Asia pacific office-2q-2013

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Various factors impacted the Asian economies during 2Q 2013, such as further confirmation
of slower than expected growth in China and increasing worries on the next interest hike
in Asia as the US Federal Reserve signaled they may start scaling back its quantitative
easing policy later this year. Against a backdrop of weakening economic conditions across
the region, individual Asian countries have seen a drop in inflation and are still subject to
various challenges ahead such as the potential risk of liquidity outflow from Asia. With
the economic performance yet to show any sign of acceleration, the region is entering an
era of slower growth.
The economic environment in Asia is expected to remain uncertain as the region continues
to be reactive to the overall global economic conditions. Individual governments are expected
to focus on economic issues and introduce additional stimulus measures to help their
countries emerge from prolonged bouts of deflation. Nevertheless, based on the findings
of Colliers Asia Office Leasing Survey for 2Q 2013, it is anticipated that rents will increase
in the next 12 months but the pace of rental growth will taper off. Investment transaction
volume is likely to consolidate further in the second half of 2013, as risk-averse investors
continue to be cautious, due to concerns that rising interest rates will lead to higher property
yields and reduced property values.

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Asia pacific office-2q-2013

  1. 1. Asia Pacific Office Market Overview 2Q 2013 Accelerating success.
  2. 2. table of contents asia pacific office market overview | 2q 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 Various factors impacted the Asian economies during 2Q 2013, such as further confirmation of slower than expected growth in China and increasing worries on the next interest hike in Asia as the US Federal Reserve signaled they may start scaling back its quantitative easing policy later this year. Against a backdrop of weakening economic conditions across the region, individual Asian countries have seen a drop in inflation and are still subject to various challenges ahead such as the potential risk of liquidity outflow from Asia. With the economic performance yet to show any sign of acceleration, the region is entering an era of slower growth. Leasing Market Office rents in most key cities in Asia Pacific saw no significant growth in 2Q 2013. Although Jakarta and Manila continued to be the key performers, with strong rental growth in the orderof 4-6% quarter-on-quarter(QoQ),there wasasignificant slowdown intermsofspace absorption during 2Q 2013 despite low vacancy rates. Perth saw average rents decrease the most among cities in the region, in the order of 5% QoQ, as demand softened due to the adoption of more conservative business attitudes in the current global environment. Sales Market Due to various property curbs in the investment market, more investment capital originating from Hong Kong and Singapore turned to offshore markets such as China and especially Japan, where inbound purchases doubled inthe past six months. In Beijing and Shanghaithe en bloc sales market witnessed a rebound in transaction activity in 2Q 2013, demonstrated by a number of significant deals done by both domestic and foreign institutions. However, in Hong Kong investment demand was dampened by government cooling measures with speculatorsexitingthemarket.Meanwhile,inAustralasia,investmentdemandfrominstitutional buyers chasing scarce prime assets remained strong, resulting in a slighttightening of yields. Market Outlook The economic environment in Asia is expected to remain uncertain as the region continues to be reactivetothe overall global economic conditions. Individual governments are expected to focus on economic issues and introduce additional stimulus measures to help their countries emerge from prolonged bouts of deflation. Nevertheless, based on the findings of Colliers Asia Office Leasing Survey for 2Q 2013, it is anticipated that rents will increase in the next 12 months but the pace of rental growth will taper off. Investment transaction volume is likely to consolidate further in the second half of 2013, as risk-averse investors continue to be cautious, due to concerns that rising interest rates will lead to higher property yields and reduced property values.
  4. 4. p. 4 | Colliers International asia pacific office market overview | 2Q 2013 CHINA Beijing • There were no new completions in 2Q 2013. • Demand in Beijing’s Grade A office property market moderated in 2Q 2013, with enquiries and leasing transactions decreasing on the back of the economic deceleration and changes to corporate expansion plans. Key demand generators were companies from the finance sector (investment, banking, insurance and securities). • Rents declined for the first time since 4Q 2009, by 1.6% QoQ to RMB322.6 per sq m per month as of the end of 2Q 2013. By submarket, the CBD area recorded the largest quarterly rent decline of 2.6%, to RMB362.9 per sq m per month as of the end of 2Q 2013, while rents in Financial Street remained stable. • Office investment market was very active in 2Q 2013. Three en bloc sales transactions were concluded, including China Merchants Bank’s purchase of an office project (currently under construction) from Financial Street Holdings for a total consideration of approximately RMB3.902 billion. 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 20,000 40,000 60,000 80,000 00.00 100.00 200.00 300.00 400.00 Rentals CapitalValues Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) BEIJING OFFICE CAPITAL AND RENTAL VALUES 2010 2011 2012 2013 F 2014 F 0.00 0.20 0.40 0.60 0.80 0.0% 5.0% 10.0% 15.0% 20.0% Supply Take-up Vacancy Rate Millionsqm VacancyRate BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE SHANGHAI • Jing’an Kerry Center Tower II was launched during 2Q 2013, adding 43,725 sq m to the market. • The average vacancy rate edged down from 9.1% in 1Q 2013 to 8.4% in 2Q 2013 as demand picked up. • The average Grade A office rent inthe CBD remained unchanged in 2Q 2013. Bysub-market, the rental rate in Pudong increased by 0.4% QoQ to RMB8.7 per sq m per day while that in Puxi edged down by 0.3% QoQ to RMB8.9 per sq m per day. Pudong benefited from the strong demand from domestic financial institutions and professional service firms. • The investment market remained active with a number of en bloc transactions by both domestic and foreign institutions. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) East Ocean Center S CLSA 516,700 Central Plaza S Carlyle 433,000 Park Place L JP Morgan 86,100 Sandhill L Dupont 58,100 One Lujiazui L Zhonghai Fund Management 32,300 Belle Int'l Plaza L Future Electronics 19,400 SOHO The Exchange L Dockwise 17,200 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Block 4# in Yuetan South Street, Xicheng District S China Merchants Bank 766,400 Silicon Valley Tower 4 S BOC International (China) 98,800 Diamond Plaza S BOC International (China) 244,000 Hopson International Tower L CITIC 839,600 China Overseas Plaza L China Unicom 56,000 Parkview Green L China Lianhe Credit Rating 32,300 Raffles City L CITIC Securities 24,600
  5. 5. asia pacific office market overview | 2Q 2013 Colliers International | p. 5 CHENGDU • The total Grade A office stock remained at 780,175 sq m as no new Grade A office space entered the Chengdu office market in 2Q 2013. • Most of the leasing deals in 2Q 2013 occurred in the relatively new office projects, because of the adequate available area and better hardware. • Average rent stood at RMB129.51 per sq m per month in 2Q 2013 and increased slightly by 0.47% QoQ with an increase in new office stock during the past two quarters. Meanwhile, the vacancy rate dropped by 1.23 percentage points QoQ. • The 2013 Fortune Global Forum, which was held in Chengdu in June 2013, is expected to be a positive factor for the Grade A office market in Chengdu over the long term. However, during the coming two quarters, the Chengdu office market will suffer from the pressure of the macro-economy and the huge supply of office space. guangzhou • Two new Grade A office buildings, Fortune Century Plaza and One Bravo Plaza in Pearl River New City, were completed and injected 127,600 sq m of new supply into the market. The vacancy rate went up by 1.0% QoQ to 22.9% in 2Q 2013. • The demand for office space was relatively cold during 2Q 2013, on the back of a shrinking macro-financial environment. In addition, the upcoming large volume of new supply in Pearl River New City drove the landlords of newly completed projects to lower the asking price. The average rent declined by 2.3% QoQ to RMB153.3 per sq m per month in 2Q 2013. • The sales price of Guangzhou Grade A offices continued increasing in 2Q 2013 to RMB33,446, up 1.0% QoQ. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) G.T. Land Building A L Yuanfang Technological 53,800 Guangzhou International Financial Center L Jing'an Investment Holding 35,500 One Bravo Plaza L Shanghai Leo Burnett Advertisement 29,100 Onel Link Walk L gzmama.com 17,200 One Bravo Plaza L Saatchi & Saatchi Guangzhou 11,200 CHENGDU OFFICE CAPITAL AND RENTAL VALUES 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 0.00 50.00 100.00 150.00 200.00 250.00 0 5,000 10,000 15,000 20,000 25,000 Rentals CapitalValues Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) 2010 2011 2012 2013 F 2014 F 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% Millionsqm VacancyRate Supply Take-up Vacancy Rate CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE CHINA major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) China Overseas International Centre L Orientac Management Co. Ltd 11,300 China Overseas International Centre L Zhongni Investment Co. Ltd 8,100 Raffles City L Chengde Asset Management Co. Ltd 2,300 Yanlord Landmark L Sumitomo Mitsui Financial Group 2,700 Square One L Puleidisi Consultancy 2,500 Lippo Tower L Nokia 4,300 Mingyu Financial Centre L Huatu Education 10,800 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 2010 2011 2012 2013 F 2014 F 0.00 0.25 0.50 0.75 1.00 0.0% 10.0% 20.0% 30.0% 40.0% 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 | 2Q 2013 tokyo • Macro-economic indicators continued a gradual improvement trend. • The low new supply in 2013 provides a recovery opportunity in an oversupplied market. • Rents continue to stabilise. • Vacancy is contracting moderately. • Recent turmoil in financial markets is expected to weaken business confidence in the near term. • Tenant market conditions prevail based upon relatively high vacancy and only a modest increase in demand. hong kong hong kong • The Double Stamp Duty introduced by the Hong Kong government has effectively suppressed acquisition demand as the number of office sales deals fell sharply in 2Q 2013 with short-term investors shying away from the market. • Overall Grade A office rents stabilised at 0.9% QoQ in 2Q 2013, with some signs of small- and medium-sized enterprises reducing their CBD footprint for downsizing and cost-savings reasons. • Genuine buying interest among individual cash-rich corporations was still demonstrated in 2Q 2013. The latest example being Canadian insurer Manulife, acquiring the West Tower at One Bay East in Kowloon East for HK$4.5 billion for its own occupation, despite being caught by the doubling of stamp duty. • With more companies turning cautious in hiring amid deteriorating business conditions, office-leasing demand will progressively weaken. The overall Grade A office rents are set to slow and undergo mild growth of 2% over the next 12 months. HONG KONG OFFICE CAPITAL AND RENTAL VALUES 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 0.00 25.00 50.00 75.00 100.00 125.00 150.00 175.00 Rentals CapitalValues Rentals (HK$ / sq ft / Month) Capital Values (HK$ / sq ft) HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE 2010 2011 2012 2013 F 2014 F 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% Millionsqft VacancyRate Supply Take-up Vacancy Rate major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Otemachi Financial City North Tower L JFE Shoji Trading Corporation 68,500 Marunouchi Eiraku Building L Abeam Consulting Ltd 104,000 Marunouchi Eiraku Building L Mitsui Sumitomo Trust Holdings 269,800 Think Park Tower L Dassault System 49,700 Nisseki Yokohama Building L Tenneco Japan 49,700 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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) Hutchison House L Undisclosed 12,900 One Pacific Centre L Manulife 8,600 International Commerce Centre L Undisclosed 7,300 4 floors, Kowloon Commerce Centre S China Mobile 104,000 Whole block, Wing Hang Finance Centre S Emperor Group 95,600 12/F, Enterprise Square One S Undisclosed 40,500
  7. 7. asia pacific office market overview | 2Q 2013 Colliers International | p. 7 seoul • A total of 2 office buildings have come on stream in the first half of 2013, all located in the Central Business District. The State Tower Gwanghwamun, with a total floor area 40,991 sq m came in the market in 1Q 2013, while the N Tower was opened in 2Q 2013 with a total gross floor area of 51,377 sq m. • Vacancy rate in the first half of 2013 remained at the 7% level since 3Q 2011. Overall vacancy rate decreased 37 basis points QoQ to 7.52% in 2Q 2013. • The average rent for offices in Seoul recorded KRW 24,522 per sq m in 2Q 2012, a 1.29% increase from the beginning of the year as rent for new offices was set at a higher level than the standard rent, hence pushing up the average rent. • During the first half of 2013, besides the relocation and expansion of foreign companies most expansionary demand in CBD was noted among local conglomerates and conglomerate affiliates. In YBD, mainly relocation and expansion demand were noted among finance related firms and foreign-affiliated consulting firms. 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 2010 2011 2012 2013 F 2014 F 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% 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 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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) Fabulous International Commercial Building L Zurich International Life Taiwan 85,400 Taipei 101 Tower L Alliance Bernstein L.P. Taiwan 24,200 Taipei Financial Center L AVON Cosmetics Taiwan 15,300 City Link Building L Thai Airways 12,500 Taipei • The total Grade A office stock increased to 566,846 ping amid the completion of the 5,500-ping Taiwan Life Insurance Financial Headquarter. Net take-up of Grade A office reached 5,271 ping in 2Q 2013, which brought vacancy down by 7 basis points to 11.07% • Vacancy rate in West district decreased by 0.83 percentage points QoQ to 5.27% in 2Q 2013, while that in MS-TN district decreased 0.5 percentage points QoQ to 12.6% during the same period. • Hsin-Yi district recorded the first negative net take-up since 4Q 2010, at -946 ping in 2Q 2013. This was due to increase in vacancy in some buildings, such as Taipei 101 Tower, Cathay Financial Center and Shin Kong Xin Yi Financial Building increasing 500 ping respectively. • The average effective rent of Grade A offices remained stable at NT$2,441 per ping per month during the quarter. Meanwhile, rffective rent of the JA-HS district dropped 5% QoQ to NT$1,900 per ping per month. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Kyobo Building L Fujitsu Korea Limited 53,400 Kyungam Building L Coupang 153,000 TWO IFC L OTIS 84,100 Doosan Tower S Deutsche Asset/Wealth Mgmt 588,500 GS Yeokjeon Tower S Angelo Gordon 349,700 Union Steel Building S Samsung Life Insurance 284,000
  8. 8. p. 8 | Colliers International asia pacific office market overview | 2Q 2013 indonesia jakarta • The average occupancy rate for office buildings in Jakarta was relatively flat during 2Q 2013. The space absorption slowed due to the consolidation of some companies in anticipation of the fuel price hike. • New office supply will increase in both the CBD and non-CBD areas over the next three years with the majority of projected office space already in the construction stage. • Despite signs of weakening office leasing demand, overall Grade A office rents increased in 2Q 2013, mainly dominated by office buildings charging rupiah tariffs. • The take-up rate for operating strata-title office buildings is very high and this is followed by the sales performance of future buildings where the pre-committed sales rate has achieved 54%. The asking price of these future office buildings has increased quite substantially as well and is now ranging between IDR30 and 50 million per sq m. 0 100,000 200,000 300,000 400,000 500,000 600,000 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F Rentals CapitalValues Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m) JAKARTA OFFICE CAPITAL AND RENTAL VALUES 0 2010 2011 2012 2013 F 2014 F sqm 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 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 in the Kuala Lumpur market during the review period. New incoming supply of approximately 500,000 sq ft is anticipated by the end of 2013. • The KLCC REIT, the country’s largest REIT, which was initially a property company, has restructured itself into a stapled REIT in a bid to lure yield-hungry investors. The KLCC REIT’s portfolio includes the Petronas Twin Towers, Tower 3 @ KLCC, Menara ExxonMobil, Suria KLCC and Mandarin Oriental which have high occupancy rates. • Some landlords of the newly completed buildings were willing to offer more incentives such as longer rent-free periods to secure tenants. • Rents have generally remained stable in 2Q 2013. Office buildings with MSC Malaysia status and Green Building Index (GBI) Certified buildings were able to command higher rental rates despite a longer time needed to fill up with tenants. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Sunway Tower 2 L Worley Parsons Services Sdn Bhd 10,000 Sunway Tower 2 L ACCA Malaysia Sdn Bhd 10,000 Menara PMI S Admiral Gateway Sdn Bhd 104,000 Menara Tun Ismail Mohd Ali L KL Metropolitan College 101,600 Integra Tower L Aker Solutions 155,000 Integra Tower L Petronas Lubricants International Sdn Bhd 50,000 malaysia major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Gran Rubina S Mandiri Healthcare 33,100 Centennial Tower S PT. Permata Hijau Group 30,100 Tempo Pavilion I L BNI Syariah 60,300 Wisma Mampang L Rekayasa Engineering 40,900 Menara Prima 2 L PT. Excelcomindo 28,000 Lot 18 Tower E L Swiber 24,000 Eighty8 Kota Kasablanka L Danamon 21,500 Data sourced from C H Williams Talhar & Wong Sdn Bhd
  9. 9. asia pacific office market overview | 2Q 2013 Colliers International | p. 9 philippines manila • Due to attractive business conditions, coupled with the recent investment upgrade by Standard & Poor’s (S&P) and Fitch Ratings, more companies are expected to set up offices in the medium term. The latest example is Citco International Support Services Limited (CISSL) setting up its Regional Operating Headquarters at the Philamlife Tower in the Makati CBD. • The vacancy rate in the Makati CBD almost doubled to 6.7% QoQ, mainly driven by the low take-up rate of the recently completed Alphaland Makati Tower. The overall vacancy rate in the CBD is set to decline by 5.6% towards the year end as take-up will remain heavily fuelled by the expansion requirements of outsourcing and off-shoring companies. • Premium monthly rents, currently at an average of PHP875 per sq m, are expected to exceed the PHP900 per sq m level by 1Q 2014 backed by a generally higher landlord confidence coupled with the absence of new supply. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) One Ecom Center L ACS of the Philippines, Inc. 41,800 Robinsons Equitable Tower L Simpro Solutions 12,700 RCBC Plaza L Bayview Technologies 9,400 Net Lima L Employers Mutual Management 6,700 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 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 • Driven by tenants’ continued flight to quality, leasing demand increased for Premium Grade office space in the Raffles Place / New Downtown micro-market. • Positive demand lifted the overall occupancy rate of Premium and Grade A office space in the CBD to 95.2% QoQ as of June 2013, the highest level in 4.5 years. • Consequently, the average monthly gross rents for CBD Premium and Grade A office space rose for the first time since the market downturn in 4Q 2011, inching up 0.1% QoQ to S$8.42 psf in 2Q 2013. • On the back of improving market sentiments and demand for efficient floor layouts, rents for Premium and Grade A office space in the CBD are expected to head north in 2H 2013. 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 0.00 5.00 10.00 15.00 20.00 25.00 Rentals 30.00 500 1,000 1,500 2,000 2,500 3,000 CapitalValues 0 Capital Values (Singapore$ / 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) Asia Square Tower 1 L IHS Global Pte Ltd 32,600 Asia Square Tower 2 L National Australia Bank n.a. Asia Square Tower 2 L Swiss Reinsurance Company n.a. n.a. : Information not available
  10. 10. p. 10 | Colliers International asia pacific office market overview | 2Q 2013 thailand 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 • The average occupancy rates in the office market are expected to rise in 2013 due to ever-increasing demand and limited new supply, especially in the CBD area. • Many multinational companies are still looking for office space in Bangkok, and some are planning to expand their existing space. • Compared to last year, the average rental rate increased by 5 - 10% in the first half of 2013, depending on location and building specifications. Looking forward, office rents in the CBD area will continue to stay on an upward trend in the second half of 2013 due to the limited supply. • The main obstacle for office building development in the CBD area is that land prices are escalating while rents remain relatively static. The majority of the future supply is therefore located outside the CBD area, as there is limited land available with reasonable prices suitable for office building development in the CBD. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Bangkok City L L'Roeal (Thailand) Co. Ltd 22,100 Mercury Tower L Asia Well Co. Ltd 11,800 major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Empress Tower L Nestle 32,300 Bitexco Financial Tower L Sanofi Aventis 10,800 Bao Viet Office Building L Bridgestone 10,800 Bao Viet Office Building L Hitachi Electric 8,700 Saigon Airport Plaza L Pepsi Call Center 8,600 President Place L Canon 5,400 vietnam 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 0 10 20 30 40 50 Rentals Rentals (US$/ sq m / Month) HO CHI MINH CITY OFFICE RENTAL VALUES 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% sqm VacancyRate Supply Take-up Vacancy Rate 2010 2011 2012 2013 F 2014 F HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE ho chi minh city • Landlords were more willing to lower their asking rents and more generous in offering incentives in 2Q 2013. • The office leasing market in the city is a tenant’s market. Tenants, especially MNCs, were aggressive in demanding more incentives, including longer rent-free and fit-out period. • More tenants took the opportunity to relocate to new Grade A office buildings which provided more competitive rents when compared to their existing addresses. • New supply is expected to stay humble with about 20,000 sq m of new office space entering the market in both 2013 and 2014. • Overall Grade A office rents should see a slight decrease before a modest improvement throughout 2014 thanks to the slow influx of new supply.
  11. 11. asia pacific office market overview | 2Q 2013 Colliers International | p. 11 hanoi • Business conditions improved on the back of a recovering economy. Therefore, some office tenants will likely take the opportunity to expand in the coming months. • A large amount of new prime office space to be finished in the next two years, such as the Lotte Center, would likely increase competition in the Grade A office market. • A few tenants moved out from high price deals such as SunCity office building. • Landlords were willing to offer more incentives, including longer rent-free period up to four months for a three-year lease even though asking rents stayed relatively high. 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 0 10 20 30 40 50 Rentals (US$/ sq m / Month) Rentals HANOI OFFICE RENTAL VALUES 2010 2011 2012 2013 F 2014 F -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% 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) Ha Long Marine Plaza L Hoang Anh Commerce and Service JSC 11,500 india 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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) BENGALURU OFFICE CAPITAL AND RENTAL VALUES 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 2Q 2013, total absorption was around 2.5 million sq ft, including 0.5 million sq ft of BTS (Build to Suit) absorption concentrated in micro-markets along the Outer Ring Road and in Whitefield. The IT/ITeS sector remained the major contributor to this demand. • Amid robust absorption, rental values appreciated in the range of 3-8% QoQ in micro- markets like the EPIP Zone, Whitefield, Bannerghatta Road and the Outer Ring Road. However, rents dipped by 7% QoQ in Electronic City, keeping overall average rentals stable for the Bengaluru market. • Construction activities remain steady during 2Q 2013. Approximately 0.6 million sq ft of Grade A commercial office space was added to the city’s total inventory. • The Central Government has approved a proposal for setting up an Information Technology Investment Region near Bengaluru, with an estimated investment of INR1,060 billion. The project covers around 10,500 acres of land, located 14 kilometres north of Bengaluru International Airport (BIA). The project is expected to generate an annual turnover of INR2,010 billion by 2032, and create about 1.2 million direct, and 2.8 million indirect jobs. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) RMZ Infinity L Analog Devices 54,000 RMZ Ecoworld L Honeywell 500,000 Prestige Tech Park L BMC Software 80,000 Mantri Commercio L AXA 237,000 Salarpuria Softzone L Akamai 70,000
  12. 12. p. 12 | Colliers International asia pacific office market overview | 2Q 2013 india1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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) 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 • Absorption remains in line with the previous quarter with a number of mid-sized transactions (10,000 to 45,000 sq ft) recorded during 2Q 2013. Major occupiers like IBM Daksh, AT & T and Bosch relocated in order to downsize. • The total absorption recorded till 2Q 2013 was 1.53 million sq ft. The micro-markets which remained most active in terms of commercial leasing were OMR, RK Salai and Dr MGR Road. • No new projects were launched during 2Q 2013. • In 2Q 2013, rental values for Grade A office space remained stable. Average rental values are expected to remain stable with a downward bias amid cautious market sentiment and more prime office supply in the pipeline. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) RMZ I L Ford 44,000 ASV Hansa L Frost and Sullivan 42,500 Sunnyside L Bosch 32,000 Prince Infocity-ll L DAKSH IBM 34,000 SP Infocity–Block B L Siemens 44,000 AKDR L Ajuba 34,000 DELHI NCR OFFICE CAPITAL AND RENTAL VALUES 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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) 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 • Delhi National Capital Region (NCR) witnessed steady occupier demand with absorption at more than 1.34 million sq ft during 2Q 2013. More than 50% of this absorption was recorded in Gurgaon. • In 2Q 2013, the completion of various projects across the city added approximately 1.8 million sq ft of Grade A office stock to the city’s total inventory. • Amid steady demand, the large quantum of supply kept rental values steady across Delhi NCR, except in the CBD, where capital values moved up by 3% QoQ. • Demand is anticipated to remain moderate in the next quarter due to cautious expansion plans by occupiers. With the continuous addition of new supply, vacancy levels are expected to rise putting pressure on the rental values in the mid-term. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Gurgaon L Convergys 227,300 New Delhi L Relaxo Footware (Office) 50,000 Gurgaon L DuPont 123,000 Gurgaon L Reliance 4G 80,000 Gurgaon L Home Credit 55,000
  13. 13. asia pacific office market overview | 2Q 2013 Colliers International | p. 13 india1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 • Mumbai’s office market experienced fairly good absorption during the last two quarters showing healthy occupier demand. The city’s total absorption for 2Q 2013 was recorded at around 1.58 million sq ft in 2Q 2013 when compared to the 1Q 2013 figure of 2.17 million sq ft. • Two new projects, the FIFC (The First International Financial Centre) developed by Vornado Realty at BKC (Bandra Kurla Complex) and Kalptaru Prime developed by Kalpataru Group in Thane, were completed in 2Q 2013, adding approximately 1 million sq ft of office stock to the city’s Grade A inventory. • Rental values for Grade A office space remained stable in all of the micro-markets, except BKC, which recorded a marginal appreciation in rental values. • With limited premium commercial development expected to be completed in 2013, commercial office space rents are expected to increase slightly. However, rental values for IT/ITeS office space will remain stable due to demand supply equilibrium. Karachi • Pakistan’s change of government had a positive effect on economic activities in Karachi in 2Q 2013. • The developers put on hold their commercial development projects since 2009 in view of unfavourable conditions. The change of government has brought new hope to the market and the developers have resumed the development of these projects • A slight improvement in the office sector was witnessed during the quarter. Occupancy levels, rents and prices of existing office premises have edged up. • Looking forward, expansions of companies are expected amid further economic improvement, which will create additional demand for office premises. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Al Tijarah Center L Lotte Chemical Pakistan Ltd. 14,200 Horizon Vista L Pak Brunei 24,000 pakistan KARACHI OFFICE CAPITAL AND RENTAL VALUES 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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) Marathon Icon L NSDL 200,000 Mindspace SEZ L Cognizant 230,000 IFC L HSBC 72,000 Gcorp L Convergys 120,000 One India Bulls Annexe L ISDI Parsons 210,000
  14. 14. p. 14 | Colliers International asia pacific office market overview | 2Q 2013 australia1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% -20,000 0 20,000 40,000 60,000 80,000 100,000 120,000 2010 2011 2012 2013 F 2014 F sqm VacancyRate Supply Take-up Vacancy Rate BRISBANE OFFICE SUPPLY, TAKE-UP & VACANCY RATE 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 VacancyRate Supply Take-up Vacancy Rate ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE adelaide • Foreign investor interest for prime quality investment assets should remain elevated in the medium term. Institutional buyers are making enquiries, and are likely to become more active during the next 12 - 18 months, provided opportunities are available. • The market recorded its largest office asset sale for the year following the sale of 45 Pirie Street recently for AU$87 million on a passing yield of 8.4%. • Vacancy rates rose further in 2Q 2013 due to an increase in new supply and backfill space. In the short term, prime incentives are expected to rise marginally. • Yields remained stable and there were positive transactional trends, which showed there was good demand for prime, well-located investment assets in Adelaide. • Drawn out decision-making tempered overall leasing activity during 2Q 2013. However, it is anticipated that activity will improve in the second half of 2013 due to the increase in high-quality refurbished backfill space. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 45 Pirie Street S Private 213,800 101 Pirie Street S Health Partners 73,100 brisbane • Institutions have dominated the Brisbane investment landscape with approximately AU$1.6 billion in transactions recorded over the first half of 2013. Prime asset sales indicate tight yields and high capital values compared to transactions over the past two years. • Corporations and the Queensland State Government accounted for the majority of disposals in 2013 YTD at AU$543.9 and 561.9 million, respectively. • Double-digit vacancy is set to remain in the Brisbane office market in the short to medium term. Research indicates that the current CBD vacancy rate is close to 13%, with the highest vacancy being recorded in the secondary Grade sector. • Given the tight supply in the prime market, vacancy rates are expected to remain relatively stable over the medium term until new developments are completed. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 41 George St S QIC 316,000 400 George Street S Motor Accident Commission (SA) 471,000 480 Queen Street S DEXUS Property Group and DEXUS Wholesale Property Fund (DWPF) 598,100 259 Queen Street S Investa Commercial Property Fund 266,800 192 Ann Street L Aurizon Property Pty Ltd 30,500 179 North Quay L Maurice Blackburn Lawyers 19,000 480 Queen Street L BHP Billiton 148,500 150 Charlotte Street L Boeing Australia 80,700
  15. 15. asia pacific office market overview | 2Q 2013 Colliers International | p. 15 australia 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 0 100 200 300 400 500 600 700 800 900 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Rentals Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year) CapitalValues MELBOURNE OFFICE CAPITAL AND RENTAL VALUES 0 50,000 100,000 150,000 200,000 250,000 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 2010 2011 2012 2013 F 2014 F sqm 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 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 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 CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE canberra • There was limited leasing activity due to the upcoming 2013 federal elections as most federal department expansions and moves were put on hold. • No major federal government workforce reductions were witnessed in 2Q 2013. • The current supply cycle is coming to an end with limited leasing options offering contiguous space. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 40 Macquarie Street L Accenture 32,300 14 Mort Street L DEEWR 43,100 140 - 180 City Walk L Federal Government 140,000 40 Marcus Clarke Street S Private 110,000 4 Mort Street S Private 58,800 melbourne • The leasing market was more subdued, with limited major deals. • Sales in the Melbourne CBD were strong compared to the same time last year. The transaction amount reached over AU$1 billion up to June 2013. • Yield compression was observed in the prime Grade market while secondary Grade yields have remained flat. • Demand is expected to pick up slightly following the 2013 federal elections. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 80 Collins Street L Australia Post 93,000 567 Collins Street L Virgin Active 47,400 360 Collins Street L UXC 39,700 120 Collins Street L Migration Review Tribunal 38,000 555 Lonsdale Street S LaSalle Investment Management 174,100 567 Collins Street S Investa Office Fund / Investa Commercial Property Fund 584,200 8 Exhibition Street (50%) S GPT Wholesale Office Fund 484,400 575 Bourke Street S RREEF OBO BVV 174,100 90 Collins Street S Mirvac 228,700
  16. 16. p. 16 | Colliers International asia pacific office market overview | 2Q 2013 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 -50,000 0 50,000 100,000 150,000 200,000 -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% 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 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 2010 2011 2012 2013 F 2014 F 0 40,000 80,000 120,000 160,000 200,000 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% sqm VacancyRate Supply Take-up Vacancy Rate SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE perth • Leasing demand has softened due to more conservative business perspectives as a consequence of continuing sluggish global economic conditions and the subsequent deferral of some capital expenditure projects. • Vacancy has increased largely due to more direct space being made available in the past six months up to June 2013. However, as a result of a pullback in resource sector investment and the subsequent flow through impact on the engineering / technical services sector there was an increase in availability of sub-lease space. • Yields generally remained stable in the first half of 2013 as demand for properties with good lease covenants was relatively unaffected by increasing vacancy levels. • Relatively strong pre-commitment activity in the past 6 to 12 months is expected to result in the delivery of 9 buildings totalling 162,725 sq m by mid-2016. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) Allendale Square, 77 St Georges Terrace, Perth S Mirvac Property Trust 302,400 Kings Square 1, 2 & 3, Wellington Street, Perth S Dexus 568,100 QV1 250 St Georges Terrace, Perth L Chevron 301,400 32 St Georges Terrace, Perth L Legal Aid 60,000 sydney • Landlords continued to increase incentives to attract and retain tenants. • The leasing market continued to remain soft due to low levels of business and investment confidence. • The investment market remained strong across the Sydney CBD office market with AU$375 million worth of sales taking place during 2Q 2013. • The weight of funds chasing quality assets has resulted in a slight tightening of yields for well-leased premium Grade properties. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 121 - 127 Harrington St S Private 67,900 10 Spring St S Centuria 149,000 175 Castlereagh St S Centuria 129,000 117 Clarence St S Altis Proerty Partners 120,600 australia
  17. 17. asia pacific office market overview | 2Q 2013 Colliers International | p. 17 new zealand 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 -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 AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013F 4Q2013F 1Q2014F 2Q2014F 3Q2014F 4Q2014F 1Q2015F 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 2010 2011 2012 2013 F 2014 F -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% VacancyRate sqm Supply Take-up Vacancy Rate WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE aUckland • In the 12 months leading up to June 2013, both face rents and net effective rents have increased due to the limited supply of available space. While face rents have increased marginally, incentive packages were reduced by an average of 5 percentage points compared to a year ago. Overall rents are expected to grow by 2.5% between now and mid-2014. • The confidence in business and employment growth intentions was translated into further demand for Auckland CBD offices. The overall office vacancy rate in the CBD declined to 9.9% in 2Q 2013, with 38,013 sq m of space leased over the first half of 2013. • The prime vacancy rate decreased to 5.8% in 2Q 2013, declining by almost half in the last two years. Despite the inclusion of the new ASB Building in Wynyard Quarter and the 6,600sq m to be vacated at 205 Queen Street with ANZ Bank’s departure, the prime vacancy rate will remain low in the range of 6% - 6.5% for the rest of the year. • Given the rise in rents and the firming in yields by between 25 and 50 basis points for prime space, prime capital values are set to rise by 7.4% over the next 12 months. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) 37 - 39 Anzac Avenue S Private Investor 13,700 Vero Centre, L25 - 30 48 Shortland Street L Russell McVeagh 66,900 L9, 41 Shortland Street L Morgan Coakle 8,700 wellington • The combination of a low employment period in both the public and private sectors and an emphasis on the building seismic strength provides a challenging environment for the Wellington office market. However, this brings in opportunities, and investment activity remains strong. • Argosy Property Trust have purchased NZ Post House in Wellington and undertaken significant refurbishment and seismic strengthening works. Lifting the seismic strength of buildings and refurbishment is a recurring theme in Wellington. Landlords with access to sufficient equity are repositioning to attract and retain tenants in a highly competitive market. A significant purchase, further demonstrating buoyant investment activity in Wellington, was Caniwi Capital purchasing the ANZ Bank building in Tory Street for NZ$46.25 million in April 2013. major transactions Building Lease (L) / Sale (S) Tenant / Purchaser Area (sq ft) NZ Post House, 7 Waterloo Quay S Argosy Property 268,900 The Tory Street Campus, Tory Street S Canwi Capital 156,100 Sovereign House, 34 - 42 Manners Street L Government Department 22,100 L7, Todd Tower, 95 Customhouse Quay L Assurity 5,900 33 Cuba Street L Design Works NZ 7,600
  18. 18. p. 18 | Colliers International asia pacific office market overview | 2Q 2013 Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology" australiaprime office rental Hong Kong Tokyo Singapore Sydney Perth Brisbane Beijing Melbourne Shanghai Ho Chi Minh City Hanoi Adelaide Jakarta Mumbai Canberra Delhi NCR Guangzhou Taipei Bangkok Kuala Lumpur Wellington Auckland Seoul Chengdu Manila Bengaluru Chennai Karachi RENTALS (US$ / SQ FT / YEAR) 0.00 20.00 40.00 60.00 80.00 100.00 120.00
  19. 19. asia pacific office market overview | 2Q 2013 Colliers International | p. 19 Delhi 12,200,000 Bengaluru 9,090,000 Mumbai 8,700,000 Guangzhou 6,673,618 Chennai 5,240,000 Chengdu 4,628,477 Seoul 4,382,317 Shanghai 3,790,637 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 733,625 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 Tokyo 2,888,680 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 1,614,585 538,195 470,720 1,177,140 10.7 7.6 22,157,679 22,695,874 63.92 68.27 Zhongguancun 0 624,306 26,318 231,908 0.9 5.3 8,095,529 8,719,835 44.79 46.23 Financial Street 406,875 0 366,188 28,967 1.0 0.7 10,107,399 10,107,399 69.14 75.47 Lufthansa 708,781 0 196,867 425,269 8.4 3.2 8,185,871 8,185,871 52.87 55.65 East Chang An Avenue 0 0 140,447 40,903 3.8 3.1 6,307,067 6,307,067 49.00 52.01 East 2nd Ring 0 0 108,500 4,447 1.2 1.1 3,012,514 3,012,514 45.90 49.89 Other areas 0 1,531,918 6,028 453,548 0.5 40.4 1,151,307 2,683,225 46.98 44.62 Shanghai Pudong 0 823,438 914,932 968,751 6.8 5.9 23,080,665 23,904,103 49.06 51.57 Puxi 3,790,637 2,604,455 1,998,795 2,523,742 12.6 11.9 31,904,878 34,509,332 48.52 50.99 Guangzhou Yuexiu 0 1,618,761 115,206 1,021,171 4.4 12.7 4,683,244 6,302,005 20.46 20.75 Tianhe 6,675,620 6,820,836 3,531,140 4,945,011 28.7 28.5 31,459,844 38,280,680 29.28 28.27 Haizhu 0 0 77,446 109,092 30.2 25.3 2,244,693 2,244,693 17.64 16.24 Chengdu Renmin Road 0 645,834 180,192 444,609 16.0 20.0 1,801,446 2,447,280 29.95 30.67 CBD 0 0 919,722 204,742 25.0 16.0 2,274,913 2,274,913 23.46 25.26 Financial Street 1,376,251 4,240,977 867,960 2,027,962 39.0 48.0 3,373,395 7,614,372 23.10 23.46 Tianfu Avenue 857,506 0 838,272 356,647 40.0 27.0 2,743,438 2,743,438 21.65 23.46 Other areas 2,357,003 1,937,502 1,714,689 937,923 26.0 37.0 2,357,003 4,294,505 21.65 21.65 Hong Kong Central 40,700 0 59,776 60,622 5.0 4.7 21,770,869 21,770,869 157.80 164.59 Wanchai 0 0 88,859 55,379 3.4 2.9 11,439,007 11,439,007 99.17 102.94 HK Island East 0 0 -320,000 25,118 0.7 0.4 10,404,774 10,404,774 71.73 73.88 Tsim Sha Tsui 0 0 -91,938 4,736 1.5 1.4 6,458,960 6,458,960 80.59 76.56 Kowloon East 677,315 0 349,431 305,942 10.8 7.7 9,869,196 9,869,196 61.03 57.98 Tokyo CBD 2,888,680 4,776,226 3,415,997 4,625,829 7.8 7.5 82,179,204 86,955,444 92.13 93.84 Seoul CBD 1,417,293 3,576,467 728,190 3,485,409 11.1 10.3 36,199,141 39,775,608 27.60 28.26 GBD 0 0 441,603 242,426 3.5 2.6 28,697,841 28,697,841 24.03 24.87 YBD 2,965,024 0 487,397 1,544,240 18.8 11.1 20,103,762 20,103,762 21.35 22.25 Taipei CBD 1,074,641 2,113,137 624,375 1,141,475 11.6 14.8 20,402,183 22,515,320 27.39 27.46 Jakarta CBD 1,564,339 3,407,183 3,185,565 3,551,194 2.5 2.1 51,304,037 54,711,221 44.88 53.52 Non-CBD 1,793,007 4,517,114 2,320,815 2,683,365 3.0 8.8 24,716,627 29,233,741 25.90 30.49 Kuala Lumpur KLCA 509,000 2,459,266 1,000,000 1,000,000 12.2 15.4 33,424,552 35,883,818 25.29 25.29 p. 20 | Colliers International asia pacific office market overview | 2Q 2013 TRENDS & FORECASTS
  21. 21. 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F Manila Makati 413,334 0 330,645 225,095 5.7 5.3 10,347,811 10,347,811 23.17 25.61 Ortigas 721,171 0 705,035 60,848 4.9 3.8 5,682,575 5,682,575 14.80 16.01 Singapore CBD 773,625 1,205,000 710,285 772,462 6.0 7.8 19,471,993 20,676,993 82.79 88.91 Bangkok CBD 0 0 861,112 645,834 7.0 5.0 17,580,646 17,580,646 27.57 27.93 Ho Chi Minh City CBD 228,507 234,115 118,403 172,222 12.9 8.5 1,935,360 2,169,475 41.25 41.92 Hanoi CBD 1,748,165 2,046,605 1,340,837 1,412,035 25.0 25.5 5,122,066 7,168,671 35.43 36.27 Bengaluru Overall 9,090,000 6,000,000 7,500,000 7,000,000 15.0 16.0 93,517,175 99,517,175 9.65 9.95 Chennai Overall 5,240,000 8,000,000 4,000,000 5,000,000 21.0 22.0 46,032,483 54,032,483 9.65 9.65 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 34.37 34.37 Mumbai Overall 8,700,000 5,000,000 7,000,000 7,000,000 14.5 15.0 110,158,000 115,158,000 35.78 35.78 Karachi CBD 145,000 476,000 100,000 124,000 40.0 42.0 15,376,929 15,852,929 0.99 1.03 Adelaide CBD 454,936 0 55,972 269,098 12.1 11.5 14,853,192 14,853,192 39.05 40.37 Brisbane CBD 200,209 0 -59,234 32,819 9.4 9.8 11,522,959 11,522,959 60.10 61.10 Canberra CBD 979,127 200,478 215,278 376,737 12.9 11.4 25,229,764 25,767,959 35.16 38.56 Melbourne CBD 1,833,781 775,001 78,372 307,729 9.0 9.5 46,445,830 47,080,900 49.68 50.28 Perth CBD 84,098 78,846 -188,368 123,623 7.2 6.9 17,185,417 17,264,262 71.62 71.62 Sydney CBD 1,330,827 644,758 393,550 114,313 8.8 9.6 27,937,810 28,311,317 76.18 77.91 Auckland CBD 193,750 0 153,386 -4,553 5.8 6.0 4,774,974 4,493,767 25.15 26.38 Wellington CBD 0 0 15,328 -14,327 3.5 4.0 3,256,973 3,256,973 25.31 25.89 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 | 2Q 2013 Colliers International | p. 21 TRENDS & FORECASTS
  22. 22. p. 22 | Colliers International asia pacific office market overview | 2Q 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 2 principal sub-markets – Pudong covering Lujiazu and Zhuyuan, and Puxi covering Huangpu, Jingan, 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 | 2Q 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 | 2Q 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 Simon Paterson Managing Director Tel 84 4 3941 3277 simon.paterson@colliers.com
  25. 25. asia pacific office market overview | 2Q 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 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 | 2Q 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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