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<strong>Asia</strong> Pacifi c<br />

<strong>Office</strong> <strong>Market</strong> <strong>Overview</strong><br />

REGIONAL RESEARCH<br />

QUARTERLY UPDATE | OCTOBER | 2009


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

CONTENTS<br />

Regional <strong>Overview</strong> .....................................................................3<br />

Greater China ..........................................................................4-6<br />

Beijing, China ...................................................................................................... 4<br />

Chengdu, China ................................................................................................. 4<br />

Guangzhou, China ............................................................................................. 5<br />

Shanghai, China .................................................................................................. 5<br />

Hong Kong SAR, China .................................................................................... 6<br />

Taipei, Taiwan ...................................................................................................... 6<br />

North <strong>Asia</strong> ...................................................................................7<br />

Seoul, South Korea ............................................................................................ 7<br />

Tokyo, Japan ........................................................................................................ 7<br />

South <strong>Asia</strong> ............................................................................. 8-10<br />

Jakarta, Indonesia ............................................................................................... 8<br />

Kuala Lumpur, Malaysia ..................................................................................... 8<br />

Manila, Philippines .............................................................................................. 9<br />

Singapore ............................................................................................................ 9<br />

Bangkok, Thailand ............................................................................................ 10<br />

Ho Chi Minh City, Vietnam ............................................................................ 10<br />

India ..................................................................................... 11-12<br />

Bangalore .......................................................................................................... 11<br />

Chennai ............................................................................................................. 11<br />

Mumbai .............................................................................................................. 12<br />

New Delhi ........................................................................................................ 12<br />

Australasia .......................................................................... 13-16<br />

Adelaide, Australia ........................................................................................... 13<br />

Canberra, Australia ......................................................................................... 13<br />

Melbourne, Australia ....................................................................................... 14<br />

Perth, Australia ................................................................................................. 14<br />

Sydney, Australia .............................................................................................. 15<br />

Auckland, New Zealand ................................................................................. 16<br />

Wellington, New Zealand .............................................................................. 16<br />

Prime <strong>Office</strong> Rentals ................................................................17<br />

Trends & Forecasts ............................................................. 18-19<br />

Definitions & Terminology ................................................. 20-21<br />

Contacts .............................................................................. 22-23<br />

2<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

REGIONAL OVERVIEW<br />

EXECUTIVE SUMMARY<br />

A Return of <strong>Market</strong><br />

Confidence<br />

Amid the gradual improvement of global economic fundamentals, the office market in the<br />

region also showed further encouraging signs of recovery during 3Q2009. Although the<br />

overall occupational demand is yet to recover to the pre-financial crisis levels seen in the<br />

first half of 2008, there were positive notes showing market stabilisation and a significant<br />

improvement in market confidence in 3Q2009.<br />

One of the major reasons for the strengthening of market confidence during the period<br />

was the very strong performance of the sales side of the market in terms of the volume of<br />

activity and the general price level achieved. In the Greater China region, the volume of<br />

investment sales transactions was extremely active thanks to the positive sentiment among<br />

a number of state-owned enterprises. In Beijing, three en bloc sales transactions were<br />

registered in 3Q2009, all of which were acquired for owner-occupancy. In Guangzhou, the<br />

major deals were the sale of the R&F Yingyue International Building and the Shanghai<br />

Pudong Development Bank for RMB300 million and RMB400 million, respectively. In<br />

Shanghai, domestic investors and end-users, including SOHO China and the Agricultural<br />

Bank of China, remained active in acquiring quality developments in prime districts<br />

during 3Q2009.<br />

Edging Close to the<br />

Cyclical Trough<br />

For most of the centres in the region, there were more signs that office rentals are edging<br />

closer toward their cyclical trough during 3Q2009. Individual centres in the Greater China<br />

region, such as Chengdu, saw mild positive rental growth during the period. Across the<br />

region, the pace of rental decline actually tapered off further from 3.6% quarter on quarter<br />

(QoQ) in 2Q2009 to 2.0% QoQ in 3Q2009.<br />

With rentals stabilising, there was a general increase in the level of new space enquiries<br />

during 3Q2009. Although lease renewals continued to be the most-favoured option for<br />

most tenants, a number of occupiers reactivated their real estate plans in 3Q2009 and<br />

started looking to relocate to larger and better quality premises in view of cheaper rental<br />

offers in the marketplace and, more importantly, a better economic outlook for 2010. For<br />

example, AIG in Singapore took advantage of the weak rental environment to relocate its<br />

operations from two adjacent buildings on Martin Road on the fringe of the CBD to five<br />

floors at 78 Shenton South Tower – a newly completed office building in the CBD.<br />

<strong>Market</strong> Outlook<br />

Looking ahead, the pace of recovery of the occupational side of the office market in the<br />

region will be gradual in view of the recovery path of some of the major economies, such<br />

as the US. Further to the current round of cost-driven relocation and consolidation, the<br />

market will pick up additional momentum if tenants are encouraged by the prospective<br />

growth of their top line revenues. On the sales front, given the projection of a sustained<br />

low interest rate environment over the near to medium term, the level of investment<br />

demand will remain strong among a large group of private investors, including a range<br />

of small to medium-size companies that want to secure office space for their long-term<br />

business requirements.<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 3


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

CHINA<br />

BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Beijing<br />

• The Greater China project confirmed that an additional GFA of 6,500 sq m was available<br />

for lease, resulting in a small increase in Grade A office stock, despite virtually no new<br />

projects being completed in Beijing during 3Q2009.<br />

Million sq m<br />

2.50<br />

2.00<br />

1.50<br />

1.00<br />

0.50<br />

25.0%<br />

20.0%<br />

15.0%<br />

10.0%<br />

5.0%<br />

Vacancy Rate<br />

• With financial institutions taking the lead, leasing demand was robust in 3Q2009. For<br />

example, the Beijing Rural Commercial Bank leased approximately 50,000 sq m in the<br />

north tower of Financial Street Centre, while the Shanghai Pudong Development Bank<br />

leased 30,000 sq m in Fortune Resource International Centre. The overall vacancy rate<br />

edged down 2.20 percentage points to 16.98% as at the end of 3Q2009.<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

0.0%<br />

• However, the economic fundamentals and market conditions continued to put pressure<br />

on many landlords. This resulted in a consecutive decrease in Grade A office net effective<br />

rents by 1.92% quarter on quarter (q-o-q) to an average of RMB165.89 per sq m per<br />

month as at the end of 3Q2009.<br />

Rentals<br />

350.00<br />

300.00<br />

250.00<br />

200.00<br />

150.00<br />

100.00<br />

50.00<br />

0.00<br />

BEIJING OFFICE CAPITAL AND RENTAL VALUES<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)<br />

35,000<br />

30,000<br />

25,000<br />

20,000<br />

15,000<br />

10,000<br />

5,000<br />

0<br />

Capital Values<br />

• The investment sales market was very active in 3Q2009, with three en bloc sales properties<br />

for owner-occupancy transacted, demonstrating the optimistic market sentiment among<br />

many state-owned enterprises.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Sunny Region S CITIC Securities 572,400<br />

Raycom Infotech Park Tower D S MediaTek 307,200<br />

Xihai 2008 Tower B&C S Undisclosed 149,400<br />

Financial Street Centre L Beijing Rural Commercial Bank 538,200<br />

Fortune Resource International Centre L SPD Bank 322,900<br />

COFCO L China Agriculture Bank 202,400<br />

Phoenix Place L NaviInfo 118,400<br />

Phoenix Place L NTT Data 75,300<br />

Prosper Centre L DNV 38,600<br />

Raffl es City L Chuang Yi He Xuan 37,900<br />

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

1.20<br />

60.0%<br />

1.00<br />

50.0%<br />

Chengdu<br />

• The local office market saw signs of growing demand in 3Q2009. Individual companies<br />

that had postponed their plans during the global financial crisis started looking to relocate<br />

to larger premises with better facilities during the period.<br />

Million sq m<br />

0.80<br />

0.60<br />

0.40<br />

0.20<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

40.0%<br />

30.0%<br />

20.0%<br />

10.0%<br />

0.0%<br />

Vacancy Rate<br />

• The sub-market in the CBD area was particularly active, with strong leasing activity in<br />

Central Plaza. Individual tenants, such as Panasonic, The Bank of Tokyo-Mitsubishi<br />

and Sinosure, have taken whole floors for their new offices. With such multinational<br />

companies as Estee Lauder and Thai Airways International Airlines entering the local<br />

office market in 3Q2009, the average vacancy rate edged down to 29% in the quarter.<br />

Rentals<br />

160.00<br />

140.00<br />

120.00<br />

100.00<br />

80.00<br />

60.00<br />

40.00<br />

20.00<br />

0.00<br />

Supply Take up Vacancy Rate<br />

CHENGDU OFFICE CAPITAL AND RENTAL VALUES<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)<br />

16,000<br />

14,000<br />

12,000<br />

10,000<br />

8,000<br />

6,000<br />

4,000<br />

2,000<br />

0<br />

Capital Values<br />

• A total of 4,564 sq m of new leasing transactions was completed during 3Q2009 and<br />

the average prime office rental was RMB106 per sq m per month as at the end of<br />

3Q2009.<br />

• In the sales market, Hailirun Plaza in Dongda Street and the New Hope Building in<br />

Renmin Road were the focus of the market thanks to their premium locations. The<br />

average sales price at Hailirun Plaza reached RMB17,000 per sq m as at 3Q2009.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Central Plaza L Panasonic 9,500<br />

Central Plaza L The Bank of Tokyo-Mitsubishi 9,500<br />

Central Plaza L Sinosure 9,500<br />

Central Plaza L Thai Airways International Airlines 3,200<br />

4<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

EXECUTIVE SUMMARY<br />

CHINA<br />

GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Guangzhou<br />

• The office market saw growing demand in 3Q2009, with the average rental for Grade<br />

A office space rising by 4.3% q-o-q to US$18.50 per sq ft per month in 3Q2009.<br />

2.50<br />

2.00<br />

50.0%<br />

40.0%<br />

• The average office vacancy rate decreased from 25.91% in 2Q 2009 to 22.84% in 3Q<br />

2009.<br />

Million sq m<br />

1.50<br />

1.00<br />

0.50<br />

30.0%<br />

20.0%<br />

10.0%<br />

Vacancy Rate<br />

• The investment market was active during 3Q2009, with two major sales transactions in<br />

Pearl River New City recorded. This included the sale of the R&F Yingyue International<br />

Building to Infinitus (China) Co., Ltd. and the Shanghai Pudong Development Bank<br />

for RMB300 million and RMB420 million, respectively.<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

0.0%<br />

Supply Take up Vacancy Rate<br />

Rentals<br />

GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES<br />

40.00<br />

4,000<br />

35.00<br />

3,500<br />

30.00<br />

3,000<br />

25.00<br />

2,500<br />

20.00<br />

2,000<br />

15.00<br />

1,500<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Metro Plaza L Tsit Wing Group 5,400<br />

Skyfame Tower L Heng An Standard Life 9,500<br />

Skyfame Tower L Mead Johnson (Guangzhou) Ltd. 11,500<br />

China International Centre S Domestic Communication Company 20,200<br />

10.00<br />

5.00<br />

0.00<br />

1,000<br />

500<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (US$ / sq m / Month) Capital Values (US$ / sq m)<br />

SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

1.00<br />

20.0%<br />

0.90<br />

18.0%<br />

Shanghai<br />

• The Grade A office market stabilised in 3Q2009, with the average rental standing at<br />

RMB7.0 per sq m per day. However, it was still down 32% compared with its peak in<br />

2008.<br />

Million sq m<br />

0.80<br />

0.70<br />

0.60<br />

0.50<br />

0.40<br />

0.30<br />

0.20<br />

16.0%<br />

14.0%<br />

12.0%<br />

10.0%<br />

8.0%<br />

6.0%<br />

4.0%<br />

Vacancy Rate<br />

• Three office buildings were completed during 3Q2009, including the HSBC Building<br />

(Shanghai ifc South Tower) in Lujiazui, and the GC Tower and the China Diamond<br />

Exchange Centre in Zhuyuan. The overall vacancy rate of Grade A office space edged<br />

down 0.4 percentage points to 13.7% q-o-q in 3Q2009.<br />

0.10<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

2.0%<br />

0.0%<br />

• Domestic investors and end-users showed further confidence in 3Q2009 by acquiring<br />

properties in prime districts. For instance, SOHO China, the Shanghai Rural<br />

Commercial Bank and the Agricultural Bank of China acquired either en-bloc or stratatitle<br />

office buildings located in the Jing’an and Pudong districts.<br />

15.00<br />

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES<br />

60,000<br />

• <strong>Market</strong> sentiment will continue to ride on the policy initiative of Shanghai becoming<br />

the “International Financial Centre by 2020”. It is our forecast that the rate of rental<br />

decline will narrow to 15% in 2009 and rents will bottom out by 2011.<br />

Rentals<br />

12.00<br />

9.00<br />

6.00<br />

48,000<br />

36,000<br />

24,000<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Mirae Asset Tower L ANZ Bank 45,200<br />

3.00<br />

12,000<br />

GC Tower L Pacifi c Aetna Life Insurance 105,500<br />

0.00<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

0<br />

Raffl es City L ABB China 47,400<br />

Corporate Avenue L Gensler 19,400<br />

Shanghai Times Square L Crocs Inc. 12,900<br />

Rentals (RMB / sq m / Day) Capital Values (RMB / sq m)<br />

Azia Centre L Bank of Tokyo Mitsubishi 86,100<br />

Plaza 66 Tower 1 L Carlyle Group 15,100<br />

2 Grand Gateway L Tesco 18,300<br />

CITI Lujiazui Project S China Agriculture Bank 915,700<br />

Zhongrong Jasper Tower S Shanghai Rural Commercial Bank 255,900<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 5


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

Million sq ft<br />

HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

4.50<br />

9.0%<br />

4.00<br />

8.0%<br />

3.50<br />

7.0%<br />

3.00<br />

6.0%<br />

2.50<br />

5.0%<br />

2.00<br />

4.0%<br />

1.50<br />

3.0%<br />

1.00<br />

2.0%<br />

0.50<br />

1.0%<br />

0.00<br />

0.0%<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

HONG KONG OFFICE CAPITAL AND RENTAL VALUES<br />

125.00<br />

25,000<br />

Vacancy Rate<br />

Hong Kong<br />

• <strong>Office</strong> rentals showed further signs of stabilisation in 3Q2009. The average prime office<br />

rentals declined 1.3% q-o-q to HK$41.23 per sq ft per month in the quarter, narrowing<br />

significantly from the decline of 12.1% q-o-q in 2Q2009.<br />

• Investors remained keen to commit to any quality opportunistic stock available for sale<br />

due to expectations of sustained low borrowing costs and further capital growth during<br />

3Q2009. Individual popular strata-titled office buildings saw a growth in prices in the<br />

order of 10% in 3Q2009.<br />

• No major office developments were completed in 3Q2009, but the average vacancy rate<br />

edged up from 7.86% in 2Q2009 to 7.93% in 3Q2009.<br />

• Further to the recent signs of stabilisation, the prime office market is expected to see more<br />

solid growth if there is a sustained revival of global demand over the next 12 months.<br />

However, the pace of growth will be capped at 5% during the period unless the bulk of<br />

occupiers once again adopt an expansionary strategy.<br />

Rentals<br />

100.00<br />

75.00<br />

50.00<br />

25.00<br />

0.00<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (HK$ / sq ft / Month)<br />

Capital Values (HK$ / sq ft)<br />

20,000<br />

15,000<br />

10,000<br />

5,000<br />

0<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Kwun Tong 223 L Insurance company 247,100<br />

Nexxus Building L Accounting fi rm 26,500<br />

Warwick House L Telecom company 31,500<br />

The Gateway Tower 1 & 2 L Trading company 24,600<br />

One Kowloon L Toy company 24,000<br />

10 fl oors, Low Block, Grand Millennium Plaza S Taiwanese investor 137,600<br />

19/F and 24/F Convention Plaza S Mainland China corporation 29,300<br />

32/F Cosco Tower S Local investor 20,500<br />

TAIWAN<br />

TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Taipei<br />

• The economic performance saw signs of a recovery in 3Q2009, with exports, private<br />

consumption and investment regaining some rebound momentum.<br />

Ping<br />

35,000<br />

30,000<br />

25,000<br />

20,000<br />

15,000<br />

10,000<br />

5,000<br />

0<br />

-5,000<br />

-10,000<br />

-15,000<br />

2006 2007 2008 2009 F 2010 F<br />

35.0%<br />

30.0%<br />

25.0%<br />

20.0%<br />

15.0%<br />

10.0%<br />

5.0%<br />

0.0%<br />

-5.0%<br />

-10.0%<br />

-15.0%<br />

Vacancy Rate<br />

• On the supply front, the completion of the Kelti Xinyi Building provided an additional<br />

6,000 ping to the total office stock. Due to an uninspiring absorption rate, the overall<br />

vacancy rate increased from 11.17% in 2Q2009 to 12.76% in 3Q2009.<br />

• With the gradual contraction of negotiation margins, the average effective rental increased<br />

mildly from NT$2,456 per ping per month in 2Q2009 to NT$2,462 per ping per month<br />

in 3Q2009.<br />

3,000<br />

Supply Take up Vacancy Rate<br />

TAIPEI OFFICE CAPITAL AND RENTAL VALUES<br />

1,200,000<br />

• The signing of a cross-Strait Memorandum of Understanding and Economic Cooperation<br />

Framework Agreement with China is expected to provide a long-term push to the local<br />

office market.However, the market is predicted to see a further increase in the vacancy<br />

rate over the near term.<br />

Rentals<br />

2,500<br />

2,000<br />

1,500<br />

1,000<br />

500<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

1,000,000<br />

800,000<br />

600,000<br />

400,000<br />

200,000<br />

0<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Cathay Xin-Yi Trading Centre L Procter & Gamble Taiwan Ltd 44,300<br />

CEC Tun Nan Building L 3M Taiwan Ltd 113,500<br />

TAIPEI 101 L BNP Paribas Taiwan 46,300<br />

Exchange Square II L Standard Chartered Bank, Private Banking 7,800<br />

Rentals (NT$ / Ping / Month)<br />

Capital Values (NT$ / Ping)<br />

6<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

SOUTH KOREA<br />

EXECUTIVE SUMMARY<br />

SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Seoul<br />

• Due to uninspiring demand, Seoul Grade A office rents in the major business<br />

districts started to fall during 3Q 2009 compared with a slight increase in the previous<br />

quarters.<br />

Pyung<br />

300,000<br />

250,000<br />

200,000<br />

150,000<br />

100,000<br />

6.0%<br />

5.0%<br />

4.0%<br />

3.0%<br />

2.0%<br />

Vacancy Rate<br />

• Rentals in the CBD areas saw a fall of 3.46% QoQ respectively, during 3Q2009. Rental<br />

in the GBD area which had fallen down with 0.63% during 2Q 2009, slightly recovered<br />

0.34% during 3Q 2009. The YBD area stood out with a positive growth of 0.22% QoQ<br />

during the same period.<br />

50,000<br />

0<br />

2006 2007 2008 2009 F 2010 F<br />

1.0%<br />

0.0%<br />

• <strong>Office</strong> capital values exhibited a mild rise due to the growing demand from certain local<br />

investors during 3Q2009.<br />

Supply Take up Vacancy Rate<br />

• Average vacancy rates in the Seoul office market increased from 3.13% in 2Q2009 to<br />

4.30% in 3Q2009. The vacancy rate in the CBD, especially, went up from 2.34% in<br />

2Q2009 to 4.60% in 3Q2009.<br />

250,000<br />

SEOUL OFFICE CAPITAL AND RENTAL VALUES<br />

25,000,000<br />

• In anticipation of an increase in new stock, including Seoul Square, in 2009, the average<br />

vacancy rate is expected to increase to the level of 5.00% by the end of 2009.<br />

Rentals<br />

200,000<br />

150,000<br />

100,000<br />

50,000<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (Won / Pyung / Month)<br />

Capital Values (Won / Pyung)<br />

20,000,000<br />

15,000,000<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Gangnam Finance Centre L e-Bay 227,700<br />

Times Square(A) L Mirae Asset 128,000<br />

Korea Trade Tower L Dole Korea 13,100<br />

DACOM Building S Shinhan-BNP Paribas Asset Management 370,900<br />

ING Tower S KB Real Estate Trust 712,600<br />

POSCO Yangjae Building S KORAMCO 462,800<br />

E-Land Gasan Building S KR 3 CR-REITs 426,200<br />

Newcore Gangnam S Newcore Gangnam CR-REITs 517,400<br />

Neowiz Building S Neowiz Corp. 171,600<br />

JAPAN<br />

Tokyo<br />

• Landlords are struggling to fill large blocks of vacancy.<br />

Tsubo<br />

320,000<br />

280,000<br />

240,000<br />

200,000<br />

160,000<br />

120,000<br />

80,000<br />

TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

8.0%<br />

7.0%<br />

6.0%<br />

5.0%<br />

4.0%<br />

3.0%<br />

2.0%<br />

Vacancy Rate<br />

• Larger incentives are negotiable for new leases.<br />

• Rent renegotiation is common.<br />

• Most leases signed during 2006-2008 are “over market” now.<br />

• Current conditions make this a tenant’s market.<br />

40,000<br />

0<br />

60,000<br />

50,000<br />

40,000<br />

30,000<br />

20,000<br />

1.0%<br />

0.0%<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

TOKYO OFFICE CAPITAL AND RENTAL VALUES<br />

12,000,000<br />

10,000,000<br />

8,000,000<br />

6,000,000<br />

4,000,000<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Roppongi Hills L BASF 46,000<br />

Marunouchi Trust N Tower L Jupiter Telecom 118,000<br />

Tokyo Mid Town Tower L Uniqlo 142,000<br />

Hirakawacho Mori Tower L LAC Holdings 89,000<br />

JA Building L Tokyo Shoko Research 35,000<br />

10,000<br />

2,000,000<br />

0<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

10,000,000<br />

5,000,000<br />

0<br />

Capital Values<br />

Rentals<br />

Capital Values<br />

Rentals (Yen / Tsubo / Month)<br />

Capital Values (Yen / Tsubo)<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 7


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

INDONESIA<br />

400,000<br />

JAKARTA OFFICE SUPPLY, TAKE-UP<br />

& VACANCY RATE<br />

20.0%<br />

Jakarta<br />

• Growing signs of recovery in the private sector translated gradually into occupational<br />

demand for offices, as evidenced by the rising number of enquiries in 3Q2009. A number<br />

of multinational companies came with plans either to upgrade to a better-quality building<br />

or to expand their floor area requirements.<br />

sq m<br />

300,000<br />

200,000<br />

15.0%<br />

10.0%<br />

Vacancy Rate<br />

• With expectations of a global economic recovery and strengthening market confidence,<br />

asking rentals for a number of quality buildings, particularly those with low vacancy<br />

rates, stayed relatively firm in 3Q2009.<br />

100,000<br />

0<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

5.0%<br />

0.0%<br />

• The majority of new developments scheduled for completion in 2009 are expected to<br />

come onto the market on time, signifying both the commitment of developers and the<br />

growing confidence in the marketplace.<br />

Rentals<br />

200,000<br />

180,000<br />

160,000<br />

140,000<br />

120,000<br />

100,000<br />

80,000<br />

60,000<br />

40,000<br />

20,000<br />

0<br />

JAKARTA OFFICE CAPITAL AND RENTAL VALUES<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m)<br />

20,000,000<br />

18,000,000<br />

16,000,000<br />

14,000,000<br />

12,000,000<br />

10,000,000<br />

8,000,000<br />

6,000,000<br />

4,000,000<br />

2,000,000<br />

0<br />

Capital Values<br />

• Due to the increase in new supply in 2009, the prospective vacancy rate is expected to<br />

edge up over the near term. However, the vacancy level will come down again over the<br />

medium term as only two new buildings are scheduled for completion in 2010.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Menara Prima L PT. Bank BTPN 7,200<br />

Menara Prima L ZTE Agribusiness 3,000<br />

Menara Prima L Coal & Oil 2,700<br />

Menara Prima L Pelita Samudra Shipping 4,800<br />

Wisma Tamara L Bristol -Myers Squibb 26,900<br />

Wisma GKBI L McKinsey & Company 12,200<br />

Cyber 2 L Generale Insurance 8,600<br />

MALAYSIA<br />

2.50<br />

KUALA LUMPUR OFFICE SUPPLY, TAKE-UP<br />

& VACANCY RATE<br />

25.0%<br />

Kuala Lumpur<br />

• Amid the continued improvement in the external economic environment, the local<br />

office sector displayed initial positive signs, despite the challenge of the completion of<br />

500,000 sq ft of new office stock during 3Q2009.<br />

Million sq ft<br />

2.00<br />

1.50<br />

1.00<br />

20.0%<br />

15.0%<br />

10.0%<br />

Vacancy Rate<br />

• The pace of recovery of the local office market was enhanced further by the introduction<br />

of various fiscal stimuli and monetary measures. Meanwhile, the initiative to liberalise<br />

the local service sector has been reckoned to be one of the key factors contributing to<br />

the market recovery.<br />

0.50<br />

5.0%<br />

0.00<br />

0.0%<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES<br />

• Despite the large batch of new supply scheduled to come on line before the end of<br />

2010, the prime area will be resilient. However, a cautious market might lead to slower<br />

absorption rates over the near term. With the continued relocation by a number of<br />

multinational corporations, rental rates and occupancy rates in prime areas edged down<br />

mildly in 3Q2009.<br />

Rentals<br />

9.00<br />

8.00<br />

7.00<br />

6.00<br />

5.00<br />

4.00<br />

3.00<br />

2.00<br />

1.00<br />

0.00<br />

900<br />

800<br />

700<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

Capital Values<br />

• Capital values of prime office buildings declined marginally in 3Q2009 and are expected<br />

to stabilise over the short term.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Wisma Selangor Dredging L Ducking Sdn Bhd 11,000*<br />

Plaza Sentral L SRG <strong>Asia</strong> Pacifi c Sdn Bhd 9,900*<br />

Plaza Sentral L BT Multimedia (M) Sdn Bhd 9,900*<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Quill 7 L Navis Capital 12,900<br />

Quill 7 L Celcom (M) Bhd 12,800<br />

Rentals (Ringgit / sq ft / Month)<br />

Capital Values (Ringgit / sq ft)<br />

Vista Tower L Roche (M) Sdn Bhd 36,000 (estimate)<br />

Menara Bata L Bata Malaysia 50,000 (estimate)<br />

Menara Citibank S Hap Seng Realty (KL City) Sdn Bhd 733,634<br />

* Concluded by WTW<br />

8<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

PHILIPPINES<br />

EXECUTIVE SUMMARY<br />

80,000<br />

MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

8.0%<br />

Manila<br />

• The average office rental in the CBD came down by 4%-5% quarter on quarter (q-o-q)<br />

in 3Q2009, with premium grade office buildings continuing to lead the overall decline<br />

during the period.<br />

sq m<br />

60,000<br />

40,000<br />

20,000<br />

0<br />

-20,000<br />

-40,000<br />

-60,000<br />

2006 2007 2008 2009 F 2010 F<br />

6.0%<br />

4.0%<br />

2.0%<br />

0.0%<br />

-2.0%<br />

-4.0%<br />

-6.0%<br />

Vacancy Rate<br />

• With a supply glut in the marketplace and the sustained weakness in demand<br />

fundamentals, the office sector remained a tenant’s market, with a continued rise in<br />

the vacancy rate across the board.<br />

• After the downward adjustment of rentals, office capital values in the Makati CBD fell<br />

further to less that P92,000 per sq m as of 3Q2009.<br />

-80,000<br />

-8.0%<br />

1,200<br />

1,000<br />

Supply Take up Vacancy Rate<br />

MANILA OFFICE CAPITAL AND RENTAL VALUES<br />

120,000<br />

100,000<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

PBCom Tower L Nomad Offi ces 16,200<br />

Ayala Life FGU L Pfi zer Inc. 9,648<br />

Commerce & Industry Plaza L Canon <strong>Market</strong>ing 22,660<br />

Rentals<br />

800<br />

600<br />

400<br />

80,000<br />

60,000<br />

40,000<br />

Capital Values<br />

200<br />

20,000<br />

0<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (Peso / sq m / Month) Capital Values (Peso / sq m)<br />

SINGAPORE<br />

2.50<br />

SINGAPORE OFFICE SUPPLY, TAKE-UP<br />

& VACANCY RATE<br />

25.0%<br />

Singapore<br />

• Thanks to the recent economic rebound and the recovery of the financial services sector,<br />

the pace of office rental decline in the Central Business District (CBD) narrowed to<br />

6.4% q-o-q in 3Q2009 compared with the double-digit decline registered in 2Q2009.<br />

The average gross office rental in the CBD was S$6.31 per sq ft as of 3Q2009.<br />

Million sq ft<br />

2.00<br />

1.50<br />

1.00<br />

0.50<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

20.0%<br />

15.0%<br />

10.0%<br />

5.0%<br />

0.0%<br />

Vacancy Rate<br />

• More companies took advantage of cheaper rentals to expand their floor area<br />

requirements and upgrade to better quality space in 3Q2009. For example, AIG relocated<br />

its operations from two adjacent buildings on Martin Road on the fringes of the CBD to<br />

five floors at 78 Shenton South Tower, a newly completed office building in the CBD.<br />

Meanwhile, Servcorp committed to one floor at the soon-to-be completed Marina Bay<br />

Financial Centre (Phase One) in the CBD for a period of seven years.<br />

Supply Take up Vacancy Rate<br />

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES<br />

• The average occupancy rates of prime office space in the CBD fell 2.1 percentage points<br />

to 92.2% as of 3Q2009 due to the completion of a number of new buildings, including<br />

Mapletree Anson and 71 Robinson during the period.<br />

Rentals<br />

30.00<br />

25.00<br />

20.00<br />

15.00<br />

10.00<br />

5.00<br />

0.00<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (Singapore$ / sq ft / Month)<br />

Capital Values (Singapore$ / sq ft)<br />

3,000<br />

2,500<br />

2,000<br />

1,500<br />

1,000<br />

500<br />

0<br />

Capital Values<br />

• In anticipation of sustained demand weakness and growing new supply, rentals will see<br />

a further downslide of about 5% in 4Q2009.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

78 Shenton South Tower L AIG 60,000<br />

Marina Bay Financial Centre Phase One L Servcorp 22,000<br />

78 Shenton L Representations International 10,500<br />

Aviva Building S Sommerville Development 67,700<br />

Prudential Towers (6 fl oors) S K-Reit <strong>Asia</strong> 67,300<br />

Changi Road/Lorong 108 Changi S Fragrance Realty Pte Ltd 59,900<br />

Cecil House S Sommerville Development 50,700<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 9


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

THAILAND<br />

BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Bangkok<br />

• No major new office developments were completed in 3Q2009 but the current demand<br />

fundamental remained weak during the period.<br />

Million sq m<br />

0.20<br />

0.18<br />

0.16<br />

0.14<br />

0.12<br />

0.10<br />

0.08<br />

0.06<br />

0.04<br />

20.0%<br />

18.0%<br />

16.0%<br />

14.0%<br />

12.0%<br />

10.0%<br />

8.0%<br />

6.0%<br />

4.0%<br />

Vacancy Rate<br />

• Most vendors cut their rental rates by 5%-10% during lease renewals in an attempt to<br />

keep their premises occupied during 3Q2009. Fit-out costs remained the key factor<br />

preventing tenants from relocating to other premises.<br />

• The overall take-up was slower than expected during 3Q2009 as individual tenants<br />

reduced their floor area requirements, putting upward pressure on the vacancy rate.<br />

0.02<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

• There have been no major relocations since the beginning of 2009. The current trend<br />

is expected to continue over the remaining months of 2009. The prevailing political<br />

uncertainty and disputes about environmental issues continue to dampen the local real<br />

estate investment market.<br />

BANGKOK OFFICE CAPITAL AND RENTAL VALUES<br />

1,400<br />

1,200<br />

1,000<br />

800<br />

600<br />

400<br />

200<br />

140,000<br />

120,000<br />

100,000<br />

80,000<br />

60,000<br />

40,000<br />

20,000<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

UM Tower L Lufthansa Airlines 8,100<br />

Athenee Tower L USAID 32,300<br />

Sermit Tower L The Value Systems Company Limited 26,900<br />

All Seasons Place L UAE Embassy 25,800<br />

Thai Military Bank S CP Real Estate Group N/A<br />

0<br />

VIETNAM<br />

30,000<br />

25,000<br />

HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP<br />

& VACANCY RATE<br />

12.0%<br />

10.0%<br />

Ho Chi Minh City<br />

• Amid the continued economic recovery of the City, the overall office occupancy rate<br />

increased by 5 to 7 percentage points to over 97% during 3Q 2009.<br />

• Prime office rentals in the City were between US$40 – 50 per sq m per month on net<br />

floor area basis as of 3Q 2009.<br />

20,000<br />

15,000<br />

10,000<br />

5,000<br />

0<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

8.0%<br />

6.0%<br />

4.0%<br />

2.0%<br />

0.0%<br />

• With the completion of Kumho <strong>Asia</strong>na Plaza in 3Q 2009, a total of 25,765 sq m prime<br />

office space was added to the total stock. In 2010, A & B Tower, a new office development<br />

is anticipated to provide a total of 25,500 sq m net floor area in the second-tier office<br />

market.<br />

• The market will see no new completion of prime office building from 4Q2009 to the<br />

end of 2011 when the Financial Tower containing a total of 50,000 sq m office space is<br />

due for completion.<br />

HO CHI MINH CITY OFFICE RENTAL VALUES<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Supply Take up Vacancy Rate<br />

2.0%<br />

0.0%<br />

Rentals<br />

Capital Values<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

0<br />

Rentals (Baht / sq m / Month) Capital Values (Baht / sq m)<br />

sq m<br />

Vacancy Rate<br />

Rentals<br />

Rentals (US$ / sq m / Month)<br />

10<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

EXECUTIVE SUMMARY<br />

INDIA<br />

Million sq ft<br />

BANGALORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

18.00<br />

16.00<br />

14.00<br />

12.00<br />

10.00<br />

8.00<br />

6.00<br />

4.00<br />

2.00<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

36.0%<br />

32.0%<br />

28.0%<br />

24.0%<br />

20.0%<br />

16.0%<br />

12.0%<br />

8.0%<br />

4.0%<br />

0.0%<br />

Vacancy Rate<br />

Bangalore<br />

• Prime office rentals remained largely stagnant in 3Q2009 after a continual fall over the<br />

past couple of quarters. <strong>Office</strong> capital values also displayed a similar trend during the<br />

period.<br />

• With only a few IT/ITES companies planning to expand, there was no significant<br />

improvement in demand during 3Q2009.<br />

• The Bangalore Metro Rail Corporation Limited was close to finishing the land<br />

acquisition for the Namma Metro. Development work on the first phase has started<br />

and full completion is scheduled by the end of 2012. The portion between M G Road<br />

and Byappanahalli is expected to be completed by the last quarter of 2010.<br />

• A number of infrastructure development projects have been taking place across the city<br />

in an attempt to improve overall traffic conditions.<br />

BANGALORE OFFICE CAPITAL AND RENTAL VALUES<br />

Rentals<br />

70<br />

60<br />

50<br />

40<br />

30<br />

7,000<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Subramanya Arcade L Reliance Communications 40,000<br />

Golf View Holmes L Starent 40,000<br />

20<br />

2,000<br />

ITPL L IP Soft 30,000<br />

10<br />

1,000<br />

Subramanya Arcade L National Instruments 10,000<br />

0<br />

0<br />

Red Woods L Aligro 10,000<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

Rentals (Rupee / sq ft / Month)<br />

Capital Values (Rupee / sq ft)<br />

CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

16.00<br />

32.0%<br />

14.00<br />

28.0%<br />

12.00<br />

24.0%<br />

Chennai<br />

• The demand for IT/ITES space continued to remain muted in 3Q2009. However,<br />

the availability of IT/ITES stock for lease, representing more than 95% of the total<br />

available space, remained relatively high. However, non-IT space was quite limited in<br />

the marketplace.<br />

Million sq ft<br />

10.00<br />

8.00<br />

6.00<br />

20.0%<br />

16.0%<br />

12.0%<br />

Vacancy Rate<br />

• There was an increase in the level of enquiries attributed to those IT companies based<br />

in STPIs, but which have been looking to relocate to SEZs during 3Q2009.<br />

4.00<br />

2.00<br />

0.00<br />

2006 2007 2008 2009 F<br />

8.0%<br />

4.0%<br />

0.0%<br />

• <strong>Office</strong> rentals for non-IT space remained stable in 3Q2009. The trend was similar to<br />

the IT/ITES space in all micro-markets except OMR during the period.<br />

Supply Take up Vacancy Rate<br />

CHENNAI OFFICE CAPITAL AND RENTAL VALUES<br />

• The Tamil Nadu government is planning to set up a financial city near Chennai through<br />

a public/private partnership. The proposed scheme is expected to attract tenants engaged<br />

in the Banking, Financial Services and Insurance sectors, including mutual funds and<br />

stockbrokers.<br />

80<br />

8,000<br />

70<br />

7,000<br />

MAJOR TRANSACTIONS<br />

60<br />

6,000<br />

Building Lease (L) / Tenant / Area<br />

Rentals<br />

50<br />

40<br />

30<br />

5,000<br />

4,000<br />

3,000<br />

Capital Values<br />

Sale (S) Purchaser (sq ft)<br />

Kochar SM Towers L Sutherland 80,000<br />

Shyamala Towers L Expeditors 17,000<br />

20<br />

2,000<br />

DLF SEZ L Laser Words 20,000<br />

10<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

1,000<br />

0<br />

Steeple Reach L Synergy Maritime 8,500<br />

Khivaraj Complex L St.Johns Freight Systems 12,000<br />

Rentals (Rupee / sq ft / Month)<br />

Capital Values (Rupee / sq ft)<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 11


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

INDIA<br />

MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Mumbai<br />

• Bucking the downward trend in the first half of 2009, prime office rentals for most<br />

micro-markets started stabilising in 3Q2009. The overall office market also saw an<br />

improvement in the volume of transactions during the period.<br />

Million sq ft<br />

18.00<br />

15.00<br />

12.00<br />

9.00<br />

6.00<br />

3.00<br />

0.00<br />

2006 2007 2008 2009 F 2010 F<br />

24.0%<br />

20.0%<br />

16.0%<br />

12.0%<br />

8.0%<br />

4.0%<br />

0.0%<br />

Vacancy Rate<br />

• Due to the improved market liquidity, the continued debt restructuring among key<br />

developers and the encouraging performance of the equity market, more solid signs of<br />

real estate market recovery emerged in 3Q2009.<br />

• <strong>Market</strong> confidence strengthened, as evidenced by the rising level of enquiries during<br />

3Q2009. However, individual investors remained cautious due to which the conversion<br />

rate was low.<br />

350<br />

Supply Take up Vacancy Rate<br />

MUMBAI OFFICE CAPITAL AND RENTAL VALUES<br />

70,000<br />

• In order to boost the city’s infrastructure, the Mumbai Metropolitan Region Development<br />

Authority awarded the contract for the Mumbai Metro II project - the 32-km elevated<br />

rail line between Charkop and Mankhurd - to Reliance Infrastructure, a consortium led<br />

by the Anil Dhirubhai Ambani Group. The first phase of the Metro Project is expected<br />

to be completed by 2010-11.<br />

Rentals<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

Rentals (Rupee / sq ft / Month)<br />

Capital Values (Rupee / sq ft)<br />

60,000<br />

50,000<br />

40,000<br />

30,000<br />

20,000<br />

10,000<br />

0<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Ventura L JP Morgan Chase 200,000<br />

Nirlon L Morgan Stanley 150,000<br />

Kalpataru Square L Mitsui OSK 40,000<br />

Kensington L Wipro 100,000<br />

Nariman Bhawan L Commerz Bank 1,800<br />

Platinum Tech Park L Baker Huges 14,000<br />

215 Atrium L British Marine 20,000<br />

Million sq ft<br />

18.00<br />

16.00<br />

14.00<br />

12.00<br />

10.00<br />

8.00<br />

6.00<br />

4.00<br />

2.00<br />

NEW DELHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

18.0%<br />

16.0%<br />

14.0%<br />

12.0%<br />

10.0%<br />

8.0%<br />

6.0%<br />

4.0%<br />

2.0%<br />

0.00<br />

0.0%<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

NEW DELHI OFFICE CAPITAL AND RENTAL VALUES<br />

350<br />

35,000<br />

Vacancy Rate<br />

New Delhi<br />

• Prime office rentals saw a fall of 2.7% quarter-on-quarter (q-o-q) in 3Q2009 but most<br />

peripheral micro-markets remained largely stable during the period.<br />

• An increased number of enquiries regarding the movement from STPI to the SEZ<br />

were recorded. However, the enquiries are yet to translate into actual movement of<br />

companies.<br />

• With office rentals approaching a state of stabilisation amid the continued improvement<br />

of the global and local market sentiment, a number of commercial projects were launched<br />

during 3Q2009.<br />

• The Delhi government has approved the proposed scheme for Phase III of the metro<br />

line and sanctioned INR 30 million to the Delhi Metro Rail Corporation Ltd to carry<br />

out a detailed project report for this Phase, running a total of 120 km in the National<br />

Capital Region.<br />

300<br />

30,000<br />

Rentals<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

Rentals (Rupee / sq ft / Month)<br />

Capital Values (Rupee / sq ft)<br />

25,000<br />

20,000<br />

15,000<br />

10,000<br />

5,000<br />

0<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Individual Building L Map My India 25,000<br />

Amway L Elegence 26,000<br />

Vatika Business Park L Etisalat 75,000<br />

Vatika Business Park L Xerox 45,000<br />

Individual Building L Syscom Corporation Ltd 42,000<br />

Individual Building L Green Power International 42,000<br />

Individual Building L Eueraka Outsourcing Solutions Ltd 22,000<br />

Individual Building L Azad News 18,000<br />

12<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

AUSTRALIA<br />

EXECUTIVE SUMMARY<br />

sq m<br />

ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

100,000<br />

10.0%<br />

80,000<br />

60,000<br />

40,000<br />

20,000<br />

0<br />

-20,000<br />

-40,000<br />

-60,000<br />

-80,000<br />

-100,000<br />

-120,000<br />

-140,000<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

8.0%<br />

6.0%<br />

4.0%<br />

2.0%<br />

0.0%<br />

-2.0%<br />

-4.0%<br />

Vacancy Rate<br />

-6.0%<br />

-8.0%<br />

-10.0%<br />

-12.0%<br />

-14.0%<br />

Adelaide<br />

• Private investors and syndicators remained the key buyers for office properties in<br />

3Q2009, although the access to funding continued to cause significant delays during<br />

the acquisition process.<br />

• The average office vacancy rate increased 1.4 percentage points to 4.8% in July 2009,<br />

but was still below its historical average of 12.7%.<br />

• There was a fall of occupational demand in 3Q2009, but there were signs of stabilisation<br />

towards the end of the period. Average office rental was AU$335 per sq m per annum<br />

as of 3Q2009.<br />

• On the supply front, there will no major completion of new developments before<br />

2011.<br />

Rentals<br />

ADELAIDE OFFICE CAPITAL AND RENTAL VALUES<br />

700<br />

7,000<br />

600<br />

6,000<br />

500<br />

5,000<br />

400<br />

4,000<br />

300<br />

3,000<br />

200<br />

2,000<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

115 Grenfell Street S Local Private Investor 149,700<br />

80 King William Street S Local Private Investor 91,200<br />

199 Grenfell Street S Private Investor 54,500<br />

400 King William Street L State Government 33,400<br />

100<br />

1,000<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

0<br />

Rentals (Australian$ / sq m / Year) Capital Values (Australian$ / sq m)<br />

CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

140,000<br />

7.0%<br />

120,000<br />

6.0%<br />

Canberra<br />

• Prime face office rents showed slight growth to reach AU$375 per sq m per annum as<br />

of 3Q2009.<br />

100,000<br />

5.0%<br />

• Established secondary buildings are under pressure to maintain current passing rents.<br />

sq m<br />

80,000<br />

60,000<br />

40,000<br />

4.0%<br />

3.0%<br />

2.0%<br />

Vacancy Rate<br />

• Vacancy levels rose sharply as a number of tenants migrated from old to new<br />

buildings.<br />

20,000<br />

0<br />

-20,000<br />

2006 2007 2008 2009 F 2010 F<br />

• Prime property yields have stabilised, but secondary yields continued to soften in<br />

3Q2009.<br />

• Investment confidence improved for prime office assets.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

ATO Building City S Real I.S. 467,300<br />

10 Rudd Street S Private Investor 51,000<br />

200<br />

100<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

1.0%<br />

0.0%<br />

-1.0%<br />

Supply Take up Vacancy Rate<br />

Rentals<br />

CANBERRA OFFICE CAPITAL AND RENTAL VALUES<br />

800<br />

8,000<br />

700<br />

7,000<br />

600<br />

6,000<br />

500<br />

5,000<br />

400<br />

4,000<br />

300<br />

3,000<br />

Capital Values<br />

2,000<br />

1,000<br />

0<br />

Rentals (Australian$ / sq m / Year) Capital Values (Australian$ / sq m)<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 13


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

AUSTRALIA<br />

MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Melbourne<br />

• According to the Property Council of Australia’s July 2009 <strong>Office</strong> <strong>Market</strong> Report, the<br />

average office vacancy rate increased mildly to 4.8% as of 3Q2009.<br />

250,000<br />

200,000<br />

10.0%<br />

8.0%<br />

• A total of 168,700 sq m of new office space, currently under construction, is expected<br />

to come on line over the next six months in the Melbourne CBD and Docklands.<br />

sq m<br />

150,000<br />

100,000<br />

50,000<br />

6.0%<br />

4.0%<br />

2.0%<br />

Vacancy Rate<br />

• The average net office rental stabilised across the board in 3Q2009. However, it is our<br />

view that prospective rental growth will be limited as competition remains keen among<br />

landlords.<br />

0<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

0.0%<br />

• A total of nine major investment sales with lump sum price of AU$10 million or above<br />

each were transacted year to date, with a total consideration of AU$511 million.<br />

700<br />

MELBOURNE OFFICE CAPITAL AND RENTAL VALUES<br />

7,000<br />

• <strong>Office</strong> investment yields softened 75 basis points across the board during 2Q and<br />

3Q2009. The Grade A sector softened by about 100 basis points to 7.75%-8.50% as of<br />

3Q2009.<br />

600<br />

6,000<br />

Rentals<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (Australian$ / sq m / Year) Capital Values (Australian$ / sq m)<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

0<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

101 Collins Street L Allens Arthur Robinson 135,600<br />

180 Lonsdale Street L Telstra 141,000<br />

271 Collins Street L Optus 147,100<br />

485 LaTrobe Street L BP Elite 59,800<br />

215 Spring Street S Knowles Group 166,400<br />

350 Collins Street S Prime Value 191,600<br />

456 Lonsdale Street S Private Investor 88,600<br />

sq m<br />

Rentals<br />

180,000<br />

150,000<br />

120,000<br />

90,000<br />

60,000<br />

30,000<br />

0<br />

-30,000<br />

-60,000<br />

1,000<br />

900<br />

800<br />

700<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

PERTH OFFICE CAPITAL AND RENTAL VALUES<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

Rentals (Australian$ / sq m / Year) Capital Values (Australian$ / sq m)<br />

18.0%<br />

15.0%<br />

12.0%<br />

9.0%<br />

6.0%<br />

3.0%<br />

0.0%<br />

-3.0%<br />

-6.0%<br />

10,000<br />

9,000<br />

8,000<br />

7,000<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

0<br />

Vacancy Rate<br />

Capital Values<br />

Perth<br />

• Perth experienced a significant increase in vacancy levels from 1.3% in January 2009<br />

to 8% in July 2009 due to softening demand amid an increase in supply. <strong>Office</strong> rentals<br />

came under downward pressure as the level of incentives increased to 10%-20% during<br />

3Q2009.<br />

• On a positive note, a number of sub-lease spaces were taken back from the market due<br />

to the improved business performance and expectations of a future increase in floor<br />

area requirements.<br />

• Given the growing market confidence and the projection of a sustained economic<br />

recovery, demand for office space is expected to strengthen over the medium to long<br />

term.<br />

• The volume of investment transactions was subdued in the first half of 2009 as local<br />

institutional players continued to stay on the sidelines. Buying activity continued to be<br />

dominated by overseas players and cash-rich private investors.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

172 St Georges Terrace S Private Investor 67,400<br />

81 St Georges Terrace S Aviling Pty Ltd 128,200<br />

1 Mill Street L BHP Billiton 67,100<br />

432 Murray Street L JP Kenny 49,900<br />

Durack Centre, 263 Adelaide Terrace L Sinclair Knight Merz Pty Ltd 114,200<br />

Quayside on Mill, 2 Mill Street L Barrick Gold Ltd 10,600<br />

14<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

AUSTRALIA<br />

EXECUTIVE SUMMARY<br />

SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

Sydney<br />

• <strong>Office</strong> vacancy rates increased from 5.4% in January 2009 to 7.7% July 2009. It is<br />

predicted to rise to 9.0% by January 2010 and then to peak by mid-2011.<br />

sq m<br />

140,000<br />

120,000<br />

100,000<br />

80,000<br />

60,000<br />

40,000<br />

20,000<br />

0<br />

-20,000<br />

-40,000<br />

-60,000<br />

-80,000<br />

2006 2007 2008 2009 F 2010 F<br />

14.0%<br />

12.0%<br />

10.0%<br />

8.0%<br />

6.0%<br />

4.0%<br />

2.0%<br />

0.0%<br />

-2.0%<br />

-4.0%<br />

-6.0%<br />

-8.0%<br />

Vacancy Rate<br />

• Face office rents were stable in 3Q2009. Incentive levels stabilised at about 25%-30% - an<br />

increase of 15 percentage points on average across the board since its peak in September<br />

2008.<br />

• A total of about 110,000 sq m of new supply will be coming on line in 2010. Vacancy<br />

rates are projected to edge up in anticipation of a slow economic recovery and a further<br />

rise in unemployment rate. Rentals will see further downward pressure in 2010.<br />

-100,000<br />

-120,000<br />

Supply Take up Vacancy Rate<br />

-10.0%<br />

-12.0%<br />

• Looking into 2011 and 2012, new developments due for completion during the period<br />

have been largely pre-committed.<br />

SYDNEY OFFICE CAPITAL AND RENTAL VALUES<br />

Rentals<br />

1,600<br />

1,400<br />

1,200<br />

1,000<br />

800<br />

600<br />

16,000<br />

14,000<br />

12,000<br />

10,000<br />

8,000<br />

6,000<br />

Capital Values<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

343 George Street S Abacus 106,900<br />

33 & 35 Bligh Street S Energy Australia * 21,980<br />

264-278 George Street L Patersons Securities 11,100<br />

400<br />

4,000<br />

286 Sussex Street L University of Newcastle 17,600<br />

200<br />

2,000<br />

255 George Street L Ord Minetts (Renewal) 29,500<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

1Q 2011 F<br />

2Q 2011 F<br />

0<br />

* Refers to site area<br />

Rentals (Australian$ / sq m / Year) Capital Values (Australian$ / sq m)<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 15


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

NEW ZEALAND<br />

sq m<br />

70,000<br />

60,000<br />

50,000<br />

40,000<br />

30,000<br />

20,000<br />

AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

14.0%<br />

12.0%<br />

10.0%<br />

8.0%<br />

6.0%<br />

4.0%<br />

Vacancy Rate<br />

Auckland<br />

• Occupational demand remained soft in 3Q2009 and few tenants moved in the CBD.<br />

New deals were scarce as the majority of tenants preferred to renew their leases rather<br />

than to relocate elsewhere. For example, the AMP NZ <strong>Office</strong> Trust renewed eight of its<br />

major leases for another term for a combined area of 23,000 sq m in both Auckland<br />

and Wellington.<br />

• <strong>Office</strong> vacancy rates continued to edge up in 3Q2009. The average rate in the CBD was<br />

8.4% compared with 5.4% registered in prime buildings as of June 2009.<br />

10,000<br />

0<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

2.0%<br />

0.0%<br />

• Investment yields eased 100 to 150 basis points over the past six quarters. Prime yields<br />

in the CBD precincts ranged between 8% and 9%. One of the major office transactions<br />

registered in 3Q2009 was the sale of Forsyth Barr Tower at 55-56 Shortland Street to<br />

Robt. Jones Holdings for a total consideration of NZ$41.5 million.<br />

Rentals<br />

AUCKLAND OFFICE CAPITAL AND RENTAL VALUES<br />

600<br />

500<br />

6,000<br />

5,000<br />

400<br />

4,000<br />

300<br />

3,000<br />

200<br />

2,000<br />

100<br />

1,000<br />

0<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

Rentals (New Zealand$ / sq m / Year) Capital Values (New Zealand$ / sq m)<br />

Capital Values<br />

• A total of about 59,000 sq m of new office space is scheduled for completion before the<br />

end of 2009 and over 70% of the space has been pre-committed. However, occupational<br />

demand for office space is expected to remain subdued in 2009. Prime grade office rents<br />

will continue to fall, although prime yields should remain static over the remainder of<br />

2009.<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Forsyth Barr Tower S Robt. Jones Holdings 129,100<br />

Pernod Ricard NZ House S Property Syndicate 79,300<br />

WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE<br />

90,000<br />

9.0%<br />

80,000<br />

8.0%<br />

70,000<br />

7.0%<br />

Wellington<br />

• Despite the challenge of the recessionary threat, quality office space remained in demand<br />

during 3Q2009. Prime office gross rents in the CBD stabilised at NZ$560 per sq m at<br />

the high end during 3Q2009.<br />

sq m<br />

60,000<br />

50,000<br />

40,000<br />

30,000<br />

20,000<br />

6.0%<br />

5.0%<br />

4.0%<br />

3.0%<br />

2.0%<br />

Vacancy Rate<br />

• Lease renewals continued to be the most favoured option for most tenants. Without<br />

a significant increase in new demand, the average vacancy rate increased from 5% in<br />

4Q2008 to 6% in 2Q2009.<br />

10,000<br />

0<br />

2006 2007 2008 2009 F 2010 F<br />

Supply Take up Vacancy Rate<br />

1.0%<br />

0.0%<br />

• Investment yields hovered between 7.5% and 8.5% as of 3Q2009. AMP Capital Investors<br />

sold its 9,110 sq m office building at the corner of Hunter Street and Customhouse<br />

Quay for NZ$29.6 million, representing a yield of 8.66% per annum.<br />

WELLINGTON OFFICE CAPITAL AND RENTAL VALUES<br />

• A total of 114,000 sq m of new office space is projected to come onto the market between<br />

2009 and 2011. The market will see a further rise in vacancy rates, but investment yields<br />

are expected to stabilise over the remainder of 2009.<br />

600<br />

6,000<br />

Rentals<br />

500<br />

400<br />

300<br />

200<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

MAJOR TRANSACTIONS<br />

Building Lease (L) / Tenant / Area<br />

Sale (S) Purchaser (sq ft)<br />

Quaypoint S Private Investor 54,300<br />

State Insurance Tower L South African High Commission 10,800<br />

100<br />

1,000<br />

Tower Building L Duncan Cotterill 8,100<br />

0<br />

0<br />

1Q 2006<br />

2Q 2006<br />

3Q 2006<br />

4Q 2006<br />

1Q 2007<br />

2Q 2007<br />

3Q 2007<br />

4Q 2007<br />

1Q 2008<br />

2Q 2008<br />

3Q 2008<br />

4Q 2008<br />

1Q 2009<br />

2Q 2009<br />

3Q 2009<br />

4Q 2009 F<br />

1Q 2010 F<br />

2Q 2010 F<br />

3Q 2010 F<br />

4Q 2010 F<br />

Capital Values<br />

Rentals (New Zealand$ / sq m / Year) Capital Values (New Zealand$ / sq m)<br />

16<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

PRIME OFFICE RENTALS<br />

EXECUTIVE SUMMARY<br />

Rentals (US$ / sq ft / year)<br />

0 20 40 60 80 100 120<br />

Tokyo<br />

Hong Kong<br />

Singapore<br />

Ho Chi Minh City<br />

Sydney<br />

Perth<br />

Mumbai<br />

Delhi<br />

Shanghai<br />

Canberra<br />

Melbourne<br />

Adelaide<br />

Beijing<br />

Taipei<br />

Wellington<br />

Auckland<br />

Bangkok<br />

Kuala Lumpur<br />

Seoul<br />

Guangzhou<br />

Chengdu<br />

Jakarta<br />

Manila<br />

Chennai<br />

Bangalore<br />

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"<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 17


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

TRENDS & FORECASTS<br />

City New Supply Take-up Average Vacancy Total Stock Average Rentals<br />

(sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year)<br />

2009 F 2010 F 2009 F 2010 F 2009 F 2010 F 2009 F 2010 F 2009 F 2010 F<br />

Beijing<br />

CBD 2,924,745 3,093,674 806,447 1,546,837 35.4 37.7 16,579,266 19,672,940 26.92 29.05<br />

Zhongguancun 269,098 0 -48,760 159,844 8.9 6.8 7,619,765 7,619,765 24.21 24.30<br />

Finance Street 814,596 645,834 662,485 448,032 15.1 16.1 9,978,124 10,623,958 33.38 36.19<br />

Lufthansa 0 344,445 184,869 437,069 19.0 16.5 6,075,952 6,420,397 24.02 24.88<br />

East Chang An Avenue 0 0 -273,137 88,628 8.0 6.6 6,307,067 6,307,067 21.05 23.04<br />

East 2nd Ring 1,295,091 1,442,739 540,985 819,507 35.2 37.3 4,104,727 5,547,466 22.90 26.28<br />

Chengdu<br />

Renmin Road 0 233,577 -899,367 808,972 47.0 56.0 2,430,715 4,551,203 17.14 17.96<br />

Chunxilu, Yanshikou 0 0 39,999 -159,984 18.0 26.0 1,999,857 1,999,857 16.00 15.51<br />

East Street 861,112 0 613,166 -128,263 30.0 42.0 1,068,877 1,068,877 22.04 21.22<br />

Shuncheng Street-Luomashi 1,770,952 0 1,401,707 -272,714 20.0 32.0 2,272,636 2,272,636 13.88 13.06<br />

Guangzhou<br />

Yuexiu 0 0 226,483 191,339 14.0 9.3 4,338,799 4,338,799 16.98 16.32<br />

Tianhe 3,345,000 15,740,826 1,286,480 4,632,018 28.7 41.5 15,466,680 31,207,506 22.52 21.71<br />

Haizhu 0 1,183,060 153,278 288,117 36.4 42.5 1,076,390 2,259,450 15.51 14.69<br />

Shanghai<br />

Huangpu 0 395,520 -29,652 101,773 6.8 14.8 2,937,662 3,333,182 34.14 30.20<br />

Jingan 0 1,666,768 130,518 1,025,110 11.1 17.6 5,324,665 6,991,433 42.06 37.27<br />

Lujiazui-Pudong 2,154,997 4,291,610 1,665,977 2,715,670 16.7 21.4 13,994,741 18,286,351 32.47 29.67<br />

Zhuyuan-Pudong 1,263,274 1,706,078 714,440 1,027,662 32.7 35.1 3,330,438 5,036,516 24.94 22.81<br />

Changning 207,237 699,654 626 328,012 10.7 16.4 4,509,331 5,208,985 28.62 25.90<br />

Luwan 0 0 -34,009 118 5.1 5.0 3,102,124 3,102,124 36.12 34.98<br />

Xuhui 0 0 40,801 -36,716 4.2 5.0 4,272,386 4,272,386 34.53 33.13<br />

Hong Kong<br />

Central 0 0 -543,354 82,193 6.0 5.6 21,358,308 21,358,308 116.03 126.09<br />

Wanchai 0 0 -493,960 68,662 7.3 6.7 11,095,267 11,095,267 59.76 60.33<br />

HK Island East 0 0 -368,705 304,045 5.9 6.9 10,540,480 10,540,480 43.11 44.12<br />

Tsim Sha Tsui 0 0 346,486 307,021 5.3 4.7 6,563,890 6,563,890 50.16 51.93<br />

Taipei<br />

CBD 1,016,262 697,264 -350,340 360,194 13.6 14.9 18,489,630 19,186,894 25.64 26.02<br />

Seoul<br />

CBD 1,420,923 5,252,579 4,319,706 5,237,064 5.4 4.6 27,935,728 33,188,308 23.24 23.54<br />

KBD 1,267,696 667,695 2,024,196 1,397,070 5.3 2.5 27,043,512 27,711,207 19.71 20.07<br />

YBD 623,898 949,004 402,479 1,249,959 4.1 2.1 15,974,700 16,923,704 15.13 15.32<br />

Tokyo<br />

CBD 4,051,764 3,615,263 N/A N/A 7.0 7.5 N/A N/A 109.52 101.82<br />

Jakarta<br />

CBD 3,640,200 693,195 1,343,744 1,448,283 14.8 12.9 44,293,728 44,986,924 16.28 16.86<br />

Non-CBD 875,180 672,744 674,272 532,727 12.1 12.4 18,313,560 18,986,303 11.26 11.37<br />

Kuala Lumpur<br />

KLCA 1,939,039 670,000 500,000 500,000 10.6 11.0 27,812,300 28,482,300 21.49 21.84<br />

Manila<br />

Makati 445,130 0 -664,647 172,852 6.8 6.2 9,317,135 9,317,135 14.93 14.69<br />

Ortigas 1,982,194 0 760,093 320,237 12.8 12.3 4,961,404 4,961,404 11.01 10.56<br />

18<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

EXECUTIVE SUMMARY<br />

TRENDS & FORECASTS<br />

City New Supply Take-up Average Vacancy Total Stock Average Rentals<br />

(sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year)<br />

2009 F 2010 F 2009 F 2010 F 2009 F 2010 F 2009 F 2010 F 2009 F 2010 F<br />

Singapore<br />

CBD 949,704 1,781,656 270,308 914,316 8.5 11.9 19,286,503 21,068,159 51.09 44.21<br />

Bangkok<br />

CBD 299,775 753,473 107,639 538,195 17.6 18.0 16,903,306 17,656,779 21.60 22.43<br />

Ho Chi Minh City<br />

CBD 277,332 274,479 277,332 274,479 5.0 2.5 1,110,296 1,384,776 50.73 59.09<br />

Bangalore<br />

Overall 5,036,343 5,366,832 N/A N/A 16.0 N/A 58,756,343 64,123,175 10.80 10.74<br />

CBD 403,218 172,807 N/A N/A 5.0 N/A N/A N/A 16.99 16.99<br />

SBD 3,500,000 2,700,000 N/A N/A 17.0 N/A N/A N/A 9.99 9.99<br />

PBD 1,133,125 2,494,025 N/A N/A 28.0 N/A N/A N/A 5.00 4.50<br />

Chennai<br />

Overall 7,388,295 N/A N/A N/A 22.5 N/A 26,800,000 N/A 11.52 11.37<br />

CBD 643,295 N/A N/A N/A N/A N/A 1,575,000 N/A 14.99 14.49<br />

SBD 560,000 N/A N/A N/A N/A N/A 5,845,000 N/A 11.74 11.24<br />

PBD 6,185,000 N/A N/A N/A N/A N/A 19,380,000 N/A 7.74 7.49<br />

Mumbai<br />

Overall 9,041,000 N/A N/A N/A N/A N/A 68,980,000 N/A 48.71 47.52<br />

CBD 0 N/A N/A N/A N/A N/A N/A N/A 79.93 74.94<br />

SBD 4,641,000 N/A N/A N/A N/A N/A N/A N/A 32.47 32.47<br />

PBD 4,400,000 N/A N/A N/A N/A N/A N/A N/A 22.48 23.73<br />

New Delhi<br />

Overall 9,530,136 N/A N/A N/A 19.5 N/A 49,802,158 N/A 42.59 41.22<br />

CBD 0 0 N/A N/A 12.0 N/A 1,861,000 1,861,000 76.94 72.44<br />

SBD 1,951,000 N/A N/A N/A 16.0 N/A 6,909,000 N/A 39.47 36.64<br />

PBD 7,579,136 N/A N/A N/A 24.0 N/A 41,032,158 N/A 12.49 11.24<br />

Adelaide<br />

CBD 516,667 0 269,098 430,556 5.0 6.5 13,866,465 13,866,465 27.39 28.62<br />

Canberra<br />

CBD 96,875 775,001 96,875 538,195 1.0 6.0 2,314,239 3,089,239 30.66 31.48<br />

Melbourne<br />

CBD 1,815,870 736,789 0 215,278 5.3 8.2 19,006,141 19,678,347 29.84 29.60<br />

Perth<br />

CBD 753,473 1,462,114 -290,625 322,917 8.3 14.6 14,652,854 16,115,001 49.06 47.26<br />

Sydney<br />

CBD 581,789 971,862 -1,076,390 -107,639 7.6 10.0 51,663,738 51,623,320 51.18 50.69<br />

Auckland<br />

CBD 401,278 0 119,748 75,584 11.5 9.8 4,425,082 4,425,082 21.39 21.39<br />

Wellington<br />

CBD 217,431 581,251 121,567 499,133 6.0 8.0 1,781,425 2,362,676 25.50 24.91<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 19


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

DEFINITIONS AND TERMINOLOGY<br />

GREATER CHINA<br />

Beijing<br />

Prime offi ce market in Beijing consists of 6 sub-markets – CBD (Central<br />

Business District), Lufthansa, 2nd East Ring, Finance Street, East Chang An<br />

Avenue and Zhongguancun.<br />

Rents are quoted in RMB per sq m per month on gross fl oor area basis,<br />

and exclusive of management fees and rent free period. Capital values<br />

are quoted on RMB per sq m.<br />

Chengdu<br />

Prime offi ce buildings in Chengdu are mainly located in 4 sub-markets,<br />

South Renming Road , Chunxi Road - Yanshikou Trading Area, Shuncheng<br />

Street and Luomasi Trading Area, and East Street.<br />

Rents are quoted in RMB per sq m per month on gross fl oor area basis,<br />

and exclusive of management fees. Capital values are quoted on RMB<br />

per sq m.<br />

Guangzhou<br />

Prime offi ce buildings in Guangzhou are located in 3 principal sub-markets<br />

– Dongshan, Yuexiu and Tianhe.<br />

Rents are quoted in US$ per sq m per month on gross fl oor area basis,<br />

and exclusive of any management fees and government taxes. Capital<br />

values are quoted on US$ per sq m.<br />

Shanghai<br />

Prime offi ce buildings in Shanghai are located in 6 principal sub-markets<br />

– Huangpu, Jingan, Lujiazui-Pudong, Changning, Luwan and Xuhui.<br />

Rents are quoted in RMB per sq m per day on gross fl oor area basis,<br />

and exclusive of any management fees. Capital values are quoted on<br />

RMB per sq m.<br />

Hong Kong<br />

Prime offi ce properties in Hong Kong are concentrated in 4 sub-markets<br />

– Central, Wanchai / Causeway Bay, Island East and Tsim Sha Tsui.<br />

Rents are commonly quoted in HK$ per sq ft per month on either<br />

gross, net or lettable fl oor area basis, which are exclusive of management<br />

fees, and government tax. Prices are quoted in HK$ per sq ft, and are<br />

measurable on gross fl oor area basis.<br />

Taipei<br />

Prime offi ce properties in Taipei are concentrated in 7 districts, comprising<br />

Nanking Sung Chiang (NK-SC), Minsheng Tun Hwa North (MS-TN), Hsin<br />

Yi, West, Tun Hwa South (TUN-S), Jen Ai Hsin Sheng (JA-HS) and Nanking<br />

East Road (NK-4/5).<br />

The local unit of measurement is a “ping” (i.e. 3.3 sq m). Rents and prices<br />

are quoted in local currency i.e. New Taiwan Dollar (NT$) on gross<br />

fl oor area basis.<br />

NORTH ASIA<br />

Seoul<br />

Major offi ce districts in Seoul include the traditional central business<br />

area (CBD), Gangnam Business District (GBD) and Yeouido Business<br />

District (YBD).<br />

Rents are quoted in Won per pyung (also equivalent to 3.3 sq m) per<br />

month on gross fl oor area basis. Generally, a deposit equivalent to 10<br />

months is required, and is usually paid up front. Management fees are<br />

excluded from quoted rents. Space is measured on gross fl oor area basis.<br />

Capital values are quoted in Won per sq m.<br />

Tokyo<br />

The quality offi ce buildings in Tokyo are located in the central business<br />

area (CBD) area covering six wards namely, Chiyoda-ku, Chuo-ku,<br />

Minato-ku, Shinjuku-ku, Shibuya-ku and Shinagawa-ku.<br />

Rents are asking rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month,<br />

which are inclusive of service charges. Offi ce space is measured on an<br />

internal fl oor area basis. Capital values are quoted in Yen per tsubo.<br />

SOUTH ASIA<br />

Jakarta<br />

The quality offi ce buildings in Jakarta are located in the CBD covering<br />

the districts Thamrin, Sudirman, Gatot Subroto, Rasuna Said and Mega<br />

Kuningan. The areas outside the above districts are collectively called as<br />

“non-CBD”.<br />

Rents are commonly quoted in Rupiah per sq m per month, which are<br />

inclusive of service charges but exclusive of government taxes. Offi ce<br />

space is measured on lettable fl oor area basis. Capital values are quoted<br />

in Rupiah per sq m.<br />

Kuala Lumpur<br />

Prime offi ce buildings located in the Kuala Lumpur Central Area (KLCA)<br />

only. The KLCA comprises areas generally within the central business<br />

district.<br />

Rents are commonly quoted in Ringgit Malaysia (RM) per sq ft per month<br />

on net fl oor area basis, which are inclusive of service charges and property<br />

taxes. Capital values are quoted in Ringgit per sq ft.<br />

Manila<br />

Prime offi ce buildings in Manila are located in two principal sub-markets<br />

– Makati and Ortigas.<br />

Rents are quoted in Peso per sq m per month on net fl oor area basis,<br />

and exclusive of any management fees. Capital values are quoted in Peso<br />

per sq m.<br />

20<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

EXECUTIVE SUMMARY<br />

DEFINITIONS AND TERMINOLOGY<br />

Singapore<br />

The quality offi ce buildings covered in the report are located in the Central<br />

Business District of Singapore.<br />

Rents are quoted in S$ per sq ft per month on net fl oor area basis<br />

(i.e. area less common areas such as corridors, toilets, lift lobby etc. but<br />

including columns), and are inclusive of service charge. Capital values are<br />

quoted on the basis of strata area for strata-titled buildings, and net area<br />

for non-strata-titled developments.<br />

Bangkok<br />

Rents are quoted in Baht per sq m per month on a net floor area basis, and<br />

inclusive of service charges. Capital values are quoted in Baht per sq m.<br />

Ho Chi Minh City<br />

The quality offi ce buildings in Ho Chi Minh City are located in District<br />

One - the central business district in the city.<br />

Rents are commonly quoted in US$ per sq m per month on net fl oor<br />

area basis, and exclusive of management fees and government tax. Capital<br />

values are quoted on US$ per sq m.<br />

Mumbai<br />

Prime offi ce properties in Mumbai are primarily concentrated in CBD<br />

(Central Business District) – consist of Nariman Point, Ford and Ballard<br />

Estate; SBD (Secondary Business District) including Bandra (West and<br />

East), Kalina, Lower Parel and Worli/Prabhadevi and PBD (Peripheral<br />

Business District) including Navi Mumbai, Vashi, Powai, Goregaon.<br />

Rents are commonly quoted in Rupee per sq ft per month, which are usually<br />

exclusive of maintenance charges, parking charges and property taxes.<br />

Offi ce space is commonly measured on *super built up area basis.<br />

New Delhi<br />

Prime offi ce properties in New Delhi are primarily concentrated in<br />

CBD (Central Business District) – consist of Connaught Place; SBD<br />

(Secondary Business District) including Nehru Place, Jasola, Saket and<br />

Netaji Subhash Place and PBD (Peripheral Business District) including<br />

Gurgaon and Noida.<br />

Rents are commonly quoted in Rupee per sq ft per month, which are<br />

usually exclusive of maintenance charges, parking charges and property<br />

taxes.<br />

Offi ce space is commonly measured on *super built up area basis.<br />

INDIA<br />

Bangalore<br />

Prime offi ce properties in Bangalore are can be divided in 3 principal<br />

sub-markets – CBD (Central Business District), SBD (Suburban/Secondary<br />

Business District) consisting of Bannerghatta Road & Outer Ring Road<br />

and PBD (Peripheral Business District) including PBD Hosur Road, EPIP<br />

Zone, Electronic City and Whitefi eld.<br />

Rents are commonly quoted in Rupee per sq ft per month, which are usually<br />

exclusive of maintenance charges, parking charges and property taxes.<br />

Offi ce space is commonly measured on *super built up area basis.<br />

Chennai<br />

Prime offi ce properties in Chennai are located in 3 principal submarkets–<br />

CBD (Central Business District), (Suburban/Secondary Business District)<br />

and PBD (Peripheral Business District). SBD consists of Guindy and<br />

Velechery while PBD includes other areas such as Old Mahaballipuram<br />

Road, Ambattur and GST Road amongst others.<br />

Rents are commonly quoted in Rupee per sq ft per month, which are usually<br />

exclusive of maintenance charges, parking charges and property taxes.<br />

Offi ce space is commonly measured on *super built up area basis.<br />

* Super built-up area refers to the total **built-up area of a building plus a proportional<br />

allocation of all common areas including stairs, lift cores, ground fl oor lobby, and caretaker’s<br />

offi ce/fl at throughout the building.<br />

** Built-up area refers to the carpet area plus the thickness of external walls and area under<br />

columns.<br />

AUSTRALASIA<br />

Australia<br />

Prime offi ce buildings are located in the CBD and generally favored by<br />

MNCs.<br />

Rents are quoted on net fl oor area basis, and in A$ per sq m per annum<br />

excluding management fee and government charges. Capital values are<br />

quoted on A$ per sq m.<br />

New Zealand<br />

Prime offi ce buildings are located in the CBD.<br />

Rents are quoted on net fl oor area basis, and in NZ$ per sq m per annum<br />

excluding management fee and government charges. Capital values are<br />

quoted on NZ$ per sq m.<br />

The content of this report is for information only and should not be relied upon as a substitute for professional advice, which should be sought from <strong>Colliers</strong> International prior to acting<br />

in reliance upon any such information. The opinions, estimates and information given herein or otherwise in relation hereto are made by <strong>Colliers</strong> International and affiliated companies<br />

in their best judgement, in the utmost good faith and are as far as possible based on data or sources which they believe to be reliable in the contest hereto. Notwithstanding, <strong>Colliers</strong><br />

International and affiliated companies disclaim to the extent permitted by law, any liability in respect of any claim which may arise from any errors or omissions or from providing such<br />

advice, opinions, judgement or information.<br />

<strong>Colliers</strong> Macaulay Nicolls Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of <strong>Colliers</strong> International Property Consultants, an<br />

affiliation of independent companies with over 290 offices throughout more than 60 countries worldwide<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 21


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

For further details, please contact:<br />

GREATER CHINA<br />

Beijing, China<br />

502 Tower W3, Oriental Plaza<br />

No 1 East Changan Avenue,<br />

Dongcheng District<br />

Beijing 100738<br />

Tel : 86 10 8518 1633<br />

Fax : 86 10 8518 1638<br />

Amanda Gao<br />

Managing Director, North China<br />

Amanda.Gao@colliers.com<br />

Chengdu, China<br />

Room L 16F City Tower<br />

86 Section One Renmin Nan Road<br />

Chengdu 610016<br />

Tel : 86 28 8620 2128<br />

Fax : 86 28 8620 2158<br />

Jacky Tsai<br />

General Manager<br />

Jacky.Tsai@colliers.com<br />

Guangzhou, China<br />

702 Teem Tower,<br />

208 Tianhe Road<br />

Guangzhou 510620<br />

Tel : 86 20 3819 3888<br />

Fax : 86 20 3819 3899<br />

Eric Lam<br />

General Manager<br />

Eric.Lam@colliers.com<br />

Shanghai, China<br />

16F Hong Kong New World Tower<br />

300 Huaihai Zhong Road<br />

Shanghai 200021<br />

Tel : 86 21 6141 3688<br />

Fax : 86 21 6141 3699<br />

Lina Wong<br />

Managing Director, East and South West<br />

China<br />

Lina.Wong@colliers.com<br />

Hong Kong, HKSAR<br />

5701 Central Plaza,<br />

18 Harbour Road<br />

Wanchai, Hong Hong<br />

Company Licence No: C-006052<br />

Tel : 852 2828 9888<br />

Fax : 852 2828 9899<br />

Richard Kirke<br />

Managing Director<br />

Richard.Kirke@colliers.com<br />

Piers Brunner (E-183614)<br />

Chief Operating <strong>Office</strong>r - <strong>Asia</strong><br />

Piers.Brunner@colliers.com<br />

George McKay (E-215150)<br />

Managing Director,<br />

Corporate Services - <strong>Asia</strong> <strong>Pacific</strong><br />

George.McKay@colliers.com<br />

Taipei, Taiwan<br />

49F TAIPEI 101 TOWER<br />

7 Xin Yi Road Sec 5, Taipei 110<br />

Tel : 886 2 8101 2000<br />

Fax : 886 2 8101 2345<br />

Andrew Liu<br />

Managing Director<br />

Andrew.Liu@colliers.com<br />

NORTH ASIA<br />

Seoul, South Korea<br />

10F Korea Tourism Organization Bldg.,<br />

10 Da-dong,<br />

Jung-gu, Seoul 100-180<br />

Tel : 82 2 6740 2000<br />

Fax : 82 2 318 2015<br />

Jay Yun<br />

Senior Director & General Manager<br />

Jay.Yun@colliers.com<br />

Tokyo, Japan<br />

Halifax Building 8F, 16-26,<br />

Roppongi 3-Chome<br />

Minato-ku, Tokyo 106-0032<br />

Tel : 81 3 5563 2111<br />

Fax : 81 3 5563 2100<br />

James Fink<br />

Senior Managing Director<br />

jfink@colliershalifax.com<br />

SOUTH ASIA<br />

Jakarta, Indonesia<br />

10F World Trade Centre,<br />

Jl Jenderal Sudirman<br />

Kav 29-31 Jakarta 12920<br />

Tel : 62 21 521 1400<br />

Fax : 62 21 521 1411<br />

Mike Broomell<br />

Managing Director<br />

Mike.Broomell@colliers.com<br />

Kuala Lumpur, Malaysia<br />

c/o Mark Lampard*<br />

Regional Director -<br />

Occupier Services - <strong>Asia</strong><br />

Tel : 65 6531 8601<br />

Fax : 65 6557 0649<br />

Mark.Lampard@colliers.com<br />

* Based in Singapore<br />

Malaysia information contributed by:<br />

C H Williams Talhar & Wong Sdn Bhd<br />

32nd Floor Menara Tun Razak<br />

P O Box 12157<br />

50768 Kuala Lumpur<br />

Malaysia<br />

Tel : 603 2693 8888<br />

Fax : 603 2693 6565/6655<br />

URL: http:// www.wtw.com.my<br />

Goh Tian Sui<br />

Managing Director<br />

gts@wtw.com.my<br />

Manila, Philippines<br />

10F Tower 2 RCBC Plaza,<br />

6819 Ayala Avenue<br />

corner Sen Gil J Puyat Avenue<br />

Makati City, Philippines1200<br />

Tel : 63 2 888 9988<br />

Fax : 63 2 845 2612<br />

David Young<br />

Managing Director<br />

David.A.Young@colliers.com<br />

Singapore<br />

1 Raffles Place<br />

#45-00 OUB Centre<br />

Singapore 048616<br />

Tel : 65 6223 2323<br />

Fax : 65 6222 4901<br />

Dennis Yeo<br />

Managing Director, North <strong>Asia</strong><br />

Managing Director, Singapore<br />

Dennis.Yeo@colliers.com<br />

Bangkok, Thailand<br />

17/F Ploenchit Center<br />

2 Sukhumvit Road<br />

Klongtoey, Bangkok 10110<br />

Tel : 66 2 656 7000<br />

Fax : 66 2 656 7111<br />

Patima Jeerapaet<br />

Managing Director<br />

Patima.Jeerapaet@colliers.com<br />

Ho Chi Minh City, Vietnam<br />

Ho Chi Minh City, Vietnam<br />

7F Bitexco Building<br />

19-25 Nguyen Hue Street<br />

District 1, Ho Chi Minh City<br />

Tel : 84 8 827 5665<br />

Fax : 84 8 827 5667<br />

Peter Dinning<br />

General Director<br />

Peter.Dinning@colliers.com<br />

KP Singh<br />

Managing Director<br />

KP.Singh@colliers.com<br />

Hanoi, Vietnam<br />

Vinaplast - Tai Tam Building,<br />

9th Floor,<br />

39A Ngo Quyen Street<br />

Hoan Kiem District, Hanoi, Vietnam<br />

Tel : 84 4 220 5888<br />

84 4 220 5566<br />

Fax : 84 4 220 1133<br />

Do Le Quan<br />

Managing Director<br />

Quan.Do@colliers.com<br />

22<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH


ASIA PACIFIC OFFICE MARKET OVERVIEW | OCTOBER | 2009<br />

EXECUTIVE SUMMARY<br />

INDIA<br />

Bangalore, India<br />

Prestige Garnet, Level 2, Unit No.201/202<br />

36 Ulsoor Road, Bangalore 560 042<br />

Tel : 91 80 4079 5500<br />

Fax : 91 80 4112 3131<br />

Goutam Chakraborty<br />

<strong>Office</strong> Director<br />

Goutam.Chakraborty@colliers.com<br />

Chennai, India<br />

Unit 1C, 1st Floor, Heavitree Complex,<br />

23 Spurtank Road, Chetpet,<br />

Chennai 600 031<br />

Tel : 91 44 2836 1064<br />

Fax : 91 44 2836 1377<br />

Saravanan C<br />

<strong>Office</strong> Director<br />

Saravanan.C@colliers.com<br />

Gurgaon, India<br />

G3, NewBridge Business Centers,<br />

TechnoPolis, DLF Golf Course<br />

Main Sector Road<br />

Sector 54, Gurgaon 122 002<br />

Tel : 91 124 4375807<br />

Fax : 91 124 4375806<br />

Saacketh Chawla<br />

<strong>Office</strong> Director<br />

Saacketh.Chawla@colliers.com<br />

Kolkata, India<br />

Regus Business Centre Constantia, Level 6,<br />

Kolkata 700017<br />

Tel : 91 33 4400 0541<br />

Fax : 91 33 4400 0555<br />

Joe Verghese<br />

Managing Director<br />

Joe.Verghese@colliers.com<br />

Mumbai, India<br />

31-A, 3rd Floors, Film Centre,<br />

68 Tardeo Road<br />

Mumbai 400 034<br />

Tel : 91 22 4050 4500<br />

Fax : 91 22 2351 4272<br />

Poonam Mahtani<br />

<strong>Office</strong> Director<br />

Poonam.Mahtani@colliers.com<br />

New Delhi, India<br />

204/205, 2nd Floor,<br />

Kanchenjunga Building,<br />

18 Barakhamba Road<br />

New Delhi 110 001<br />

Tel : 91 11 4360 7500<br />

Fax : 91 11 2335 6624<br />

Prit Paul<br />

<strong>Office</strong> Director<br />

Prit.Paul@colliers.com<br />

Pune, India<br />

Vatika Business Center, Level-5<br />

C Wing, Panchsheel Tech Park-1,<br />

Yerwada<br />

Pune 411 006<br />

Tel : 91 20 4011 1356<br />

Fax : 91 20 6640 3138<br />

Suresh Castellino<br />

<strong>Office</strong> Director<br />

Suresh.Castellino@colliers.com<br />

AUSTRALASIA<br />

Adelaide, Australia<br />

Level 10, 99 Gawler Place,<br />

Adelaide SA 5000<br />

Tel : 61 8 8305 8888<br />

Fax : 61 8 8231 7712<br />

James Young<br />

State Chief Executive<br />

James.Young@colliers.com<br />

Brisbane, Australia<br />

Level 20, Central Plaza One<br />

345 Queen Street<br />

Brisbane QLD 4000<br />

Tel : 61 7 3229 1233<br />

Fax : 61 7 3229 1100<br />

Matt Kearney<br />

Director, <strong>Office</strong> Leasing<br />

Matt.Kearney@colliers.com<br />

Canberra, Australia<br />

Ground floor, 21-23 Marcus Clarke Street<br />

Canberra ACT 2601<br />

Tel : 61 2 6257 2121<br />

Fax : 61 2 6257 2937<br />

Paul Powderly<br />

State Chief Executive<br />

Paul.Powderly@colliers.com<br />

Melbourne, Australia<br />

Level 32 367 Collins Street<br />

Melbourne VIC 3000<br />

Tel : 61 3 9629 8888<br />

Fax : 61 3 9629 8549<br />

John Marasco<br />

State Chief Executive<br />

John.Marasco@colliers.com<br />

Perth, Australia<br />

Level 19, 140 St Georges Terrace<br />

Perth WA 6000<br />

Tel : 61 8 9261 6666<br />

Fax : 61 8 9261 6665<br />

K. Imran Mohiuddin<br />

State Chief Executive<br />

Imran.Mohiuddin@colliers.com<br />

Sydney, Australia<br />

Level 12, Grosvenor Place,<br />

225 George Street<br />

Sydney NSW 2000<br />

Tel : 61 2 9257 0222<br />

Fax : 61 2 9251 3297<br />

Malcom Tyson<br />

State Chief Executive<br />

Malcom.Tyson@colliers.com<br />

Auckland, New Zealand<br />

Level 27, 151 Queen Street, Auckland<br />

Tel : 64 9 358 1888<br />

Fax : 64 9 358 1999<br />

Mark Synnott<br />

Managing Director<br />

Mark.Synnott@colliers.com<br />

Wellington, New Zealand<br />

Level 10, 36 Customhouse Quay<br />

Wellington<br />

Tel : 64 4 473 4413<br />

Fax : 64 4 499 1550 (Agency)<br />

: 64 4 470 3902 (Valuation)<br />

Richard Findlay<br />

Managing Director<br />

Richard.Findlay@colliers.com<br />

COLLIERS INTERNATIONAL | REGIONAL RESEARCH 23


www.colliers.com

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