sq ft.are quoted in local currency i.e. New Taiwan Dollar (NT$) on gross floorarea basis.p. 22 | Colliers International
  • 23. asia pacific office market overview | 3Q 2012 d e f i n i t i o n and t e r m i n o lo gyManila Rents are commonly quoted in Rupee per sq ft per month, which arePrime office buildings in Manila are located in two principal sub-markets usually exclusive of maintenance charges, parking charges and property– Makati and Ortigas. taxes. Office space is commonly measured on *super built up area basis.Rents are quoted in Peso per sq m per month on net floor area basis, Chennaiand exclusive of any management fees. Capital values are quoted in Peso Prime office properties in Chennai are located in 3 principal submarkets–per sq m. CBD (Central Business District), (Suburban/Secondary Business District) and PBD (Peripheral Business District). SBD consists of Guindy andSingapore Velechery while PBD includes other areas such as Old MahaballipuramThe quality office buildings covered in the report are located in the Central Road, Ambattur and GST Road amongst others.Business District of Singapore. Rents are commonly quoted in Rupee per sq ft per month, which areRents are quoted in S$ per sq ft per month on net floor area basis (i.e. area usually exclusive of maintenance charges, parking charges and propertyless common areas such as corridors, toilets, lift lobby etc. but including taxes. Office space is commonly measured on *super built up area basis.columns), and are inclusive of service charge. Capital values are quotedon the basis of strata area for strata-titled buildings, and net area for non- Mumbaistrata-titled developments. Prime office properties in Mumbai are primarily concentrated in CBD (Central Business District) – consist of Nariman Point, Ford and BallardBangkok Estate; SBD (Secondary Business District) including Bandra (West andPrime office properties in Bangkok are located in a wide area encompassing East), Kalina, Lower Parel and Worli/Prabhadevi and PBD (Peripheraleastern Silom and Sathorn roads starting from Narathiwas Ratchanakarin, Business District) including Navi Mumbai, Vashi, Powai, Goregaon.Rama IV from Phayathai to Ratchadaprisek, along Ratchadaprisek fromRama IV to Sukhumvit and along Sukhumvit from Asoke to the whole of Rents are commonly quoted in Rupee per sq ft per month, which arePleonchit and then Rama I to Phayathai. usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis.Rents are quoted in Baht per sq m per month on a net floor area basis, andinclusive of service charges. Capital values are quoted in Baht per sq m. New Delhi Prime office properties in New Delhi are primarily concentrated in CBDHo Chi Minh City (Central Business District) – consist of Connaught Place; SBD (SecondaryThe quality office buildings in Ho Chi Minh City are located in District Business District) including Nehru Place, Jasola, Saket and Netaji SubhashOne - the central business district in the city. Place and PBD (Peripheral Business District) including Gurgaon and Noida.Rents are commonly quoted in US$ per sq m per month on net floor area Rents are commonly quoted in Rupee per sq ft per month, which are usuallybasis, and exclusive of management fees and government tax. Capital exclusive of maintenance charges, parking charges and property taxes.values are quoted on US$ per sq m. Office space is commonly measured on *super built up area basis.HanoiPrime quality office building in Hanoi are mostly located in Hoan Kiemdistrict, with individual quality buildings located in Cau Giay district and Ba AUSTRALASIADinh district. The central location of the city is perceived as being closeto Hoan Kiem Lake, which is within Hoan Kiem district. Australia Prime office buildings are located in the CBD and generally favoured byRents are commonly quoted in US$ per sq m per month on net floor area MNCs.basis. Rents are inclusive of service charges and exclusive of value addedtax, which is currently at 10% level. Rents are quoted on net floor area basis, and in A$ per sq m per annum excluding management fee and government charges. Capital values are quoted on A$ per sq m.INDIA New ZealandBengaluru (Bangalore) Prime office buildings are located in the CBD.Prime office properties in Bengaluru are can be divided in 3 principal sub-markets – CBD (Central Business District), SBD (Suburban/Secondary Rents are quoted on net floor area basis, and in NZ$ per sq m per annumBusiness District) consisting of Bannerghatta Road & Outer Ring Road excluding management fee and government charges. Capital values areand PBD (Peripheral Business District) including PBD Hosur Road, EPIP quoted on NZ$ per sq m.Zone, Electronic City and Whitefield.* Super built-up area refers to the total **built-up area of a building plus a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretaker’s office/flat throughout the building.** Built-up area refers to the carpet area plus the thickness of external walls and area under columns. Colliers International | p. 23
  • 24. asia pacific office market overview | 3Q 2012For further details, please contact:GREATER CHINA NORTH ASIA Karachi, Pakistan Suite 2-A, level 2, Harbour HouseBeijing, China Seoul, South Korea 37-A, Lalazar Avenue502 Tower W3, Oriental Plaza 10F Korea Tourism Organization Bldg. Beach Hotel Road, Off. M.T Khan RoadNo 1 East Changan Avenue 10 Da-dong Karachi, PakistanDongcheng District Jung-gu, Seoul 100-180 Tel : 92 21 3561 2550-2Beijing 100738 Tel : 82 2 6740 2000 Fax : 92 21 3563 6382Tel : 86 10 8518 1633 Fax : 82 2 318 2015 Mohammed Yasir QidwaiFax : 86 10 8518 1638 Jay Yun Senior Manager, Corporate Solutions &Amanda Gao Senior Director & General Manager ResearchManaging Director, North China jay.yun@colliers.com research.khi@colliers.comamanda.gao@colliers.com Tokyo, Japan Lahore, PakistanChengdu, China Halifax Building Suite 2, Mezzanine 2, Executive FloorsUnit 1504 Yanlord Landmark 3-16-26 Roppongi Al-Qadir Heights, Main Boulevard1 Renmin South Road Section 2 Minato-ku, Tokyo 106-0032 Japan New Garden Town, Lahore, PakistanChengdu 610016 Tel : 81 3 5563 2111 Tel : 92 42 3584 3474-6Tel : 86 28 8658 6288 Fax : 81 3 5563 2100 Fax : 92 21 3563 6382Fax : 86 28 8672 3226 James Fink Ahmed KhanJacky Tsai Senior Managing Director Country ManagerGeneral Manager james.fink@colliers.co.jp ahmed.khan@colliers.comjacky.tsai@colliers.com Islamabad, PakistanGuangzhou, China ONE Constitution Avenue, Adjacent702 Teem Tower SOUTH EAST ASIA Convention Centre & Diplomatic Enclave208 Tianhe Road Islamabad, PakistanGuangzhou 510620 Jakarta, Indonesia Tel : 92 51 834 7433Tel : 86 20 3819 3888 10F and 14F World Trade Centre Fax : 92 51 831 4737Fax : 86 20 3819 3899 Jl Jenderal Sudirman Waleed MurrawatEric Lam Kav 29-31 Jakarta 12920 Regional Sales ManagerManaging Director Tel : 62 21 521 1400 waleed.murrawat@colliers.comeric.lam@colliers.com Fax : 62 21 521 1411 Mike Broomell Manila, PhilippinesShanghai, China Managing Director 10F Tower 2 RCBC Plaza16F Hong Kong New World Tower mike.broomell@colliers.com Ayala Avenue, Makati City300 Huaihai Zhong Road Philippines1226Shanghai 200021 Kuala Lumpur, Malaysia Tel : 63 2 888 9988Tel : 86 21 6141 3688 c/o Mark Lampard* Fax : 63 2 845 2612Fax : 86 21 6141 3699 Managing Director David YoungLina Wong Corporate Solutions | Asia Pacific Managing DirectorManaging Director Te : 65 6531 8601 david.a.young@colliers.comEast and South West China Fax : 65 6557 0649Investment Services, China mark.lampard@colliers.com Singaporelina.wong@colliers.com * Based in Singapore 1 Raffles Place #45-00 One Raffles PlaceHong Kong, HKSAR Research data provided by Singapore 0486165701 Central Plaza C H Williams Talhar & Wong Sdn Bhd Tel : 65 6223 232318 Harbour Road 30-01, 30th Floor Fax : 65 6222 4901Wanchai, Hong Hong Menara Multi-Purpose @ CapSquare Dennis YeoCompany Licence No: C-006052 8 Jalan Munshi Abdullah Managing DirectorTel : 852 2828 9888 P O Box 12157 Singapore & Industrial Services | AsiaFax : 852 2828 9899 50100 Kuala Lumpur, Malaysia dennis.yeo@colliers.comRichard Kirke (E-279867) Tel : 603 2616 8888Managing Director Fax : 603 2616 8899 Bangkok, Thailandrichard.kirke@colliers.com URL : http://www.wtw.com.my 17/F Ploenchit Center Foo Gee Jen 2 Sukhumvit RoadPiers Brunner (E-183614) Managing Director Klongtoey, Bangkok 10110Chief Executive Officer - Asia fgj@wtw.com.my Tel : 66 2 656 7000piers.brunner@colliers.com Fax : 66 2 656 7111 Simon LandyTaipei, Taiwan Executive Chairman49F TAIPEI 101 TOWER simon.landy@colliers.comNo. 7 Xin Yi Road Sec 5, Taipei 110Tel : 886 2 8101 2000Fax : 886 2 8101 2345Andrew LiuManaging Directorandrew.liu@colliers.comp. 24 | Colliers International
  • 25. asia pacific office market overview | 3Q 2012Ho Chi Minh City, Vietnam Mumbai, India Canberra, AustraliaHo Chi Minh City, Vietnam 31-A, 3rd Floors, Film Centre Ground floor, 21-23 Marcus Clarke Street7F Bitexco Building 68 Tardeo Road Canberra ACT 260119-25 Nguyen Hue Street Mumbai 400 034 Tel : 61 2 6257 2121District 1, Ho Chi Minh City, Vietnam Tel : 91 22 4050 4500 Fax : 61 2 6257 2937Tel : 84 83 821 8777 Fax : 91 22 2351 4272 Paul PowderlyFax : 84 83 827 5667 Prabhu Raghavendra State Chief ExecutivePeter Dinning Office Director paul.powderly@colliers.comGeneral Director prabhu.raghavendra@colliers.competer.dinning@colliers.com Melbourne, Australia George McKay Level 32 367 Collins StreetHanoi, Vietnam South Asia Director Melbourne VIC 300010F, Capital Tower Building Office & Integrated Services Tel : 61 3 9629 8888109 Tran Hung Dao Street george.mckay@colliers.com Fax : 61 3 9629 8549Hoan Kiem District, Hanoi, Vietnam John MarascoTel : 84 4 3941 3277 New Delhi, India State Chief ExecutiveFax : 84 4 3941 3278 204/205, 2nd Floor john.marasco@colliers.comDane Moodie Kanchenjunga BuildingManaging Director 18 Barakhamba Road Perth, Australiadane.moodie@colliers.com New Delhi 110 001 Level 19, 140 St Georges Terrace Tel : 91 11 4360 7500 Perth WA 6000 Fax : 91 11 2335 6624 Tel : 61 8 9261 6666 Ajay Rakheja Fax : 61 8 9261 6665INDIA Office Director K. Imran Mohiuddin ajay.rakheja@colliers.com State Chief ExecutiveBengaluru, India imran.mohiuddin@colliers.comPrestige Garnet, Level 2, Unit No. 201/202 Pune, India36 Ulsoor Road, Bengaluru 560 042 Bramha Luxury Hotels Ltd. Sydney, AustraliaTel : 91 80 4079 5500 (Le Meridien Pune) Level 12, Grosvenor PlaceFax : 91 80 4112 3131 101 R.B.M. Road 225 George StreetGoutam Chakraborty Pune 411 001, Maharashtra Sydney NSW 2000Office Director Tel : 91 20 4120 6435 Tel : 61 2 9257 0222goutam.chakraborty@colliers.com Fax : 91 20 4120 6434 Fax : 61 2 9251 3297 Suresh Castellino Malcom TysonChennai, India Office Director State Chief ExecutiveUnit 1C, 1st Floor, Heavitree Complex suresh.castellino@colliers.com malcom.tyson@colliers.com23 Spurtank Road, ChetpetChennai 600 031 Auckland, New ZealandTel : 91 44 2836 1064 SAP Tower, Level 27Fax : 91 44 2836 1377 AUSTRALASIA 151 Queen StreetKaushik Reddy Auckland 1140Office Director Adelaide, Australia Tel : 64 9 358 1888kaushik.reddy@colliers.com Level 10, 99 Gawler Place Fax : 64 9 358 1999 Adelaide SA 5000 Mark SynnottGurgaon, India Tel : 61 8 8305 8888 Chief Executive Officer, New Zealand1st Floor, Technopolis Building Fax : 61 8 8231 7712 mark.synnott@colliers.comDLF Golf Course James YoungMain Sector Road State Chief Executive Wellington, New ZealandSector 54, Gurgaon 122 002 james.young@colliers.com Level 10, 36 Customhouse QuayTel : 91 124 4375807 Wellington 6011Fax : 91 124 4375806 Brisbane, Australia Tel : 64 4 473 4413Ajay Rakheja Level 20 Central Plaza One Fax : 64 4 499 1550 (Agency)Office Director 345 Queen Street : 64 4 470 3902 (Valuation)ajay.rakheja@colliers.com Brisbane QLD 4000 Richard Findlay Tel : 07 3229 1233 Managing DirectorKolkata, India Fax : 07 3120 4555 richard.findlay@colliers.comInfinity Business Centre, Infinity Benchmark Simon BeirneLevel 18, Room No 13, Plot G - 1 State Chief ExecutiveBlock EP & GP, Sector V, Salt Lake simon.beirne@colliers.comKolkata 700 091, West BengalTel : 91 33 2357 6501Fax : 91 33 2357 6502Soumya MukherjeeOffice Directorsoumya.mukherjee@colliers.com You are receiving this collateral because you either subscribed for it or expressed your interest to receive it at some point to Colliers International. If you do not wish to receive future communications from us, please contact Colliers International by email at unsubscribe.hongkong@colliers.com with your name and item to unsubscribe. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2012. All rights reserved. Colliers International is a leading global real estate services company. Colliers International | p. 25
  • 26. asia pacific office market overview | 3Q 2012 REVE N UES COUNTRIES OFFICESReal estate is a location business.That’s why we do business where 1.8 BILLION 62 522you do business. Professionals & staff: 12,300 Square feet managed: 1,250 million* Lease/sale transactions: 76,000 Total transaction value: $68 billionColliers International is a leading global real estate services organisation defined Asia PACIFICby our spirit of enterprise. Through a culture of service excellence and a sharedsense of initiative, we have integrated the resources of real estate specialistsworldwide to accelerate the success of our partners.Our headquarters in Seattle, Washington and more than 522 offices worldwideshare a common brand and vision to provide the best service experienceavailable. With expertise in the major markets, Colliers is also committed toproviding our clients with access to emerging markets in Asia, Eastern Europeand Latin America.* The combination of Colliers International and FirstService results in 2.55 billion under management - 2nd largest in the world.p. 26 | Colliers International
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