Asia PacificOffice Market Overview3Q 2012Accelerating success.
table of contentsasia pacific office market overview | 3q 2012Regional Overview	                                          ...
regional overviewEconomic OverviewThe office sector in the Asia Pacific region continued to be challenging in 3Q 2012 with...
asia pacific office market overview | 3Q 2012     CHINA   BEIJING OFFICE SUPPLY, TAKE-UP &                                ...
asia pacific office market overview | 3Q 2012CHINA GUANGZHOU OFFICE SUPPLY, TAKE-UP &                                     ...
asia pacific office market overview | 3Q 2012     h o ng ko ng    HONG KONG OFFICE SUPPLY, TAKE-UP &                      ...
asia pacific office market overview | 3Q 2012s o u t h ko r e a SEOUL OFFICE SUPPLY, TAKE-UP &                            ...
asia pacific office market overview | 3Q 2012     i nd o n es i a    JAKARTA OFFICE SUPPLY, TAKE-UP &                     ...
asia pacific office market overview | 3Q 2012pa k i stan  KARACHI OFFICE SUPPLY, TAKE-UP &                                ...
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
Asia pacific office market overview 3Q 2012
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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 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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Asia pacific office market overview 3Q 2012

  1. 1. Asia PacificOffice Market Overview3Q 2012Accelerating success.
  2. 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. 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. 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. 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. 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. 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. 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. 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

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