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AsiA PAcificOffice Market Overview4Q 2012
Accelerating success.
table Of cOntentsAsiA PAcific office mArket overview | 4Q 2012
regional overview 3
Greater china 4-6Beijing, China ....................................................................................................................................4Chengdu, China .................................................................................................................................4Guangzhou, China .............................................................................................................................5Shanghai, China ................................................................................................................................5 Hong Kong SAR, China .....................................................................................................................6Taipei, Taiwan ...................................................................................................................................6
North Asia 7Seoul, South Korea ........................................................................................................................... 7Tokyo, Japan ..................................................................................................................................... 7
southeast Asia 8-11Jakarta, Indonesia .............................................................................................................................8Kuala Lumpur, Malaysia ....................................................................................................................8Karachi, Pakistan...............................................................................................................................9Manila, Philippines ............................................................................................................................9Singapore ........................................................................................................................................ 10Bangkok, Thailand ........................................................................................................................... 10Hanoi, Vietnam ................................................................................................................................. 11Ho Chi Minh City, Vietnam ............................................................................................................... 11 india 12-13Bengaluru (Bangalore) ................................................................................................................... 12Chennai ........................................................................................................................................... 12Mumbai ............................................................................................................................................ 13 Delhi NCR ........................................................................................................................................ 13 Australasia 14-17Adelaide, Australia .......................................................................................................................... 14Brisbane, Australia ......................................................................................................................... 14Canberra, Australia ......................................................................................................................... 15Melbourne, Australia ....................................................................................................................... 15Perth, Australia ............................................................................................................................... 16Sydney, Australia ............................................................................................................................ 16Auckland, New Zealand ...................................................................................................................17Wellington, New Zealand .................................................................................................................17
Prime office supply, rents and Net take-up 18-19
trends & forecasts 20-21
Definition & terminology 22-23
contacts 24-25
colliers iNterNAtioNAl | P. 3
regiOnal Overview
ecoNomic overviewDespite the continued sovereign debt issues in the Eurozone, market sentiment improved slightly in 4Q 2012. Asia Pacific economies showed signals of a rebound in economic activity amidst generally rising exports and stabilizing inflation. With elections in the US, Europe and mainland China having already taken place in 4Q 2012, there has been a clearer direction in Asian investors’ strategy going forward. The encouraging performance of asset indexes in the region has resulted in positive sentiment in the real estate market. Similarly, most corporations continue to implement business plans that are based on expansion and growth in the region.
leAsiNG mArketOn the leasing market front, the overall level of new office leasing inquiries in the Asia-Pacific region edged down mildly in 4Q 2012 as the year-end approached. However, a number of occupiers continued to take advantage of the current supply cycle to relocate and upgrade to better quality buildings. Similar to the preceding quarter, the most active office tenant groups remained in the IT / communication and Finance industries.
Office rents in most cities in China, Australia and Southeast Asia increased mildly in 4Q 2012. Jakarta saw the greatest rental growth, in the order of 10% QoQ in 4Q 2012, with many overseas companies in the banking and financing industries seeking office space. Manila prime office rents increased about 2.0% QoQ during the quarter, underpinned by strong demand from the offshoring and outsourcing activities. Hanoi saw average rent decrease the most among cities in the region, in the order of 4.0% QoQ in 4Q 2012, as office developments in the CBD increased competition for tenants. Meanwhile, Hong Kong saw average rent fell by 2.3% QoQ in 4Q 2012, with demand for top-tier buildings remaining weak.
sAles mArketThe average office prices increased further in 4Q 2012. The office market became more active compared with previous quarter, as more occupiers took advantage of the prevailing low-interest environment to acquire real estate for long-term occupation rather than leasing. Hong Kong has seen sales volumes surging up in the office market due to the shift of investment capital from residential to non-residential property. Meanwhile, Chinese insurance companies became more active in real estate investment during 4Q 2012, following the relaxation of regulations and specific guidance implemented by the China Insurance Regulatory Commission (CIRC).
mArket outlookThe sovereign debt issues in the Eurozone are likely to continue in 2013, but economic activity should gradually recover as global demand strengthens and increasing financial market confidence works its way through the economy. Market sentiment is expected to remain positive in 2013 as the accelerating economic growth in China is predicted to generate a significant positive spill-over to the rest of the countries in Asia. Leasing demand for offices in the region is expected to remain steady with both landlords and tenants holding a cautiously optimistic view on the market outlook over the next 12 months. Asian banks are expected to be more accommodating to real estate financing with the improving supply of credit. Meanwhile, additional lenders and mezzanine funds are increasing investor access to capital. These positive trends and improvement in sentiment are expected to increase investment volumes.
P. 4 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
cHiNABeijing• There was no new Grade A office supply completed in 4Q 2012. Consequently, the total
stock of the market rested at 5.17 million sq m as of the end of 4Q 2012.
• Demand for Beijing’s Grade A office properties was subdued during 4Q 2012. Inquiries and leasing transactions for quality office space edged down during this quarter due to economic deceleration, high rental costs and seasonal factors. The net absorption recorded was a negative 562 sq m as of the end of 4Q 2012, and the overall vacancy rate edged up by 0.01 percentage points quarter-on-quarter (QoQ) to 3.52%.
• Rents grew minimally by 0.69% QoQ to RMB327.33 per sq m per month as of the end of 4Q 2012. The most expensive office sub-market was the CBD area, with rents averaging RMB372.06 per sq m per month, while the Zhongguancun area registered an average rent of RMB252.53 per sq m per month, the cheapest among seven Grade A sub-markets.
• Although no en bloc sales transactions were disclosed in 4Q 2012, some domestic owner-occupiers in sectors such as IT, finance, banking and insurance continued to be very active in sourcing properties. By comparison, the office strata-title sales market saw more activities during the quarter.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
World Financial Centre L King & Wood Mallesons 49,500The Exchange L Mesto Corporation 23,600 Parkview Green L Hearst Corporation 24,700 Parkview Green L Reckitt Benckiser 21,500
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F2Q
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3 F
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3 F
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014
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F
0.00
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Rent
als
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80,000
Capi
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Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)
BEIJING OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F0.00
0.20
0.40
0.60
0.80
1.00
Mill
ion
sq m
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE
CHENGDU OFFICE CAPITAL AND RENTAL VALUES
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F2Q
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3 F
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4 F
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F
0.00
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75.00
100.00
125.00
150.00
175.00
200.00
225.00
Rent
als
0
2,500
5,000
7,500
10,000
12,500
15,000
17,500
20,000
22,500
Capi
tal V
alue
s
Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)
CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE
2009 2010 2011 2012 2013 F0.00
0.10
0.20
0.30
0.40
0.50
Mill
ion
sq m
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
chengdu• In 4Q 2012, there were no new office buildings introduced into the Chengdu Grade A office
market. The total stock of Grade A office space in Chengdu was 718,922 sq m.
• The overall average rent maintained a falling trend, dropping by 1.33% QoQ, to RMB135.46 per sq m per month, and the overall vacancy rate decreased by 4.65 percentage points QoQ to 19.77%. The demand for offices has shifted towards high-quality premises. Consequently, the rents of premium projects trended upwards in 4Q 2012, while some of the old projects – or at least those in non-prime locations – have to face downward pressure on rents.
• The financial industry and related sectors have been important tenants during the past few months. Furthermore, large-scale manufacturing enterprises and real estate development enterprises remained active as well
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
One Aerospace Centre L Boshi Jewellery 6,800
One Aerospace Centre L Fedex 4,000
Square One L Zhonghui Accounting Firm 6,700
China Overseas International
Centre
L Fuyin Investment Co. Ltd 6,000
Raffles City L Toyota Tsusho Group 15,100
Raffles City L Australian Consulate 15,100
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 5
shanghai• In December, the State Council released a detailed five-year plan for the service sector,
in which tertiary GDP is forecast to eclipse both the primary and secondary industry sectors by 2015. This strong government support will likely drive new demand for office space in the next few years.
• Absorption of Shanghai Grade A office premises was relatively slow in 4Q 2012. The average vacancy rate edged down from the third quarter’s 9.5% to 9.2%. Jing’an recorded the lowest vacancy rate of all districts at just 5.3%.
• The average rental rate for Grade A premises continued to increase in the fourth quarter, rising by 1.2% QoQ to RMB8.8 per sq m per day. This represents a 7.5% increase over the year, down in comparison with 2011’s average rent growth rate of 15.8%.
• Premium quality office stock registered rapid absorption over more standard Grade A accommodation as evidenced by L’Avenue, which by the end of 4Q 2012 had achieved commitment rate of around 75%.
• Average gross yields for en bloc Grade A office premises in prime locations remained unchanged from the last quarter’s 5.8%. The relaxation on insurance companies' investment restrictions by the China Insurance Regulatory Commission (CIRC) will likely further drive up the capital values of prime investment grade offices.
guangzhou• A total of approximately 144,600 sq m of new supply from Poly Central Pivot Plaza and
the Pinnacle Plaza in Pearl River New City were added to the market in 4Q 2012. The total stock of Guangzhou Grade A offices was pushed up to 2.95 million sq m. The overall vacancy rate increased 2.1 percentage points to 24.3% in this quarter.
• Due to seasonal factors, office leasing market activity decreased in 4Q 2012. Office rents edged down 0.6% QoQ to RMB156.64 per sq m per month in 4Q 2012.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Taikoo Hui L FedEx 20,800Taikoo Hui L Covidien Ltd 18,300Leatop Plaza L Postal Savings Bank of China 72,200China International L DHL Express 23,700GTLand Plaza L Pepsi Ltd 16,100GTLand Plaza L Saudia Airlines 5,900
cHiNA
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
L’Avenue L Bank of Communications 24,000The Centre L H&M 11,800Pudong Financial Centre II S Alibaba 506,700Hua Min Imperial Tower S Blackstone 511,200China Enterprise Tower S Go High Capital 281,700Shanghai International Cruise Port 8 S CCBII 378,400Waterfront Place S ARA 299,300
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010
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011
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011
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012
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013
F2Q
201
3 F
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013
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201
3 F
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014
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014
F
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
Rent
als
Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)
4,000
8,000
12,000
16,000
20,000
24,000
28,000
32,000
36,000
Capi
tal V
alue
s
0
GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES
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011
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011
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011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
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014
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201
4 F
3Q 2
014
F
Rent
als
Capi
tal V
alue
s
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
2009 2010 2011 2012 2013 F0.00
0.30
0.60
0.90
1.20
Mill
ion
sq m
0.0%
5.0%
10.0%
15.0%
Vaca
ncy
Rate
20.0%
Supply Take-up Vacancy Rate
SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
2009 2010 2011 2012 2013 F0.00
0.50
1.00
1.50
2.00
Mill
ion
sq m
0.0%
10.0%
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40.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE
P. 6 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
HoNG koNGhong kong• Overall Grade A office rents fell 2.3% QoQ in 4Q 2012. Central saw the deepest correction
at 5.7% during the quarter since the demand for top-tier buildings remained uninspiring.
• Quality office buildings in decentralised districts became increasingly popular among investors and end-users, particularly after the implementation of the Buyer’s Stamp Duty (BSD) in late October 2012 to restrict non-local buying activity in the residential market. For example, Stanhope House in North Point was sold by Hang Lung Properties to AIA for HK$2,398 million, representing an estimated market yield of 3.7%.
• In anticipation of a positive economic outlook and a steady growing occupational demand in the legal sector, overall Grade A office rents are expected to post mild growth of 4% over the next 12 months.
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009
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011
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011
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012
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012
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201
3 F
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F
HONG KONG OFFICE CAPITAL AND RENTAL VALUES
0
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als
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alue
s
Rentals (HK$ / sq ft / Month) Capital Values (HK$ / sq ft)
HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE
2009 2010 2011 2012 2013 F0.00
1.00
2.00
3.00
4.00
0.0%
2.0%
4.0%
6.0%
8.0%
Mill
ion
sq ft
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
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009
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011
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012
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012
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F2Q
201
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201
3 F
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014
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4 F
3Q 2
014
F
0
500
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als
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tal V
alue
s
Rentals (NT$ / Ping / Month) Capital Values (NT$ / Ping)
TAIPEI OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F-5,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Ping
Supply Take-up Vacancy Rate
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Vaca
ncy
Rate
TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
tAiwAN
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Walsin Xin Yi Building L Apple Asia LLC 24,500President International Tower L Motorola Solutions Co. 23,800Taipei Financial Center L Cerebos Pacific Taiwan Co. 21,000Nan Shan Min Sheng Building L Nitto Denko Co. 20,300Taipei Financial Center L Universal Music Group 12,500Taipei Financial Center L Barco Ltd 10,700
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Cheung Kong Centre L Bank of America Merrill Lynch 150,000Two IFC L State Street 44,0001063 King’s Road L Maxim Group 65,000Skyline Tower L APL Logistics 33,800Octa Tower L Hapag-Lloyd (China) 16,00016-22/F, Exchange Tower S Local bank 193,700169 Electric Road S Local investor 386,600Stanhope House S AIA 299,600
taipei• The Fabulous International Commercial Building was completed in 4Q 2012 and the total
stock of Grade A offices increased 5,000 ping to 543,295 ping. Since the net take-up of Grade A offices was only 1,730 ping during the quarter, the Grade A office vacancy rate slightly climbed 52 basis points to 9.93%.
• The total net take-up of TUN S district amounted to 1,321 ping in 4Q 2012, leading to a decline in the vacancy rate by 174 basis points during the quarter, to 4.96%. The key driver was Cathay Life Insurance Co. taking up 1,300 ping in Cathay Dun Nan Building. On the other hand, the net take-up in the West district was -1,325 ping owing to Shin Kong Bank moving out of Shin Kong Life Tower to Shin Kong Xin Yi Financial Building which caused the vacancy rate to rise 2.83 percentage points to 7.76%.
• The average effective rent of Grade A offices edged down 0.11% QoQ to NT$2,438 per ping per month in 4Q 2012. The effective rent of Hsin-Yi district was the highest at NT$2,824 per ping per month.
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 7
seoul• During 4Q 2012, the average rent was KRW24,209 per sq m, a marginal growth of less
than 1% QoQ. The overall vacancy rate increased nine basis points in 4Q 2012 to 7.51%.
• K Office in the GBD, covering 13,580 sq m of gross floor area, was the only new supply in 4Q 2012. About 35% of the new space has been absorbed since its completion.
• Market momentum in the CBD has recovered at a moderate pace as demand on leasing has shown positive growth since 4Q 2011. The vacancy rate in the CBD decreased by 10 basis points QoQ to 11.8% in 4Q 2012, which was the lowest level since 3Q 2011.
• In the YBD, Two IFC, which was launched in 3Q 2012, recorded an occupancy rate at about 18% as Nivea, AIG and Macoll Consulting signed lease contracts during the last quarter of 2012.
• Three IFC and FKI Building in the YBD are scheduled for completion in 2013, providing 275,460 sq m of office space. As the new supply may exceed the YBD’s current capacity for absorption in the long term, the vacancy rate is forecast to hit 30% in late 2013.
tokyo• Four years of increasing supply peaked in the first half of 2012.
• Rents remain low with significant valuable incentives from higher vacancy properties.
• Vacancy range bounded at high levels.
• As supply moderates, the focus shifts towards demand.
• Economic indicators were generally weak in 4Q 2012
• Increased government stimulus programmes are expected during 2013.
soutH koreA
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Garden City Shinagawa
Gotenyama
L Sumitomo 3M 120,700
Tokyo Square Garden L Bridgestone 177,500Kabukiza Tower L SMBC Consumer Finance 152,700Seavans S Tower L Sharp 230,800Nakano Central Park South
Tower
L Sompo Japan Insurance 177,500
1Q 2
009
2Q 2
009
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009
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009
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010
2Q 2
010
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201
3 F
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013
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201
3 F
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014
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201
4 F
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014
F
Capi
tal V
alue
s
1,000,000
2,000,000
3,000,000
4,000,000
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6,000,000
7,000,000
8,000,000
00
5,000
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25,000
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40,000
Rent
als
Rentals (Won / sq m / Month) Capital Values (Won / sq m)
SEOUL OFFICE CAPITAL AND RENTAL VALUES
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009
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009
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009
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010
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010
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011
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011
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011
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011
1Q 2
012
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012
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012
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012
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013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
0
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30,000
40,000
50,000
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als
0
2,000,000
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6,000,000
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10,000,000
Capi
tal V
alue
s
Rentals (Yen / Tsubo / Month) Capital Values (Yen / Tsubo)
TOKYO OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F0
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
Tsub
o
Vaca
ncy
Rate
TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
-200,000
0
200,000
400,000
600,000
800,000
2009 2010 2011 2012 2013 F
Vaca
ncy
Rate
sq m
Supply Take-up Vacancy Rate
SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE
jAPAN
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Samdo Ace Tower S Samsung Life Insurance 466,800
Dong-il Tower S Nonghyup 471,400
Irae Building S Korea Shipowners’ Association 606,400
Jongro Tower L Samsung Life Insurance 24,300
Capital Tower L NHN 30,400
Joong Ang Ibo Building L Samsung Life Insurance 62,800
Pine Avenue Building - B L Ssangyong 164,400
P. 8 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
iNDoNesiAjakarta• Business activities continue to expand in most non-export-oriented sectors, while other
export-oriented sectors, such as textiles, shipping and forwarding, are affected by the declining global market. For some years, the office market has been underpinned by the expansion of existing companies and from new companies tasting the growing local market.
• Limited office supply during the last six months of 2012 remains the major issue in the office market, resulting in the continued increase in rental rates. For companies with expansion plans, this should not become a hurdle. However, some of the above-mentioned tenants have to review their leasing expenses.
• Amidst climbing rental rates, the purchase of strata-title offices is becoming more popular, as it provides stable yields and capital gain. Further growth in the price of strata-title office space in 2013 can be expected due to the positive economic outlook.
• The overall cost of occupancy will increase during 2013. In addition to the growing rental trends, the government is anticipating a hike in the electricity tariff, parking tariff and minimum wage.Re
ntal
s
Capi
tal V
alue
s
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F0
30,000
60,000
90,000
120,000
150,000
180,000
210,000
240,000
270,000
300,000
330,000
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
55,000,000
Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m)
JAKARTA OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F
sq m
0
100,000
200,000
300,000
400,000
500,000
Supply Take-up Vacancy Rate
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
Vaca
ncy
Rate
JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F
0.00
2.00
4.00
6.00
8.00
10.00
12.00
Rent
als
200
400
600
800
1,000
1,200
Capi
tal V
alue
s
0
Capital Values (Ringgit / sq ft)Rentals (Ringgit / sq ft / Month)
KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F
3.00
3.50
0.00
0.50
1.00
1.50
2.00
2.50
Mill
ion
sq ft
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE
kuala lumpur• New completion in 4Q 2012 including the 40-storey Integra Tower @ The Intermark,
which contributed 736,000 sq ft of net lettable area. This international ‘green’ building with LEED certification will have one of the largest floor plates in town, approximately 25,000 sq ft per floor.
• KLCC Property Holdings Bhd (KLCCP) is undertaking a restructuring exercise to form a stapled REIT (KLCCSR), which is expected to be Malaysia's largest REIT, with investment properties worth RM15 billion. This will include the injection of three wholly owned office assets such as the iconic PETRONAS Twin Towers, Menara 3 PETRONAS and Menara ExxonMobil into a REIT vehicle.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Menara Worldwide L Chartis Malaysia 74,200*MENARA WORLDWIDE L Well Malaysia Sdn Bhd 4,500*KLCC Tower 3 L Undisclosed 9,000*Menara Binjai L British High Commission 13,000
mAlAysiA
* Concluded by C H Williams Talhar & Wong
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Gran Rubina S Mandiri Healthcare 32,300Gran Rubina S HamparanRimba Mas 16,100Gran Rubina S Ria Engineering 17,200Pondok Indah Office Tower 3 L Brantwood International 10,700
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 9
karachi• The Karachi office market remains challenging due to the prevailing uncertainty at the
macro-economic level and the upcoming elections.
• The market remained very competitive, with very limited transactions observed. Rents have been sliding downwards, with notable transactions including the NIB Bank leasing 72,000 sq ft or six office floors in PNSC Building for PKR 60 per sq ft per month. This is in contrast to the landlord’s asking rent of PKR 120 per sq ft per month.
• In view of limited activity on the sales market, landlords have opted to offer their high quality office buildings for lease rather than for sale.
• Two office projects, The Centre and Foakh Tower, have resumed construction after two years of suspension.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
PNSC BUILDING L NIB Bank 72,000
PAkistAN
KARACHI OFFICE CAPITAL AND RENTAL VALUES
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F
Rent
als
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
Capi
tal V
alue
s
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Mill
ion
sq ft
1.60
2009 2010 2011 2012 2013 F
Vaca
ncy
Rate
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
PHiliPPiNes
manila• In 4Q 2012, premium office vacancy rates in Makati CBD increased to 5.38% from 4.28%
in the previous quarter. Besides the recent inclusion of Zuellig building, the increase in vacancy was owed to the relocation of Stream Global Services from PB Com Tower to SLC, a Grade B office building.
• Alphaland Makati Tower and V Tower are scheduled for completion in 2013, adding about 61,400 sq m new office space in Makati CBD. Due to the lack of developable land in Makati CBD, supply is expected to be constricted in the long term.
• Meanwhile, demand for office space in Metro Manila remained high due to strong demand from the offshoring and outsourcing of industry. The average prime rental rate was set at P770 per sq m per month in 4Q 2012. It is projected to reach P835 per sq m per month in the next 12 months.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Two e-Com L Microsourcing 272,600Worldwide Corporate Center L National Relief Charities 91,200TGU Tower L Microsourcing 81,100Grundfos Building L Electrolux 69,500Bench Building L Beiersdorf 42,600
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F
Capital Values (Peso / sq m)Rentals (Peso / sq m / Month)
0
Capi
tal V
alue
s
20,000
40,000
60,000
80,000
100,000
120,000
Rent
als
0
200
400
600
800
1,000
1,200
MANILA OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
sq m
Supply Take-up Vacancy Rate
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Vaca
ncy
Rate
MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
P. 10 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
tHAilAND
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F
Rent
als
0
200
400
600
800
1,000
1,200
1,400
120,000
Capi
tal V
alue
s
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
Supply Take-up Vacancy Rate
2009 2010 2011 2012 2013 F
sq m
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%
Vaca
ncy
Rate
BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE
Bangkok• The northern Bangkok CBD is set to become a major business district, as multi-national
companies increasingly seek a presence in this part of the city.
• New office developments in the northern CBD will start entering the market in 2013. Moreover, dozens of new projects in the pipeline in this area are due for completion in 2014 and 2015.
• In view of the limited supply in CBD, the average rent in the area is expected to further increase over the next 12 months.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Asia Centre L Okaya (Thailand) Co., Ltd. 7,500
Asia Centre L Digital Alchemy Co., Ltd. 10,800
Le Concorde L Okana Hi-Tech (Thailand)
Co., Ltd.
5,400
singapore• Business sentiment in Singapore remained generally positive on the back of intermittent
positive economic news in 4Q 2012 as a result of a slew of stimulating measures implemented across the globe to spur economic growth.
• Supported by healthy demand from tenants relocating to quality office space, the average occupancy rate of CBD Grade A office space strengthened further from 93.1% in 3Q 2012 to 94.1% in 4Q 2012, the highest level in almost two years.
• The increase in occupancy helped moderate the decline in rent for CBD Grade A office space to 0.6% QoQ, the slowest pace of decline since the market headed south a year ago. As of December 2012, monthly gross rents for CBD Grade A office space averaged S$8.32 per sq ft.
• Despite Singapore’s strengthening market fundamentals, the continued challenging global economic environment and mounting supply pressures are expected to continue to push office rents in the CBD on a downtrend to a tune of 5% in 2013.
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F
0.00
5.00
10.00
15.00
20.00
25.00
Rent
als
30.00
Capital Values (Singapore$ / sq ft)Rentals (Singapore$/ sq ft / Month)
500
1,000
1,500
2,000
2,500
3,000
Capi
tal V
alue
s
0
SINGAPORE OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F0.00
0.50
1.00
1.50
2.00
2.50
Mill
ion
sq ft
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
siNGAPore
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Asia Square Tower 2 L Allianz Group 90,000Marina Bay Financial Centre
Tower 3
L Crédit Industriel et Commercial 31,000
Mapletree Anson S Mapletree Commercial Trust 331,900Marina Bay Financial Centre
Tower 3 (30% stake)
S DBS Group Holdings 1,234,600
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 11
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F
Rent
als
0
10
20
30
40
50
60
70
Rentals (US$/ sq m / Month)
HO CHI MINH CITY OFFICE RENTAL VALUES
hanoi• In 2012, the market saw a number of large occupiers, especially MNCs, relocate to outer
districts due to significantly lower rents in those districts. It is expected that this trend will continue as new supply is expected to enter in these areas and more vendors are likely to compete through increased offering of incentives.
• In 2013, the majority of office developments will continue to take place outside of the CBD, particularly in the west (Cau Giay).
• Office developments in the CBD are expected to see keener competition from the new developments, as these are expected to enter the market at lower rents.
• The trend of relocation to outer districts is expected to continue as landlords of the new developments in outer districts increased incentive offerings to compete for tenants.
• A portion of planned office developments are expected to be delayed due to difficulty in accessing financing.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
REE Tower L Samsung 16,000REE Tower L ABB 16,000REE Tower L VP Bank 34,100Bao Viet Tower L Halliburton 7,100Central Plaza L DuPont Far East Inc. 5,900Bitexco Financial Tower L Viet Capital Securities 9,900
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4F3Q
201
4 F
0
10
20
30
40
50
60
Rent
als
Rentals (US$/ sq m / Month)
HANOI OFFICE RENTAL VALUES
2009 2010 2011 2012 2013 F
-40,000
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
sq m
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
HANOI CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
sq m
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
2009 2010 2011 2012 2013 F
HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
vietNAm
ho chi minh city• The office market is still seeing a depressed take up rate due to the macro-economic
difficulties that Vietnam is addressing.
• Approximately 18,000 sqm new supply entered the market in 4Q 2012, of which approximately 30% was already pre-leased.
• In view of continued difficulties accessing financing, several office projects originally scheduled for launch in 2013 will be delayed.
• The market is expected to remain stable throughout 2013. The potential delay in a number of office developments is expected to soften the competition for tenants among the landlords. In anticipation of improvement in Vietnam’s economy and external environment in 2013, office market performance is expected to improve by the end of 2013.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Indochina Plaza Hanoi L Baker & McKenzie 14,000Indochina Plaza Hanoi L AIA Insurance 10,800Indochina Plaza Hanoi L Schenker Vietnam 10,800Indochina Plaza Hanoi L Zamil Steel 4,300Indochina Plaza Hanoi L Indochina Capital 5,400Hanoi Towers L Undisclosed 3,900Capital Tower L Vi Viet JSC 3,400
P. 12 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
iNDiA
0
10
20
30
40
50
60
70
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
Rent
als
Capi
tal V
alue
s
Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month)
BENGALURU OFFICE CAPITAL ANDRENTAL VALUES
0
10
20
30
40
50
60
70
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
Rent
als
Capi
tal V
alue
s
Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month)
CHENNAI OFFICE CAPITAL ANDRENTAL VALUES
8.00
10.00
12.00
14.00
0.00
2.00
4.00
6.00
16.00
Mill
ion
sq ft
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
28.0%
32.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
2009 2010 2011 2012 2013 F
CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
2009 2010 2011 2012 2013 F0.00
2.00
4.00
6.00
8.00
10.00
12.00
Mill
ion
sq ft
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
Vaca
ncy
Rate
0.0%
Supply Take-up Vacancy Rate
BENGALURU OFFICE SUPPLY, TAKE-UP & VACANCY RATE
Bengaluru (Bangalore)• Despite overall economic sentiments, demand for Grade A office space remained steady
and the city’s office market observed a few large floor plate deals during 4Q 2012. The IT/ITeS sector remained the major contributor of this demand.
• The absorption of Grade A office space was around 8 million sq ft in 2012, which was approximately 60% of the absorption in 2011.
• In terms of commercial leasing, Whitefield, Outer Ring Road and Electronic City remained the more preferred office locations. Tenants looking for expansion preferred these areas primarily due to the limited real estate options for expansion in the CBD areas and the availability of quality office space in these micro-markets.
• About 1.75 million sq ft of new office space was completed in 4Q 2012.
• In view of the cautious market sentiment and more prime office supply in the pipeline, the average rent remained stable during 4Q 2012.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Salarpuria Tech Point L American Express India Ltd 36,100Prestige Tech Park L Verizon 60,000Prestige Atlanta L Mindteck 68,000
E City L Onmobile 100,000
SVR Platinum L Netmagic 110,000
Prestige Shanthiniketan S Britannia 70,000
GNR Tech Park S Novel Group 145,500
chennai• Due to the uncertainty about the prospective economic growth, occupier demand remained
sluggish. Most of the deals concluded during 4Q 2012 were mid-size transactions, with areas ranging from 10,000 to 25,000 sq ft.
• Guindy, Ambattur and OMR are popular areas among the companies looking for relocation options, taking into consideration accessibility, availability of amenities and ease of commuting for employees.
• Rents for Grade A office space remained stable during 4Q 2012. No major new supply was added to the city’s inventory during the quarter.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
DLF SEZ L Barclays 69,000DLF SEZ L Maveric Systems 20,000DLF SEZ L Prokarma Technologies 14,600DLF SEZ L United Arab Shipping
Company
23,000
Prince Infocity 2 L EpiSource 35,000Espee Tech Park L Calsoft 40,000Centineal Square L Tata Capital 13,000
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 13
iNDiA1Q
200
92Q
200
93Q
200
94Q
200
91Q
201
02Q
201
03Q
201
04Q
201
01Q
201
12Q
201
13Q
201
14Q
201
11Q
201
22Q
201
23Q
201
24Q
201
21Q
201
3 F
2Q 2
013
F3Q
201
3 F
4Q 2
013
F1Q
201
4 F
2Q 2
014
F3Q
201
4 F
0
10,000
20,000
30,000
40,000
50,000
60,000
0
50
100
150
200
250
300
Rent
als
Capi
tal V
alue
s
Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month)
MUMBAI OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F0.00
3.00
6.00
9.00
12.00
15.00
Mill
ion
sq ft
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
0
50
100
150
200
250
0
5,000
10,000
15,000
20,000
25,000
Rent
als
Capi
tal V
alue
s
Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month)
DELHI NCR OFFICE CAPITAL AND RENTAL VALUES
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%
2009 2010 2011 2012 2013 F
Mill
ion
sq ft
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
DELHI NCR OFFICE SUPPLY, TAKE-UP & VACANCY RATE
mumBai• Leasing activity in the Mumbai Grade A office market turned slightly positive during
4Q 2012 and a few large deals were concluded during the quarter. Major transactions included the lease of 350,000 sq ft of office space by IT company TCS in Thane’s Wagle Industrial Estate.
• The absorption in 2012 totalled around 6.23 million sq ft. The BFSI and IT/ITeS sectors were the major contributors of this absorption.
• Average rents in Mumbai remained stable in 4Q 2012 in view of slow growth in demand and new developments in the pipeline.
• The average vacancy rate in the Mumbai Grade A office market remained stable at 14.5% in 4Q 2012.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Sahar Plaza (Windfall) L Lhoist 6,600Marathon Futurex L Samira Habitats 6,300Sigma IT Park L Vertex BPO 22,500Boomerang L Covidien 9,900The Capital L Visa 20,000Techniplex L QAD India 15,000NITCO Biz Park S Woodfield Systems (India) Ltd 10,000
delhi ncr• During 4Q 2012, demand for Grade A office space remained moderate due to cautious
market sentiment. Major transactions included the lease of 100,000 sq ft of office space by Samsung in Advant IT Park and approximately 170,000 sq ft of office space by Microsoft in Cyber City in Gurgaon.
• Gurgaon remained the most active market followed by NOIDA and Delhi. The office space absorption in Gurgaon totalled around 5.9 million sq ft in 2012.
• With the completion of about 2 million sq ft of office premises in 4Q 2012, the city’s Grade A office stock increased to about 6.2 million sq ft by the end of 2012.
• Overall Grade A office rents remained stable in 4Q 2012, while the Gurgaon sub-market recorded a 3% QoQ increase during the quarter.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Konnectus L Thales 18,500Plot No 121 L AB Sciex 22,000Spaze IT Park L Regus 22,000Platinum Towers, 181, Phase-I L Mudra Communications 30,0007/F, Park View Business
Tower
L ACS Xerox 40,000
Corporate One L Oriflame 50,000Pioneer Urban L Pepsico 150,000
P. 14 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
AustrAliA1Q
200
92Q
200
93Q
200
94Q
200
91Q
201
02Q
201
03Q
201
04Q
201
01Q
201
12Q
201
13Q
201
14Q
201
11Q
201
22Q
201
23Q
201
24Q
201
21Q
201
3 F
2Q 2
013
F3Q
201
3 F
4Q 2
013
F1Q
201
4 F
2Q 2
014
F3Q
201
4 F
0
100
200
300
400
500
600
700
Rent
als
1,000
2,000
3,000
Capi
tal V
alue
s
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
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
Rent
als
0
200
400
600
800
1,000
1,200
Capi
tal V
alue
s
10,000
12,000
0
2,000
4,000
6,000
8,000
Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year)
BRISBANE OFFICE CAPITAL AND RENTAL VALUES
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2009 2010 2011 2012 2013 F
sq m
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
BRISBANE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
0
20,000
40,000
60,000
80,000
100,000
120,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2009 2010 2011 2012 2013 F
sq m
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
adelaide• On the back of recent and upcoming tenant relocations, a significant amount of existing
office premises will become available for occupation at various intervals over the next six to 12 months.
• The overall vacancy rate is forecast to increase in 1Q 2013 due to relocation activities. However, it should still be well below the historical average.
• There is strong demand for Grade A office space and this trend is likely to continue as more tenants seek the flight to quality.
• Those premises returning to the market due to relocation activities which are fully refurbished to high standards will be well positioned to fulfil much of this demand.
• Investor demand continues to be strong for well-located Prime grade assets and foreign investor interest will remain elevated in 2013.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
100 Waymouth Street L Community CPS Credit
Union
33,400
361-367 King William Street L Fuji Xerox Australia 23,300400 King William Street S Real I.S. AG 232,800169 Pirie Street S Private 78,500
BrisBane• Although the longevity of the resources boom has been brought into question, the fact
remains that there is still a significant amount of capital expenditure in the pipeline both committed to current projects and those in the feasibility stage. This output is expected to continue to translate into demand for office space from mining and resources companies and ancillary services.
• Developers remain confident in the Brisbane CBD office market with confirmation that a major prime office building will go ahead after securing a 15,000 sq m pre-commitment from mining and resources firm BHP Billiton.
• In addition, Japanese developer Daisho has confirmed that it will speculatively build a 57,000 sq m Prime grade office tower by the end of 2015.
• Prior to the delivery of these two projects, Prime grade vacancy is expected to decline to circa 5% by the end of 2015.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
145 Ann Street L Queensland Competition
Authority
24,800
443 Queen Street L Hatch Associates 43,300
480 Queen Street L BHP Billiton 161,500
160 Ann Street S CorVal 172,900
443 Queen Street S Private Investor 60,000
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 15
AustrAliA1Q
200
92Q
200
93Q
200
94Q
200
91Q
201
02Q
201
03Q
201
04Q
201
01Q
201
12Q
201
13Q
201
14Q
201
11Q
201
22Q
201
23Q
201
24Q
201
21Q
201
3 F
2Q 2
013
F3Q
201
3 F
4Q 2
013
F1Q
201
4 F
2Q 2
014
F3Q
201
4 F
100
200
300
400
500
600
700
Rent
als
0
1,000
2,000
3,000
4,000
5,000
6,000
Capi
tal V
alue
s
7,000
Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year)
0
MELBOURNE OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
sq m
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
Rent
als
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
Capi
tal V
alue
s
Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year)
CANBERRA OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
sq m
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE
canBerra• Grade A office rent performance was resilient in 2012.
• Vacancy levels among quality premises have decreased in 4Q 2012 due to steady demand and a lack of new supply entering the market.
• Secondary yields have stabilised in 4Q 2012.
• Quality Grade A office premises with long-term government leases remain favoured by foreign investors, which may cause a slight compression to primary yields by the end of 2013.
• The level of Grade A office vacancy will fall during 2013 as steady demand continues and no new supply will be delivered to the market.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
10 - 12 Mort Street,
Canberra
S Growthpoint 15,400
Level 7, NewActon Nishi,
Canberra CBD
L Australian Competition and
Consumer Commission
2,000
Level 1 - 6, NewActon Nishi,
Canberra CBD
L Department of Climate
Change & Energy Efficiency
12,300
Level 7, NewActon Nishi,
Canberra CBD
L Clayton Utz 2,000
melBourne• Domestic and offshore investment demand remained strong during 2012.
• Seven major office sales transactions totalling A$676 million were recorded during 2012.
• GPT Wholesale Office Fund purchased 150 Collins Street for A$181 million on a yield of 6.77%, which was the largest sales transaction in 4Q 2012.
• A total of about 201,000 sq m of new office space is set to enter the market over the next two years, of which about 75% of the new premises are pre-committed.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
567 Collins Street L Corrs Chambers
Westgrath Legal
94,700
390 LaTrobe Street L TAL 65,600535 Collins Street L Suncorp 166,200750 Collins sTreet L Public Transport Development 119,400850 Collins Street L Aurecon 101,100735 Collins Street L CBA 88,600367 Collins Street L Quadro Services 35,30040 Market Street S Dexus Property Group 130,100
P. 16 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
0
200
400
600
800
1,000
1,200
Rent
als
0
2,000
4,000
6,000
8,000
10,000
12,000
Capi
tal V
alue
s
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
250,000
-3.0%
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
2009 2010 2011 2012 2013 F
sq m
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
Rent
als
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
Capi
tal V
alue
s
Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year)
0
SYDNEY OFFICE CAPITAL AND RENTAL VALUES
-100,000
-50,000
0
50,000
100,000
150,000
200,000
-6.0%
-3.0%
0.0%
3.0%
6.0%
9.0%
12.0%
2009 2010 2011 2012 2013 F
sq m
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE
perth• Vacancy rates increased for six consecutive months to December 2012, driven primarily
by an increase in sub-lease office space coming onto the market.
• The increase in sub-lease space was resulted from deferred project development and capital investment, and job shedding in the mining and related supporting industries.
• Overall office rents softened marginally due to increased tenant options and competition with minimal growth expected in 2013.
• Capital values have been steady on an annual basis and are likely to remain stable in 2013.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
KS2, 376 Wellington Street, Perth L Shell 161,500Bankwest Place, 298-300 Murray Street, Perth
L Inpex Alpha 18,700
2 Mill Street, Perth L Chamber of Minerals & Energy
10,600
sydney• Investors continued to show strong demand for high-quality office assets. The lack of
Prime grade properties on the market has seen opportunistic buyers begin to invest in quality Secondary grade assets.
• Tenant demand continued to remain stable at below average levels, with minimal rent growth and increased offering of incentives by landlords as a result.
• Prime grade office yields have continued to remain firm, while the yield gap between high- and low-quality Secondary grade office assets has widened.
• The new 5 Martin Place development secured a 44% pre-commitment. Scheduled for completion in early 2013, the construction work is expected to commence in early 2013
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
5 Martin Place L Ashurst 149,300201 Kent Street L Aon Corporation 118,000161 Castlereagh Street L Boston Consulting Group 52,50050 Carrington Street S DEXUS Funds Management 121,500
AustrAliA
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 17
New zeAlAND1Q
200
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200
93Q
200
94Q
200
91Q
201
02Q
201
03Q
201
04Q
201
01Q
201
12Q
201
13Q
201
14Q
201
11Q
201
22Q
201
23Q
201
24Q
201
21Q
201
3 F
2Q 2
013
F3Q
201
3 F
4Q 2
013
F1Q
201
4 F
2Q 2
014
F3Q
201
4 F
Rent
als
0
100
200
300
400
500
600
0
1,000
2,000
3,000
4,000
5,000
6,000
Capi
tal V
alue
s
Capital Values (New Zealand $ / sq m)Rentals (New Zealand $/ sq m / Year)
AUCKLAND OFFICE CAPITAL AND RENTAL VALUES
2009 2010 2011 2012 2013 F0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
sq m
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Vaca
ncy
Rate
Supply Take-up Vacancy Rate
AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE
WELLINGTON OFFICE CAPITAL AND RENTAL VALUES
1Q 2
009
2Q 2
009
3Q 2
009
4Q 2
009
1Q 2
010
2Q 2
010
3Q 2
010
4Q 2
010
1Q 2
011
2Q 2
011
3Q 2
011
4Q 2
011
1Q 2
012
2Q 2
012
3Q 2
012
4Q 2
012
1Q 2
013
F2Q
201
3 F
3Q 2
013
F4Q
201
3 F
1Q 2
014
F2Q
201
4 F
3Q 2
014
F
Rent
als
0
100
200
300
400
500
600
Capi
tal V
alue
s
0
1,000
2,000
3,000
4,000
5,000
6,000
Capital Values (New Zealand $ / sq m)Rentals (New Zealand $/ sq m / Year)
2009 2010 2011 2012 2013 F0
10,000
20,000
30,000
40,000
50,000
60,000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Vaca
ncy
Rate
sq m
Supply Take-up Vacancy Rate
WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE
auckland• The total return of Auckland CBD office investment has increased from 9.2% to 9.9% in
3Q 2012. This is made up of 7.4% income return and 2.4% capital return, according to the latest updates from the Investment Property Databank / Property Council of New Zealand (IPD / PCNZ).
• Over the last 12 months, Auckland CBD leasing activity has remained relatively steady, underpinned by higher than expected demand from business tenants for prime office space.
• Office vacancy in the Auckland CBD fell 1.3 percentage points to 10.9% in the 12 months ending June 2012. Meanwhile, the announcement of the Local Authority purchasing the former ASB Bank premises as a part of consolidating their existing premises is anticipated to influence a downward trend in vacancy.
• Prime grade office yields firmed over the 12 months to December 2012, while Secondary grade office yields remained stable. This trend is anticipated to continue during 2013.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
AIG Building L Milford Asset Management 8,700 106 Customs Street West L Dimension Data 34,400 CallPlus Business Centre S First NZ Properties 94,600
wellington• The total return of Wellington CBD office investment remained unchanged at 3.0% in 3Q
2012. This is made up of 8.3% income return and negative 4.9% capital return, according to the latest updates from the Investment Property Databank / Property Council of New Zealand (IPD / PCNZ).
• Perceived earthquake-prone buildings continue to be a significant driver for office tenants looking for different premises. As a result, leasing activity has been relatively strong over the last 12 months. While Secondary grade office rents declined slightly over the 12 months to December 2012, Prime grade office rents remained relatively stable.
• The overall vacancy rate stood at 14.9%, with only 6% of the total amount of vacant space in prime quality assets. Overall prime vacancy is forecast to fall over the next 12 months.
• During 2012, office investment activity continued to be strong in the CBD with the notable sales transaction of the Forsyth Barr & Bayleys Towers in the heart of Wellington’s Golden Mile, sold by AMP Capital Property Portfolio to Robt. Jones Holdings (RJH) for NZ$50.5 million, at an initial yield of 8.78% per annum.
mAjor trANsActioNs
BuilDiNG leAse (l) /sAle (s)
teNANt / PurcHAser AreA (sq ft)
Sovereign House L Government Department 22,100 22 Willeston Street L Careers Limited 12,100 NEC House L Crombie Lockwood (NZ) 15,900 Grant Thornton House L Grant Thornton 12,800 Alcatel Lucent Building L Healthcare NZ 22,400 The Forsyth Barr & Bayleys Towers
S Robt Jones Holdings (RJH) 176,400
P. 18 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology"
AustrAliAPrime office reNtAl
Hong Kong
Tokyo
Singapore
Sydney
Perth
Beijing
Brisbane
Shanghai
Hanoi
Mumbai
Ho Chi Minh City
Delhi NCR
Canberra
Adelaide
Melbourne
Taipei
Guangzhou
Jakarta
Wellington
Kuala Lumpur
Auckland
Seoul
Bangkok
Chengdu
Manila
Chennai
Bengaluru
Karachi
RENTALS (US$ / SQ FT / YEAR)
0.00 20.00 40.00 60.00 80.00 100.00 120.00
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 19
Jakarta
Guangzhou
Seoul
Shanghai
Chengdu
Hong Kong
Taipei
Singapore
Hanoi
Beijing
BangkokManila
Ho Chi Minh City
Delhi NCR 12,200,000Guangzhou 9,454,041Bengaluru 9,090,000Chennai 5,240,000Mumbai 5,000,000Seoul 4,837,867Shanghai 4,042,942Tokyo 3,091,015
Over 3,000,000 sq ft
1,000,000 - 3,000,000 sq ft
Below 1,000,000 sq ft
Hong Kong 927,384Manila 660,903Kuala Lumpur 509,000Adelaide 452,084Ho Chi Minh City 301,163Singapore 289,000Brisbane 200,209Karachi 145,000Auckland 110,707Perth 100,524Bangkok 0Canberra 0Wellington 0
Chengdu 2,970,836Beijing 2,021,460Hanoi 1,574,414Melbourne 1,442,363Jakarta 1,384,421Taipei 1,250,700Sydney 1,103,935
Kuala Lumpur
MelbourneAuckland
Canberra
Wellington
Delhi NCR
Bengaluru
Mumbai
Chennai
Tokyo
SydneyAdelaide
Brisbane
Karachi
Perth
Prime office New suPPly forecst for 2013
Source: Colliers
city New supply take-up Average vacancy total stock Average rentals (sq ft) (sq ft) (%) (sq ft) (us$ / sq ft / year) 2012 2013 f 2012 2013 f 2012 2013 f 2012 2013 f 2012 2013 f
BeijiNG
CBD 0 1,614,585 485,554 322,917 5.9 11.3 20,543,094 22,157,679 65.99 73.25
Zhongguancun 0 0 -15,554 20,505 1.2 1.0 8,095,529 8,095,529 44.79 50.75
Financial Street 0 406,875 -45,707 264,469 0.6 2.0 9,700,523 10,107,398 65.67 73.55
Lufthansa 0 0 44,088 38,032 2.4 1.9 7,477,089 7,477,089 53.44 60.00
East Chang An Avenue 0 0 -319,729 173,915 6.0 3.2 6,307,067 6,307,067 47.91 49.97
East 2nd Ring 0 0 -610,397 49 1.0 1.0 2,409,736 2,409,736 46.04 48.34
Other areas 0 0 844,432 9,791 1.0 0.1 1,151,307 1,151,307 45.74 50.31
cHeNGDu
Renmin Road 290,625 172,599 544,217 -344,397 17.1 31.4 3,239,428 3,412,027 26.33 27.49
CBD 796,787 0 217,218 315,735 21.6 10.5 2,844,188 2,844,188 22.41 24.83
Financial Street 0 968,751 65,104 528,214 3.0 31.0 500,801 1,469,552 26.60 28.38
Tianfu Avenue 1,153,987 1,832,231 807,791 844,484 30.0 44.7 1,153,987 2,986,218 20.40 23.06
GuANGzHou
Yuexiu 0 0 109,544 83,474 6.8 5.1 4,683,244 4,683,244 19.89 19.84
Tianhe 9,209,883 9,454,041 4,406,655 6,066,868 23.7 26.6 24,784,224 34,238,265 30.01 29.35
Haizhu 557,010 0 373,497 64,476 33.6 30.7 2,244,693 2,244,693 17.84 17.40
sHANGHAi
Huangpu 0 837,991 229,928 128,488 7.5 5.2 9,177,699 10,015,691 46.83 55.50
Jingan 0 2,007,467 20,947 1,005,674 5.3 8.6 7,618,064 9,625,531 58.00 60.90
Lujiazui-Pudong 1,027,059 0 916,611 784,597 9.0 9.0 18,249,369 18,249,369 49.09 51.18
Zhuyuan-Pudong 1,232,628 0 737,822 275,342 17.1 15.6 4,831,290 4,831,290 35.88 39.36
Changning 1,295,156 1,197,484 1,011,042 1,363,781 12.6 9.8 6,446,597 7,644,080 40.08 37.68
Xuhui 0 0 59,212 19,488 6.6 5.6 4,871,881 4,871,881 49.47 50.47
HoNG koNG
Central 147,900 40,700 137,779 113,272 4.6 4.3 21,730,169 21,770,869 153.80 161.49
Wanchai 343,740 0 92,299 63,471 4.1 3.6 11,439,007 11,439,007 97.13 101.02
HK Island East 0 0 250,082 -320,000 1.8 0.7 10,854,774 10,404,774 69.84 72.63
Tsim Sha Tsui 0 0 50,946 5,600 1.7 1.6 6,361,390 6,361,390 80.59 82.20
Kowloon East 513,737 886,684 767,405 832,666 8.0 7.8 9,191,881 10,078,565 57.03 59.89
tAiPei
CBD 177,874 1,250,700 420,991 787,689 9.9 11.6 19,327,543 20,578,242 28.23 28.51
seoul
CBD 901,875 1,872,843 2,581,287 497,917 11.8 12.5 34,781,842 36,654,685 28.93 29.97
GBD 1,499,164 0 463,391 267,823 5.1 4.1 28,697,841 28,697,841 25.18 26.32
YBD 839,918 2,965,024 235,193 -2,202,305 7.5 32.1 17,138,734 20,103,758 21.56 22.71
tokyo
CBD 7,354,855 3,091,015 6,903,160 #VALUE! 8.5 7.8 79,330,227 82,421,242 99.62 101.58
jAkArtA
CBD 3,116,300 1,384,421 4,510,137 1,241,724 2.8 3.0 50,016,496 51,400,916 26.15 30.57
Non-CBD 2,772,307 1,517,204 2,820,329 1,247,741 7.2 7.8 22,923,619 24,440,823 19.11 21.45
kuAlA lumPur
KLCA 1,948,750 509,000 1,437,302 1,000,000 13.9 12.2 32,920,758 33,429,343 25.50 25.50
P. 20 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
treNDs & forecAsts
2012 2013 f 2012 2013 f 2012 2013 f 2012 2013 f 2012 2013 f
kArAcHi
CBD 440,000 145,000 100,000 100,000 40.0 40.0 15,231,929 15,376,929 1.03 1.02
mANilA
Makati 617,342 660,903 516,387 705,423 5.4 4.6 9,934,477 10,595,380 20.84 22.60
Ortigas 0 876,074 -15,640 724,034 5.2 7.1 4,961,404 5,837,489 15.43 15.83
siNGAPore
CBD 839,549 288,925 1,300,642 149,311 6.2 6.7 23,499,670 23,788,595 81.66 77.33
BANGkok
CBD 0 0 861,112 861,112 12.0 8.0 17,580,646 17,580,646 25.12 26.21
HANoi
CBD 0 534,707 74,917 188,368 17.5 16.5 2,027,510 2,307,371 46.97 45.88
Non-CBD 152,320 1,039,707 489,757 602,778 45.0 57.0 1,862,736 3,067,819 31.74 28.47
Ho cHi miNH city
CBD 186,495 301,163 114,625 234,201 14.9 16.0 1,705,884 2,007,048 38.59 35.34
BeNGAluru
Overall 7,200,000 9,090,000 7,000,000 7,500,000 15.0 15.0 84,427,175 93,517,175 10.24 10.41
cHeNNAi
Overall 2,280,000 5,240,000 3,000,000 4,000,000 21.0 21.0 40,792,483 46,032,483 10.52 10.52
mumBAi
Overall 7,000,000 5,000,000 6,000,000 7,000,000 15.0 14.5 101,458,000 106,458,000 39.58 38.99
DelHi Ncr
Overall 6,200,000 12,200,000 5,900,000 6,500,000 17.5 18.0 70,604,158 82,804,158 37.90 37.46
ADelAiDe
CBD 559,723 452,084 75,347 139,931 7.7 9.8 14,031,551 14,483,635 34.00 35.79
BrisBANe
CBD 1,110,372 200,209 643,563 -43,379 6.8 7.2 11,364,536 11,485,092 55.92 57.26
cANBerrA
CBD 226,042 0 53,820 21,528 7.6 5.0 3,013,892 3,013,892 36.23 36.86
melBourNe
CBD 1,467,647 1,442,363 408,049 1,137,271 7.1 7.1 26,601,752 28,044,114 28.63 27.47
PertH
CBD 2,113,352 100,524 1,054,862 322,917 6.6 5.1 17,223,661 17,284,003 65.76 65.76
syDNey
CBD 484,376 1,103,935 443,623 756,874 7.2 6.9 52,889,112 53,342,993 67.89 70.26
AucklAND
CBD 131,589 110,707 106,240 53,820 8.7 7.4 4,570,729 4,681,435 25.45 26.29
welliNGtoN
CBD 0 0 6,383 25,833 4.6 4.0 3,256,973 3,256,973 26.10 26.67
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 | 4Q 2012
colliers iNterNAtioNAl | P. 21
treNDs & forecAsts
P. 22 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
DefiNitioN AND termiNoloGy
GreAter cHiNA
BeijingPrime 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.
chengduPrime 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.
GuangzhouPrime 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.
shanghaiPrime 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 kongPrime 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.
taipeiPrime 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.
NortH AsiA
seoulMajor 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.
tokyothe 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.
soutHeAst AsiAjakarta 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 lumpurPrime 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.
karachiPrime 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 | 4Q 2012
colliers iNterNAtioNAl | P. 23
Def iNitioN 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.
manilaPrime 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.
BangkokPrime 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 citythe 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.
HanoiPrime 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 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.
chennaiPrime 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.
mumbaiPrime 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.
Delhi NcrPrime 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.
Office space is commonly measured on *super built up area basis.
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 zealandPrime 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.
P. 24 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
greater china
Beijing, china502 tower w3, Oriental Plaza no 1 east changan avenue Dongcheng Districtbeijing 100738tel : 86 10 8518 1633fax : 86 10 8518 1638Amanda GaoManaging Director, north [email protected]
chengdu, chinaUnit 1504 Yanlord landmark1 renmin south road section 2chengdu 610016tel : 86 28 8658 6288fax : 86 28 8672 3226jacky tsaigeneral [email protected]
Guangzhou, china702 teem tower208 tianhe roadguangzhou 510620tel : 86 20 3819 3888fax : 86 20 3819 3899eric lamManaging [email protected]
shanghai, china16f Hong kong new world tower300 Huaihai Zhong roadshanghai 200021tel : 86 21 6141 3688fax : 86 21 6141 3699lina wongManaging Directoreast and south west chinainvestment services, [email protected]
Hong kong, HksAr5701 central Plaza18 Harbour road wanchai, Hong Hongcompany licence no: c-006052tel : 852 2828 9888fax : 852 2828 9899richard kirke (e-279867)Managing [email protected]
Piers Brunner (e-183614)chief executive Officer - [email protected]
taipei, taiwan49f taiPei 101 tOwerno. 7 Xin Yi road sec 5, taipei 110tel : 886 2 8101 2000fax : 886 2 8101 2345Andrew liuManaging [email protected]
north asia
seoul, south korea10f korea tourism Organization bldg.10 Da-dongJung-gu, seoul 100-180tel : 82 2 6740 2000fax : 82 2 318 2015jay yunsenior Director & general [email protected]
tokyo, japan Halifax building3-16-26 roppongi Minato-ku, tokyo 106-0032 Japantel : 81 3 5563 2111 fax : 81 3 5563 2100 james finksenior Managing [email protected]
south east asia
jakarta, indonesia10f and 14f world trade centreJl Jenderal sudirmankav 29-31 Jakarta 12920tel : 62 21 521 1400fax : 62 21 521 1411mike BroomellManaging [email protected]
kuala lumpur, malaysiac/o mark lampard*Managing Directorcorporate solutions | asia Pacificte : 65 6531 8601fax : 65 6557 [email protected]* based in singapore
Research data provided byc H williams talhar & wong sdn Bhd30-01, 30th floorMenara Multi-Purpose @ capsquare8 Jalan Munshi abdullahP O box 1215750100 kuala lumpur, Malaysiatel : 603 2616 8888fax : 603 2616 8899Url : http://www.wtw.com.myfoo Gee jenManaging [email protected]
karachi, Pakistansuite 2-a, level 2, Harbour House37-a, lalazar avenuebeach Hotel road, Off. M.t khan roadkarachi, Pakistantel : 92 21 3561 2550-2fax : 92 21 3563 6382mohammed yasir Qidwaisenior Manager, corporate solutions & [email protected]
lahore, Pakistansuite 2, Mezzanine 2, executive floorsal-Qadir Heights, Main boulevardnew garden town, lahore, Pakistantel : 92 42 3584 3474-6fax : 92 21 3563 6382Ahmed khancountry [email protected]
islamabad, PakistanOne constitution avenue, adjacent convention centre & Diplomatic enclave islamabad, Pakistantel : 92 51 834 7433fax : 92 51 831 4737waleed murrawatregional sales [email protected]
manila, Philippines10f tower 2 rcbc Plazaayala avenue, Makati cityPhilippines1226tel : 63 2 888 9988fax : 63 2 845 2612David youngManaging [email protected]
singapore1 raffles Place#45-00 One raffles Placesingapore 048616tel : 65 6223 2323fax : 65 6222 4901Dennis yeoManaging Directorsingapore & industrial services | [email protected]
Bangkok, thailand17/f Ploenchit center2 sukhumvit roadklongtoey, bangkok 10110tel : 66 2 656 7000 fax : 66 2 656 7111 simon landyexecutive [email protected]
for further details, please contact:
asia pacific office market overview | 4Q 2012
colliers iNterNAtioNAl | P. 25
Ho chi minh city, vietnamHo chi Minh city, vietnam7f bitexco building19-25 nguyen Hue streetDistrict 1, Ho chi Minh city, vietnamtel : 84 83 821 8777fax : 84 83 827 5667Peter Dinninggeneral [email protected]
Hanoi, vietnam10f, capital tower building109 tran Hung Dao streetHoan kiem District, Hanoi, vietnamtel : 84 4 3941 3277fax : 84 4 3941 3278Dane moodieManaging [email protected]
india
Bengaluru, indiaPrestige garnet, level 2, Unit no. 201/20236 Ulsoor road, bengaluru 560 042tel : 91 80 4079 5500fax : 91 80 4112 3131Goutam chakrabortyOffice [email protected]
chennai, indiaUnit 1c, 1st floor, Heavitree complex23 spurtank road, chetpetchennai 600 031tel : 91 44 2836 1064fax : 91 44 2836 1377kaushik reddyOffice [email protected]
Gurgaon, india1st floor, technopolis buildingDlf golf courseMain sector roadsector 54, gurgaon 122 002tel : 91 124 4375807fax : 91 124 4375806Ajay rakhejaOffice [email protected]
kolkata, indiainfinity business centre, infinity benchmarklevel 18, room no 13, Plot g - 1block eP & gP, sector v, salt lakekolkata 700 091, west bengaltel : 91 33 2357 6501fax : 91 33 2357 6502soumya mukherjeeOffice [email protected]
mumbai, india31-a, 3rd floors, film centre68 tardeo roadMumbai 400 034tel : 91 22 4050 4500fax : 91 22 2351 4272Prabhu raghavendraOffice [email protected]
George mckaysouth asia DirectorOffice & integrated [email protected]
Delhi Ncr , india204/205, 2nd floorkanchenjunga building18 barakhamba roadnew Delhi 110 001tel : 91 11 4360 7500fax : 91 11 2335 6624Ajay rakhejaOffice [email protected]
Pune, indiabramha luxury Hotels ltd. (le Meridien Pune)101 r.b.M. roadPune 411 001, Maharashtratel : 91 20 4120 6435fax : 91 20 4120 6434suresh castellinoOffice [email protected]
australasia
Adelaide, Australialevel 10, 99 gawler Placeadelaide sa 5000tel : 61 8 8305 8888fax : 61 8 8231 7712james youngstate chief [email protected]
Brisbane, Australialevel 20 central Plaza One345 Queen streetbrisbane QlD 4000tel : 07 3229 1233fax : 07 3120 4555 simon Beirnestate chief executive [email protected]
canberra, Australiaground floor, 21-23 Marcus clarke streetcanberra act 2601tel : 61 2 6257 2121fax : 61 2 6257 2937Paul Powderlystate chief [email protected]
melbourne, Australialevel 32 367 collins streetMelbourne vic 3000 tel : 61 3 9629 8888fax : 61 3 9629 8549john marascostate chief [email protected]
Perth, Australialevel 19, 140 st georges terracePerth wa 6000tel : 61 8 9261 6666fax : 61 8 9261 6665k. imran mohiuddinstate chief [email protected]
sydney, Australialevel 12, grosvenor Place225 george streetsydney nsw 2000tel : 61 2 9257 0222fax : 61 2 9251 3297malcom tysonstate chief [email protected]
Auckland, New zealandsaP tower, level 27151 Queen streetauckland 1140tel : 64 9 358 1888fax : 64 9 358 1999mark synnottchief executive Officer, new [email protected]
wellington, New zealandlevel 10, 36 customhouse Quaywellington 6011tel : 64 4 473 4413 fax : 64 4 499 1550 (agency) : 64 4 470 3902 (valuation)richard findlayManaging [email protected]
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P. 26 | colliers iNterNAtioNAl
asia pacific office market overview | 4Q 2012
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