Asia Pacific Office Q1 2011 - Colliers International Thailand

Asia Pacific
Office Market Overview

1Q 2011
Accelerating success.
table of contents
asia pacific office market overview | 1q 2011
Regional Overview 3
Greater China 4-6

Beijing, China.....................................................................................................................................4
Chengdu, China..................................................................................................................................4
Guangzhou, China..............................................................................................................................5
Shanghai, China.................................................................................................................................5
Hong Kong SAR, China......................................................................................................................6
Taipei, Taiwan....................................................................................................................................6
North Asia 7
Seoul, South Korea............................................................................................................................ 7
Tokyo, Japan...................................................................................................................................... 7
Southeast Asia 8-10

Jakarta, Indonesia..............................................................................................................................8
Kuala Lumpur, Malaysia.....................................................................................................................8
Manila, Philippines.............................................................................................................................9.
Singapore...........................................................................................................................................9
Bangkok, Thailand............................................................................................................................ 10
Ho Chi Minh City, Vietnam............................................................................................................... 10
India 11-12
Bengaluru (Bangalore)..................................................................................................................... 11
Chennai............................................................................................................................................. 11
Mumbai............................................................................................................................................. 12.
New Delhi......................................................................................................................................... 12

Australasia 13-16
Adelaide, Australia........................................................................................................................... 13
Brisbane, Australia.......................................................................................................................... 13
Canberra, Australia.......................................................................................................................... 14
Melbourne, Australia........................................................................................................................ 14
Perth, Australia................................................................................................................................ 15
Sydney, Australia............................................................................................................................. 15
Auckland, New Zealand................................................................................................................... 16
Wellington, New Zealand................................................................................................................. 16
Prime Office Rentals 17
Trends & Forecasts 18-19
Definitions & Terminology 20-21
Contacts 22-23
regional overview
Fundamentally, overall office demand in the region remained positive in 1Q 2011, thanks to the
abundant liquidity, the proactive measures by various governments to spur their economies
and the expansion needs from a range of companies in the private sector. However, the
relaxed monetary measures adopted by the major central banks in the United States and
Europe have been criticised for creating unwanted price rises of commodities and other
factors of input, thus leading to growing inflationary pressures. In view of the imminent
inflationary threat, a number of central banks in Asia have made pre-emptive moves by
raising their interest rates. For example, as of 1Q 2011, People’s Bank of China (PBOC) has
made four hikes since October 2010, accounting for 100 basis points.
Sales Market
Notwithstanding the recent interest rises, investment demand for office real estate remained
strong in 1Q 2011. Firstly, the potential capital appreciation remained promising, given the
continued rental catch-up in the market. Secondly, investors were encouraged by the
sustained low cost borrowing in 1Q 2011. Lately, the U.S. Federal Reserve reiterated that
interest rates will stay low for an extended period, although the second stage of quantitative
easing is going to end in mid-2011.
Buoyed by strong investment demand, individual centres such as Hong Kong and Taipei
has seen their office values reach new highs in 1Q 2011. In addition, end-users remained
keen in acquiring their office buildings for owner-occupation. In Beijing, China Minmetals
Corporation confirmed the expenditure of RMB4.5 billion (US$693 million) in acquiring Fifth
Square for its office building. In Shanghai, companies purchased strata office floors such
as Shanghai World Financial Centre to accommodate their business needs.
Leasing Trends
On the leasing front, although the individual centres are going to see an increase of three to
four times of new supply in 2011, office rentals remained firm, thanks to the positive business
confidence and encouraging pre-commitment rate for a number of new developments. Due
to the availability of new supply, companies took advantage of the current market conditions
to expand their overall requirements and upgrade their offices for quality development. For
example, in Singapore, BNP Paribas doubled its requirements at Ocean Financial Centre
from 70,000 sq ft to about 140,000 sq ft in 1Q 2011. Underpinned by the solid occupational
demand, the average office rental in the region edge up further by 1.7% QoQ in 1Q 2011.
Market Outlook
Looking ahead, the prospective impact created by growing inflation pressure is going to be the
key uncertainty envisaged by most players in the office market. According to our research,
further rental growth and capital growth in 2011 is anticipated. However, individual centres
with major developments due for completion in 2011 will provide a window of opportunity
for tenants going for corporate relocation and upgrading over the near to medium term.
In particular, seismic concerns in Japan are expected to prompt more tenants to go for
newer developments.
Colliers International | p. 3
asia pacific office market overview | 1Q 2011
CHINA

Beijing
• Two new projects, Beijing IFC in the CBD area and Tsinghua Tongfang Hi-Tech Plaza
1.00 25.0% Tower D in the Zhongguancun Area, were completed in 1Q 2011, injecting a total of
0.80 20.0% 190,585 sq m office space to the stock.
• Underpinned by growing business needs and headcount expansion in both indigenous

15.0%

0.60
0.40 10.0% and overseas companies, demand for quality office space remained strong. The overall
0.20 5.0%
vacancy rate fell 2.46 percentage points to 7.55% in 1Q 2011. The average office rent
soared 7.30% QoQ, to RMB206.30 per sq m per month.
0.00 0.0%
2008 2009 2010 2011 F 2012 F
Supply Take-up Vacancy Rate

• Significant leasing transactions included the commitment of 22,000 sq m by Toyota
Motors at China Overseas Plaza. Meanwhile, Bayer took 30,000 sq m at Jia Ming Centre
and Volvo rented 7,000 sq m at Office Park Tower C.
• Three major en bloc investment sales transactions were concluded in 1Q 2011. For
BEIJING OFFICE CAPITAL AND RENTAL VALUES
example, China Minmetals Corporation acquired Fifth Square for a total consideration
of RMB4.5 billion.

major transactions

Capital Values

Building Lease (L) / Tenant / Purchaser Area
Rentals

Sale (S) (sq ft)

Fifth Square S China Minmetals Corporation 1,291,200

Zhongguan Plaza S SOHO China 458,400

Jiaming Centre L Bayer 322,800

China Overseas Plaza L Toyota Motor 236,700

Office Park Tower C L Volvo 75,300
Beijing IFC L Eaton 32,300
CPIC Plaza L Zhong Rong Life Insurance 36,600
China Overseas International L BOCOM International Holdings 25,800
Centre

chengdu

• In 1Q 2011, there was an absence of brand new office building entry to the market.
0.25 50.0% Thanks to the sustained demand, the average vacancy fell 1.11 percentage points, while
0.20 40.0% the average rental edged up 3.05% QoQ during the period.
• Both Yanlord Landmark and Aerospace Technology Plaza registered good leasing

0.15 30.0%

0.10 20.0% progress. Brand new buildings with immediate access to the metro line continued to
0.05 10.0%
attract new tenants, notwithstanding the premium rentals.
0.00
2008 2009 2010 2011 F 2012 F
0.0% • In the sub-market of Financial Street, rentals saw an increase of 7.14% QoQ in 1Q 2011.
With the scheduled operation of Metro Line 2 by 3Q 2012, the two new office developments
due for completion in the next couple of years are expected to produce a leasing boom.
CHENGDU OFFICE CAPITAL AND RENTAL VALUES

major transactions


Sale (S) (sq ft)

Yanlord Landmark L EVA Air 1,200
Capital Values

Rentals
Aerospace Technology Plaza L Chengdu Jinkong Loan 15,100

Co. Ltd

Aerospace Technology Plaza L Adidas 17,200

p. 4 | Colliers International
CHINA

guangzhou
• The completion of three developments in 1Q 2011 - Huayitai Plaza in Yuexiu, Guangzhou
2.50 50.0% International Financial Centre in Tianhe and Zhongzhou Trade Centre in Haizhu - provided
2.00 40.0% approximately 262,891 sq m of new supply to the market. Accounting for 13.8% of the
overall stock, the new stock pushed the vacancy rate upward 6% to 23% in 1Q 2011.

30.0%

1.50
1.00 20.0% • With an increase of leasing activities after the Spring Festival, the average office rental
0.50 10.0%
was firm at RMB138.7 per sq m per month in 1Q 2011.
0.00
2008 2009 2010 2011 F 2012 F
0.0% • Investment demand for small office units was strong in 1Q 2011 since stock for sales
in Grade A market was limited. The average sales price in 1Q 2011 was RMB26,153
per sq m.
• The total amount of new supply is predicted to reach 1.126 million sq m in 2011. With
the exception of Taikoo Hui in Tianhe North, the other new projects are located in Pearl
GUANGZHOU OFFICE CAPITAL
River New Town where an increasing number of financial institutions have made the
AND RENTAL VALUES
district a financial hub of Guangzhou.

major transactions
Capital Values
Rentals


Sale (S) (sq ft)

Poly Center L Guangdong Radio/Television/Internet 41,400

Co. Ltd

GT. Land L Guangzhou Qisheng Information 39,500

Technology Ltd
Tianyu-Phase III L Hutchison Whampoa Property 21,900
Management Ltd

shanghai
• It is estimated that more than 1 million sq m of Grade A office space will enter the market
1.50 25.0% in 2011 but about 36% of the space will be slated for owner occupation.
1.20 20.0%
• There were more sales transactions of strata-title floors in 1Q 2011. Floors at Hang Seng
Bank Tower (formerly the HSBC Tower), the Shanghai World Financial Centre, and the

15.0%

0.90
0.60 10.0% Tai Ping Financial Tower have been sold to companies seeking to use them for their own
0.30 5.0%
office needs. For example, Tomson Real Estate Co. of Taiwan purchased the 72nd floor
of the Shanghai World Financial Centre ( 3,222 sq m) for RMB267 million.
0.00 0.0%
2008 2009 2010 2011 F 2012 F

• While recent policy measures have made major steps toward cooling down the residential
real estate market, rising capital values in the commercial sector continue to make office
properties attractive to investors. Colliers expects capital values for grade A office space
SHANGHAI OFFICE CAPITAL AND RENTAL VALUES
to increase by an average of 5% over the next four years.

major transactions


Capital Values

Sale (S) (sq ft)
Rentals
New Richport L Zhao Online / Housane 40,900

Hongwell International Plaza L Benesse Corporation China 32,300
One Prime L Inoherb 32,300

Tai Ping Finance Building L Shi Tian Investment 29,200

BM ICC L Modine 16,100

Shanghai World Financial Centre S Tomson Group 34,700
Shanghai World Financial Centre S Poly Xiexin 35,700
h o ng ko ng
hong kong

• The overall tenancy demand for prime office space remained strong in 1Q 2011. Largely

4.50 9.0% attributable to the sustained expansionary demand among existing tenants, and the
4.00 8.0%
prevailing trend of limited supply in the marketplace, average Grade A office rentals
3.50 7.0%
3.00 6.0% increased 12.8% QoQ during the period.

2.50 5.0%
2.00 4.0% • With the continued surge of rentals, more professional companies, with floor area
3.0%
requirements ranging from 5,000 to 10,000 sq ft, were increasingly reluctant to pay the
1.50
1.00 2.0%
0.50 1.0% asking rentals currently fetching above HK$100 per sq ft per month in Central. A number
0.00
2008 2009 2010 2011 F 2012 F
0.0%
of medium-sized tenants have been migrating to the adjacent business districts such as
Supply Take-up Vacancy Rate Wanchai and Causeway Bay, where rentals remain relatively low.
• The local Grade A office market is anticipated to post further growth in anticipation of a
sustained imbalance between supply and demand in the marketplace. Given the projection
HONG KONG OFFICE CAPITAL of limited new supply coming online and the buoyant demand fundamentals attributed to
AND RENTAL VALUES the finance industries, average Grade A office rental is predicted to increase 25% over

the next 12 months.

major transactions

Capital Values
Rentals

Sale (S) (sq ft)
Citibank Tower L INVESCO 34,200
The Center L GE Capital 18,500

Millennium City Phase 1 L Zurich 47,000

Millennium City Phase 6 L Zurich 17,000

C-Bons International Centre L Zurich 51,000

15/F, Bank of America Tower S Overseas Company 13,880
10/F, Worldwide House S Local Investor 16,693
ta i wan
TAIPEI OFFICE SUPPLY, TAKE-UP &
Taipei
VACANCY RATE • With total Grade A office stock remaining at 538,295 ping, the vacancy rate edged down
35,000 35.0% 49 basis points to 14.15% in 1Q 2011. Hsin Yi was the performing submarket, with average
30,000 30.0%
vacancy rate falling by 114 basis points to 16.24% during 1Q 2011.
25,000 25.0%
• The average effective rental of Grade A offices increased slightly by 0.5% QoQ to
Vacancy Rate
20,000 20.0%
Ping
15,000 15.0%
NT$2,458 per ping per month in 1Q 2011, thanks to the demand from newcomers and
10,000 10.0%
the expansion of existing financial institutions. In Hsin Yi, rentals increased marginally
5,000 5.0%
0 0.0%
to NT$2,837 per ping per month during 1Q 2011, since the vacancy rate was higher than
-5,000
2008 2009 2010 2011 F 2012 F
-5.0% the average level.
• On the sales front, Cathay Life Insurance Co. bought 2,854.34 ping (including car park)
at Taipei Financial Centre for NT$3.242 billion. The unit price was actually a record high

in the Grade A office market.

major transactions
Lease
Building (L) / Tenant / Purchaser Area

Sale (S) (sq ft)

Shin Kong Manhattan Financial Center L HSBC, LCS & Partners 41,800

Chuan Feng Sheng Hsin Yi 105 Building L Bank of China 35,600

Nan Shan Min Sheng Building L Corning Glass 30,000

TAIPEI 101 L Taiwan Ratings 15,600

Corporation

Taipei Financial Center S Cathay Life Insurance Co. 50,700
Taipei Financial Center S Cathay Life Insurance Co. 50,800
s o u t h ko r e a
SEOUL OFFICE SUPPLY, TAKE-UP &

seoul
VACANCY RATE • The average office vacancy rate edged down from 7.13% in 4Q 2010 to 5.06% in 1Q
250,000 15.0% 2011, thanks to the strong demand registered in CBD and GBD. In the CBD, vacancy fell
200,000 12.0% from 11.7% in 4Q 2010 to 8.79% in 1Q 2011. However, with ample supply coming into
150,000 9.0%
the market in the next few quarters, the current tenants’ market will continue until the
Vacancy Rate
end of 2012.
Pyung
100,000 6.0%
50,000 3.0% • Office rentals saw a mild decline of 0.27% QoQ in 1Q 2011. Rentals in the CBD and GBD
0 0.0% fell 0.31% QoQ and 1.41% QoQ, respectively. However, in the YBD area, monthly rental
2008 2009 2010 2011 F 2012 F
-50,000
increased 1.95% QoQ due to the low vacancy rate of 2.88% in 1Q 2011.
-3.0%
• Notwithstanding the uninspiring rental rates, capital values continued to hold firm in
1Q 2011. Amongst the few sales transactions, the highlight was the re-acquisition of
SK building in the CBD by SK Energy JV National Pension Service, who had sold the

development to Merrill Lynch JV Shinhan Bank for short-term financing in 4Q 2005.

major transactions


Sale (S) (sq ft)

YTN Building L Shinhan Card 36,900
Teherran Building L Rush and Cash 24,900

Naeoi Building L SK E&C 36,800

Imgwang Building L SK Communications 34,500

SK Building S SK Energy JV National 863,400
Pension Service (NPS)
Hohae Building S ESTsoft Corp 100,300
POSCO ICT Building S Bundang Woori Church 237,000
japan
TOKYO OFFICE SUPPLY, TAKE-UP &

tokyo
VACANCY RATE • Market weakness continues to induce firms to relocate, but not to significantly larger
200,000 10.0% premises.
180,000 9.0%
160,000 8.0%
140,000 7.0% • Seismic concerns expected to spur interest in newer buildings.
Vacancy Rate
120,000 6.0%
Tsubo
100,000 5.0%
4.0%
• Rents continue to hit new lows as large incentives including free rent become common.
80,000
60,000 3.0%
40,000 2.0% • Vacancy slightly increasing with a number of new building completions pending.
20,000 1.0%
0 0.0%
2008 2009 2010 2011 F 2012 F
Supply Take-up Vacancy Rate major transactions

Sale (S) (sq ft)
TOKYO OFFICE CAPITAL AND RENTAL VALUES
Kodansha Mejirodai Building L Mitsubishi UFJ 319,500
Morgan Stanley
Shibuya Hikarie L DeNA 177,500
Hamarikyu Intercity L Tokai 53,250
Capital Values
Iino Building L Sojitsu 248,500

Rentals

Iino Building L Kanpo Life 142,000

i nd o n es i a
JAKARTA OFFICE SUPPLY, TAKE-UP &
jakarta
VACANCY RATE • Indonesia moved closer to attaining an investment grade rating, after Fitch Ratings raised
400,000 20.0% the country’s outlook from stable to positive. This is expected to give positive impact to
the investment climate and trigger new business in the form of acquisition, expansion
300,000 15.0%
and relocation, thus boosting the demand in the office market.
Vacancy Rate
sq m
200,000 10.0%
• Due to the projection of less new supply coming into the market in 2011, landlords
100,000 5.0% remained confident in raising their asking rentals in 1Q 2011.
0
2008 2009 2010 2011 F 2012 F
0.0%
• With an increase in steel prices, strata-title office prices are anticipated to edge up
further. This is particularly the case given the average occupancy rate of strata-title
office occupancy rate at 90%.
JAKARTA OFFICE CAPITAL AND RENTAL VALUES • In anticipation of ongoing corporate relocations and expansions, the demand of the local
office looks healthy.

major transactions

Capital Values

Rentals

Sale (S) (sq ft)

Sentral Senayan 3 L Maybank 445,500

Wisma Mulia L BP Migas 312,200
Plaza Kuningan L Manulife 64,600

The Plaza L Acer Indonesia 18,900

UOB Plaza L Midtou 15,200
Menara FIF L Total Oil Indonesia 10,800
Sentral Senayan 2 L Yahoo 9,700
m a l ays i a

kual a lumpur
• The local economy grew about 7% in 2010. With the government's announcement of
the “Entry Point Projects”, the economy is expected to grow further at 5 - 6% in 2011.

• Since there was no completion of new development in 1Q 2011, the total prime office

stock in KLCA remained the same at 28.129 million sq ft.

• Completion of individual projects has been deferred from late 2010 to 2011. With a total

of over 3 million sq ft new space coming on line by the end of 2011, competition for

tenants is anticipated to intensify.

• Prime office rental and capital values improved slightly in 1Q 2011. The overall market
is predicted to remain stable over the near term.
KUALA LUMPUR OFFICE CAPITAL AND
RENTAL VALUES

major transactions

Sale (S) (sq ft)
Capital Values
Wisma KLIH S Wonderful Vantage Sdn Bhd 55,208

Rentals

Dua Sentral S Tenaga Nasional Berhad 429,630

Putra Place (part of a mixed- S Sunway Real Estate Undisclosed
use development comprising a Investment Trust ("SUNREIT")

shopping mall, hotel and office)

Menara Pan Global L Pacific Regency Hotel Suites 30,700

Data sourced from C H Williams Talhar & Wong Sdn Bhd
ph i l i pp i n es
MANILA OFFICE SUPPLY, TAKE-UP &
manil a
VACANCY RATE • Due to lack of available space in Makati, emerging markets have sprouted in different
120,000 12.0% areas in Metro Manila such as Eastwood City, Mandaluyong City and Bonifacio Global
100,000 10.0%
City to accommodate the expansion needs of BPO companies.
80,000 8.0%
• As at the end of 2011, prime office stock was at 865,591 sq m.
Vacancy Rate
60,000 6.0%
sq m
40,000 4.0%
20,000 2.0% • Office rents increased 6.3% YoY in 1Q 2011, while capital values edged up 5.6% during
0
2008 2009 2010 2011 F 2012 F
0.0%
the same period.
-20,000 -2.0%
-40,000 -4.0%
major transactions

Sale (S) (sq ft)
Trafalgar Plaza L Pro V International 52,500
(Philippines)

s i ngapo r e
singapore

• Underpinned by burgeoning business confidence and the continued flight to quality

amongst occupiers, the average gross Grade A office rental in the CBD chalked up a
further growth of 6.1% QoQ, to reach S$8.39 per sq ft per month at the end of 1Q 2011.

• Marsh & McLennan Group pre-committed 90,000 sq ft office space at Asia Square

Tower 1, which is due to complete in 2Q 2011. Meanwhile, BNP Paribas expanded its
requirements at Ocean Financial Centre from 70,000 sq ft to about 140,000 sq ft.

• The average occupancy rates for Grade A office space in the CBD dipped marginally

for the first time in six quarters to 94.2% in 1Q 2011, due to new supply such as OUE

Bayfront and space vacated by tenants who have relocated to new office development
such as Marina Bay Financial Centre (MBFC).

• Despite ample new supply of 2.1 million sq ft slated to complete in 2011, continued flight
to quality has seen their overall pre-commitment rates edge up from 50% to 60% in
1Q 2011. In addition, with the government’s effort in entrenching Singapore's position
as a Financial Hub, occupier demand for office space in Singapore could remain on an

expansionary mode. Rentals are thus predicted to increase 15-20% in 2011.

major transactions


Sale (S) (sq ft)

Asia Square Tower 1 Lease Marsh & McLennan Group 90,000

Ocean Financial Centre Lease Freehills 11,250
Suntec City Tower 3 Lease Compuware Asia Pacific 8,500
16 Collyer Quay (49% stake) Sale NTUC Income 278,400*
Capital Square Sale NTUC Income and Alpha 386,500
Investment Partners
Prudential Tower (4 floors Sale K-REIT Asia 48,200
from 26th-29th storey)
* Total NLA of 16 Collyer Quay
t ha i l and
bangkok
BANGKOK OFFICE SUPPLY, TAKE-UP &
• The overall office market conditions remained soft in 1Q 2011. With very few transactions,
VACANCY RATE
120,000 24.0% office rentals were flat.
100,000 20.0%
• Uncertainties on the national election and global economic climate are anticipated to
80,000 16.0%
restrain any significant rental surge over the near term.
Vacancy Rate
sq m
60,000 12.0%
40,000 8.0% • No supply was added in 1Q 2011 but the introduction of Sathorn Square, comprising a
20,000 4.0% total floor area of 70,000 sq m in 2Q 2011, will lead to an increase of market activity
0 0.0% within the CBD. However occupancy is predicted to fall during the rest of 2011.
2008 2009 2010 2011 F 2012 F

• The country is beginning to wake up to the opportunities of the ASEAN Economic Area,
which will come into full effect in 2015 and could create a much needed spur to the
BANGKOK OFFICE CAPITAL AND RENTAL VALUES office market in Bangkok.

major transactions

Sale (S) (sq ft)
Capital Values

Rentals
Lao Peng Nguan L Thai Beverage Plc. 46,000

Asia Centre L Astra Zeneca (Thailand) Co. Ltd 15,100
Sun Tower L The Government Saving Bank 7,100
Sun Tower L Toyota Leasing (Thailand) Co. Ltd 14,100

v i e t na m
ho chi minh cit y
HO CHI MINH CITY OFFICE SUPPLY,
TAKE-UP & VACANCY RATE • With a rise of vacancy, Grade A office rentals decrease 9.5% QoQ in 1Q 2011.
180,000 30.0%
150,000 25.0%
• However, rental rates are likely to stabilise during the rest of 2011, since there will be
120,000 20.0%
no major new developments coming on line during the period.
Vacancy Rate
90,000 15.0%
• Growing inflationary pressure, devaluation of local currency and the prevailing external
sq m
uncertainties are expected to impact overall occupational demand in 2011.

60,000 10.0%
30,000 5.0%
0 0.0%
2008 2009 2010 2011 F 2012 F major transactions
-30,000 -5.0%
Sale (S) (sq ft)
Kumho L Trillion 65,700

Kumho L BAT 161,500
70
Kumho L KB Bank 53,800
60
Kumho L Eximbank 78,600
50 Bitexco Financial Tower L Viet Capital Securities 75,300
40 Bitexco Financial Tower L Regus 107,200

30 Bitexco Financial Tower L Thai Thinh Capital 64,600

20
10
0
1Q 2008
1Q 2009
2Q 2008
3Q 2008
4Q 2008
2Q 2009
3Q 2009
4Q 2009
1Q 2010
2Q 2010
3Q 2010
4Q 2010
1Q 2011
2Q 2011 F
3Q 2011 F
4Q 2011 F
1Q 2012 F
2Q 2012 F
3Q 2012 F
4Q 2012 F
Rentals (US/ sq m / Month)
i nd i a
bengaluru (Bangalore)

• About 75,000 sq ft of new office space was added to the Grade A office market in 1Q
2011. Approximately 115,000 sq ft of Grade A office space is expected to complete in
2Q 2012.

• The market saw sustainable rising leasing activities during 1Q 2011. Demand was

predominantly underpinned by the IT/ITeS and financial sectors. The average Grade A

office rents increased by about 3% QoQ in 1Q 2011.

• In view of rising demand and positive market sentiment, developers started to launch

new commercial projects. Projects launched in 1Q 2011, including Brigade Rubix, Prestige
Exora – II&III, and Alyssa, will contribute about 2 million sq ft of floor area to the total
stock upon completion by end-2012.
BENGALURU OFFICE CAPITAL AND
RENTAL VALUES major transactions


Sale (S) (sq ft)

HM Vibha Tower L Amoeba 33,000
Capital Values
Rentals

Global Tech Village L Northern Operating System 80,000

Global Tech Village L Mphasis 86,000

Stand Alone Building A & C L Renesas Electronics 82,000

Royal Stone L TRX Technology 24,000

World Trade Centre L Amazon Software India 80,000

Pvt Ltd
Shankar Narayan Tower I L Altean 30,000
World Technology Centre L Ericsson 100,000

chennai
• No major Grade A office development was completed in 1Q 2011. Approximately 0.9
16.00 32.0% million sq ft of Grade A office space is expected to complete in 2Q 2011.
14.00 28.0%
12.00 24.0%
• Sizeable leasing deals concluded in 1Q 2011 were mostly concentrated in the special
10.00 20.0%
economic zones.

8.00 16.0%
6.00 12.0%
• Amid positive economic sentiment, leasing market activities was active, with rentals
4.00 8.0%
2.00 4.0% showing further upward momentum. Developments in CBD witnessed the most notable
0.00 0.0% rental increases.
2008 2009 2010 2011 F 2012 F

• Rentals are expected to remain stable in the short to medium term. However, with
an increasing number of IT buildings being converted into non-IT buildings, rentals of

individual non-IT office space are going to see more downward pressure.

major transactions


Sale (S) (sq ft)

DLF SEZ L Virtusa 50,000

Ramanujan IT SEZ L Scientific Publishing Services 25,000

Ramanujan IT SEZ L HP 150,000

Ramanujan IT SEZ L Infosys 50,000
Ramanujan IT SEZ L TWG Applied 25,000

Ascendas L Zebra Technologies 20,000

Triton Square L BGR Energy 36,000
Menon's Eternity L Fitchner India 20,000
Prince Infocity 2 S Prodapt 35,000
i nd i a
mumbai

• In 1Q 2011, Lotus Info Park in Parel (SBD) and Times Square in Andheri (PBD) were

18.00 24.0% completed, thus adding about 0.5 million sq ft of Grade A office space to the market.
15.00 20.0%
• C-66 in Bandra Kurla Complex (BKC), comprising a total floor area of about 1.5 million sq
12.00 16.0%
ft, was launched in 1Q 2011. Elsewhere, Raheja developers’ Xion in Byculla and Dheeraj

9.00 12.0%
Realty’s August House in Andheri were also launched during the period.
6.00 8.0%
3.00 4.0% • The average rental remained stable across the board. However, submarkets such as
0.00 0.0%
Lower Parel in SBD and Andheri (E), Malad, Navi Mumbai and Thane in PBD saw slight
2008 2009 2010 2011 F 2012 F
downward adjustments, due to large new supply coming on line over the short to medium
run.
MUMBAI OFFICE CAPITAL AND RENTAL VALUES

major transactions

Capital Values

Sale (S) (sq ft)
Rentals

G Corp L Sterling Infosystems 50,000

Kaliedonia L Priviledge 45,000
Indiana Business Centre L Star TV 14,400

Kaliedonia L Goyal & company 10,000

Ackruti Solaris S Ace Energy 15,000

Ackruti Solaris S Hanger Biotech 20,000
new delhi

• Thanks to buoyant demand, the average office rental increased 1.1% QoQ in 1Q 2011.

• No new supply was added in either the CBD or SBD during 1Q 2011 but about 0.3 million

sq ft of Grade A office space was completed in Gurgaon (PBD) during the period.

• In order to further boost real estate developments, the Delhi Development Authority (DDA)
is planning to introduce a new land policy on the model of public-private participation in
land assembly, development, constructions, management and maintenance.

major transactions

Sale (S) (sq ft)
NEW DELHI OFFICE CAPITAL AND RENTAL VALUES
Malcha Marg L Gazprom Bank 1,800
Gopaldas Bhavan L BSE 16,000
The Grande L MCX 4,000
MGF Metropolitan L Avaya 15,000
Capital Values

Vijaya L Undisclosed 11,000
Rentals

Unitech Cyber Park L Infosys 30,000

Vipul Plaza L Avaya India 12,000

Unitech Infospace L Genpact 200,000

DLF Cyber City L Publicis 70,000

Spaze IT Park L Capegemini 80,000

aust r a l i a
ADELAIDE OFFICE SUPPLY, TAKE-UP & adel aide
VACANCY RATE • Supported by positive investor sentiment, the Adelaide office market has performed well.
Office yields are expected to compress further throughout 2011.
90,000 9.0%
80,000 8.0%
70,000 7.0%
60,000 6.0% • Offshore groups, super funds and institutions are once again in the market and investors
Vacancy Rate
50,000 5.0% yet again looking at expanding their portfolios. The prospective increase in leasing
sq m
40,000 4.0%
30,000 3.0%
activities across CBD has positive implications for investors.
20,000 2.0%
10,000 1.0% • There was an increase of enquiries during 1Q 2011. With no new supply coming on line
0
2008 2009 2010 2011 F 2012 F
0.0%
over the next two years, the overall vacancy rate is expected to fall steadily.
• Positive absorption rate will continue at least until 2013, thus creating continued upward
pressure on rents over the next couple of years.

major transactions


Sale (S) (sq ft)

151 South Terrace L Transfield Services 17,400

151 South Terrace L Data Action Pty Ltd 16,900
400 King William Street L Health Workforce Australia 21,900
Riverside Centre, S Atlantik (via Charter Hall) 246,900

North Terrace

BRISBANE OFFICE SUPPLY, TAKE-UP &

brisbane
VACANCY RATE • During 2010, leasing and sales activity in both occupier and investor markets was
180,000 18.0% strong, as evidenced by the increasing number of total transactions in the Brisbane CBD.
160,000 16.0%
140,000 14.0%
Tenant demand is anticipated to be supported by solid levels of employment growth
120,000 12.0% and expansionary requirement from tenants engaged in the energy, resources, and
Vacancy Rate
100,000 10.0%
professional services sectors.
sq m
80,000 8.0%
60,000 6.0%
40,000 4.0%
• REITs and institutional investors have accounted for most of the transactions involving
20,000 2.0% prime passive assets. Some of these investors also acquired secondary assets for
0.0%
0
2008 2009 2010 2011 F 2012 F inclusion in funds with higher risk-return targets. Private investors were the key
buyers for secondary assets offering the potential for improved returns through active
management.

• With an anticipated short term rise in vacancy, prospective rental growth will be limited
before 2013. By the end of 2011, the prime vacancy rate is predicted to reach circa 9%.

• The interest rate outlook may involve a marginal tightening of cash rate in response
to rising inflationary pressures. This will have an effect on the cost of capital and may

impact transaction activity and pricing, though the improvement in investor sentiment

is likely to provide some counterbalance.

major transactions


Sale (S) (sq ft)
Brisbane Transit Centre, L Worley Parsons 88,700
151-171 Roma Street
12 Creek Street L BHP Billiton 57,700
111 Eagle Street L Norton Rose 53,800
Riverside Centre, L Allens Arthur Robinson 50,600
123-141 Eagle Street
aust r a l i a
CANBERRA OFFICE SUPPLY, TAKE-UP &

canber ra
VACANCY RATE • Leasing demand of Grade A office in Canberra CBD was buoyant in 1Q 2011.
80,000 16.0%
70,000 14.0% • Local market conditions were strong, with positive employer sentiment and tenants
60,000 12.0%
looking to upgrade to better quality premises during the period.
50,000 10.0%
Vacancy Rate
sq m
40,000 8.0%
• No new supply will be delivered to the CBD during 2011 and this will create downward
30,000 6.0%
pressure on vacancy levels.
20,000 4.0%
10,000 2.0%
• The recent sale of the AusAid Building with a yield at 7.24% reflected Grade A office
0 0.0%
2008 2009 2010 2011 F 2012 F
yields remaining relatively steady over the period.

major transactions

Sale (S) (sq ft)

AusAid Building, Canberra CBD S Emboss 98,700

Pharmacy Guild House, Barton S Local private investor 69,200

121 Marcus Clarke Street L Military Super 5,800

121 Marcus Clarke Street L ARIA 15,400

121 Marcus Clarke Street L Australian National University 15,100

MELBOURNE OFFICE SUPPLY, TAKE-UP &

melbourne
VACANCY RATE • There are no new buildings due for delivery in 2011. Overall vacancy rate of Grade A
250,000 10.0%
offices is expected to bottom at approximately 3.7% in January 2012 amid rising demand.
200,000 8.0%
• It is likely that more projects will be announced during 2011. However, these developments
Vacancy Rate
150,000 6.0%
will not be available until 2013/2014. Against the current backdrop, Grade A office rentals
sq m
100,000 4.0% are predicted to rise 18% in 2011.

2.0%
50,000
• Limited available space in central business districts, coupled with increasing rents, will
0 0.0% prompt tenants planning to decentralise to fringe or suburban districts.
2008 2009 2010 2011 F 2012 F

• Low levels of new supply, strong demand from tenants and positive rental growth are
likely to spark investor activity in the Melbourne CBD. This is likely to drive capital values
over the next three years.
MELBOURNE OFFICE CAPITAL AND
RENTAL VALUES

major transactions


Sale (S) (sq ft)
Capital Values

Rentals
Goods Shed South L Pearson 79,600

850 Collins Street L Aurecon 96,800
717 Bourke Street S REST 471,300

750 Collins Street S Commonwealth Property 438,400

Office Fund

180 Lonsdale Street S Commonwealth Property 433,000
Office Fund
aust r a l i a
PERTH OFFICE SUPPLY, TAKE-UP &

perth
VACANCY RATE • The leasing market generally reverted to a landlord’s market, with rents rising and
120,000 12.0% incentives tightening in 1Q 2011.
100,000 10.0%
80,000 8.0% • Resource sector investment spending remained strong, leading to strong leasing enquiry
levels.
Vacancy Rate
60,000 6.0%
sq m
40,000 4.0%
20,000 2.0% • Perth is now starting to gear up for the next growth phase after strong demand growth
0
2008 2009 2010 2011 F 2012 F
0.0%
in 2010. Demand will continue to strengthen over the next two years. With limited supply,
-20,000 -2.0%
overall vacancy rate will continue to trend downwards.
-40,000 -4.0%
• Amid the strong economic environment, investment sales activity picked up additional
momentum in 1Q 2011 after a quiet period during 2009 and 2010.

major transactions


Sale (S) (sq ft)

99 St Georges Terrace S Private Investor 66,300

182 St Georges Terrace S Standard Life 57,500

SYDNEY OFFICE SUPPLY, TAKE-UP &

sydney
VACANCY RATE • Effective office rents edged up slowly since landlords started reducing incentive levels
200,000 12.0% amid the continued strengthening of demand during 1Q 2011.
150,000 9.0%
• Ongoing white-collar employment growth across Sydney as a result of corporate growth
100,000 6.0%
underpinned the demand for offices during 1Q 2011.
Vacancy Rate
sq m
50,000 3.0%
0 0.0%
• The investment sales market has continued to show good levels of demand, with a
2008 2009 2010 2011 F 2012 F
-50,000
number of major transactions currently in due diligence.
-3.0%
-100,000 -6.0% • No new developments were completed in 1Q 2011. The completion of 1 Bligh Street,
comprising 42,750 sq m of premium quality office space, will be coming onto the market
during the remainder of 2011.

major transactions
Sale (S) (sq ft)

55 Clarence Street S Eureka Funds Management 164,171

310-320 Pitt Street S MacarthurCook Industrial 313,864

Fund

201 Elizabeth Street L Cambridge Integrated 23,500

Services

201 Elizabeth Street L Harper Collins 23,300

30-34 Grosvenor Street L McCannWorld group 44,700

n e w z e a l and
aUckl and
AUCKLAND OFFICE SUPPLY, TAKE-UP &
• New leasing deals were reported at 21 Queen Street and 151 Queen Street in Auckland
VACANCY RATE
80,000 16.0% City. This included the Serious Fraud Office relocating to 21 Queen Street on a twelve-
70,000 14.0% year term.
60,000 12.0%
50,000 10.0% • Grade A office vacancy is anticipated to edge down over the near term but the development
Vacancy Rate
sq m
40,000 8.0%
of new ASB headquarters on Wynyard Quarter is forecast to drive vacancy upwards in
30,000 6.0%
20,000 4.0%
the medium term.
10,000 2.0%
0 0.0%
• Investment activity remained weak in 1Q 2011. However, both prime and secondary grade
2008 2009 2010 2011 F 2012 F
office yields were stable, at 7.9% and 10.2%, respectively.
• Looking ahead, Grade A office rents are forecast to fall further by 1.3% over the next 12

months, while capital values will decrease by 5.1%.

major transactions

Sale (S) (sq ft)

360-370 Queen Street S Private Investor 35,500

AXA Building S Robt. Jones Investments 186,800

51-53 Albert Street S Soung Yueen & Co. Ltd 6,900

21 Queen Street L Serious Fraud Office NZ 9,800

21 Queen Street L Willis 9,800

151 Queen Street L SAP 8,200
WELLINGTON OFFICE SUPPLY, TAKE-UP &

wellington
VACANCY RATE • Wellington CBD office vacancy climbed from 7.2% in June 2010 to 9.9% in December
100,000 5.0% 2010. The upward trend in vacancy is expected to continue, as an additional 20% of
80,000 4.0% prime grade office stock is expected to be completed in 2011.
• Grade A office rents and capital values saw a drop of 5.6% and 7%, respectively, during
Vacancy Rate
60,000 3.0%
sq m
40,000 2.0% the 12-month period ending March 2011. However, both indicators are expected to
stabilise in the next twelve months.
20,000 1.0%
0 0.0% • Despite the weak investment activity, the market in 1Q 2011 was highlighted by the sale
2008 2009 2010 2011 F 2012 F

of Westpac Tower by Wholesale Australian Property Fund to Donna Properties for NZ$25
million. In general, prime and secondary office yields were ranging from 8.2% to 9.7%
as of 1Q 2011.
WELLINGTON OFFICE CAPITAL AND
RENTAL VALUES
major transactions


Sale (S) (sq ft)
Capital Values
Radio New Zealand House S Private Investor 2,900

Rentals

Westpac Tower S Donna Properties 103,600

Radio New Zealand House L Land Information New Zealand 52,700

Majestic Centre L Training Rooms Wellington Ltd 6,800

Sovereign House L Open Cloud 5,500

141 The Terrace L Asia NZ Foundation 5,700

aust
p r i m e orff
ailc iear e n ta l

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"
TRE N D S & FOREC A STS

City New Supply Take-up Average Vacancy Total Stock Average Rentals
(sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year)
2011 F 2012 F 2011 F 2012 F 2011 F 2012 F 2011 F 2012 F 2011 F 2012 F
Beijing
CBD 2,436,786 0 3,051,695 860,757 13.6 9.1 19,247,683 19,247,683 40.97 42.32
Zhongguancun 475,764 0 457,767 13,767 1.2 1.0 8,095,529 8,095,529 31.72 32.49
Financial Street 0 0 86,057 614 1.0 1.0 10,238,719 10,238,719 42.84 43.65
Lufthansa 1,431,599 0 1,660,116 237,258 9.3 6.5 8,413,549 8,413,549 32.62 33.52
East Chang An Avenue 0 0 106,961 6,308 1.3 1.2 6,307,064 6,307,064 33.09 34.19
East 2nd Ring 0 1,521,251 154,118 1,336,252 9.0 10.0 3,254,379 4,775,630 30.91 30.53

Chengdu
Renmin Road 1,428,886 1,858,818 447,422 1,034,422 30.0 35.0 3,476,288 3,476,288 22.45 22.96
CBD 0 0 589,761 206,416 20.0 13.0 2,948,803 2,948,803 22.27 22.96
Financial Street 0 538,195 35,056 442,816 10.0 14.0 500,801 500,801 25.51 25.51

Guangzhou
Yuexiu 344,445 0 190,984 79,308 9.2 7.5 4,683,244 4,683,244 17.52 17.00
Tianhe 11,162,929 10,274,853 6,132,323 5,125,166 31.2 37.0 23,376,823 33,651,676 24.81 23.72
Haizhu 611,293 557,010 297,643 290,485 33.4 37.0 1,687,683 2,244,693 16.21 16.20

Shanghai
Huangpu 0 0 129,464 6,333 5.5 5.3 3,333,182 3,333,182 38.02 39.07
Jingan 1,233,112 1,732,267 631,157 1,137,374 21.1 23.5 8,097,703 9,829,970 43.03 44.20
Lujiazui-Pudong 7,948,042 823,438 4,644,383 3,257,052 24.1 12.8 22,429,452 23,252,890 37.71 38.74
Zhuyuan-Pudong 627,848 474,774 522,782 477,703 14.2 12.6 3,867,761 4,342,535 32.72 33.62
Changning 645,834 845,870 580,058 992,547 14.5 10.3 5,496,639 6,342,510 33.24 34.15
Luwan 0 0 136,496 7,108 4.6 4.4 3,554,207 3,554,207 43.60 44.79
Xuhui 666,307 622,186 356,596 426,604 12.4 14.5 4,961,264 5,583,450 35.65 36.63

Hong Kong
Central 0 191,250 206,729 227,402 2.1 1.9 21,266,625 21,457,875 221.12 266.34
Wanchai 0 237,344 82,984 280,848 2.4 2.0 11,095,267 11,332,611 103.63 118.68
HK Island East 0 0 124,364 111,928 4.2 3.1 10,854,774 10,854,774 71.89 80.64
Tsim Sha Tsui 0 0 39,465 22,400 4.1 3.7 6,361,390 6,361,390 72.34 80.39
Kowloon East 922,829 0 801,958 157,352 8.6 6.8 8,814,293 8,814,293 49.28 54.76

Taipei
CBD 0 498,046 760,617 976,246 10.7 8.0 19,149,669 19,647,715 29.29 30.55

Seoul
CBD 5,916,205 0 4,327,152 376,684 14.2 13.2 35,874,645 35,874,645 24.79 24.53
KBD 487,710 0 219,470 -1,139,585 5.0 9.3 26,197,360 26,197,360 21.23 21.01
YBD 621,923 6,851,043 230,114 5,189,351 5.6 11.7 14,273,481 21,124,524 16.70 16.53

Tokyo
CBD 5,665,680 6,775,274 N/A N/A 8.5 8.0 N/A N/A 101.77 102.18

Jakarta
CBD 1,273,057 4,165,575 1,873,371 3,662,320 10.8 10.6 47,155,387 51,320,962 20.90 21.96
Non-CBD 1,563,112 1,392,590 1,003,142 1,327,253 13.2 14.8 20,439,344 22,183,257 13.87 14.56

Kuala Lumpur
KLCA 3,018,695 1,445,514 1,200,000 800,000 13.6 15.0 31,147,532 32,593,046 25.19 25.19

Manila
Makati 0 617,342 368,707 597,074 3.8 3.7 9,317,135 9,934,477 18.33 19.53
Ortigas 0 0 135,130 71,623 5.6 4.2 4,961,404 4,961,404 14.04 15.20
TRE N D S & FOREC A STS

City New Supply Take-up Average Vacancy Total Stock Average Rentals
(sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year)
2011 F 2012 F 2011 F 2012 F 2011 F 2012 F 2011 F 2012 F 2011 F 2012 F
Singapore
CBD 2,074,702 619,934 1,485,304 1,330,763 7.8 4.6 22,840,081 23,460,015 88.77 99.27

Bangkok
CBD 1,076,390 0 376,737 592,015 20.9 17.5 17,580,646 17,580,646 25.02 26.50

Ho Chi Minh City
CBD 0 384,271 -76,015 154,548 20.0 25.0 1,520,358 1,827,775 41.25 37.90

Bengaluru (BangaLore)
Overall 3,280,000 4,276,731 N/A N/A 15.5 N/A 72,513,175 76,789,906 12.33 13.13
CBD 450,000 44,000 N/A N/A N/A N/A N/A N/A 18.49
19.83
SBD 970,000
4,012,731 N/A N/A N/A N/A N/A N/A 11.26 12.06
PBD 1,860,000 220,000 N/A N/A N/A N/A N/A N/A 6.97 7.24

Chennai
Overall 7,594,878
4,000,000 N/A N/A 21.5 N/A N/A N/A 12.60 13.13
CBD 1,026,417 N/A N/A N/A N/A N/A N/A N/A 17.15 18.23
SBD 1,100,000 N/A N/A N/A N/A N/A N/A N/A 12.33 12.60
PBD 5,468,461 N/A N/A N/A N/A N/A N/A N/A 8.31 8.58

Mumbai
Overall 2,957,000 3,000,000 N/A N/A 14.0 N/A 87,185,000 90,185,000 52.27 53.61
CBD 930,000 N/A N/A N/A N/A N/A N/A N/A 82.29
84.43
SBD 1,440,000 N/A N/A N/A N/A N/A N/A N/A 48.78 50.66
PBD 587,000 N/A N/A N/A N/A N/A N/A N/A 25.46 25.46

New Delhi
Overall 5,200,000 2,500,000 N/A N/A 17.0 N/A 64,694,158 67,194,158 47.17 47.98
CBD 400,000 N/A N/A N/A N/A N/A 2,261,000 2,261,000 79.61 80.41
SBD 0 N/A N/A N/A N/A N/A 7,850,000 7,850,000 43.69 44.49
PBD 4,800,000 N/A N/A N/A N/A N/A 54,583,158 57,083,158 18.49 19.30

Adelaide
CBD 0 193,750 215,278 409,028 6.3 5.5 14,024,942 13,971,542 34.66 36.39

Brisbane
CBD 1,216,321 312,153 659,827 272,327 9.1 8.6 10,981,804 11,293,957 57.60 58.08

Canberra
CBD 0 215,278 161,459 215,278 10.2 5.0 2,798,614 3,013,892 37.44 39.36

Melbourne
CBD 217,129 1,179,670 512,663 957,987 3.7 4.5 19,736,418 20,916,088 43.68 49.16

Perth
CBD 688,158 1,180,348 699,654 914,932 7.2 7.9 16,185,160 17,295,531 61.04 64.15

Sydney
CBD 1,777,346 489,757 906,127 596,858 7.9 6.1 26,540,634 26,674,107 68.62 71.40

Auckland
CBD 301,389 0 278,835 130,182 9.7 6.9 4,639,026 4,639,026 21.59 22.04

Wellington
CBD 357,361 0 349,827 11,840 4.0 2.7 2,887,739 2,887,739 24.73 24.73
d e f i n i t i o n and t e r m i n o lo gy
GREATER CHINA
NORTH ASIA
Beijing
Prime office market in Beijing consists of 6 sub-markets – CBD (Central Seoul
Business District), Lufthansa, East 2nd Ring, Financial Street, East Chang Major office districts in Seoul include the traditional central business area
An Avenue and Zhongguancun. (CBD), Gangnam Business District (GBD) and Yeouido Business District
(YBD).
Rents are quoted in RMB per sq m per month on gross floor area basis,
and exclusive of management fees and rent free period. Capital values Rents are quoted in Won per pyung (also equivalent to 3.3 sq m) per month
are quoted on RMB per sq m. on gross floor area basis. Generally, a deposit equivalent to 10 months
is required, and is usually paid up front. Management fees are excluded
Chengdu from quoted rents. Space is measured on gross floor area basis. Capital
Prime office buildings in Chengdu are mainly located in 3 sub-markets, values are quoted in Won per sq m.
Renmin Road, CBD and Financial Street.
Tokyo
Rents are quoted in RMB per sq m per month on gross floor area basis, The quality office buildings in Tokyo are located in the central business
and exclusive of management fees. Capital values are quoted on RMB area (CBD) area covering six wards namely, Chiyoda-ku, Chuo-ku,
per sq m. Minato-ku, Shinjuku-ku, Shibuya-ku and Shinagawa-ku.
Guangzhou
Rents are asking rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month,
Prime office buildings in Guangzhou are located in 3 principal sub-markets
which are inclusive of service charges. Office space is measured on an
– Haizhu, Yuexiu and Tianhe.
internal floor area basis. Capital values are quoted in Yen per tsubo.
Rents are quoted in US$ per sq m per month on gross floor area basis,
and exclusive of any management fees and government taxes. Capital
values are quoted on US$ per sq m.
SOUTHEAST ASIA
Shanghai
Jakarta
Prime office buildings in Shanghai are located in 7 principal sub-markets
The quality office buildings in Jakarta are located in the CBD covering
– Huangpu, Jingan, Lujiazui, Zhuyuan, Changning, Luwan and Xuhui.
the districts Thamrin, Sudirman, Gatot Subroto, Rasuna Said and Mega
Kuningan. The areas outside the above districts are collectively called
Rents are quoted in RMB per sq m per day on gross floor area basis, and
as “non-CBD”.
exclusive of any management fees. Capital values are quoted on RMB
per sq m.
Rents are commonly quoted in Rupiah per sq m per month, which are
inclusive of service charges but exclusive of government taxes. Office
Hong Kong
space is measured on lettable floor area basis. Capital values are quoted
Prime office properties in Hong Kong are concentrated in 5 sub-markets
in Rupiah per sq m.
– Central, Wanchai / Causeway Bay, Island East, Tsim Sha Tsui and
Kowloon East.
Kuala Lumpur
Prime office buildings located in the Kuala Lumpur Central Area (KLCA)
Rents are commonly quoted in HK$ per sq ft per month on either gross, net
only. The KLCA comprises areas generally within the central business
or lettable floor area basis, which are exclusive of management fees, and
district.
government tax. Prices are quoted in HK$ per sq ft, and are measurable
on gross floor area basis.
Rents are commonly quoted in Ringgit Malaysia (RM) per sq ft per month
on net floor area basis, which are inclusive of service charges and property
taxes. Capital values are quoted in Ringgit per sq ft.
Taipei
Prime office properties in Taipei are concentrated in 7 districts, comprising
Manila
Nanking Sung Chiang (NK-SC), Minsheng Tun Hwa North (MS-TN), Hsin Yi,
Prime office buildings in Manila are located in two principal sub-markets
West, Tun Hwa South (TUN-S), Jen Ai Hsin Sheng (JA-HS) and Nanking
– Makati and Ortigas.
East Road (NK-4/5).
Rents are quoted in Peso per sq m per month on net floor area basis,
The local unit of measurement is a “ping” (i.e. 3.3 sq m). Rents and prices
and exclusive of any management fees. Capital values are quoted in Peso
are quoted in local currency i.e. New Taiwan Dollar (NT$) on gross floor
per sq m.
area basis.
d e f i n i t i o n and t e r m i n o lo gy
Singapore Mumbai
The quality office buildings covered in the report are located in the Central Prime office properties in Mumbai are primarily concentrated in CBD
Business District of Singapore. (Central Business District) – consist of Nariman Point, Ford and Ballard
Estate; SBD (Secondary Business District) including Bandra (West and
Rents are quoted in S$ per sq ft per month on net floor area basis (i.e. area East), Kalina, Lower Parel and Worli/Prabhadevi and PBD (Peripheral
less common areas such as corridors, toilets, lift lobby etc. but including Business District) including Navi Mumbai, Vashi, Powai, Goregaon.
columns), and are inclusive of service charge. Capital values are quoted
on the basis of strata area for strata-titled buildings, and net area for non- Rents are commonly quoted in Rupee per sq ft per month, which are usually
strata-titled developments. exclusive of maintenance charges, parking charges and property taxes.
Office space is commonly measured on *super built up area basis.
Bangkok
Prime office properties in Bangkok are located in a wide area encompassing New Delhi
eastern Silom and Sathorn roads starting from Narathiwas Ratchanakarin, Prime office properties in New Delhi are primarily concentrated in
Rama IV from Phayathai to Ratchadaprisek, along Ratchadaprisek from CBD (Central Business District) – consist of Connaught Place; SBD
Rama IV to Sukhumvit and along Sukhumvit from Asoke to the whole of (Secondary Business District) including Nehru Place, Jasola, Saket and
Pleonchit and then Rama I to Phayathai. Netaji Subhash Place and PBD (Peripheral Business District) including
Gurgaon and Noida.
Rents are quoted in Baht per sq m per month on a net floor area basis, and
inclusive of service charges. Capital values are quoted in Baht per sq m. Rents are commonly quoted in Rupee per sq ft per month, which are usually
exclusive of maintenance charges, parking charges and property taxes.
Ho Chi Minh City
The quality office buildings in Ho Chi Minh City are located in District Office space is commonly measured on *super built up area basis.
One - the central business district in the city.
Rents are commonly quoted in US$ per sq m per month on net floor area
basis, and exclusive of management fees and government tax. Capital AUSTRALASIA
values are quoted on US$ per sq m.
Australia
Prime office buildings are located in the CBD and generally favoured by
MNCs.
INDIA
Rents are quoted on net floor area basis, and in A$ per sq m per annum
Bengaluru (Bangalore) excluding management fee and government charges. Capital values are
Prime office properties in Bengaluru are can be divided in 3 principal sub- quoted on A$ per sq m.
markets – CBD (Central Business District), SBD (Suburban/Secondary
Business District) consisting of Bannerghatta Road & Outer Ring Road New Zealand
and PBD (Peripheral Business District) including PBD Hosur Road, EPIP Prime office buildings are located in the CBD.
Zone, Electronic City and Whitefield.
Rents are quoted on net floor area basis, and in NZ$ per sq m per annum
Rents are commonly quoted in Rupee per sq ft per month, which are usually excluding management fee and government charges. Capital values are
exclusive of maintenance charges, parking charges and property taxes. quoted on NZ$ per sq m.
Chennai
Prime office properties in Chennai are located in 3 principal submarkets–
CBD (Central Business District), (Suburban/Secondary Business District)
and PBD (Peripheral Business District). SBD consists of Guindy and
Velechery while PBD includes other areas such as Old Mahaballipuram
Road, Ambattur and GST Road amongst others.
Rents are commonly quoted in Rupee per sq ft per month, which are usually
exclusive of maintenance charges, parking charges and property taxes.
* Super built-up area refers to the total **built-up area of a building plus a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretaker’s office/flat throughout
the building.
** Built-up area refers to the carpet area plus the thickness of external walls and area under columns.
For further details, please contact:
GREATER CHINA Taipei, Taiwan Manila, Philippines

49F TAIPEI 101 TOWER 10F Tower 2 RCBC Plaza,
Beijing, China No. 7 Xin Yi Road Sec 5, Taipei 110 Ayala Avenue, Makati City
502 Tower W3, Oriental Plaza Tel : 886 2 8101 2000 Philippines1226
No 1 East Changan Avenue, Fax : 886 2 8101 2345 Tel : 63 2 888 9988
Dongcheng District Andrew Liu Fax : 63 2 845 2612
Beijing 100738 Managing Director David Young
Tel : 86 10 8518 1633 andrew.liu@colliers.com Managing Director
Fax : 86 10 8518 1638 david.a.young@colliers.com
Amanda Gao
Managing Director, North China NORTH ASIA
amanda.gao@colliers.com Singapore
Seoul, South Korea 1 Raffles Place
10F Korea Tourism Organization Bldg., #45-00 One Raffles Place
Chengdu, China 10 Da-dong, Singapore 048616
Unit 1504 Yanlord Landmark Jung-gu, Seoul 100-180 Tel : 65 6223 2323
1 Renmin South Road Section 2 Tel : 82 2 6740 2000 Fax : 65 6222 4901
Chengdu 610016 Fax : 82 2 318 2015 Dennis Yeo
Tel : 86 28 8658 6288 Jay Yun Managing Director
Fax : 86 28 8672 3226 Senior Director & General Manager Singapore & Industrial Services | Asia
Jacky Tsai jay.yun@colliers.com dennis.yeo@colliers.com
General Manager
jacky.tsai@colliers.com
Tokyo, Japan Bangkok, Thailand
Halifax Building 17/F Ploenchit Center
Guangzhou, China 3-16-26 Roppongi 2 Sukhumvit Road
702 Teem Tower, Minato-ku, Tokyo 106-0032 Japan Klongtoey, Bangkok 10110
208 Tianhe Road Tel : 81 3 5563 2111 Tel : 66 2 656 7000
Guangzhou 510620 Fax : 81 3 5563 2100 Fax : 66 2 656 7111
Tel : 86 20 3819 3888 James Fink Patima Jeerapaet
Fax : 86 20 3819 3899 Senior Managing Director Managing Director
Eric Lam james.fink@colliers.co.jp patima.jeerapaet@colliers.com
Managing Director
eric.lam@colliers.com
Ho Chi Minh City, Vietnam
SOUTH EAST ASIA Ho Chi Minh City, Vietnam
Shanghai, China 7F Bitexco Building
Jakarta, Indonesia 19-25 Nguyen Hue Street
16F Hong Kong New World Tower
10F World Trade Centre, District 1, Ho Chi Minh City
300 Huaihai Zhong Road
Jl Jenderal Sudirman Tel : 84 8 827 5665
Shanghai 200021
Kav 29-31 Jakarta 12920 Fax : 84 8 827 5667
Tel : 86 21 6141 3688
Tel : 62 21 521 1400 Peter Dinning
Fax : 86 21 6141 3699
Fax : 62 21 521 1411 General Director
Lina Wong
Mike Broomell peter.dinning@colliers.com
Managing Director, East and
Managing Director
South West China
mike.broomell@colliers.com
lina.wong@colliers.com
Hanoi, Vietnam
Vinaplast - Tai Tam Building,
Kuala Lumpur, Malaysia 9th Floor,
Hong Kong, HKSAR
c/o Mark Lampard* 39A Ngo Quyen Street
5701 Central Plaza,
Managing Director Hoan Kiem District, Hanoi, Vietnam
18 Harbour Road
Corporate Solutions | Asia Pacific Tel : 84 4 220 5888
Wanchai, Hong Hong
Te : 65 6531 8601 84 4 220 5566
Company Licence No: C-006052
Fax : 65 6557 0649 Fax : 84 4 220 1133
Tel : 852 2828 9888
mark.lampard@colliers.com Do Le Quan
Fax : 852 2828 9899
* Based in Singapore Deputy General Director
Richard Kirke
Managing Director quan.do@colliers.com
Research data provided by
richard.kirke@colliers.com
C H Williams Talhar & Wong Sdn Bhd
30-01, 30th Floor
Piers Brunner (E-183614)
Menara Multi-Purpose @ CapSquare
Chief Executive Officer - Asia
8 Jalan Munshi Abdullah
piers.brunner@colliers.com
P O Box 12157
50100 Kuala Lumpur
Malaysia
Tel : 603 2616 8888
Fax : 603 2616 8899
URL : http://www.wtw.com.my
Foo Gee Jen
Managing Director
fgj@wtw.com.my
INDIA New Delhi, India Melbourne, Australia

204/205, 2nd Floor, Level 32 367 Collins Street
Bengaluru, India Kanchenjunga Building, Melbourne VIC 3000
Prestige Garnet, Level 2, Unit No.201/202 18 Barakhamba Road Tel : 61 3 9629 8888
36 Ulsoor Road, Bengaluru 560 042 New Delhi 110 001 Fax : 61 3 9629 8549
Tel : 91 80 4079 5500 Tel : 91 11 4360 7500 John Marasco
Fax : 91 80 4112 3131 Fax : 91 11 2335 6624 State Chief Executive
Goutam Chakraborty Prit Paul john.marasco@colliers.com
Office Director Office Director
goutam.chakraborty@colliers.com Prit.Paul@Colliers.Com
Perth, Australia
Level 19, 140 St Georges Terrace
Chennai, India Pune, India Perth WA 6000
Unit 1C, 1st Floor, Heavitree Complex, Vatika Business Center, Level-5 Tel : 61 8 9261 6666
23 Spurtank Road, Chetpet, C Wing, Panchsheel Tech Park-1, Fax : 61 8 9261 6665
Chennai 600 031 Yerwada K. Imran Mohiuddin
Tel : 91 44 2836 1064 Pune 411 006 State Chief Executive
Fax : 91 44 2836 1377 Tel : 91 20 4011 1356 imran.mohiuddin@colliers.com
Kaushik Reddy Fax : 91 20 6640 3138
Office Director Suresh Castellino
kaushik.reddy@colliers.com Office Director Sydney, Australia
suresh.castellino@colliers.com Level 12, Grosvenor Place,
225 George Street
Gurgaon, India Sydney NSW 2000
G3, NewBridge Business Centers, Tel : 61 2 9257 0222
TechnoPolis, DLF Golf Course AUSTRALASIA Fax : 61 2 9251 3297
Main Sector Road Malcom Tyson
Sector 54, Gurgaon 122 002 Adelaide, Australia State Chief Executive
Tel : 91 124 4375807 Level 10, 99 Gawler Place, malcom.tyson@colliers.com
Fax : 91 124 4375806 Adelaide SA 5000
Saacketh Chawla Tel : 61 8 8305 8888
Office Director Fax : 61 8 8231 7712 Auckland, New Zealand
saacketh.chawla@colliers.com James Young Level 27, 151 Queen Street, Auckland
State Chief Executive Tel : 64 9 358 1888
james.young@colliers.com Fax : 64 9 358 1999
Kolkata, India Mark Synnott
Regus Business Centre Constantia, Level 6, Managing Director
Kolkata 700017 Brisbane, Australia mark.synnott@colliers.com
Tel : 91 33 4400 0541 Level 20 Central Plaza One
Fax : 91 33 4400 0555 345 Queen Street
Joe Verghese Brisbane QLD 4000 Wellington, New Zealand
Managing Director Tel : 07 3229 1233 Level 10, 36 Customhouse Quay
joe.verghese@colliers.com Fax : 07 3120 4555 Wellington
Simon Beirne Tel : 64 4 473 4413
State Chief Executive Fax : 64 4 499 1550 (Agency)
Mumbai, India simon.beirne@colliers.com : 64 4 470 3902 (Valuation)
31-A, 3rd Floors, Film Centre, Richard Findlay
68 Tardeo Road Managing Director
Mumbai 400 034 Canberra, Australia richard.findlay@colliers.com
Tel : 91 22 4050 4500 Ground floor, 21-23 Marcus Clarke Street
Fax : 91 22 2351 4272 Canberra ACT 2601
Poonam Mahtani Tel : 61 2 6257 2121
Office Director Fax : 61 2 6257 2937
poonam.mahtani@colliers.com Paul Powderly
State Chief Executive
George McKay paul.powderly@colliers.com
South Asia Director
Office & Integrated Services
george.mckay@colliers.com
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied,
regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International
excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property
of Colliers International and/or its licensor(s). ©2011. All rights reserved.
Colliers International is the third largest global real estate services company.
www.colliers.com

Asia Pacific Office Q1 2011 - Colliers International Thailand

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Asia Pacific Office Q1 2011 - Colliers International Thailand

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Asia Pacific

Office Market Overview

Greater China 4-6

Southeast Asia 8-10

Prime Office Rentals 17

Trends & Forecasts 18-19

Definitions & Terminology 20-21

• Underpinned by growing business needs and headcount expansion in both indigenous

Supply Take-up Vacancy Rate

China Overseas Plaza L Toyota Motor 236,700

CHENGDU OFFICE CAPITAL AND RENTAL VALUES

  Building Lease (L) / Tenant / Purchaser Area

  Aerospace Technology Plaza L Chengdu Jinkong Loan 15,100

  Aerospace Technology Plaza L Adidas 17,200

  Building Lease (L) / Tenant / Purchaser Area

GT. Land L Guangzhou Qisheng Information 39,500

Supply Take-up Vacancy Rate

Building Lease (L) / Tenant / Purchaser Area

  New Richport L Zhao Online / Housane 40,900

BM ICC L Modine 16,100

3.00 6.0% increased 12.8% QoQ during the period.

  major transactions

Millennium City Phase 1 L Zurich 47,000

C-Bons International Centre L Zurich 51,000

Sale (S) (sq ft)

SEOUL OFFICE SUPPLY, TAKE-UP &

  Sale (S) (sq ft)

Imgwang Building L SK Communications 34,500

TOKYO OFFICE SUPPLY, TAKE-UP &

Supply Take-up Vacancy Rate major transactions

Building Lease (L) / Tenant / Purchaser Area

Iino Building L Sojitsu 248,500

The Plaza L Acer Indonesia 18,900

  Building Lease (L) / Tenant / Purchaser Area

Wisma KLIH S Wonderful Vantage Sdn Bhd 55,208

Menara Pan Global L Pacific Regency Hotel Suites 30,700

• As at the end of 2011, prime office stock was at 865,591 sq m.

Building Lease (L) / Tenant / Purchaser Area

expansionary mode. Rentals are thus predicted to increase 15-20% in 2011.

Asia Square Tower 1 Lease Marsh & McLennan Group 90,000

Supply Take-up Vacancy Rate

  Lao Peng Nguan L Thai Beverage Plc. 46,000

uncertainties are expected to impact overall occupational demand in 2011.

30 Bitexco Financial Tower L Thai Thinh Capital 64,600

Rentals (US/ sq m / Month)

  Building Lease (L) / Tenant / Purchaser Area

  Global Tech Village L Mphasis 86,000

World Trade Centre L Amazon Software India 80,000

Supply Take-up Vacancy Rate

DLF SEZ L Virtusa 50,000

Ascendas L Zebra Technologies 20,000

MUMBAI OFFICE CAPITAL AND RENTAL VALUES

  major transactions

Kaliedonia L Goyal & company 10,000

Building Lease (L) / Tenant / Purchaser Area

Spaze IT Park L Capegemini 80,000

  Building Lease (L) / Tenant / Purchaser Area

  151 South Terrace L Transfield Services 17,400

BRISBANE OFFICE SUPPLY, TAKE-UP &

  is likely to provide some counterbalance.

Building Lease (L) / Tenant / Purchaser Area

CANBERRA OFFICE SUPPLY, TAKE-UP &

  Building Lease (L) / Tenant / Purchaser Area

Building Lease (L) / Tenant / Purchaser Area

Aerospace Technology Plaza L Chengdu Jinkong Loan 15,100

Aerospace Technology Plaza L Adidas 17,200

Building Lease (L) / Tenant / Purchaser Area

New Richport L Zhao Online / Housane 40,900

major transactions

Sale (S) (sq ft)

Building Lease (L) / Tenant / Purchaser Area

Lao Peng Nguan L Thai Beverage Plc. 46,000

Building Lease (L) / Tenant / Purchaser Area

Global Tech Village L Mphasis 86,000

major transactions

Building Lease (L) / Tenant / Purchaser Area

151 South Terrace L Transfield Services 17,400

is likely to provide some counterbalance.

Building Lease (L) / Tenant / Purchaser Area

121 Marcus Clarke Street L Military Super 5,800

Building Lease (L) / Tenant / Purchaser Area

Goods Shed South L Pearson 79,600

major transactions

99 St Georges Terrace S Private Investor 66,300

Fund

Building Lease (L) / Tenant / Purchaser Area