Asia Pacific Office Market Overview 2Q 2012
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table of contents asia pacific office market overview | 2q 2012
Regional Overview Greater China
3 4-6
Beijing, China.....................................................................................................................................4 Chengdu, China..................................................................................................................................4 Guangzhou, China..............................................................................................................................5 Shanghai, China.................................................................................................................................5 Hong Kong SAR, China......................................................................................................................6 Taipei, Taiwan....................................................................................................................................6
North Asia
7
Seoul, South Korea............................................................................................................................ 7 Tokyo, Japan...................................................................................................................................... 7
Southeast Asia
8-11
Jakarta, Indonesia..............................................................................................................................8 Kuala Lumpur, Malaysia.....................................................................................................................8 Karachi, Pakistan...............................................................................................................................9 Manila, Philippines.............................................................................................................................9 Singapore......................................................................................................................................... 10 Bangkok, Thailand............................................................................................................................ 10 Hanoi, Vietnam.................................................................................................................................. 11 Ho Chi Minh City, Vietnam................................................................................................................ 11
India
12-13
Bengaluru (Bangalore).................................................................................................................... 12 Chennai............................................................................................................................................ 12 Mumbai............................................................................................................................................. 13 New Delhi......................................................................................................................................... 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 Supply, Rents and Net Take-up
18-19
Trends & Forecasts
20-21
Definition & Terminology
22-23
Contacts 24-25
regional overview Economic Overview The macroeconomic conditions in the region remained challenging in 2Q 2012, with growth rates reducing and price inflation continuing in most countries. The sovereign debt issues in the Eurozone have become a key concern, as it continues to have a negative impact on market sentiment. The expectation of further economic consolidation has led to a number of central banks cutting rates pre-emptively to stimulate growth. The two rounds of unexpected interest rate reductions in China is an example of how the region has reacted to the imminent threat created by the contraction in Europe.
Leasing Market Amid the economic uncertainty, the office leasing market has seen relatively steady enquiry levels from occupiers, with firms in the finance and IT industries among the most active. With total occupation costs paramount in tenant decision making, cost sensitivity is high as firms seek to match their business needs to real estate demands. The average office rent edged down by 0.1% QoQ during 2Q 2012 – the first dip since 1Q 2010. Individual markets like Hong Kong and Singapore saw downward rent correction by 2 - 3% QoQ during this period, although most cities in China and Australia continued to exhibit positive rental growth.
Sales Market On the sales front, average transacted office prices edged up mildly by 0.4% QoQ, this had the effect of compressing the overall investment yields slightly during 2Q 2012. Although interest rates continued to stay low, access to real estate financing remained the common issue for many prospective buyers. Two notable exceptions are China, where owner-occupiers remained active and Sydney, which saw an increase in investment activity.
Market Outlook Looking forward, leasing activity is expected to remain steady as firms continue to pursue consolidation and cost reduction strategies. This trend is expected to be more prevalent in cities where new supply is entering the market. Rentals in the region are expected to remain stable but will come under downward pressure if the economic environment in the Eurozone deteriorates further.
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asia pacific office market overview | 2Q 2012
CHINA Beijing
1.00
25.0%
0.80
20.0%
0.60
15.0%
0.40
10.0%
0.20
5.0%
0.00
2009
2010 Supply
2011 Take-up
2012 F
2013 F
• With the absence of new completions in the Grade A office property market for the second consecutive quarter, the total stock remained at 5.17 million sq m as of the end of 2Q 2012.
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0.0%
• Leasing activities and transaction volumes were constrained by the constantly narrowing availability. Net absorption decreased 37.6% QoQ to 13,146 sq m and the overall average vacancy rate dropped marginally by 0.25 percentage points QoQ to 3.55%. Tenants from the service, finance, pharmaceuticals, consumer goods and logistics sectors were the most active in the leasing market.
Vacancy Rate
• Although some landlords became cautious in light of macro-economic uncertainties, overall rents increased further in 2Q 2012. The average net effective rent edged up by 4.2% QoQ, to RMB302.50 per sq m per month as of the end of 2Q 2012.
• Owner-occupiers appeared to be more active in sourcing deals. In addition, several stratatitle sales were logged in the CBD and other sub-markets, with domestic enterprises remaining the major buying force. Capital Values
Rentals
BEIJING OFFICE CAPITAL AND RENTAL VALUES
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SK Tower
L
Kookmin Bank
32,200
Tsinghua Tongfang Hi-Tech
L
GREE
27,200
IFC
L
Astellas
40,500
One Indigo
L
NestlĂŠ
43,000
• In 2Q 2012, Towers A and B of China Overseas International Centre were completed, providing a total office area of 107,209 sq m. This project is offered for lease only, and 45% of the office space has been absorbed. The office units are offered at RMB110 - 130 per sq m per month. • The Grade A office vacancy rate increased 5.16 percentage points in 2Q 2012 to 20.68%, due to the completion of China Overseas International Centre.
major transactions Building
Capital Values
Rentals
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Area (sq ft)
• The new office premises from Square One and China Overseas International Centre has put pressure on office rents. In 2Q 2012, average rents declined 3.54% QoQ to RMB137.80 per sq m per month.
CHENGDU OFFICE CAPITAL AND RENTAL VALUES
Tenant / Purchaser
• Domestic enterprises were the major source of tenant demand in 2Q 2012.
Lease (L) / Sale (S)
chengdu
Building
Plaza Tower D
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major transactions
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Plaza Central
L
Yinlong Financing Guaranty
4,800
Yanlord Landmark
L
LVMH
3,200
Aerospace Technology Plaza
L
Daishi Education Group
11,800
Square One
L
Regus
19,400
Square One
L
ERM
2,800
China Overseas International
L
Sichuan Weicheng Trading
43,100
Centre
Co. Ltd
asia pacific office market overview | 2Q 2012
CHINA guangzhou
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• Although the MNCs slowed their expansion plans in light of external uncertainties, the leasing demand from domestic corporations such as insurance, cultural and media, and IT companies remained strong in this quarter. One of the major transactions was the lease of 8,000 sq m in Zhujiang International Plaza to CITIC Life Insurance.
• During 2Q 2012, one en bloc sales transaction was booked. Guangzhou Automobile Group acquired 45,600 sq m at Poly D Plaza - Building 1 for RMB1.4 billion. In addition, a domestic buyer acquired 10 office floors or about 20,000 sq m at Grand International Plaza.
Capital Values
Tenant / Purchaser
Area (sq ft)
Poly D Plaza - Building 1
S
Guangzhou Automobile Group
490,800
Zhujiang International Plaza
L
CITIC Life Insurance
86,100
Fortune Plaza
L
Baleno
43,100
G.T. Land Plaza - Building A
L
Gesi Co. Ltd
23,600
HNA Plaza
L
Guangzhou Shangcen Clothes
15,200
Zhujiang International Plaza
L
Sodexo Guangzhou
14,300
shanghai
Lease (L) / Sale (S)
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• The economic growth is showing signs of a slowdown. In 1Q 2012, the gross domestic product (GDP) growth rate slowed to 7% which was the lowest in the past four quarters.
major transactions Building
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• The average price increased 2.5% QoQ to RMB32, 070 per sq m in this quarter.
Rentals
GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES
• Two projects in Pearl River New City, including Guangzhou Bank Plaza and R&F Yingsheng Plaza, were completed in 2Q 2012, providing about 149,148 sq m of new Grade A office space. The overall vacancy rate was pushed up by 0.2 percentage points to 20.6% in this quarter. The large volume of new completions in Tianhe district, especially in Pearl River New City, put pressure on rents in 2Q 2012. The average rent edged down 0.3% in 2Q 2012 to RMB161.3 per sq m per month.
• No Grade A office buildings were completed during 2Q 2012. There was a mild slowdown in leasing activity. • The average rents continued to increase in the second quarter, up 3.6% QoQ to RMB8.6 per sq m per day, primarily as a result of limited new supply in prime locations. • In 2Q 2012, the overall vacancy rate decreased to 6.7% from the previous quarter’s 8.3%. Among the six major central business districts, Jing ‘an recorded the lowest vacancy rate, at 5.9%.
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major transactions
Capital Values
Rentals
SHANGHAI OFFICE CAPITAL AND RENTAL VALUES
Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Park Place New Richport
L
JP Morgan
32,300
L
Dematic Group
24,800
Bund Center
L
Everbright Pramerica
32,300
The Headquarters Building
L
Hitachi Motor
19,400
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asia pacific office market overview | 2Q 2012
h o ng ko ng hong kong
4.50
9.0%
4.00
8.0%
3.50
7.0%
3.00
6.0%
2.50
5.0%
2.00
4.0%
1.50
3.0%
1.00
2.0% 1.0%
0.50 0.00
• A number of private banks remained positive in expanding their businesses. Individual non-finance companies planned to carry out business expansion in 2Q 2012 regardless of the headwinds from the Eurozone.
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2009
2010 Supply
2011
2012 F
Take-up
2013 F
0.0%
• The outlook for the Hong Kong Grade A office market has been brighter due to increased demand for small-to-medium size Grade A office units in Central. Overall Grade A office rents are projected to undergo a mild downward adjustment of 4% over the next 12 months.
Vacancy Rate
major transactions
HONG KONG OFFICE CAPITAL AND RENTAL VALUES
Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
L
Harvest Capital
12,000
Two Pacific Place
L
Neo Derm
42,300
Aon China Building
L
Quam
18,000
Oxford House
L
LVMH
22,000
15/F and 16/F Octa Tower
L
Avery Dennison
70,000
8 floors, Kowloon Commerce
S
Undisclosed
208,000
S
Ample Perfect Ltd
14,070
Two Exchange Square Capital Values
Rentals
• On the back of improved tenant demand, the pace of the rent decline has tapered off. Grade A office rents edged down 0.7% QoQ in 2Q 2012, compared to a drop of 5.5% in 1Q 2012. Meanwhile, Grade A office rents in Central decreased 2.0% QoQ, compared to a drop of 8.9% in 1Q 2012.
Centre Tower B 23/F, Lippo Centre Tower 1
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ta i wan Taipei
• The net take-up of Grade A offices was 6,979 ping in 2Q 2012 which drove the vacancy rate down by 1.3 percentage points to 10%, the lowest since 1Q 2009.
Vacancy Rate
Ping
TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
• Thanks to Chunghwa Telcom Co. taking 3,015 ping in CHT Building (Front), the vacancy rate of Grade A offices in Tun-S district dropped 3.9 percentage points to 6.76%. In addition, NK-4/5 district also took up 1,000 ping which caused the vacancy rate to drop 7.57 percentage points to 4.95%. The Straits Exchange Foundation moved out of Hung Tai Financial Center in May which caused the vacancy rate of MS-TN district to climb 1.4 percentage points to 14.15%.
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• Hsin-Yi district accounted for 66.18% of market absorption or 4,619 ping in this quarter. The key contributor was one multi-national corporation reserving 1,650 ping in Taipei 101 Tower.
• The average effective rent dropped 0.16% or NT$4 QoQ to NT$2,439 per ping per month in 2Q 2012. Although the effective rent of Hsin-Yi district was NT$2,815 per ping per month and was the highest among all districts, it witnessed a drop of 0.63% QoQ within the review period. major transactions Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
CHT Building (Front)
L
Chunghwa Telcom Co.
107,300
Shin Kong Life Tower
L
TomTom Asia
24,700
Aurora 21st Century Building
L
Institute for Information Industry
19,200
Aurora 21st Century Building
L
Cathay Health Care Co.
19,200
asia pacific office market overview | 2Q 2012
s o u t h ko r e a seoul
600,000
12.0%
500,000
10.0%
400,000
8.0%
300,000
6.0%
200,000
4.0%
100,000
2.0%
0
2009
2010 Supply
2011 Take-up
2012 F
Vacancy Rate
sq m
SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.0%
2013 F
Vacancy Rate
• Despite massive new supply coming online, the average vacancy rate decreased 0.41 percentage points QoQ to 7% in 2Q 2012. In light of the increase in take-up in most buildings, the vacancy rate in the CBD decreased 3.7 percentage points to 14.1%.
• In 2Q 2012, two office developments were completed. Junghak Building, providing a total gross floor area of 83,787 sq m in the CBD, was launched in April. A total of 7,141 sq m was pre-committed as well as the Yangjae Building, a 44,116 sq m office building located in the Yangjae area of the GBD. Despite its decentralised location, the whole building was leased by SPC group. • Average rents in Seoul largely remained stable in 2Q 2012 at KRW23,896 per sq m per month. Rents in the CBD were the highest at KRW27,459 per sq m per month.
• Despite the overall recession in the real estate market, domestic pension funds moved aggressively for investing in large office buildings instead of putting their money into the volatile stock market. The common range of operating yields for office buildings is approximately 5 - 8% while interest rates for savings accounts are below 4% in Korea.
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major transactions Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Boston Consulting
73,300
Center 1
L
Signature Tower
L
AMORE Pacific
258,800
Signature Tower
L
Kumho Petrochemical
177,900
State Tower Namsan
L
BMW
62,900
Yangjae Posco
L
SPC Korea
474,400
IFC
L
Phillp Moris
63,400
Samsung Life Insurance Chungmuro
S
Herald Media Inc
107,700
japan tokyo • New supply peaked in 1Q 2012 with a similar level of completions in 2Q 2012.
200,000
10.0%
160,000
8.0%
120,000
6.0%
80,000
4.0%
40,000
2.0%
0
2009
2010 Supply
2011 Take-up
2012 F
• Vacancy rose slightly in part due to the completion of large, new buildings. Vacancy Rate
Tsubo
TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE
• Tenants focused on value for money, weighing location, quality and scale versus cost.
0.0%
2013 F
• Rents are still marginally declining with some buildings beginning to stabilise.
Vacancy Rate
major transactions
Capital Values
Rentals
TOKYO OFFICE CAPITAL AND RENTAL VALUES
• Corporate restructuring persists due to global and domestic economic issues. Relocations continue to increase, but to similar or less space than is vacated.
Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Tokyo Sankei
L
Sony Life Insurance
56,800
Sengokuyama Mori Tower
L
Adidas
106,500
Sumitomo Fudosan Iidabashi
L
Misumi Group
106,500
Ochanomizu Sora City
L
Kyorin Pharmaceutical
63,900
Palace Building
L
Bain Capital
23,100
First Bldg
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asia pacific office market overview | 2Q 2012
i nd o n es i a jakarta 20.0%
400,000
16.0%
300,000
12.0%
200,000
8.0%
100,000
4.0%
sq m
500,000
0
2009
2010 Supply
2011 Take-up
2012 F
Vacancy Rate
JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.0%
2013 F
• Industries such as banking, insurance, oil and gas, mining and natural resources remained key players in the office sector. The overall occupancy reached about 96% in 2Q 2012, driven by the expansion of the existing tenants. The absorption rate of office space is projected to mildly increase in 2012, but new supply in the CBD is expected to be very limited during 2013. Meanwhile, a challenging situation is expected to occur in the nonCBD area, as around 800,000 sq m of new office space is projected to be injected to the market in 2014. • Again, rents showed an upward trend, as buildings quoting US dollar rates experienced a significant 13.8% surge. Buildings quoting IDR rents increased 7.2%.
Vacancy Rate
JAKARTA OFFICE CAPITAL AND RENTAL VALUES
• The continuing adjustment in office rentals would open more opportunities for the sales of strata-title office space. In the long term perspective, owning office space will be very attractive, as indicated by the good performance of strata title office performance.
World Trade Center 2
Landmark Tower B Landmark Tower B
L
major transactions
Capital Values
Rentals
Building
 �
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
L
Total E&P Indonesie
127,500
L
BRI
43,100
SICOM
21,500
World Trade Center 2
L
Avrist
21,500
Citibank Tower
L
Tokyo Marine
18,800
Alstom
S
Selaras Propertindo
35,400
m a l ays i a kual a lumpur
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• Menara FELDA, a GBI certified building that forms part of the Platinum Park development, is the only building completed this quarter, which accounted for 689,000 sq ft of the total supply.
• With more prime office supply coming on stream, the KL office market is expected to face competition among old and new Grade A offices located in suburban areas. As current market rents are beyond their affordability, Average Grade A office rents and capital values remain unchanged. Due to the completion of Grade A office buildings during the quarter, the average vacancy rate increased by 3 percentage points to 15% in 2Q 2012
major transactions
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Building
Capital Values
Rentals
KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Menara Prudential
S
OCBC Capital (M) Sdn Bhd
147,800
The Horizon, Tower 8,
S
DKLS Industries Bhd
132,000
S
Lembaga Tabung Haji
146,000
Avenue 5, Bangsar South* The Horizon, Tower 6, Avenue 5, Bangsar South* *
Within Metropolitan Kuala Lumpur
Data sourced from C H Williams Talhar & Wong Sdn Bhd
asia pacific office market overview | 2Q 2012
pa k i stan Karachi
1.60
80.0%
1.40
70.0%
1.20
60.0%
1.00
50.0%
0.80
40.0%
0.60
30.0%
0.40
20.0%
0.20
10.0%
0.00
0.0%
2009
2010 Supply
2011 Take-up
2012 F
2013 F
• No major office leasing deals were concluded in 2Q 2012. Pakistan's office market has been stagnant and there has been no growth in demand for offices. As such, take-up rate in the new developments have been very low.
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• Recently, Bahria IV with an office area of 167,000 sq ft was added into the market. Due to weak demand for office, the owner is struggling to attract tenants • The hotel element in the former Sofitel Tower, under construction for the past five years, has been converted into offices. The offices in this development will be available on lease basis. In view of low take-up rates in new development, this project will add more pressure on the lease rates of Grade A office market upon completion.
Vacancy Rate
160
16,000
140
14,000
120
12,000
100
10,000
80
8,000
60
6,000
40
4,000
20
2,000
0
Capital Values
Rentals
KARACHI OFFICE CAPITAL AND RENTAL VALUES
1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F
0
Rentals (Rupee/ sq ft / Year)
Capital Values (Rupee / sq ft)
ph i l i pp i n es manil a
120,000
12.0%
100,000
10.0%
80,000
8.0%
60,000
6.0%
40,000
4.0%
20,000
2.0%
• Office developments remained quiet in Makati CBD, with only Zuelling Building (57,000 sq m) completed this year. The Grade A office building is expected to open towards the end of 3Q 2012. Vacancy Rate
sq m
MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.0%
0 2009
2010
2011
2012 F
2013 F
-20,000
-2.0%
-40,000
-4.0% Supply
Take-up
• Prime rental rates grew by 5% QoQ or 8% YoY to P750 per sq m per month, marking the highest growth rate since its contraction in 2008. Given the limited supply, the rental rate is expected to rise to P800 per sq m level by end 2013.
Vacancy Rate
major transactions
Building Aseana One
Lease (L) / Sale (S) L
Tenant / Purchaser
Area (sq ft)
Philippine EDS Techno
465,200
Service, Inc. Science Hub Tower 2
L
HCCA Health Connection, Inc.
Science Hub Tower 2
L
Factset
246,200 246,200
One Evotech Building
L
Canon Business Machines
125,900
• The robust demand drawn from the Offshore and Outsourcing Industry further narrowed vacancy rates in the second quarter to below 3%. With 81,000 sq m of new office space coming on stream next year, the vacancy rate is projected to increase to 4%.
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asia pacific office market overview | 2Q 2012
s i ngapo r e singapore
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• Weighed down by the uncertainty in the Eurozone as well as a possible supply overhang, office rental decline in the CBD is expected to continue in 2H 2012. However, the pace of decrease will slow down as Singapore strengthens its position as a compelling regional business hub.
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major transactions Building
• The average monthly gross rents for CBD Grade A office space fell by 1.1% QoQ in 2Q 2012 to S$8.45 per sq ft as of end-June 2012, compared to a drop of 4.3% in 1Q 2012. • The decrease in Grade A office rents boded well for the market, as it improved Singapore’s competitive edge as a regional hub for business and companies had been able to secure office premises for cheaper rents. This pushed the overall CBD Grade A office occupancy rates up to 92.0% in 2Q 2012, from 90.9% in 1Q 2012.
• Rents continued to decline in 2Q 2012 on the back of an increasingly challenging global economic environment. However, cushioned by a better than expected economic performance in Singapore as well as the temporary relief from a hiatus of major new office completions for the rest of 2012, the rate of rental decline moderated.
Ocean Financial Centre
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
K-REIT
887,400
S
(12.39% stake)
Â
t ha i l and bangkok
120,000
24.0%
100,000
20.0%
80,000
16.0%
60,000
12.0%
40,000
8.0%
20,000
4.0%
0
2009
2010 Supply
2011 Take-up
2012 F
• The net take-up rate in the Bangkok CBD increased due to the limited new supply coupled with growing demand. • Rents in the CBD remained flat during the quarter. Vacancy Rate
sq m
BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.0%
2013 F
Vacancy Rate
major transactions
BANGKOK OFFICE CAPITAL AND RENTAL VALUES
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Rentals
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Building Sathorn Square
Lease (L) / Sale (S) L
Tenant / Purchaser
Area (sq ft)
Samsung Engineering (Thailand)
32,300
Co., Ltd. Asia Centre Capital Values
• New international companies were actively looking for Grade A office space in the CBD in 2Q 2012.
L
Total Co., Ltd.
15,100
asia pacific office market overview | 2Q 2012
v i e t na m hanoi
160,000
80.0%
140,000
70.0%
120,000
60.0%
100,000
50.0%
80,000
40.0%
60,000
30.0%
40,000
20.0%
20,000
10.0%
0 -20,000
2009
2010
2011
2012 F
2013 F
Vacancy Rate
sq m
HANOI CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.0%
Supply
Take-up
• Occupancy rates in the CBD dropped one percentage point QoQ to 93.7% in 2Q 2012 due to the relocation of several prominent tenants to the West of Hanoi for cheaper rent. • Up to 2013, new supply of Grade A offices is projected to be approximately 200,000 sq m. The abundant new supply is expected to add pressure to the Grade A office market, leading to a decrease in average asking rents.
-10.0% -20.0%
-40,000
• Hanoi's Grade A office market witnessed a remarkable improvement in the average occupancy rate in 2Q 2012, with the rate increasing 2.95 percentage points to 75.4%. However, there was a slight decrease in average rent, down US$0.32/ sq m / month to US$41.15 per sq m per month.
Vacancy Rate
major transactions
Building
60 50
40 30 20 10
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Keangnam Landmark
L
FPT Corporation
75,300
Keangnam Landmark
L
JOC VietGazProm
10,700 16,100
Keangnam Landmark
L
Cisco
Keangnam Landmark
L
KPMG Vietnam
31,200
Keangnam Landmark
L
PricewaterhouseCoopers
15,100
Keangnam Landmark
L
Ericsson Vietnam
0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F
Vietnam 21,500
Rentals (US$/ sq m / Month)
ho chi minh cit y
180,000
45.0%
160,000
40.0%
140,000
35.0%
120,000
30.0%
100,000
25.0%
80,000
20.0%
60,000
15.0%
40,000
10.0%
20,000
5.0%
0
0.0%
-20,000
2009
2010 Supply
2011
2012 F
Take-up
2013 F
Vacancy Rate
-5.0%
• Most of Grade A buildings in prime locations that operated before 2009 achieved an average occupancy rate at 97% in 2Q 2012.
Vacancy Rate
sq m
HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
• Developers have applied a flexible term of contracts to keep current tenants. Positive signals from the monetary policies of the Vietnamese Government may lend support to the businesses and office market. • The average rents of Grade A offices is expected to continue with its downward adjustment in the next two quarters of 2012 due to a large supply of Grade A office premises from Times Square, Saigon M&C Tower and Eden A Centre, President Place.
major transactions
70
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Bitexco Financial Tower
L
FV Hospital
8,600
Bitexco Financial Tower
L
Huy Hong JSC
1,300
Bitexco Financial Tower
L
Nippon Steel
1,600
Bitexco Financial Tower
L
Perfect Network s.r.o
1,400
Kumho
L
Ho Tram Project Company
2,900
10
Kumho
L
Kraft Foods International
1,200
0
Kumho
L
Woori Bank
1,200
Kumho
L
C.A.D
1,000
Saigon Trade Center
L
Do Thanh Viet Co., Ltd
1,000
Saigon Trade Center
L
The Rro of Charter Century
1,600
60 50 40 30 20
1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F
Building
Rentals (US$/ sq m / Month)
Group Ltd in HCMC
Colliers International |
p. 11
asia pacific office market overview | 2Q 2012
i nd i a bengaluru (Bangalore)
12.00
24.0%
10.00
20.0%
8.00
16.0%
6.00
12.0%
4.00
8.0%
2.00
4.0%
0.00
• Due to the completion of Condifent Electra, Confident Aquila, Embassy Vogue and Neo Town during 2Q 2012, Grade A office stock increased about 0.8 million sq ft.
 � �
0.0% 2009
2010 Supply
2011
2012 F
Take-up
2013 F
Vacancy Rate
• Average Grade A office rent was stable in most of the sub-markets, with the exception of the CBD, where rents increased 6% QoQ on the back of sustained supply and demand imbalance. Absorption rates are expected to remain high in 3Q 2012. Despite the increasing demand for Grade A office space, rents will remain stable as more supply is expected to enter the market in the near term. major transactions
Building Capital Values
Rentals
BENGALURU OFFICE CAPITAL AND RENTAL VALUES
• The leasing market remained active in 2Q 2012. The deals concluded during the quarter were with office size in the range of 10,000 to 50,000 sq ft.
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Vaswani Centerpolis
L
Axis Aerospace
21,700
Prestige Zeenath
L
Ellusion
31,800
Tyco
25,000
Prestige Shantiniketan
L
Forutna1
L
VM Ware
28,000
Pritech - SEZ
L
Xentrix Studios Private
21,100
 �
Limited Umiya Business Bay
L
Yokogawa IA Technologies
30,000
India Private Limited
chennai
16.00
32.0%
14.00
28.0%
12.00
24.0%
10.00
20.0%
8.00
16.0%
6.00
12.0%
4.00
8.0%
2.00
4.0%
0.00
2009
2010 Supply
2011
2012 F
Take-up
• In 2Q 2012, the commercial lease market remained active and a number of mid-sized companies were considering consolidation and looking for more cost effective real estate solutions.
 �
0.0%
2013 F
major transactions Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Â?
Â?
Â
Â
Temple Steps
L
Agility Logistics
19,500
L
Beroe Systems
50,000
ASV Chandilya
Prestige Palladium Bayan
L
Emirates
8,000
Ramaniyam
L
GE Converteam
40,000
Khivaraj Complex
L
Kavian Systems
11,000
RR1 Towers
L
Lafarge
10,000
Prestige Palladium Bayan
L
Mitusubishi Corporation
11,000
ASV Chandilya
L
Sundaram Infotech
25,000
| Colliers International
• Rents remained flat in most of the sub-markets. Going forward, rents are expected to remain stable this year on of the back of limited supply. • In 2Q 2012, NHAI (National Highways Authority of India) has finalised the six-lane Chennai-Bangalore highway with a total cost estimation of around INR 5,000 crore, which is foreseen to boost the real estate activities in the region.
Vacancy Rate
p. 12
• No new Grade A office buildings were completed during the reviewed period.
asia pacific office market overview | 2Q 2012
i nd i a mumbai
15.00
20.0%
12.00
16.0%
9.00
12.0%
6.00
8.0%
3.00
4.0%
0.00
• Approximately 0.2 million sq ft of new office space was added to the city’s Grade A office market due to the completion of Star Hub in Andheri East.
 �
• Looking forward, Grade A office rents are expected to remain stable in almost all submarkets.
0.0% 2009
2010 Supply
2011 Take-up
2012 F
2013 F
Vacancy Rate
• In 2Q 2012, the state government revised the Lease Land Policy and imposed a 7.5% premium on the market value of the land / plots leased for redevelopment of residential, educational and religious activities. For other activities, 10% was allocated.
major transactions Capital Values
Rentals
MUMBAI OFFICE CAPITAL AND RENTAL VALUES
Â
Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft) 56,000
Supreme Business Park
L
Devon
Peninsula Corporate Park
L
Famy Care
15,000
Times Square
L
Reliance Digital
26,000
Kohinoor Business Park
L
Tata Tesco
50,000
Lotus Midtown
L
Vships
27,000
new delhi
 � � �    12.00
24.0%
10.00
20.0%
8.00
16.0%
6.00
12.0%
4.00
8.0%
2.00
4.0%
• A few office development projects were completed during 2Q 2012, adding a total of about 3.7 million sq ft of new office space to the Grade A office market.
• During 2Q 2012, the absorption rate remained upbeat. However, Grade A office rents were flat across all submarkets. The exception was BKC (Bandra-Kurla-Complex), where rents increased by 3% QoQ on the back of limited supply and strong demand from tenants.
• Clouded by economic uncertainties, the Grade A office market witnessed a subdued absorption rate during 2Q 2012. • Average Grade A office rents in 2Q 2012 remained stable. It is expected that rents will stay flat regardless of slower economic growth.
0.0%
0.00 2009
2010 Supply
2011 Take-up
2012 F
2013 F
Vacancy Rate
major transactions Building
Tenant / Purchaser
Area (sq ft)
L
Barista
10,000
35,000
Cyber Terraces
L
Children’s Place
12,000
300
30,000
Time Tower
L
Hitachi
3,000
250
25,000
Pioneer Park
L
Pepsi
2,69,000
200
20,000
Independent Building
L
Stel
4,000
150
15,000
100
10,000
50
5,000
Capital Values
Independent Building
350
0
0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 F 1Q 2014 F
Rentals
NEW DELHI OFFICE CAPITAL AND RENTAL VALUES
Lease (L) / Sale (S)
Rentals (Rupee/ sq ft / Month)
Capital Values (Rupee / sq ft)
Colliers International |
p. 13
asia pacific office market overview | 2Q 2012
aust r a l i a adel aide
ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE 90,000
9.0%
80,000
8.0%
70,000
7.0%
60,000
6.0%
50,000
5.0%
40,000
4.0%
30,000
3.0%
20,000
2.0%
10,000
1.0%
0
2009
2010 Supply
2011 Take-up
2012 F
• Investor enquiries remained solid in 2Q 2012. While there remains concerns over the global financial outlook, investment sentiment should improve as some stabilisation returns to the global markets. Vacancy Rate
10.0%
sq m
100,000
• Positive white collar employment growth is expected to continue and together with the expected expansion in the mining, demand for office space will remain optimistic over the short term.
0.0%
2013 F
Vacancy Rate
Â?
Â?
Â?
Â?
Â?
Â?
major transactions Building
Â?
Tenant / Purchaser
Area (sq ft)
132 Grenfell Street
S
Primewest Funds Ltd
34,000
2-12 King William Street
S
Private
55,800
Â
brisbane
180,000
18.0%
160,000
16.0%
140,000
14.0%
120,000
12.0%
100,000
10.0%
80,000
8.0%
60,000
6.0%
40,000
4.0%
20,000
2.0%
Vacancy Rate
BRISBANE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
sq m
Lease (L) / Sale (S)
• Prime office yield is expected to compress further in the second half of 2012. Higher rental growth is anticipated for prime office stock over the short term, while vacancy rates will remain low during the period.
2009
2010 Supply
2011 Take-up
2012 F
• While vacancy rates are anticipated to fall to 4.3% in 2012 and 3.7% in 2013, rents are also expected to grow at approximately 4% per annum. • A total of over 100,000 sq m of prime office space is expected to be released to the market in 2012. Until 2Q 2012, approximately 78% of this new supply is being pre-committed.
0.0%
0
• Leasing activity remains at or above trend levels on the back of increased demand from the energy and resources sector. The absorption rate was solid, and vacancy rates dropped further during 2Q 2012. Prime office rents are expected to increase over the short term.
2013 F
Vacancy Rate
major transactions Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
123 Albert Street
L
QTC
43,100
825 Ann Street
L
Macquarie Bank
34,300
324 Queen Street
L
North Queensland Bulk
16,700
345 Queen Street
L
Regus
11,900
145 Ann Street
L
Mills Oakley
11,800
1 Eagle Street
L
Ergon Energy
11,500
10 Eagle Street
S
Commonwealth Property
302,900
Â
p. 14
Building
Ports Corp.
Office Fund
| Colliers International
215 Adelaide Street
S
Pramerica Real Estate Investors
317,800
379 Queen Street
S
Kingsmede Pty Ltd
58,800
369 Ann Street
S
Bachrach Group
72,000
asia pacific office market overview | 2Q 2012
aust r a l i a canber ra • Prime office rental growth is expected to moderate from 2012 to 2013.
80,000
16.0%
70,000
14.0%
60,000
12.0%
50,000
10.0%
40,000
8.0%
30,000
6.0%
20,000
4.0%
10,000
2.0%
0
• The CBD vacancy rate will remain at a low level until at least 2014. The prime office market continues to attract large multi-national institutions. Vacancy Rate
sq m
CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
Secondary property yields have been more volatile over the last two years, but recent sales activity has confirmed that yields have bottomed out and are likely to remain stable.
0.0% 2009
2010 Supply
2011 Take-up
2012 F
2013 F
Vacancy Rate
major transactions
Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Garema Court Building (140 - 180 City Walk)
L
Government
117,100
121 Marcus Clarke Street
L
Comcare
90,400
Caroline Chisholm Building
S
Frasers Commercial Trust
433,100
10 - 12 Mort Street
S
Growth Point
166,300
•
Â? Â? Â
Â
melbourne
160,000
16.0%
140,000
14.0%
120,000
12.0%
100,000
10.0%
80,000
8.0%
60,000
6.0%
40,000
4.0%
20,000
2.0%
0
2009
2010 Supply
2011 Take-up
2012 F
• The Melbourne CBD office market remained tight, with continued positive net absorption and a corresponding low vacancy rate.
Vacancy Rate
sq m
MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
• With an expected slowdown in employment growth, we expect vacancy rate to increase towards the end of this year, but will remain below the long-term average of 6.7%. • Rents and yields remain stable in 2Q 2012. Landlords continued to offer more incentives in order to attract tenants.
0.0%
2013 F
major transactions
Vacancy Rate
Building
Tenant / Purchaser
Area (sq ft)
357 Collins Street
L
Commonwealth Bank of Australia
54,600
530 Collins Street
L
Tertiary Education Quality
24,200
Standards Authority
101 Collins Street
L
Gilbert & Tobin
18,700
452 Flinders Street
L
Oceaneering Services Australia
11,900
96 Flinders Street
L
Aconex
18,400
601 Bourke Street
L
CGU
16,800
 �
Capital Values
Rentals
MELBOURNE OFFICE CAPITAL AND RENTAL VALUES
Lease (L) / Sale (S)
300 LaTrobe Street
L
Amec Aektin
16,000
477 Collins Street
S
Asia Pacific Investment T2
130,000
501 Swanston Street
S
Private Investor
183,000
Northbank Place East
S
AFIAA
108,000
S
Shakespeare Property Group
Pty Ltd
Tower, 525 Flinders Street 565 Bourke Street
Colliers International |
p. 15
asia pacific office market overview | 2Q 2012
aust r a l i a perth
200,000
12.0%
150,000
9.0%
100,000
6.0%
50,000
3.0%
0
2009
2010
2011
2012 F
• The Perth CBD office market remained tight with vacancies estimated to be circa 3.6%, slightly higher than at the end of 2011.
Vacancy Rate
sq m
PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE
• Investment expenditure in the resources sector, the main driver of growth for the State, continues relatively unaffected by recent global economic and financial developments.
0.0%
2013 F
-3.0%
-50,000 Supply
Take-up
Vacancy Rate
• The new supply cycle is picking up momentum as the shortage of quality space continues to affect rents with a number of projects expected to secure pre-commitments in the short to medium term.
Â
• As demand for space remains strong and new supply from recent Prime space completions committed to, we expect rents of Secondary Grade space to experience strong growth in the next 12 months.
9.0% 6.0%
50,000
3.0%
sq m
150,000 100,000
2011
2012 F
0.0%
2013 F
-50,000
-3.0%
-100,000
-6.0%
Take-up
Vacancy Rate
p. 16
Momentum Engineering
13,000
L
CB & I
12,600
Governor Stirling Tower, 197 St Georges Terrace, Perth
L
CB & I
27,000
The Forrest Centre, 221 St Georges Terrace, Perth
L
BHP
9,500
108 St Georges Terrace, Perth
L
The Executive Centre
18,600
St Georges Square, 225 St Georges Terrace, Perth
L
Bendigo Bank
10,000
• Due to the subdued tenant demand, face rents remained stable and incentives were kept at above average levels. • Investment sales volumes increased over the course of Q2 2012, with the largest being the sale of 7 Macquarie Place to UniSuper for AUD$55million.
Building
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft) 84,000
149 Castlereagh Street
S
Blackstone
333 Kent Street
S
Maville Group
96,200
S
UniSuper
146,800
Barangaroo
L
Westpac
645,800
Barangaroo
L
KPMG
376,700
Barangaroo
L
Lend Lease
269,100
| Colliers International
L
7 Macquarie Place
Â
251 St Georges Terrace, Perth 251 St Georges Terrace, Perth
major transactions
Area (sq ft)
• Despite the increased in investment activity, yields and capital values have generally remained stable during the quarter.
-9.0%
-150,000 Supply
Tenant / Purchaser
• A lack of new supply during Q2 2012 and stable leasing transaction volumes caused vacancy rates to fall further.
Vacancy Rate
12.0%
2010
Lease (L) / Sale (S)
sydney
200,000
2009
major transactions Building
SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0
• Demand for Prime space remained strong in the first half of 2012, the completion of two major buildings resulted in a new historical high net absorption for the first six months of 2012.
asia pacific office market overview | 2Q 2012
n e w z e a l and aUckl and
40,000
16.0%
35,000
14.0%
30,000
12.0%
25,000
10.0%
20,000
8.0%
15,000
6.0%
10,000
4.0%
5,000
2.0%
0
2009
2010 Supply
2011
2012 F
Take-up
Vacancy Rate
sq m
AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.0%
2013 F
Vacancy Rate
Â?Â? Â?
Â?
Â?
Â?
• Prime office rents and capital values are anticipated to increase over the next 12 months.
Â?
major transactions Building
Â?Â?
• Investment yields continue to ease in both the prime and secondary-grade office sectors since the last quarter, with average indicative yields between 8.4% and 10.1%. In one of Auckland’s largest single office transactions in two years, Beca House at 21 Pitt Street in Auckland was sold for NZ$55 million to a private investor which reflects an initial yield of 8.0%. • Prime office vacancy stood at 10.1% in Auckland CBD in June 2012, down from 9.8% recorded in December 2011. With no major office construction projects in the pipeline in the Auckland CBD, companies are facing a shortage of prime office space. Prime CBD office vacancy rates are expected to reduce over the next six months.
Â?
• According to the Investment Property Databank / Property Council of New Zealand (IPD/ PCNZ) March quarter data update, the overall office investment performance improved moderately to 5.9% in March 2012 compared to 4.8% recorded a year ago. Meanwhile, Auckland CBD office recorded a total return of 5.2% at the end of 1Q 2012.
Â
Beca House, 21 Pitt Street,
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
S
Private Investor
180,800
L
Hesketh Henry
20,100
Auckland
PWC Tower, 188 Quay Street, Auckland
wellington
60,000
6.0%
50,000
5.0%
40,000
4.0%
30,000
3.0%
20,000
2.0%
10,000
1.0%
0
2009
2010
2011
2012 F
Vacancy Rate
sq m
WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0.0%
2013 F
-1.0%
-10,000 Supply
Take-up
major transactions
Building
Capital Values
Lease (L) / Sale (S)
Tenant / Purchaser
Area (sq ft)
Xero House, 2 Cable Street
S
Local Family Trust
35,700
Eagle Technology House, L4,
L
Credit Consultants Group
11,300
135 Victoria Street
Rentals
• Prime net face rents remained stable at NZ$343 per sq m in June 2012, while prime capital values recorded at NZ$4,183 per sq m. We expect to see a slight improvement in both prime rents and capital values of about 1.5% over the next 12 months. • Prime office vacancy rate is anticipated to increase to 5.1% in 2012 and is expected to rise further in 2013.
Vacancy Rate
WELLINGTON OFFICE CAPITAL AND RENTAL VALUES
• Prime office investment yields remained stable at 8.2% in the June 2012 quarter. One notable transaction during the review period included the sale of the Xero House on the corner of Cable Street to a private investor for NZ$17 million, at a yield of 7.7%. Yields are expected to remain at the current level over the next 12 months.
Â? Â? Â?Â
Â
Colliers International |
p. 17
asia pacific office market overview | 2Q 2012 p r i m e orff aust ailc ieaN EW s upp ly
Â
Â
� � � �   € � ‚ � €
€ Â? Â
  ƒ  � „
… … „
Note: Floor area in each of the above centre is the sum of the various key sub-markets outlined under the section of “Definitions and Terminology�
p r i m e orff aust ailc iear e n ta l
 Â? Â? Â? Â? Â?  Â?  Â
Â
€ ‚
ƒ    „   …  � †   �  „
Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology"
p. 18
| Colliers International
asia pacific office market overview | 2Q 2012 n e t ta k e - up 2 q 2 0 1 2 ( s q f t )
ƒ „
  Â? Â?Â? Â?Â? ÂÂ? € Â? Â?ÂÂ?
ƒ „
�‚€ ‚�� �‚� � � ‚  � � ��‚ ‚ ‚
€  €Â?‚ € Â? € € ‚Â?  €  Â?Â?€ €Â? ‚Â?
Â?Â?  Â? Â?  €Â? Â?€ Â?‚Â?  ‚ € Â?
Source: Colliers
Colliers International |
p. 19
asia pacific office market overview | 2Q 2012 TRE N D S & FOREC A STS City
New Supply Take-up (sq ft) (sq ft) 2012 F 2013 F 2012 F 2013 F
Average Vacancy Total Stock (%) (sq ft) 2012 F 2013 F 2012 F 2013 F
Average Rentals (US$ / sq ft / year) 2012 F 2013 F
Beijing CBD
0 2,152,780
Zhongguancun
0
5.4
9.4
1.0
1.0
Financial Street
0 645,834 -22,680 519,434
0.4
1.6 9,700,524 9,700,524 64.74 68.50
Lufthansa
0
0
2.0
1.9
7,477,089 7,477,089
East Chang An Avenue
0
0
-58,782
25,231
1.9
1.5
6,307,064
6,307,064
48.73
51.41
East 2nd Ring
0
1,521,251
-641,076
760,631
2.3
20.8
2,409,736
3,930,987
46.80
45.63
Other areas
0
0
854,223
0
0.2
0.2
1,151,307
1,151,307
44.32
46.98
0
1,796,441 4,951 70,902
1,125,915 0 11,216
20,543,097 22,695,877 8,095,529 8,095,529
64.36
71.29
47.35
51.14
51.17
57.31
Chengdu Renmin Road
463,224
CBD
814,235
Financial Street Tianfu Avenue
1,614,585 0
221,306 215,859
1,086,120 332,707
30.8
31.4
3,412,027
26.44
29.08
22.1
10.5
2,861,637 2,861,637
5,026,612
24.68
27.32
914,932
430,556
301,389
551,877
49.0
31.0
1,415,733
1,846,289
28.20
29.08
2,230,377
4,090,282
344,445
2,514,275
68.0
44.7
1,076,390
5,166,672
21.15
24.68
Guangzhou Yuexiu Tianhe Haizhu
0
0
9,315,650 9,451,888 557,010
0
107,208 6,447,727 373,497
85,821 6,517,606 64,476
6.9
5.1
24.8
26.4
33.6
30.7
4,683,244 4,683,244 26,644,506 36,096,394 2,244,693 2,244,693
19.74
19.98
30.12
29.81
17.63
17.54
Shanghai Huangpu Jingan Lujiazui-Pudong
0
0 2,109,228
82,599
6.1
5.2
9,177,699 9,177,699
51.69 54.69
1,755,388
0 -207,895
319,959
12.8
8.6
7,618,064 7,618,064
56.29 63.26
0
823,438
Zhuyuan-Pudong
1,506,214
Changning
1,295,156 1,197,484
Xuhui
0
0 0
332,601 1,749,046
14.7
8.9
-317,385
107,960
13.6
10.6
3,598,662 3,598,662
36.66
36.66
-347,971 1,234,674
12.8
9.8
5,151,441 6,348,925
37.24
42.60
5.6
4,871,881 4,871,881
47.01 52.37
71,196
97,438
7.6
17,222,305 18,045,743
47.66
50.24
Hong Kong Central
191,250
0
-61,707
77,940
5.7
5.4
21,773,519 21,773,519
Wanchai
343,740
0
171,870
50,777
3.4
3.0
11,439,007 11,439,007
163.25 159.99 95.63
10,854,774 10,854,774
64.67
62.73
92.76
HK Island East
0
0
58,473
25,118
3.6
3.4
Tsim Sha Tsui
0
0
67,200
-57,461
1.9
2.8
6,361,390
6,361,390
72.28
66.50
Kowloon East
619,245
886,684
469,406
558,228
12.3
14.4
9,294,358
10,181,042
50.39
43.84
Taipei CBD
391,322 1,037,252
363,022
574,272
11.2
12.9
19,540,991 20,578,242
27.63
27.92
Seoul CBD
1,342,893 1,431,825 30,541,927 32,162,005
GBD
1,146,742
YBD
1,999,674 1,815,676 17,188,968 18,585,366
0 27,373,661 27,555,466
13.3
12.3
35,222,866 36,654,691
26.74
27.38
3.4
2.8
28,345,420 28,345,420
23.60
24.67
6.1
7.6
18,298,494 20,114,170
20.56
21.65
Tokyo CBD
6,748,551 4,431,224
N/A
N/A
8.5
8.2
N/A
N/A
105.06 105.90
Jakarta CBD
4,070,164
Non-CBD
2,447,668
430,556 1,377,273
3,893,731 3,145,987 1,442,174
1,453,642
7.7 12.0
6.1 10.9
50,970,360 51,400,916
24.88
28.00
22,706,619 24,083,893
17.25
18.35
Kuala Lumpur KLCA
p. 20
1,989,750
| Colliers International
508,585
1,100,000 1,100,000
15.0
13.0
33,084,433 33,593,018
24.55
24.55
asia pacific office market overview | 2Q 2012 TRE N D S & FOREC A STS City
New Supply Take-up (sq ft) (sq ft) 2012 F 2013 F 2012 F 2013 F
Average Vacancy Total Stock (%) (sq ft) 2012 F 2013 F 2012 F 2013 F
Average Rentals (US$ / sq ft / year) 2012 F 2013 F
Karachi CBD
440,000
145,000
100,000
100,000
40.0
40
15,231,929 15,376,929
1.06
1
Manila Makati Ortigas
617,342
516,667
774,796
0 876,074
117,768
672,905
2.8
2.5
9,934,477 10,595,380
20.43
22.67
727,403
3.6
4.7
4,961,404 5,836,520
15.95
16.74
Singapore CBD
806,000
586,036
842,187
160,027
7.9
9.5
23,514,057 24,100,093
75.55
70.71
Bangkok CBD
0
0
538,195
645,834
16.0
14.5
17,580,646 17,580,646
24.18
24.88
Hanoi CBD
491,060 279,861
Non-CBD
190,521 1,205,083
188,368
17.5
16.5
2,027,510 2,307,371
46.97 45.88
489,757 602,778
74,917
45.0
57.0
1,862,736 3,067,819
31.74 28.47
Ho Chi Minh City CBD
1,033,334 1,301,528
519,369
539,304
27.0
38.0
2,552,723 3,854,251
34.28
28.75
Bengaluru Overall
7,534,498 5,084,000 8,000,000 6,500,000
13.0
11
84,761,673 89,845,673
9.80
10.44
Chennai Overall
4,000,000 3,000,000 5,000,000 4,500,000
21.0
20
42,512,483 45,512,483
10.23
10.23
Mumbai Overall
4,200,000 5,000,000
6,000,000
5,000,000
15.0
16
98,658,000 103,658,000
38.57
38.57
New Delhi Overall
7,000,000 5,800,000 5,000,000 4,000,000
16.5
16
70,404,158 70,404,158
36.87
36.65
Adelaide CBD
193,750
215,278
312,153
269,098
7.7
9.5
14,199,543 14,605,891
34.64
36.01
Brisbane CBD
1,094,689 209,896
996,597
154,236
4.3
3.7
11,348,853 11,558,749
56.98
58.80
Canberra CBD
226,042
0
193,750
107,639
6.0
8.0
3,013,892 3,013,892
37.38
37.83
Melbourne CBD
1,451,846 1,442,363
604,641
1,124,784
6.5
6.6
26,601,752 28,044,114
31.63
33.73
Perth CBD
2,031,514
207,743
1,534,717
333,681
4.4
2.7
17,336,036 17,364,194
71.81
75.47
Sydney CBD
504,256
782,234
439,755
782,238
7.0
7.5
27,030,758 28,044,276
69.11
72.02
Auckland CBD
131,589
0
81,655 -123,354
10.1
13.7
4,581,277 4,738,968
22.80
23.31
Wellington CBD
0
0
6,383
-3,035
5.1
5.5
3,119,841 3,119,841
25.65 25.65
Colliers International |
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asia pacific office market overview | 2Q 2012
d e f i n i t i o n and t e r m i n o lo gy GREATER CHINA
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.
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 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.
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.
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.
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.
Guangzhou Prime office buildings in Guangzhou are located in 3 principal sub-markets – Haizhu, Yuexiu and Tianhe.
Rents are asking 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.
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.
SOUTHEAST ASIA
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. 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. 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.
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| Colliers International
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. 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.
asia pacific office market overview | 2Q 2012
d e f i n i t i o n and t e r m i n o lo gy Manila Prime office buildings in Manila are located in two principal sub-markets – Makati and Ortigas.
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.
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.
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.
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 nonstrata-titled developments. 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.
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. 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. New Delhi Prime office properties in New Delhi 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. Office space is commonly measured on *super built up area basis.
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.
INDIA Bengaluru (Bangalore) Prime office properties in Bengaluru are can be divided in 3 principal submarkets – 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.
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.
* Super built-up area refers to the total **built-up area of a building plus a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretaker’s office/flat throughout the building. ** Built-up area refers to the carpet area plus the thickness of external walls and area under columns.
Colliers International |
p. 23
asia pacific office market overview | 2Q 2012
For further details, please contact: GREATER CHINA
NORTH ASIA
Beijing, China 502 Tower W3, Oriental Plaza No 1 East Changan Avenue Dongcheng District Beijing 100738 Tel : 86 10 8518 1633 Fax : 86 10 8518 1638 Amanda Gao Managing Director, North China amanda.gao@colliers.com
Seoul, South Korea 10F Korea Tourism Organization Bldg. 10 Da-dong Jung-gu, Seoul 100-180 Tel : 82 2 6740 2000 Fax : 82 2 318 2015 Jay Yun Senior Director & General Manager jay.yun@colliers.com
Karachi, Pakistan Suite 2-A, level 2, Harbour House 37-A, Lalazar Avenue Beach Hotel Road, Off. M.T Khan Road Karachi, Pakistan Tel : 92 21 3561 2550-2 Fax : 92 21 3563 6382 Mohammed Yasir Qidwai Senior Manager, Corporate Solutions & Research research.khi@colliers.com
Tokyo, Japan Halifax Building 3-16-26 Roppongi Minato-ku, Tokyo 106-0032 Japan Tel : 81 3 5563 2111 Fax : 81 3 5563 2100 James Fink Senior Managing Director james.fink@colliers.co.jp
Lahore, Pakistan Suite 2, Mezzanine 2, Executive Floors Al-Qadir Heights, Main Boulevard New Garden Town, Lahore, Pakistan Tel : 92 42 3584 3474-6 Fax : 92 21 3563 6382 Ahmed Khan Country Manager ahmed.khan@colliers.com
Chengdu, China Unit 1504 Yanlord Landmark 1 Renmin South Road Section 2 Chengdu 610016 Tel : 86 28 8658 6288 Fax : 86 28 8672 3226 Jacky Tsai General Manager jacky.tsai@colliers.com Guangzhou, China 702 Teem Tower 208 Tianhe Road Guangzhou 510620 Tel : 86 20 3819 3888 Fax : 86 20 3819 3899 Eric Lam Managing Director eric.lam@colliers.com Shanghai, China 16F Hong Kong New World Tower 300 Huaihai Zhong Road Shanghai 200021 Tel : 86 21 6141 3688 Fax : 86 21 6141 3699 Lina Wong Managing Director East and South West China Investment Services, China lina.wong@colliers.com Hong Kong, HKSAR 5701 Central Plaza 18 Harbour Road Wanchai, Hong Hong Company Licence No: C-006052
Tel : 852 2828 9888 Fax : 852 2828 9899 Richard Kirke (E-279867) Managing Director richard.kirke@colliers.com Piers Brunner (E-183614) Chief Executive Officer - Asia piers.brunner@colliers.com Taipei, Taiwan 49F TAIPEI 101 TOWER No. 7 Xin Yi Road Sec 5, Taipei 110 Tel : 886 2 8101 2000 Fax : 886 2 8101 2345 Andrew Liu Managing Director andrew.liu@colliers.com
p. 24
| Colliers International
SOUTH EAST ASIA Jakarta, Indonesia 10F and 14F World Trade Centre Jl Jenderal Sudirman Kav 29-31 Jakarta 12920 Tel : 62 21 521 1400 Fax : 62 21 521 1411 Mike Broomell Managing Director mike.broomell@colliers.com Kuala Lumpur, Malaysia c/o Mark Lampard* Managing Director Corporate Solutions | Asia Pacific Te : 65 6531 8601 Fax : 65 6557 0649 mark.lampard@colliers.com * Based in Singapore Research data provided by C H Williams Talhar & Wong Sdn Bhd 30-01, 30th Floor Menara Multi-Purpose @ CapSquare 8 Jalan Munshi Abdullah P O Box 12157 50100 Kuala Lumpur, Malaysia Tel : 603 2616 8888 Fax : 603 2616 8899 URL : http://www.wtw.com.my Foo Gee Jen Managing Director fgj@wtw.com.my
Islamabad, Pakistan ONE Constitution Avenue, Adjacent Convention Centre & Diplomatic Enclave Islamabad, Pakistan Tel : 92 51 834 7433 Fax : 92 51 831 4737 Waleed Murrawat Regional Sales Manager waleed.murrawat@colliers.com Manila, Philippines 10F Tower 2 RCBC Plaza Ayala Avenue, Makati City Philippines1226 Tel : 63 2 888 9988 Fax : 63 2 845 2612 David Young Managing Director david.a.young@colliers.com Singapore 1 Raffles Place #45-00 One Raffles Place Singapore 048616 Tel : 65 6223 2323 Fax : 65 6222 4901 Dennis Yeo Managing Director Singapore & Industrial Services | Asia dennis.yeo@colliers.com Bangkok, Thailand 17/F Ploenchit Center 2 Sukhumvit Road Klongtoey, Bangkok 10110 Tel : 66 2 656 7000 Fax : 66 2 656 7111 Simon Landy Executive Chairman simon.landy@colliers.com
asia pacific office market overview | 2Q 2012
Ho Chi Minh City, Vietnam Ho Chi Minh City, Vietnam 7F Bitexco Building 19-25 Nguyen Hue Street District 1, Ho Chi Minh City, Vietnam Tel : 84 83 821 8777 Fax : 84 83 827 5667 Peter Dinning General Director peter.dinning@colliers.com Hanoi, Vietnam 10F, Capital Tower Building 109 Tran Hung Dao Street Hoan Kiem District, Hanoi, Vietnam Tel : 84 4 3941 3277 Fax : 84 4 3941 3278 Dane Moodie Managing Director dane.moodie@colliers.com
INDIA Bengaluru, India Prestige Garnet, Level 2, Unit No. 201/202 36 Ulsoor Road, Bengaluru 560 042 Tel : 91 80 4079 5500 Fax : 91 80 4112 3131 Goutam Chakraborty Office Director goutam.chakraborty@colliers.com Chennai, India Unit 1C, 1st Floor, Heavitree Complex 23 Spurtank Road, Chetpet Chennai 600 031 Tel : 91 44 2836 1064 Fax : 91 44 2836 1377 Kaushik Reddy Office Director kaushik.reddy@colliers.com Gurgaon, India 1st Floor, Technopolis Building DLF Golf Course Main Sector Road Sector 54, Gurgaon 122 002 Tel : 91 124 4375807 Fax : 91 124 4375806 Ajay Rakheja Office Director ajay.rakheja@colliers.com Kolkata, India Infinity Business Centre, Infinity Benchmark Level 18, Room No 13, Plot G - 1 Block EP & GP, Sector V, Salt Lake Kolkata 700 091, West Bengal Tel : 91 33 2357 6501 Fax : 91 33 2357 6502 Soumya Mukherjee Office Director soumya.mukherjee@colliers.com
Mumbai, India 31-A, 3rd Floors, Film Centre 68 Tardeo Road Mumbai 400 034 Tel : 91 22 4050 4500 Fax : 91 22 2351 4272 Prabhu Raghavendra Office Director prabhu.raghavendra@colliers.com George McKay South Asia Director Office & Integrated Services george.mckay@colliers.com New Delhi, India 204/205, 2nd Floor Kanchenjunga Building 18 Barakhamba Road New Delhi 110 001 Tel : 91 11 4360 7500 Fax : 91 11 2335 6624 Ajay Rakheja Office Director ajay.rakheja@colliers.com Pune, India Bramha Luxury Hotels Ltd. (Le Meridien Pune) 101 R.B.M. Road Pune 411 001, Maharashtra Tel : 91 20 4120 6435 Fax : 91 20 4120 6434 Suresh Castellino Office Director suresh.castellino@colliers.com
AUSTRALASIA Adelaide, Australia Level 10, 99 Gawler Place Adelaide SA 5000 Tel : 61 8 8305 8888 Fax : 61 8 8231 7712 James Young State Chief Executive james.young@colliers.com Brisbane, Australia Level 20 Central Plaza One 345 Queen Street Brisbane QLD 4000 Tel : 07 3229 1233 Fax : 07 3120 4555 Simon Beirne State Chief Executive simon.beirne@colliers.com
Canberra, Australia Ground floor, 21-23 Marcus Clarke Street Canberra ACT 2601 Tel : 61 2 6257 2121 Fax : 61 2 6257 2937 Paul Powderly State Chief Executive paul.powderly@colliers.com Melbourne, Australia Level 32 367 Collins Street Melbourne VIC 3000 Tel : 61 3 9629 8888 Fax : 61 3 9629 8549 John Marasco State Chief Executive john.marasco@colliers.com Perth, Australia Level 19, 140 St Georges Terrace Perth WA 6000 Tel : 61 8 9261 6666 Fax : 61 8 9261 6665 K. Imran Mohiuddin State Chief Executive imran.mohiuddin@colliers.com Sydney, Australia Level 12, Grosvenor Place 225 George Street Sydney NSW 2000 Tel : 61 2 9257 0222 Fax : 61 2 9251 3297 Malcom Tyson State Chief Executive malcom.tyson@colliers.com Auckland, New Zealand SAP Tower, Level 27 151 Queen Street Auckland 1140 Tel : 64 9 358 1888 Fax : 64 9 358 1999 Mark Synnott Chief Executive Officer, New Zealand mark.synnott@colliers.com Wellington, New Zealand Level 10, 36 Customhouse Quay Wellington 6011 Tel : 64 4 473 4413 Fax : 64 4 499 1550 (Agency) : 64 4 470 3902 (Valuation) Richard Findlay Managing Director richard.findlay@colliers.com
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Colliers International |
p. 25
asia pacific office market overview | 2Q 2012
Real estate is a location business. That’s why we do business where you do business.
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 522 offices worldwide share a common brand and 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.
* The combination of Colliers International and FirstService results in 2.55 billion under management - 2nd largest in the world.
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| Colliers International
REVE N UES
1.8 BILLION
COUNTRIES
62 522
Professionals & staff: Square feet managed: Lease/sale transactions: Total transaction value:
Asia PACIFIC
OFFICES
12,300 1,250 million* 76,000 $68 billion
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