Asia Pacific
Office Market Overview
1Q 2013
Accelerating success.
table of contents
asia pacific office market overview | 1q 2013
Regional Overview	 3
North Asia	 4-7
Beijing, China..........
Colliers International | p. 3
regional overview
Economic Overview
With the slow recovery in the global economy driven by t...
p. 4 | Colliers International
asia pacific office market overview | 1Q 2013
CHINA
Beijing
•	 A new Grade A office project ...
asia pacific office market overview | 1Q 2013
Colliers International | p. 5
CHENGDU
•	 Chengdu’s Grade A office market dat...
p. 6 | Colliers International
asia pacific office market overview | 1Q 2013
tokyo
•	 New supply in 2013 will be the lowest...
asia pacific office market overview | 1Q 2013
Colliers International | p. 7
seoul
•	 Seven office buildings were launched ...
p. 8 | Colliers International
asia pacific office market overview | 1Q 2013
indonesia
jakarta
•	 The average occupancy rat...
asia pacific office market overview | 1Q 2013
Colliers International | p. 9
philippines
manila
•	 In 1Q 2013, the overall ...
p. 10 | Colliers International
asia pacific office market overview | 1Q 2013
thailand
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2...
asia pacific office market overview | 1Q 2013
Colliers International | p. 11
hanoi
•	 An increasing proportion of new supp...
p. 12 | Colliers International
asia pacific office market overview | 1Q 2013
india
0
10
20
30
40
50
60
70
0
1,000
2,000
3,...
asia pacific office market overview | 1Q 2013
Colliers International | p. 13
india1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q201...
p. 14 | Colliers International
asia pacific office market overview | 1Q 2013
australia1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2...
asia pacific office market overview | 1Q 2013
Colliers International | p. 15
australia
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
...
p. 16 | Colliers International
asia pacific office market overview | 1Q 2013
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2...
asia pacific office market overview | 1Q 2013
Colliers International | p. 17
new zealand
1Q2010
2Q2010
3Q2010
4Q2010
1Q201...
p. 18 | Colliers International
asia pacific office market overview | 1Q 2013
Note: Rental figure in each of the above cent...
asia pacific office market overview | 1Q 2013
Colliers International | p. 19
Delhi NCR 12,200,000
Guangzhou 6,785,132
Beng...
City	New Supply	Take-up	 Average Vacancy	Total Stock	 Average Rentals
	 (sq ft)	 (sq ft)	 (%)	 (sq ft)	 (US$ / sq ft / yea...
2013 F	 2014 F	 2013 F	 2014 F	 2013 F	 2014 F	 2013 F	 2014 F	 2013 F	 2014
Manila										
Makati	 413,334	 0	 533,642	...
p. 22 | Colliers International
asia pacific office market overview | 1Q 2013
definition and terminology
NORTH ASIA
Beijing...
asia pacific office market overview | 1Q 2013
Colliers International | p. 23
definition and terminology
* 	 Super built-up...
p. 24 | Colliers International
asia pacific office market overview | 1Q 2013
NORTH ASIA
Mainland China
Beijing
George Yeun...
asia pacific office market overview | 1Q 2013
Colliers International | p. 25
This document has been prepared by Colliers I...
p. 26 | Colliers International
asia pacific office market overview | 1Q 2013
Professionals & staff:	 more than 13,500
Squa...
www.colliers.com
Asia pacific office-1q-2013
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Asia pacific office-1q-2013

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With the slow recovery in the global economy driven by the continued risks emanating from
the Eurozone and the US, GDP growth in a number of Asian economies registered a slower
than expected performance in 1Q 2013. Singapore’s GDP contracted 0.6% year-on-year
(YoY), the first decline over the past three years. China unexpectedly lost its momentum
in 1Q 2013 with growth falling short of the original forecast of 8% to a recorded increase
of 7.7% YoY. This slowdown occurred despite the government’s commitment to massive
infrastructure spending and the sustained growth in private consumption.
Looking ahead, individual governments in the region are expected to introduce additional
stimulus measures to improve the pace of economic growth. In the leasing market, corporate
tenants will remain largely cost-conscious over the near term until there are more concrete
signs of recovery in global demand, perhaps in the latter half of 2013. Given the low interest
rate environment, the overall sales market is expected to remain dominated by cash-rich
occupiers who are motivated to consider buying for long-term own-use.

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Asia pacific office-1q-2013

  1. 1. Asia Pacific Office Market Overview 1Q 2013 Accelerating success.
  2. 2. table of contents asia pacific office market overview | 1q 2013 Regional Overview 3 North Asia 4-7 Beijing, China.....................................................................................................................................4 Shanghai, China.................................................................................................................................4 Guangzhou, China..............................................................................................................................5 Chengdu, China..................................................................................................................................5 Hong Kong, HKSAR............................................................................................................................6 Tokyo, Japan......................................................................................................................................6 Seoul, South Korea............................................................................................................................7 Taipei, Taiwan....................................................................................................................................7 South East Asia 8-11 Jakarta, Indonesia..............................................................................................................................8 Kuala Lumpur, Malaysia.....................................................................................................................8 Manila, Philippines.............................................................................................................................9 Singapore...........................................................................................................................................9 Bangkok, Thailand............................................................................................................................ 10 Ho Chi Minh City, Vietnam............................................................................................................... 10 Hanoi, Vietnam..................................................................................................................................11 South Asia 11-13 Bengaluru (Bangalore), India...........................................................................................................11 Chennai, India................................................................................................................................... 12 Delhi NCR, India............................................................................................................................... 12 Mumbai, India................................................................................................................................... 13 Karachi, Pakistan............................................................................................................................. 13 Australasia 14-17 Adelaide, Australia........................................................................................................................... 14 Brisbane, Australia.......................................................................................................................... 14 Canberra, Australia.......................................................................................................................... 15 Melbourne, Australia........................................................................................................................ 15 Perth, Australia................................................................................................................................ 16 Sydney, Australia............................................................................................................................. 16 Auckland, New Zealand....................................................................................................................17 Wellington, New Zealand..................................................................................................................17 Prime Office Rental and Supply 18-19 Trends & Forecasts 20-21 Definition & Terminology 22-23 Contacts 24-25
  3. 3. Colliers International | p. 3 regional overview Economic Overview With the slow recovery in the global economy driven by the continued risks emanating from the Eurozone and the US, GDP growth in a number of Asian economies registered a slower than expected performance in 1Q 2013. Singapore’s GDP contracted 0.6% year-on-year (YoY), the first decline over the past three years. China unexpectedly lost its momentum in 1Q 2013 with growth falling short of the original forecast of 8% to a recorded increase of 7.7% YoY. This slowdown occurred despite the government’s commitment to massive infrastructure spending and the sustained growth in private consumption. Leasing Morethanhalfoftheleasinginquiriesreceivedin1Q2013involvedexpansionaryrequirements from companies and, as a result, average rents in the region increased mildly by 0.9% QoQ in 1Q 2013. Although expansion requirements were seen regionally, most multinational corporations maintained a cautious outlook on the external environment and remained largely cost-conscious in regard to real estate spending. Many firms continue to pursue cost reduction real estate strategies with focus on shifting to lower cost decentralised locations, thus putting a cap on rental growth in core locations. However there were stand- out markets such as Jakarta and Manila where economic growth has been running above the three-year historical average. With low office vacancy rates and limited new supply in the pipeline, rental growth was recorded at over 7% QoQ during the quarter. Sales Market On the sales front, buying interest from individual investors has been dampened by various government cooling measures such as the increases in real estate stamp duties in Singapore and Hong Kong, introduced in 1Q 2013. However, cash-rich occupiers, in particular insurance companies, became active in the sales market in order to avoid the risk of rental volatility. This trend was demonstrated with key purchases in Hong Kong and Korea. In China, domestic end-users in Beijing remained active in sourcing deals while overseas institutional investors and local players in Shanghai continued to dominate the whole-block sales market. Market Outlook Looking ahead, individual governments in the region are expected to introduce additional stimulus measures to improve the pace of economic growth. In the leasing market, corporate tenants will remain largely cost-conscious over the near term until there are more concrete signs of recovery in global demand, perhaps in the latter half of 2013. Given the low interest rate environment, the overall sales market is expected to remain dominated by cash-rich occupiers who are motivated to consider buying for long-term own-use.
  4. 4. p. 4 | Colliers International asia pacific office market overview | 1Q 2013 CHINA Beijing • A new Grade A office project of 37,800 sq m was completed in 1Q 2013. An existing project situated in the East 2nd Ring sub-market was added back to the market due to the transition from an owner-occupancy to a partial leasing strategy. • Demand for Grade A office properties remained largely stable during 1Q 2013, on the back of a mild upturn in economic growth, with enquiries and leasing transactions for quality office space recovering moderately. Correspondingly, the overall vacancy rate edged down by 0.2 percentage points QoQ to 4.8%, as of the end of 1Q 2013. • Rentals increased 0.4% QoQ to RMB327.9 per sq m per month by end of 1Q 2013. However, in a bid to retain satisfactory occupancy rates, some landlords were more flexible in their pricing, leading the average rents in the East Chang An Avenue, Lufthansa and East 2nd Ring sub-markets to decline by 3.0% QoQ, 1.9% QoQ and 0.9% QoQ, respectively. • The office investment market was active in 1Q 2013, with many domestic end-users demonstrating strong interest in sourcing deals. One en bloc salestransaction was disclosed during this quarter. Shandong Luneng Group Co. Ltd, a domestic corporation, acquired Bogong International Centre in the central business district (CBD), for a total consideration of RMB1.39 billion. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Bogong International Centre S Shandong Luneng Group Co. Ltd 344,400 Raycom Info Tech Park L Red Hat Software 54,800 Central International Trade Centre L Joy Global (China) Investment Co. Ltd 20,800 Phoenix Place L Lexmark 15,100 China Electronics Plaza L Nufront 14,700 20,000 40,000 60,000 80,000 00.00 100.00 200.00 300.00 400.00 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals CapitalValues Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) BEIJING OFFICE CAPITAL AND RENTAL VALUES 0.00 0.20 0.40 0.60 0.80 0.0% 5.0% 10.0% 15.0% 20.0% 2010 2011 2012 2013 F 2014 F Supply Take-up Vacancy Rate BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE SHANGHAI • Leasing demand improved slightly in 1Q 2013. Correspondingly, the average vacancy rate in the CBD edged down from 9.2% in 4Q 2012 to 9.1% in 1Q 2013, while in decentralised areas it descended mildly to 19.5%. • Afterbeing acquired byBlackstone in 2012, Huamin Imperial Towerwas launched as Garden Square in March 2013. • The average rental rate for Grade A premises in the CBD remained flat in 1Q 2013, standing at RMB8.8 per sq m per day. The rental rate in decentralised districts declined by 1.2% QoQ to RMB5.1 per sq m per day. • The en bloc office sales market recorded a numberof notabletransactions, with both overseas institutional investors and local buyers active in 1Q 2013. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Grand Gateway L Seagate 9,700 Park Place L Advent 6,500 Corporate Avenue L Gensler 6,500 Park Place L Simmons & Simmons 7,500 Ocean Tower S ARA 539,600 J-Tower S MGPA 161,500 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals CapitalValues Rentals (RMB / sq m / Day) Capital Values (RMB / sq m) 0.00 3.00 6.00 9.00 12.00 15.00 18.00 0 12,000 24,000 36,000 48,000 60,000 72,000 SHANGHAI OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0.00 0.30 0.60 0.90 1.20 Millionsqm 0.0% 5.0% 10.0% 15.0% VacancyRate 20.0% Supply Take-up Vacancy Rate SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
  5. 5. asia pacific office market overview | 1Q 2013 Colliers International | p. 5 CHENGDU • Chengdu’s Grade A office market database has been adjusted to the latest Office Grading Guideline. Until 1Q 2013, the total Grade A office stock amounted to 780,175 sq m. Average rent increased by 0.94% QoQ, to RMB128.91 per sq m per month, while the vacancy rate went up slightly by 0.2% QoQ. • In this quarter The Atrium office building, with 37,858 sq m of space, entered the office market bringing Grade A office stock in the Financial Street area to 220,599 sq m. The average rent increased by 6.18% QoQ, to RMB119.56 per sq m per month, while the vacancy rate in this area stood at 53.39%, an increase of 2.97% QoQ. • The new office buildings with high-quality hardware and construction attracted many tenants. As a result, vacancy rate for the overall Grade A office market increased by only 0.2% QoQ in 1Q 2013, even though there was a new project entering the market at the same time. On the other hand, the pressure of rising rents will increase as homogeneous competition in the Grade A office market intensifies in 2013. guangzhou • The average vacancy rate for Guangzhou’s Grade A office market decreased 2.4% QoQ to 21.9% in 1Q 2013, as no new supply entered the market. • Office rents rebounded to RMB156.9 per sq m per month in 1Q 2013. • Guangzhou’s Grade A office prices staged a stable performance, averaging RMB31,107 per sq m during 1Q 2013. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Taikoo Hui L Sumitomo Corporation 21,500 Victory Plaza L Dacheng Law Offices 14,000 CHENGDU OFFICE CAPITAL AND RENTAL VALUES 0.00 50.00 100.00 150.00 200.00 250.00 0 5,000 10,000 15,000 20,000 25,000 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals CapitalValues Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 2010 2011 2012 2013 F 2014 F Millionsqm VacancyRate Supply Take-up Vacancy Rate CHINA major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Square One L Ruihuang Watch 1,600 Raffles City L Zhengjin Mining 7,000 Raffles City L A-one Industrial 14,000 Ping An Fortune Centre L AstraZeneca 17,200 Ping An Fortune Centre L Jiangsu Institute of Urban Planning and Design 14,000 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0.00 50.00 100.00 150.00 200.00 0 10,000 20,000 30,000 40,000 Rentals Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) CapitalValues GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES 0.00 0.25 0.50 0.75 1.00 0.0% 10.0% 20.0% 30.0% 40.0% 2010 2011 2012 2013 F 2014 F Millionsqm VacancyRate Supply Take-up Vacancy Rate GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE
  6. 6. p. 6 | Colliers International asia pacific office market overview | 1Q 2013 tokyo • New supply in 2013 will be the lowest since 2008. • Rents bottoming, significant incentives continue. • Vacancy rates continue to be range bound with some qualitative decline. • Business confidence and government stimulus may impact demand positively. • Macro-economic indicators turning positive, land prices stabilising. • Tenant-friendly market conditions continue, but near-term further weakening unlikely. hong kong hong kong • Overall Grade A office rents increased slightly by 0.4% QoQ in 1Q 2013. However rents in Central fell by 1.2% QoQ during the same period, as individual landlords of top-tier buildings reduced their asking rents in anticipation of a potential increase in backfill space once major anchors decided to relocate. • Most tenants chose to renew their leases in 1Q 2013, as very few other real estate leasing options were available. • Buying interest remained strong among investors and end-users in 1Q 2013. For example, Hang Seng Bank acquired the en bloc at 113 Argyle Street in Mong Kok for about HK$3 billion for its own occupation and investment purposes, representing an estimated market yield of 3.4%. • On the leasing front, office rents in Central are expected to grow more strongly in the order of 8% than overall Grade A office rents (7%) in the coming 12 months, as the rental premium for top-tier buildings is expected to increase, due to growing occupational demand among small-to-medium-size financial tenants willing to pay the premium. HONG KONG OFFICE CAPITAL AND RENTAL VALUES 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 0.00 25.00 50.00 75.00 100.00 125.00 150.00 175.00 Rentals CapitalValues Rentals (HK$ / sq ft / Month) Capital Values (HK$ / sq ft) HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE 0.00 0.50 1.00 1.50 2.00 2.50 3.00 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2010 2011 2012 2013 F 2014 F Millionsqft VacancyRate Supply Take-up Vacancy Rate major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Akasaka Center Building L Oracle 120,700 Watterras Tower L Hitachi Building Systems 177,500 Kokusai Shin Akasaka L Ando Hazama Construction 152,700 Toranomon Hills L Asatsu DK 230,800 JP Tower L Net One Systems 177,500 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 10,000 20,000 30,000 40,000 50,000 Rentals 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 CapitalValues Rentals (Yen / Tsubo / Month) Capital Values (Yen / Tsubo) TOKYO OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0 40,000 80,000 120,000 160,000 200,000 240,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Supply Take-up Vacancy Rate Tsubo VacancyRate TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE japan major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Two IFC L UBS 205,000 Kowloon Commerce Centre Tower B L Bank of America 117,000 Three Pacific Place L Societe Generale 108,000 113 Argyle Street S Hang Seng Bank 340,000 Manley Commercial Building S Macau-based investor 58,300
  7. 7. asia pacific office market overview | 1Q 2013 Colliers International | p. 7 seoul • Seven office buildings were launched in 2012, covering 500,830 sq m of gross floor area. In 1Q 2013, State Tower Gwanghwamun in the CBD with a gross floor area of 40,991 sq m was the only new supply to enter the market. • Most upcoming office buildings in 2013 will be in the CBD and YBD. In the CBD, four Grade A office buildings will come on stream and two premium office towers, Three IFC and FDI tower, will be launched. • The average rent for Grade A office buildings increased 1.11% from the previous quarter to KRW24,478 per sq m in 1Q 2013 as most prime-grade buildings maintained steady rental rates with no significant changes. • The overall vacancy rate stood at 7.89% in 1Q 2013, relatively unchanged from the previous quarter as expansions/relocations to prime office buildings continued at a moderate pace. 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 500 1,000 1,500 2,000 2,500 3,000 3,500 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Rentals CapitalValues Rentals (NT$ / Ping / Month) Capital Values (NT$ / Ping) TAIPEI OFFICE CAPITAL AND RENTAL VALUES 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 2010 2011 2012 2013 F 2014 F Ping Supply Take-up Vacancy Rate VacancyRate TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE south korea1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F CapitalValues 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 00 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Rentals Rentals (Won / sq m / Month) Capital Values (Won / sq m) SEOUL OFFICE CAPITAL AND RENTAL VALUES 0 100,000 200,000 300,000 400,000 500,000 600,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2010 2011 2012 2013 F 2014 F VacancyRate sqm Supply Take-up Vacancy Rate SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE taiwan major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Farglory International Centre L PAREXEL International 71,100 Taipei 101 Tower L Ting Hsin International Group 27,700 Fabulous International Commercial Building L Brother Hotel 22,800 Walsin Xinyi Building L Eastspring Investments 17,800 Manhattan World Trade Building L Insurance Company of North America Taipei Branch 13,200 Taipei • The completion Farglory Financial Center added 18,000 ping to Grade A office market. Since the net take-up of Grade A offices during this quarter was lower than the new supply, the vacancy rate increased further by 1.2 percentage points QoQ to 11.14% in 1Q 2013. Meanwhile, vacancy rate in Hsin-Yi district increased to 13.5% due to the completion of the new building. • In addition, the net take-up in the NK-SC district was 2,400 ping in 1Q 2013, causing the vacancy rate to decline by 6.2 percentage points QoQ, to 13.23% in 1Q 2013. • The net take-up in the MS-TN district also reached 1,040 ping in 1Q 2013, which caused the vacancy rate to drop by 95 basis points QoQ, to 13.1% in 1Q 2013. • The average effective Grade A office rents rose by 14 basis points or NT$4 QoQ to NT$ 2,442 per ping per month in 1Q 2013. Effective rents in the Hsin-Yi district rose by 0.72% QoQ to NT$ 2,844 per ping per month in 1Q 2013. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) K Twin Tower L Woori Card 99,600 K Twin Tower L Microsoft 148,600 Center 1 L SMBC 72,800 Sewoo Building L IGIS Asset management 11,700 GS Yeokjeon Tower S Vastas Investment Management 429,600 Doosan E&C S Hana Daol Trust 234,400 Hyundai Capital HQ S Hyundai Life Insurance 400,500
  8. 8. p. 8 | Colliers International asia pacific office market overview | 1Q 2013 indonesia jakarta • The average occupancy rate for office buildings in the CBD was registered at 97% in 1Q 2013. Expansion activity remains the main demand generator this year in view of promising economic growth. About 35% of the new projects coming on line in 2013 has been pre-committed. • Office buildings located outside the CBD also enjoy a robust market. About 70% of the new projects scheduled for completion this year has been pre-committed. • Grade A office rents soared quite substantially in 1Q 2013. There are increasing demand for more affordable property options. • The growing T.B. Simatupang market in South Jakarta will be the major source of new supply in 2013, accounting for about 50% of the total in non-CBD areas. The tenants of the new space are mainly from the mining and oil & gas industries. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals CapitalValues Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m) JAKARTA OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F sqm 0 100,000 200,000 300,000 400,000 500,000 Supply Take-up Vacancy Rate 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% VacancyRate JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0.00 2.00 4.00 6.00 8.00 10.00 12.00 Rentals 200 400 600 800 1,000 1,200 CapitalValues 0 Capital Values (Ringgit / sq ft)Rentals (Ringgit / sq ft / Month) KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 28.0% 2010 2011 2012 2013 F 2014 F Millionsqft VacancyRate Supply Take-up Vacancy Rate KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE kuala lumpur • There were no new completions during the review period in Central Kuala Lumpur. The only prime office development which is expected to be completed by the end of this year is Menara Hap Seng 2, contributing 509,000 sq ft of net lettable area to the existing supply. • As the new office space completed in 2012 was gradually absorbed, the vacancy rate decreased to 7.5% in 1Q 2013 from 13.9% in the previous quarter. • Older buildings are being refurbished or demolished to make way for modern buildings. Among these are Tradewinds Corp Bhd demolishing the Crowne Plaza Mutiara Kuala Lumpur and Kompleks Antarabangsa to build the RM6 billion Tradewinds Centre, and the 35-storey Kompleks Dayabumi undergoing upgrades worth RM900 million in a conversion to a high-rise office and residential tower. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Menara Haw Par L Pac Lease Berhad 16,000 Integra Tower @ Intermark L Michael Page International Sdn Bhd 5,000 Pavilion Tower L KL Metro Group 9,800 Menara CitiBank L Foster Wheeler E & C (Malaysia) Sdn Bhd 17,900 malaysia major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) BRI 2 L GE International Operations Company Inc. 44,600 World Trade Center II L PT Avrist Assurance 21,200 Menara 165 L PT Energy Equity Epic (Seng- kang) Pty. Ltd 25,900 Menara 165 L Rajawali Swiber Cakrawala 13,000 Menteng Office Park S Harmoni Dinamik Indonesia 78,000 Gran Rubina S Mandiri Healthcare 33,100
  9. 9. asia pacific office market overview | 1Q 2013 Colliers International | p. 9 philippines manila • In 1Q 2013, the overall vacancy rate in all of the sub-markets in Metro Manila dropped to the 3% level, mainly driven by the strong expansion demand from the outsourcing & off-shoring industry. In the Makati CBD, premium vacancy declined to 3.48% QoQ and will remain below the 4% level over the next twelve months. • The vacancy rate in the Makati CBD will remain low in the long term as the supply for new office space remains limited. Only one new office building is expected to be completed this year - Alphaland Makati Tower (38,400 sq m). Meanwhile, V-Corporate Center (23,000 sq m) is targeted to be completed in 2014. • As landlords gained more pricing power resulting from the relatively low vacancy rate, rents in Makati CBD increased substantially by 8.7% QoQ to almost P840.00 per sq m per month. The rental rate will eventually exceed the P900 per sq m level by the end of the year. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Hanston Square L Flextronics (Project Management) 27,200 RCBC Plaza L GXS 9,400 0 200 400 600 800 1,000 1,200 1,400 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Capital Values (Peso / sq m)Rentals (Peso / sq m / Month) CapitalValues Rentals MANILA OFFICE CAPITAL AND RENTAL VALUES 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2010 2011 2012 2013 F 2014 F sqm Supply Take-up Vacancy Rate VacancyRate MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE singapore • Leasing momentum in the CBD stayed relatively muted in 1Q 2013, dominated by renewal deals and tenants’ flight to quality. • The average occupancy rate for Premium Grade office space in the Raffles Place / New Downtown micro-market increased from 88.5% in 4Q 2012 to 90.2% in 1Q 2013, although the average occupancy rate for Grade A office space in the wider CBD slipped from 94.5 to 93.6% over the same period. • The average monthly gross rents for CBD Premium and Grade A office space continued to ease by another 0.7% QoQ in 1Q 2013 to reach S$8.41 per sq ft as of March 2013. • Weighed down by downside risks on the global economic front, CBD office rents are expected to stay on a downtrend in 2013, but improving local market fundamentals could cap the fall in office rents to less than 5% for the whole year. 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0.00 5.00 10.00 15.00 20.00 25.00 Rentals 30.00 500 1,000 1,500 2,000 2,500 3,000 CapitalValues 0 Capital Values (Singapore$ / sq ft)Rentals (Singapore$/ sq ft / Month) SINGAPORE OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 0.00 0.50 1.00 1.50 2.00 2.50 Millionsqft VacancyRate Supply Take-up Vacancy Rate SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE singapore major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) The Metropolis L Procter & Gamble 300,000 The Metropolis L Neptune Orient Line 150,000 The Metropolis L Shell 140,000 The Metropolis L Singapore Exchange 80,000 16 Collyer Quay (51% stake in holding company) S NTUC Income 278,400 2HR, 2 Havelock Road S Guthrie GTS 173,900 Note: A re-basketing exercise was conducted in 1Q 2013 to update Colliers International’s basket of properties in the different micro-markets so as to better reflect the quality and physical building specifications under the current office built-up landscape.
  10. 10. p. 10 | Colliers International asia pacific office market overview | 1Q 2013 thailand 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals 0 200 400 600 800 1,000 1,200 1,400 120,000 CapitalValues 20,000 40,000 60,000 80,000 100,000 140,000 0 Capital Values (Baht / sq m)Rentals (Baht/ sq m / Month) BANGKOK OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F Supply Take-up Vacancy Rate sqm 0 20,000 40,000 60,000 80,000 100,000 120,000 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% VacancyRate BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE bangkok • Overall, Bangkok office market rental rates increased in 2012 and are expected to continue to rise in 2013, especially in the CBD. • The limited availability of land at reasonable prices in the CBD area is the major obstacle for office building development. Therefore, most of the new office supply is located outside the CBD area. • New international companies are entering the Thailand market, while many existing companies are expanding or planning to expand their offices. • The prospects under the Asean Economic Community (AEC) in 2015 and the opening up of Myanmar will increase demand for office buildings in Bangkok as Thailand is seen as an increasingly important regional centre for companies with operations in the sub- region, i.e. Myanmar, Laos and Cambodia. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Chamchuree Square L AIRA Securities Group 30,200 major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Bitexco Financial Tower L Sabic 2,700 Bitexco Financial Tower L Murphy Oil 9,700 Bitexco Financial Tower L SoftBank 2,200 President Place L Microsoft 32,300 vietnam 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 10 20 30 40 50 Rentals Rentals (US$/ sq m / Month) HO CHI MINH CITY OFFICE RENTAL VALUES -20,000 -10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 2010 2011 2012 2013 F 2014 F sqm VacancyRate Supply Take-up Vacancy Rate HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE ho chi minh city • Due to a number of delayed projects and continued difficulty in accessing financing, there will not be any major increases in supply during 2013 or 2014. Current movement in investments from international enterprises should push growth in the long term. • The lack of new supply should keep rents relatively stable. However, rental rates are expected to slide slightly more in 2013 before increasing again in 2014 as the market faces pressure from increasing demand and no major new supply until 2015. • The lack of new supply in coming years is expected to lower vacancy rates to below 10% in the Premium Grade sector over the next two years. • Future development of Premium Grade office projects will continue to be centred in the CBD (District 1).
  11. 11. asia pacific office market overview | 1Q 2013 Colliers International | p. 11 hanoi • An increasing proportion of new supply over the coming years will be coming from large-scale projects being developed outside the CBD, particularly in Cau Giay and Tu Liam districts. • The lower rental rates in the non-CBD projects will continue to drive average rental rates down across the city, as the projects compete with CBD projects for large-scale tenants. • As the economy is still recovering from the slowdown of previous years, it is expected that demand and take-up will remain at lower levels despite the increased supply. Meanwhile, vacancy levels are expected to increase in the coming years. 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 10 20 30 40 50 Rentals (US$/ sq m / Month) Rentals HANOI OFFICE RENTAL VALUES -50,000 0 50,000 100,000 150,000 200,000 250,000 -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 2010 2011 2012 2013 F 2014 F sqm VacancyRate Supply Take-up Vacancy Rate HANOI CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE vietnam major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Pacific Place L Honeywell 1,100 india 0 10 20 30 40 50 60 70 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Rentals CapitalValues Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month) 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F BENGALURU OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0.00 2.00 4.00 6.00 8.00 10.00 12.00 Millionsqft 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% VacancyRate 0.0% Supply Take-up Vacancy Rate BENGALURU OFFICE SUPPLY, TAKE-UP & VACANCY RATE bengaluru (Bangalore) • In 1Q 2013, absorption improved in the IT/ITeS sector, the traditional driver of office demand in the city. More than 2.5 million sq ft of Grade A office space was absorbed during the quarter. Most of the demand was generated by small and medium enterprises in the IT/ITeS sector, in micro-markets such as Whitefield, Electronic City and ORR. • During 1Q 2013, construction activities in Bengaluru remained active, resulting in numerous completions. More than 1.5 million sq ft of Grade A office space was added to the city’s total inventory. • Rental values for Grade A properties remained stable across all the sub-markets due to a supply and demand equilibrium. • There will be limited new supply in the near- to medium-term. Developers are refraining from speculative development due to the uncertainty in the future performance of the IT/ ITeS sector, and price competition from alternative locations like Pune and Hyderabad. Short- to medium-term rents are anticipated to remain stable. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Prestige Tech Park L LinkedIn 80,000 RPS Green Space L VM Ware 60,000 Golden Supreme Tech Park L Siemens 240,000 Pritech Park L Saffron 80,000 Renaissance First Face L Microchip 155,000
  12. 12. p. 12 | Colliers International asia pacific office market overview | 1Q 2013 india 0 10 20 30 40 50 60 70 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Rentals CapitalValues 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month) CHENNAI OFFICE CAPITAL AND RENTAL VALUES 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0.00 2.00 4.00 6.00 8.00 10.00 2010 2011 2012 2013 F 2014 F Millionsqft VacancyRateSupply Take-up Vacancy Rate CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE chennai • In 1Q 2013, the city witnessed moderate leasing activities, with demand mostly driven by IT/ITeS occupants in the Special Economic Zones (SEZs). The total office space absorption was recorded at around 1 million sq ft. • The city has not witnessed any major completions in 1Q 2013. Developers have adopted a cautious approach due to high vacancy levels, and have slowed the pace of their construction works. • During the surveyed quarter, no major movement of capital and rental values were recorded, hence both remained stable across all micro-markets. • A moderate level of absorption momentum is expected in the coming quarters. With controlled supply in the near future, rentals are expected to remain at current levels in preferred micro-markets such as the CBD, OMR and Guindy. However, there may be some downward pressure in locations outside city areas because of lower demand. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Ramanujan IT SEZ L TCS 100,000 Ramanujan IT SEZ L Mindtree 200,000 Ramanujan IT SEZ L Pershing 60,000 RMZ L Flextronics 80,000 DLF SEZ L Barclays 69,000 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 50 100 150 200 250 0 5,000 10,000 15,000 20,000 25,000 Rentals CapitalValues Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month) DELHI NCR OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 28.0% Millionsqft VacancyRate Supply Take-up Vacancy Rate DELHI NCR OFFICE SUPPLY, TAKE-UP & VACANCY RATE delhi NCR • Steady occupier demand was observed during 1Q 2013. NCR witnessed the absorption of more than 1.5 million sq ft during the quarter. More than 60% of this absorption was recorded in Gurgaon. • Approximately, 3 million sq ft of Grade A office space was added to the city’s total inventory in 1Q 2013. • The investment market continued to remain sluggish with no major en bloc sales transactions concluded in 1Q 2013. • Rental values for new completed buildings in the CBD were higher than the market average due to their state-of-the-art facilities and amenities. However, the overall rents and capital values for Grade A offices remained stable in all micro-markets major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Modelama L Jacob Engineering 116,000 Konnectus L VFS Global 50,000 DLF Atria L Cairn Energy 200,000 Building No. 5 L American Express 150,000 DLF IT Park L Fiserv 200,000
  13. 13. asia pacific office market overview | 1Q 2013 Colliers International | p. 13 india1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 10,000 20,000 30,000 40,000 50,000 60,000 0 50 100 150 200 250 300 Rentals CapitalValues Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month) MUMBAI OFFICE CAPITAL AND RENTAL VALUES 0.00 2.00 4.00 6.00 8.00 10.00 12.00 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 2010 2011 2012 2013 F 2014 F Millionsqft VacancyRate Supply Take-up Vacancy Rate MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE mumbai • Healthy leasing activities were observed during 1Q 2013. Office space absorption was recorded at more than 2 million sq ft. A number of large-sized leases (40,000 – 100,000 sq ft) were signed. BFSI and IT/ITeS were the primary sectors contributing to this demand. • No major movements in rental values were recorded across the sub-markets, except for a marginal decrease in the range of 1 -3% in areas like Nariman Point and Lower Parel. • In the medium-term, occupier demand is expected to remain healthy with micro-markets like Andheri, BKC and Lower Parel continuing to be the preferred destination for occupiers, due to the availability of Grade A office space. Overall, rents across the micro-markets are expected to remain unchanged, while rents for premium office space may increase slightly due to limited availability. Karachi • The Karachi office market is struggling due to the prevailing uncertainty regarding the macro-economic levels and the upcoming elections. • Marhaba Trade Centre is the only office development launched in March 2013 on a sales model basis wherein small sized offices range from 1,800 to 2,200 sq ft. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Al Tijarah Centre L Lotte Pakistan 12,000 pakistan KARACHI OFFICE CAPITAL AND RENTAL VALUES 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals 0 20 40 60 80 100 120 140 160 Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Year) 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 CapitalValues 2010 2011 2012 2013 F 2014 F 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 Millionsqft 1.60 VacancyRate 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Supply Take-up Vacancy Rate KARACHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Lodha Sim Tools L Sutherland 75,000 L&T Business Park L Colgate Palmolive 100,000 Solitaire 14 L UTV-Disney 90,000 Lodha Sim Tools L Tata Group 100,000 Arena Space L Johnson & Johnson 150,000 Nirlon L Barclays 180,000 Gigaplex S Axis Bank 300,000
  14. 14. p. 14 | Colliers International asia pacific office market overview | 1Q 2013 australia1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 100 200 300 400 500 600 700 Rentals 1,000 2,000 3,000 CapitalValues 4,000 5,000 6,000 7,000 0 Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year) ADELAIDE OFFICE CAPITAL AND RENTAL VALUES 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals 0 200 400 600 800 1,000 1,200 CapitalValues 10,000 12,000 0 2,000 4,000 6,000 8,000 Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year) BRISBANE OFFICE CAPITAL AND RENTAL VALUES -20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2010 2011 2012 2013 F 2014 F sqm VacancyRate Supply Take-up Vacancy Rate BRISBANE OFFICE SUPPLY, TAKE-UP & VACANCY RATE 2010 2011 2012 2013 F 2014 F 0 20,000 40,000 60,000 80,000 100,000 120,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% sqm VacancyRate Supply Take-up Vacancy Rate ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE adelaide • In 4Q 2012, Adelaide recorded its largest commercial office sale in almost a decade with the sale of 400 King William Street to German group Real I.S. AG for $97.9 million. The building, which sold off-market at a yield of 8.2%, demonstrates the strong appetite from national and offshore investors for prime quality investment assets in Adelaide. • Due to incoming backfill and new uncommitted supply, the overall CBD vacancy rate is forecast to continue to trend upwards until 4Q 2013. • Two new buildings will officially come on line in 2013, including the speculatively constructed private development at 70 Franklin Street in February 2013, and Bendigo and Adelaide Bank’s new headquarters at 80 Grenfell Street, due to be completed in November 2013. • Yields are likely to firm marginally by late 2013 or early 2014, when the vacancy rate starts to rebound and rent growth recovers. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 101 Grenfell Street S Private 142,000 153 Wakefield Street L Sydac 12,900 44 - 60 Rundle Mall L University of Adelaide 35,300 211 Victoria Square L Statewide Super 22,600 25 - 27 Franklin Street L Gallagher Bassett Services 32,500 30 Flinders Street L Fyfe 13,500 brisbane • The Queensland government has adjusted its property stance which has resulted in a withdrawal from a number of privately owned assets as well as much consolidation and amalgamation in state owned buildings. • An increase in vacancy over the last six months can be largely attributed to the ample supply of secondary backfill space as well as the initial hand-back of government space. • Domestic and offshore institutional buyers are expected to dominate the investment landscape, citing potential yield compression and the divergence in total returns compared to secondary assets. • Sophisticated investors and developers have placed their confidence in market growth as evidenced by the progression of several significant new office developments that could see up to 250,000 sq m of floor space delivered by 2017. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 400 George Street (50% Interest) S Motor Accident Commission 468,200 1 Eagle Street L Origin Energy 57,900 410 Ann Street L Jacobs Engineering 36,700 111 Eagle Street L Ernst & Young 16,100 288 Edward Street L Wood Group Wagners 14,800
  15. 15. asia pacific office market overview | 1Q 2013 Colliers International | p. 15 australia 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 100 200 300 400 500 600 700 Rentals 0 Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year) 1,000 2,000 3,000 4,000 5,000 6,000 CapitalValues 7,000 0 MELBOURNE OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 sqm 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% VacancyRate Supply Take-up Vacancy Rate MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals 0 100 200 300 400 500 600 700 800 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 CapitalValues Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year) CANBERRA OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% sqm VacancyRate Supply Take-up Vacancy Rate CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE canberra • Office supply in Canberra will remain tight with no new supply in the CBD area expected for the next two years. • Continued demand for quality office space will place downward pressure on Grade A vacancy levels. • Strong interest is seen from foreign investors chasing after safe investment returns. • Secondary yields have remained steady, while prime yields have firmed in 1Q 2013. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 4 Mort Street S Private investor 58,800 216 Northbourne Avenue L M5 12,900 8 Brisbane Avenue L IBM 43,100 melbourne • The vacancy rate has increased from 5.6% in July 2012 to 6.9% as of January 2013. • Face rents were reasonably flat over the year to January 2013; however, incentives leapt from an average of 16% in July 2012 to 24% in January. As such, Prime Grade net effective rents decreased by 8.9%. • Enquiries for office space availability were at 60% of the levels recorded in 2011. • Even though the slowdown in demand was anticipated and significant levels of additional supply became available, net absorption remained positive over both the first and second halves of 2012. • After a mere 36,000 sq m of new supply was added to the market in 2011, the total figure for 2012 was about 130,000 sq m after completions of some major new CBD and Docklands buildings. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 699 Bourke Street L AGL 161,500 567 Collins Street L Corrs Chambers Westgarth 94,700 300 Latrobe Street L Telstra 268,800 390 Latrobe Street L TAL 65,600 11 Exhibition Street L BUPA 126,500 242 Exhibition Street S Investa Office Fund 683,500 150 Collins Street S GPT Wholesale Office Fund 215,300 477 Collins Street S AVIVA Investors 119,400 501 Swanston Street S Vince Giulano 183,000 555 Lonsdale Street S LaSalle Investment Management 174,400
  16. 16. p. 16 | Colliers International asia pacific office market overview | 1Q 2013 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 0 200 400 600 800 1,000 1,200 Rentals 0 2,000 4,000 6,000 8,000 10,000 12,000 CapitalValues Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year) PERTH OFFICE CAPITAL AND RENTAL VALUES 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 2010 2011 2012 2013 F 2014 F sqm VacancyRate Supply Take-up Vacancy Rate PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals 0 200 400 600 800 1,000 1,200 1,400 1,600 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 CapitalValues 0 Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year) SYDNEY OFFICE CAPITAL AND RENTAL VALUES 0 40,000 80,000 120,000 160,000 200,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2010 2011 2012 2013 F 2014 F sqm VacancyRate Supply Take-up Vacancy Rate SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE perth • Net face rents have generally remained stable in 1Q 2013. However, due to an increase in vacancy in second half of 2012, landlords increased the incentive offerings which resulted in some contraction in net effective rents during the quarter. • The market is showing signs of a marginal reversion to a tenants’ market with some softening in effective rents in 1Q 2013. • Supply in 2013 is minimal and consists mostly of refurbishments; this is likely to keep the vacancy rate relatively stable. • High net absorption in the past is unlikely to be repeated in the short to medium term. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Central Park, 150 St Georges Ter- race L INPEX 61,400 66 St Georges Terrace L Dimension Data 10,800 256 St Georges Terrace L Schlumberger 16,100 sydney • Investment activity and enquiry levels remained strong across the Sydney CBD office market in 1Q 2013. • Demand from investors continued to come from new offshore groups looking to get a foothold in the Australian market, as well as domestic institutions who have increased their appetites for acquisitions. • Overall incentives have continued to increase, while rent growth was slightly higher than the rate of inflation, driven chiefly by rent reviews. • Lease renewals remained the key driver behind leasing activity with new lease enquiries coming from metropolitan tenants and business firms looking for more affordable accommodation in the CBD area. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 231 Elizabeth Street S Bright Ruby 250,500 9 Castlereagh Street S Charter Hall 231,000 383 - 395 Kent Street L WorkCover 17,000 19 - 29 Martin Place L TressCox Lawyers 36,900 2 Chifley Square L Agricultural Bank of China 17,000 australia
  17. 17. asia pacific office market overview | 1Q 2013 Colliers International | p. 17 new zealand 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals 0 100 200 300 400 500 600 0 1,000 2,000 3,000 4,000 5,000 6,000 CapitalValues Capital Values (New Zealand $ / sq m)Rentals (New Zealand $/ sq m / Year) AUCKLAND OFFICE CAPITAL AND RENTAL VALUES 0 5,000 10,000 15,000 20,000 25,000 30,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2010 2011 2012 2013 F 2014 F sqm VacancyRate Supply Take-up Vacancy Rate AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013F 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F Rentals CapitalValues Capital Values (New Zealand $ / sq m)Rentals (New Zealand $/ sq m / Year) 0 100 200 300 400 500 600 0 1,000 2,000 3,000 4,000 5,000 6,000 WELLINGTON OFFICE CAPITAL AND RENTAL VALUES -20,000 0 20,000 40,000 60,000 80,000 100,000 -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2010 2011 2012 2013 F 2014 F VacancyRate sqm Supply Take-up Vacancy Rate WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE aUckland • Overall, the Auckland CBD vacancy rate stood at 10.6% in 1Q 2013 which is the lowest recorded in 18 months. Furthermore, this was the third consecutive decline and it was below the two decade average of 13%. The drop is being driven by a historically low prime vacancy rate which is at 7.9% in 1Q 2013. • Supply constraints remain an issue. The impact of ASB‘s move to Wynyard Quarter is reduced given Auckland Council’s commitment, albeit decisions on Council’s existing space are still to be made. ANZ’s consolidation in their new premises in Albert Street in 2Q 2013, provides some opportunity for tenants with backfill space likely to be refurbished to a high standard. High profile new build market proposals for new office HQs between now and 2016 may provide some relief to CBD supply constraints. • Correlating with the reduction in prime vacant office space in Auckland is the reduction in incentives and the increase in net effective rents. Over the last year, average prime incentives have decreased and are now just under two months per year of lease term. Rents are forecast to increase steadily over the next five years. • Prime yields for office buildings are firming, which is in tandem with the projected increase in rents and capital values. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 1 Queen Street S Precinct Properties 208,800 L9, 41 Shortland Street L Morgan Coakle 8,700 wellington • Demand in Wellington’s CBD office market remains focused on higher quality premises as a result of business and seismic preference. However, only 5% of the circa 230,000 sq m of vacant office space in Wellington is considered to be prime office space. • In Wellington, the cautious approach from landlords and tenants led to incentives remaining low and stable. However, our tenant office survey indicates a rising gross rent outlook for tenants due to higher insurance costs. • Forecasts forthe overall performance of the sector remains mixed, given the high proportion of secondary space that will need to be investigated for earthquake resistance. Clarity around strengthening requirements and how it will be conducted remains elusive. This will be positive for the prime sector with demand for the surety of prime space commanding a premium. As a result, prime rents are expected to rise by 2% in 2013. • Argosy Property Trust announced their purchase of NZ Post House for NZ$60 million. Seismic strengthening is required for the project and is estimated at NZ$40 million. The work is expected to be completed in early 2016 and will not detrimentally affect operations of tenants who will reportedly continue to occupy the building throughout the process. The strong covenant provides a 20-year lease with three-yearly market reviews. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) New Zealand Post House, 7 Waterloo Quay S Argosy Property 268,900 The Freyberg Building, 20 Aitken Street L Government Department 34,400 16 Willis Street L Chorus 12,800 181 Wakefield Street L EDMI NZ 8,400
  18. 18. p. 18 | Colliers International asia pacific office market overview | 1Q 2013 Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology" australiaprime office rental Hong Kong Tokyo Singapore Sydney Perth Beijing Brisbane Shanghai Hanoi Ho Chi Minh City Mumbai Delhi NCR Jakarta Canberra Adelaide Melbourne Guangzhou Taipei Bangkok Wellington Auckland Kuala Lumpur Seoul Chengdu Manila Chennai Bengaluru Karachi RENTALS (US$ / SQ FT / YEAR) 0.00 20.00 40.00 60.00 80.00 100.00 120.00
  19. 19. asia pacific office market overview | 1Q 2013 Colliers International | p. 19 Delhi NCR 12,200,000 Guangzhou 6,785,132 Bengaluru 9,090,000 Chennai 5,240,000 Mumbai 8,700,000 Seoul 4,837,867 Chengdu 4,628,477 Shanghai 4,042,942 Tokyo 3,091,015 Jakarta Guangzhou Seoul Shanghai Chengdu Hong Kong Taipei Singapore Hanoi Beijing Bangkok Manila Ho Chi Minh City Over 3,000,000 sq ft 1,000,000 - 3,000,000 sq ft Below 1,000,000 sq ft Hong Kong 927,384 Manila 413,334 Kuala Lumpur 509,000 Adelaide 454,936 Ho Chi Minh City 117,316 Singapore 733,000 Brisbane 200,209 Karachi 145,000 Auckland 193,750 Perth 100,524 Bangkok 0 Canberra 0 Wellington 0 Kuala Lumpur Melbourne Auckland Canberra Wellington Delhi NCR Bengaluru Mumbai Chennai Tokyo SydneyAdelaide Brisbane Karachi Perth Beijing 2,730,242 Hanoi 1,748,165 Melbourne 1,442,363 Jakarta 1,564,339 Taipei 1,074,641 Sydney 1,304,994 Prime Office New Supply ForecAst for 2013 Source: Colliers
  20. 20. City New Supply Take-up Average Vacancy Total Stock Average Rentals (sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year) 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F Beijing CBD 1,614,585 538,195 679,195 1,263,682 9.7 6.3 22,157,679 22,695,874 64.53 71.75 Zhongguancun 0 624,306 26,318 231,908 0.9 5.3 8,095,529 8,719,835 48.03 51.85 Financial Street 406,875 0 366,188 28,967 1.0 0.7 10,107,399 10,107,399 72.95 80.46 Lufthansa 708,781 0 196,867 425,269 8.4 3.2 8,185,871 8,185,871 56.62 61.87 East Chang An Avenue 0 0 152,385 32,292 3.6 3.1 6,307,067 6,307,067 52.15 54.70 East 2nd Ring 0 0 108,500 4,447 1.2 1.1 3,012,514 3,012,514 48.96 50.86 Other areas 0 1,531,918 6,028 453,548 0.5 40.4 1,151,307 2,683,225 50.74 47.77 Shanghai Huangpu 837,991 1,904,801 429,580 1,268,532 11.5 15.0 10,015,691 11,920,492 49.97 52.79 Jingan 2,099,143 0 1,339,070 388,688 12.0 8.0 9,717,208 9,717,208 61.59 65.07 Lujiazui-Pudong 0 1,469,272 553,159 592,370 6.0 10.0 18,249,369 19,718,641 52.09 55.03 Zhuyuan-Pudong 0 1,147,808 342,160 734,073 10.0 15.0 4,831,290 5,979,099 38.09 40.24 Changning 1,213,210 215,278 1,296,059 312,953 9.5 8.0 7,659,807 7,875,085 42.54 44.94 Xuhui 0 0 76,738 24,359 5.0 4.5 4,871,881 4,871,881 52.54 55.51 Guangzhou Yuexiu 0 165,635 85,627 -271,016 5.0 13.8 4,683,244 4,848,879 19.89 20.10 Tianhe 6,785,132 6,262,674 4,478,482 4,723,361 26.0 27.2 31,569,356 38,519,951 29.45 29.44 Haizhu 0 0 64,487 194,738 30.7 22.1 2,244,693 2,244,693 17.39 17.06 Chengdu Renmin Road 0 645,834 180,192 444,609 16.0 20.0 1,801,446 2,447,280 29.52 30.23 CBD 0 0 919,722 204,742 25.0 16.0 2,274,913 2,274,913 23.12 24.36 Financial Street 1,376,251 4,240,977 867,960 2,027,962 45.0 49.0 3,373,395 7,614,372 21.34 22.23 Tianfu Avenue 857,506 0 838,272 356,647 40.0 27.0 2,743,438 2,743,438 21.34 22.59 Hong Kong Central 40,700 0 120,378 237,714 4.7 3.6 21,770,869 21,770,869 166.11 182.72 Wanchai 0 0 25,388 64,609 3.9 3.3 11,439,007 11,439,007 100.05 108.05 HK Island East 0 0 -320,000 25,118 0.7 0.4 10,404,774 10,404,774 71.94 75.53 Tsim Sha Tsui 0 0 5,600 4,736 1.6 1.5 6,361,390 6,361,390 84.62 91.39 Kowloon East 886,684 799,551 766,053 757,430 8.5 8.3 10,078,565 10,878,116 59.89 62.88 Tokyo CBD 3,091,015 5,622,161 N/A N/A 7.8 7.5 82,421,242 88,043,403 96.11 96.11 Seoul CBD 1,872,843 2,446,193 844,859 2,701,674 12.8 10.4 36,654,685 39,100,879 28.51 29.19 GBD 0 0 275,782 16,555 4.1 4.0 28,697,841 28,697,841 24.91 25.78 YBD 2,965,024 0 717,263 1,429,306 17.6 10.5 20,103,758 20,103,758 21.70 22.62 Taipei CBD 1,074,641 2,113,137 624,375 1,141,475 11.6 14.8 20,402,183 22,515,320 27.56 27.69 Jakarta CBD 1,564,339 2,223,154 3,185,565 2,152,780 1.1 1.5 51,580,835 53,803,989 39.08 44.41 Non-CBD 1,793,007 4,377,183 1,676,639 2,480,735 3.5 9.5 24,824,266 29,201,449 23.56 24.58 Kuala Lumpur KLCA 509,000 2,459,266 1,000,000 1,000,000 12.2 15.4 33,424,552 35,883,818 25.25 25.25 p. 20 | Colliers International asia pacific office market overview | 1Q 2013 TRENDS & FORECASTS
  21. 21. 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 Manila Makati 413,334 0 533,642 373,378 3.7 3.9 10,347,811 10,347,811 24.51 26.69 Ortigas 876,074 0 791,663 15,629 5.9 5.6 5,837,489 5,837,489 15.93 17.02 Singapore CBD 732,545 700,000 393,573 399,125 7.4 8.7 19,430,913 20,130,913 79.67 79.67 Bangkok CBD 0 0 861,112 645,834 8.0 7.0 17,580,646 17,580,646 27.39 28.92 Ho Chi Minh City CBD 117,316 98,221 118,403 172,222 12.9 5.8 2,301,860 2,311,677 39.35 39.02 Hanoi CBD 987,136 678,126 188,368 172,222 40.6 47.4 2,712,535 3,390,661 45.71 43.48 Non-CBD 761,029 1,368,479 602,778 688,890 37.3 41.8 2,396,615 3,765,094 28.43 30.10 Bengaluru Overall 9,090,000 6,000,000 7,500,000 7,000,000 15.0 16.0 93,517,175 99,517,175 10.48 10.73 Chennai Overall 5,240,000 8,000,000 4,000,000 5,000,000 21.0 22.0 46,032,483 54,032,483 10.59 10.59 Delhi NCR Overall 12,200,000 10,000,000 6,500,000 7,000,000 18.0 20.0 82,804,158 92,804,158 37.95 37.73 Mumbai Overall 8,700,000 5,000,000 7,000,000 7,000,000 14.5 15.0 110,158,000 115,158,000 39.49 39.27 Karachi CBD 145,000 476,000 100,000 124,000 40.0 42.0 15,376,929 15,852,929 1.01 1.05 Adelaide CBD 454,936 0 139,931 322,917 9.8 9.4 14,432,022 14,860,371 34.31 35.38 Brisbane CBD 200,209 0 -144,764 45,704 8.3 6.8 11,484,209 11,484,209 57.03 58.81 Canberra CBD 0 0 21,528 32,292 5.0 4.0 3,013,892 3,013,892 36.71 37.43 Melbourne CBD 1,442,363 721,181 1,294,660 818,056 7.3 7.0 45,911,553 46,934,124 28.60 29.76 Perth CBD 100,524 395,057 113,021 188,368 5.3 5.5 17,161,661 17,395,259 67.05 67.05 Sydney CBD 1,304,994 607,084 740,556 382,980 7.4 7.7 53,246,290 53,340,388 67.95 70.96 Auckland CBD 193,750 0 224,987 102,419 7.2 5.1 4,800,204 4,805,586 27.04 28.36 Wellington CBD 0 0 15,328 -14,327 3.5 4.0 3,256,973 3,256,973 27.21 27.83 City New Supply Take-up Average Vacancy Total Stock Average Rentals (sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year) asia pacific office market overview | 1Q 2013 Colliers International | p. 21 TRENDS & FORECASTS
  22. 22. p. 22 | Colliers International asia pacific office market overview | 1Q 2013 definition and terminology NORTH ASIA Beijing Prime office market in Beijing consists of 6 sub-markets – CBD (Central Business District), Lufthansa, East 2nd Ring, Financial Street, East Chang An Avenue and Zhongguancun. Rents are quoted in RMB per sq m per month on gross floor area basis, and exclusive of management fees and rent free period. Capital values are quoted on RMB per sq m. Shanghai Prime office buildings in Shanghai are located in 6 principal sub-markets – Huangpu, Jingan, Lujiazu-Pudong, Zhuyuan-Pudong, Changning, and Xuhui. Rents are quoted in RMB per sq m per day on gross floor area basis, and exclusive of any management fees. Capital values are quoted on RMB per sq m. Guangzhou Prime office buildings in Guangzhou are located in 3 principal sub-markets – Haizhu, Yuexiu and Tianhe. 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 per sq m. Chengdu Prime office buildings in Chengdu are mainly located in 3 sub-markets, Renmin Road, CBD and Financial Street. Rents are quoted in RMB per sq m per month on gross floor area basis, and exclusive of management fees. Capital values are quoted on RMB per sq m. Hong Kong Prime office properties in Hong Kong are concentrated in 5 sub-markets – Central, Wanchai / Causeway Bay, Island East, Tsim Sha Tsui and Kowloon East. Rents are commonly quoted in HK$ per sq ft per month on either gross, net or lettable floor area basis, which are exclusive of management fees, and government tax. Prices are quoted in HK$ per sq ft, and are measurable on gross floor area basis. Tokyo The quality office buildings in Tokyo are located in the central business area (CBD) area covering six wards namely, Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, Shibuya-ku and Shinagawa-ku. Rents are achievable rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month, which are inclusive of service charges. Office space is measured on an internal floor area basis. Capital values are quoted in Yen per tsubo. Seoul Major office districts in Seoul include the traditional central business area (CBD), Gangnam Business District (GBD) and Yeouido Business District (YBD). Rents are quoted in Won per sq m per month on gross floor area basis. Generally, a deposit equivalent to 10 months is required, and is usually paid up front. Management fees are excluded from quoted rents. Space is measured on gross floor area basis. Capital values are quoted in Won per sq m. Taipei Prime office properties in Taipei are concentrated in 7 districts, comprising Nanking Sung Chiang (NK-SC), Minsheng Tun Hwa North (MS-TN), Hsin Yi, West, Tun Hwa South (TUN-S), Jen Ai Hsin Sheng (JA-HS) and Nanking East Road (NK-4/5). The local unit of measurement is a “ping” (i.e. 3.3 sq m). Rents and prices are quoted in local currency i.e. New Taiwan Dollar (NT$) on gross floor area basis. SOUTHEAST ASIA Jakarta The quality office buildings in Jakarta are located in the CBD covering the districts Thamrin, Sudirman, Gatot Subroto, Rasuna Said and Mega Kuningan. The areas outside the above districts are collectively called as “non-CBD”. Rents are commonly quoted in Rupiah per sq m per month, which are inclusive of service charges but exclusive of government taxes. Office space is measured on lettable floor area basis. Capital values are quoted in Rupiah per sq m. Kuala Lumpur Prime office buildings located in the Kuala Lumpur Central Area (KLCA) only. The KLCA comprises areas generally within the central business district. Rents are commonly quoted in Ringgit Malaysia (RM) per sq ft per month on net floor area basis, which are inclusive of service charges and property taxes. Capital values are quoted in Ringgit per sq ft. Manila Prime office buildings in Manila are located in two principal sub-markets – Makati and Ortigas. Rents are quoted in Peso per sq m per month on net floor area basis, and exclusive of any management fees. Capital values are quoted in Peso per sq m. Singapore The quality office buildings covered in the report are located in the Central Business District of Singapore. Rents are quoted in S$ per sq ft per month on net floor area basis (i.e. area less common areas such as corridors, toilets, lift lobby etc. but including columns), and are inclusive of service charge. Capital values are quoted on the basis of strata area for strata-titled buildings, and net area for non- strata-titled developments.
  23. 23. asia pacific office market overview | 1Q 2013 Colliers International | p. 23 definition and terminology * 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. Bangkok Prime office properties in Bangkok are located in a wide area encompassing eastern Silom and Sathorn roads starting from Narathiwas Ratchanakarin, Rama IV from Phayathai to Ratchadaprisek, along Ratchadaprisek from Rama IV to Sukhumvit and along Sukhumvit from Asoke to the whole of Pleonchit and then Rama I to Phayathai. Rents are quoted in Baht per sq m per month on a net floor area basis, and inclusive of service charges. Capital values are quoted in Baht per sq m. Ho Chi Minh City The quality office buildings in Ho Chi Minh City are located in District One - the central business district in the city. Rents are commonly quoted in US$ per sq m per month on net floor area basis, and exclusive of management fees and government tax. Capital values are quoted on US$ per sq m. Hanoi Prime quality office building in Hanoi are mostly located in Hoan Kiem district, with individual quality buildings located in Cau Giay district and Ba Dinh district. The central location of the city is perceived as being close to Hoan Kiem Lake, which is within Hoan Kiem district. Rents are commonly quoted in US$ per sq m per month on net floor area basis. Rents are inclusive of service charges and exclusive of value added tax, which is currently at 10% level. SOUTH ASIA Bengaluru (Bangalore) Prime office properties in Bengaluru are can be divided in 3 principal sub- markets – CBD (Central Business District), SBD (Suburban/Secondary Business District) consisting of Bannerghatta Road & Outer Ring Road and PBD (Peripheral Business District) including PBD Hosur Road, EPIP Zone, Electronic City and Whitefield. Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. Chennai Prime office properties in Chennai are located in 3 principal submarkets– CBD (Central Business District), (Suburban/Secondary Business District) and PBD (Peripheral Business District). SBD consists of Guindy and Velechery while PBD includes other areas such as Old Mahaballipuram Road, Ambattur and GST Road amongst others. Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. Delhi NCR Prime office properties in Delhi NCR are primarily concentrated in CBD (Central Business District) – consist of Connaught Place; SBD (Secondary Business District) including Nehru Place, Jasola, Saket and Netaji Subhash Place and PBD (Peripheral Business District) including Gurgaon and Noida. Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Mumbai Prime office properties in Mumbai are primarily concentrated in CBD (Central Business District) – consist of Nariman Point, Ford and Ballard Estate; SBD (Secondary Business District) including Bandra (West and East), Kalina, Lower Parel and Worli/Prabhadevi and PBD (Peripheral Business District) including Navi Mumbai, Vashi, Powai, Goregaon. Rents are commonly quoted in Rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis. Office space is commonly measured on *super built up area basis. Karachi Prime office buildings in Karachi are located in the central business area (CBD) covering 4 sub-markets – I.I Chundrigar Road, Shahrah-e-Faisal, Clifton and Mai Kolachi. 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 Values are quoted in Rupee per sq ft. AUSTRALASIA Australia Prime office buildings are located in the CBD and generally favoured by MNCs. 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. New Zealand Prime office buildings are located in the CBD. Rents are quoted on net floor area basis, and in NZ$ per sq m per annum excluding management fee and government charges. Capital values are quoted on NZ$ per sq m. loor area basis, and in NZ$ per sq m per annum excluding management fee and government charges. Capital values are quoted on NZ$ per sq m.
  24. 24. p. 24 | Colliers International asia pacific office market overview | 1Q 2013 NORTH ASIA Mainland China Beijing George Yeung Managing Director | North China Tel : 86 10 8518 1633 george.yeung@colliers.com Shanghai Lina Wong Managing Director East and South West China Investment Services, China Tel : 86 21 6141 3688 lina.wong@colliers.com Guangzhou Eric Lam Managing Director Tel : 86 20 3819 3888 eric.lam@colliers.com Chengdu Jacky Tsai Managing Director Tel : 86 28 8658 6288 jacky.tsai@colliers.com Hong Kong, HKSAR Company Licence No: C-006052 Richard Kirke (E-279867) Managing Director Tel : 852 2828 9888 richard.kirke@colliers.com Piers Brunner (E-183614) Chief Executive Officer | Asia piers.brunner@colliers.com For further details, please contact: SOUTH EAST ASIA Indonesia Jakarta Mike Broomell Managing Director Tel : 62 21 521 1400 mike.broomell@colliers.com Malaysia Kuala Lumpur c/o Mark Lampard* Managing Director Corporate Solutions | Asia Pacific mark.lampard@colliers.com Tel : 65 6531 8601 * Based in Singapore Research data provided by C H Williams Talhar & Wong Sdn Bhd URL : http://www.wtw.com.my Foo Gee Jen Managing Director Tel : 603 2616 8888 fgj@wtw.com.my Philippines Manila David Young Managing Director Tel : 63 2 888 9988 david.a.young@colliers.com Singapore Dennis Yeo Managing Director Singapore & Industrial Services | Asia Tel : 65 6223 2323 dennis.yeo@colliers.com Thailand Bangkok Simon Landy Executive Chairman Tel : 66 2 656 7000 simon.landy@colliers.com Japan Tokyo James Fink Senior Managing Director Tel : 81 3 5563 2111 james.fink@colliers.co.jp South Korea Seoul Jay Yun Senior Director and General Manager Tel : 82 2 6740 2001 jay.yun@colliers.com Taiwan Taipei Andrew Liu Managing Director Tel : 886 2 8101 2000 andrew.liu@colliers.com Vietnam Ho Chi Minh City Peter Dinning General Director Tel : 84 8 3827 5665 peter.dinning@colliers.com Hanoi Dane Moodie Managing Director Tel : 84 4 3941 3277 dane.moodie@colliers.com
  25. 25. asia pacific office market overview | 1Q 2013 Colliers International | p. 25 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). ©2013. All rights reserved. Colliers International is a leading global real estate services company. 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. SOUTH ASIA India Bengaluru Goutam Chakraborty Office Director Tel : 91 80 4079 5500 goutam.chakraborty@colliers.com Chennai Kaushik Reddy Office Director Tel : 91 44 2836 1064 kaushik.reddy@colliers.com Delhi NCR Ajay Rakheja Office Director Tel : 91 11 4360 7500 ajay.rakheja@colliers.com Gurgaon Ajay Rakheja Office Director Tel : 91 124 4375807 ajay.rakheja@colliers.com Kolkata Soumya Mukherjee Office Director Tel : 91 33 2357 6501 soumya.mukherjee@colliers.com Mumbai Prabhu Raghavendra Office Director Tel : 91 22 4050 4500 prabhu.raghavendra@colliers.com George McKay South Asia Director Office and Integrated Services george.mckay@colliers.com Pune Suresh Castellino Office Director Tel : 91 20 4120 6435 suresh.castellino@colliers.com AUSTRALASIA Australia Adelaide James Young State Chief Executive Tel : 61 8 8305 8888 james.young@colliers.com Brisbane Simon Beirne State Chief Executive Tel : 07 3229 1233 simon.beirne@colliers.com Canberra Paul Powderly State Chief Executive Tel : 61 2 6257 2121 paul.powderly@colliers.com Melbourne John Marasco State Chief Executive Tel : 61 3 9629 8888 john.marasco@colliers.com Perth K. Imran Mohiuddin State Chief Executive Tel : 61 8 9261 6666 imran.mohiuddin@colliers.com Sydney Malcom Tyson State Chief Executive Tel : 61 2 9257 0222 malcom.tyson@colliers.com Pakistan Karachi Mohammed Yasir Qidwai Senior Manager, Corporate Solutions & Research Tel : 92 21 3561 2550-2 research.khi@colliers.com Lahore Ahmed Khan Country Manager Tel : 92 42 3584 3474-6 ahmed.khan@colliers.com Islamabad Waleed Murrawat Regional Sales Manager Tel : 92 51 834 7433 waleed.murrawat@colliers.com New Zealand Auckland Mark Synnott Chief Executive Officer, New Zealand Tel : 64 9 358 1888 mark.synnott@colliers.com Wellington Richard Findlay Managing Director Tel : 64 4 473 4413 richard.findlay@colliers.com
  26. 26. p. 26 | Colliers International asia pacific office market overview | 1Q 2013 Professionals & staff: more than 13,500 Square feet managed: 1.1 billion Lease/sale transactions: more than 78,000 Total transaction value: more than 71 billion Real estate is a location business. That’s why we do business where you do business. REVENUES COUNTRIES OFFICES 482622.0BILLION Asia PACIFIC Colliers International is a leading global real estate services organisation defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our partners. Our headquarters in Seattle, Washington and more than 482 offices worldwide share a common brand and the vision to provide the best service experience available. With expertise in the major markets, Colliers is also committed to providing our clients with access to emerging markets in Asia, Eastern Europe and Latin America
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