Asia pacific office-1q-2013

AsiA PAcificOffice Market Overview1Q 2013

Accelerating success.

table Of cOntentsAsiA PAcific office mArket overview | 1Q 2013

regional overview 3

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

south east Asia 8-11Jakarta, Indonesia .............................................................................................................................8Kuala Lumpur, Malaysia ....................................................................................................................8Manila, Philippines ............................................................................................................................9Singapore ..........................................................................................................................................9Bangkok, Thailand ........................................................................................................................... 10Ho Chi Minh City, Vietnam .............................................................................................................. 10Hanoi, Vietnam ................................................................................................................................. 11 south Asia 11-13Bengaluru (Bangalore), India .......................................................................................................... 11Chennai, India .................................................................................................................................. 12Delhi NCR, India .............................................................................................................................. 12Mumbai, India .................................................................................................................................. 13 Karachi, Pakistan............................................................................................................................. 13 Australasia 14-17Adelaide, Australia .......................................................................................................................... 14Brisbane, Australia ......................................................................................................................... 14Canberra, Australia ......................................................................................................................... 15Melbourne, Australia ....................................................................................................................... 15Perth, Australia ............................................................................................................................... 16Sydney, Australia ............................................................................................................................ 16Auckland, New Zealand ...................................................................................................................17Wellington, New Zealand .................................................................................................................17

Prime office rental and supply 18-19

trends & forecasts 20-21

Definition & terminology 22-23

contacts 24-25

colliers iNterNAtioNAl | P. 3

regiOnal Overview

ecoNomic overviewWith the slow recovery in the global economy driven by the continued risks emanating from the Eurozone and the US, GDP growth in a number of Asian economies registered a slower than expected performance in 1Q 2013. Singapore’s GDP contracted 0.6% year-on-year (YoY), the first decline over the past three years. China unexpectedly lost its momentum in 1Q 2013 with growth falling short of the original forecast of 8% to a recorded increase of 7.7% YoY. This slowdown occurred despite the government’s commitment to massive infrastructure spending and the sustained growth in private consumption.

leAsiNgMore than half of the leasing inquiries received in 1Q 2013 involved expansionary requirements from companies and, as a result, average rents in the region increased mildly by 0.9% QoQ in 1Q 2013. Although expansion requirements were seen regionally, most multinational corporations maintained a cautious outlook on the external environment and remained largely cost-conscious in regard to real estate spending. Many firms continue to pursue cost reduction real estate strategies with focus on shifting to lower cost decentralised locations, thus putting a cap on rental growth in core locations. However there were stand-out markets such as Jakarta and Manila where economic growth has been running above the three-year historical average. With low office vacancy rates and limited new supply in the pipeline, rental growth was recorded at over 7% QoQ during the quarter.

sAles mArketOn the sales front, buying interest from individual investors has been dampened by various government cooling measures such as the increases in real estate stamp duties in Singapore and Hong Kong, introduced in 1Q 2013. However, cash-rich occupiers, in particular insurance companies, became active in the sales market in order to avoid the risk of rental volatility. This trend was demonstrated with key purchases in Hong Kong and Korea. In China, domestic end-users in Beijing remained active in sourcing deals while overseas institutional investors and local players in Shanghai continued to dominate the whole-block sales market.

mArket outlookLooking ahead, individual governments in the region are expected to introduce additional stimulus measures to improve the pace of economic growth. In the leasing market, corporate tenants will remain largely cost-conscious over the near term until there are more concrete signs of recovery in global demand, perhaps in the latter half of 2013. Given the low interest rate environment, the overall sales market is expected to remain dominated by cash-rich occupiers who are motivated to consider buying for long-term own-use.

P. 4 | colliers iNterNAtioNAl

asia pacific office market overview | 1Q 2013

cHiNABeijing• A new Grade A office project of 37,800 sq m was completed in 1Q 2013. An existing

project situated in the East 2nd Ring sub-market was added back to the market due to the transition from an owner-occupancy to a partial leasing strategy.

• Demand for Grade A office properties remained largely stable during 1Q 2013, on the back of a mild upturn in economic growth, with enquiries and leasing transactions for quality office space recovering moderately. Correspondingly, the overall vacancy rate edged down by 0.2 percentage points QoQ to 4.8%, as of the end of 1Q 2013.

• Rentals increased 0.4% QoQ to RMB327.9 per sq m per month by end of 1Q 2013. However, in a bid to retain satisfactory occupancy rates, some landlords were more flexible in their pricing, leading the average rents in the East Chang An Avenue, Lufthansa and East 2nd Ring sub-markets to decline by 3.0% QoQ, 1.9% QoQ and 0.9% QoQ, respectively.

• The office investment market was active in 1Q 2013, with many domestic end-users demonstrating strong interest in sourcing deals. One en bloc sales transaction was disclosed during this quarter. Shandong Luneng Group Co. Ltd, a domestic corporation, acquired Bogong International Centre in the central business district (CBD), for a total consideration of RMB1.39 billion.

mAjor trANsActioNs

BuilDiNg leAse (l) /sAle (s)

teNANt / PurcHAser AreA (sq ft)

Bogong International Centre S Shandong Luneng Group Co. Ltd 344,400Raycom Info Tech Park L Red Hat Software 54,800Central International Trade Centre

L Joy Global (China) Investment Co. Ltd

20,800

Phoenix Place L Lexmark 15,100China Electronics Plaza L Nufront 14,700

20,000

40,000

60,000

80,000

00.00

100.00

200.00

300.00

400.00

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

Capi

tal V

alue

s

Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)

BEIJING OFFICE CAPITAL AND RENTAL VALUES

0.00

0.20

0.40

0.60

0.80

0.0%

5.0%

10.0%

15.0%

20.0%

2010 2011 2012 2013 F 2014 F

Supply Take-up Vacancy Rate

BEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE

SHAngHAi• Leasing demand improved slightly in 1Q 2013. Correspondingly, the average vacancy rate in

the CBD edged down from 9.2% in 4Q 2012 to 9.1% in 1Q 2013, while in decentralised areas it descended mildly to 19.5%.

• After being acquired by Blackstone in 2012, Huamin Imperial Tower was launched as Garden Square in March 2013.

• The average rental rate for Grade A premises in the CBD remained flat in 1Q 2013, standing at RMB8.8 per sq m per day. The rental rate in decentralised districts declined by 1.2% QoQ to RMB5.1 per sq m per day.

• The en bloc office sales market recorded a number of notable transactions, with both overseas institutional investors and local buyers active in 1Q 2013.

mAjor trANsActioNs



Grand Gateway L Seagate 9,700

Park Place L Advent 6,500

Corporate Avenue L Gensler 6,500

Park Place L Simmons & Simmons 7,500

Ocean Tower S ARA 539,600

J-Tower S MGPA 161,500

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

Capi

tal V

alue

s

Rentals (RMB / sq m / Day) Capital Values (RMB / sq m)

0.00

3.00

6.00

9.00

12.00

15.00

18.00

0

12,000

24,000

36,000

48,000

60,000

72,000

SHANGHAI OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F0.00

0.30

0.60

0.90

1.20

Mill

ion

sq m

0.0%

5.0%

10.0%

15.0%

Vaca

ncy

Rate

20.0%


SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE



CHengDU• Chengdu’s Grade A office market database has been adjusted to the latest Office Grading

Guideline. Until 1Q 2013, the total Grade A office stock amounted to 780,175 sq m. Average rent increased by 0.94% QoQ, to RMB128.91 per sq m per month, while the vacancy rate went up slightly by 0.2% QoQ.

• In this quarter The Atrium office building, with 37,858 sq m of space, entered the office market bringing Grade A office stock in the Financial Street area to 220,599 sq m. The average rent increased by 6.18% QoQ, to RMB119.56 per sq m per month, while the vacancy rate in this area stood at 53.39%, an increase of 2.97% QoQ.

• The new office buildings with high-quality hardware and construction attracted many tenants. As a result, vacancy rate for the overall Grade A office market increased by only 0.2% QoQ in 1Q 2013, even though there was a new project entering the market at the same time. On the other hand, the pressure of rising rents will increase as homogeneous competition in the Grade A office market intensifies in 2013.

gUAngzHoU• The average vacancy rate for Guangzhou’s Grade A office market decreased 2.4% QoQ

to 21.9% in 1Q 2013, as no new supply entered the market.

• Office rents rebounded to RMB156.9 per sq m per month in 1Q 2013.

• Guangzhou’s Grade A office prices staged a stable performance, averaging RMB31,107 per sq m during 1Q 2013.

mAjor trANsActioNs



Taikoo Hui L Sumitomo Corporation 21,500Victory Plaza L Dacheng Law Offices 14,000

CHENGDU OFFICE CAPITAL AND RENTAL VALUES

0.00

50.00

100.00

150.00

200.00

250.00

0

5,000

10,000

15,000

20,000

25,000

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

Capi

tal V

alue

s


CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2010 2011 2012 2013 F 2014 F

Mill

ion

sq m

Vaca

ncy

Rate


cHiNA

mAjor trANsActioNs



Square One L Ruihuang Watch 1,600Raffles City L Zhengjin Mining 7,000Raffles City L A-one Industrial 14,000Ping An Fortune Centre L AstraZeneca 17,200Ping An Fortune Centre L Jiangsu Institute of Urban

Planning and Design

14,000

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0.00

50.00

100.00

150.00

200.00

0

10,000

20,000

30,000

40,000

Rent

als


Capi

tal V

alue

s

GUANGZHOU OFFICE CAPITAL AND RENTAL VALUES

0.00

0.25

0.50

0.75

1.00

0.0%

10.0%

20.0%

30.0%

40.0%

2010 2011 2012 2013 F 2014 F

Mill

ion

sq m

Vaca

ncy

Rate


GUANGZHOU OFFICE SUPPLY, TAKE-UP & VACANCY RATE



tokyo• New supply in 2013 will be the lowest since 2008.

• Rents bottoming, significant incentives continue.

• Vacancy rates continue to be range bound with some qualitative decline.

• Business confidence and government stimulus may impact demand positively.

• Macro-economic indicators turning positive, land prices stabilising.

• Tenant-friendly market conditions continue, but near-term further weakening unlikely.

HoNg koNgHong kong• Overall Grade A office rents increased slightly by 0.4% QoQ in 1Q 2013. However rents

in Central fell by 1.2% QoQ during the same period, as individual landlords of top-tier buildings reduced their asking rents in anticipation of a potential increase in backfill space once major anchors decided to relocate.

• Most tenants chose to renew their leases in 1Q 2013, as very few other real estate leasing options were available.

• Buying interest remained strong among investors and end-users in 1Q 2013. For example, Hang Seng Bank acquired the en bloc at 113 Argyle Street in Mong Kok for about HK$3 billion for its own occupation and investment purposes, representing an estimated market yield of 3.4%.

• On the leasing front, office rents in Central are expected to grow more strongly in the order of 8% than overall Grade A office rents (7%) in the coming 12 months, as the rental premium for top-tier buildings is expected to increase, due to growing occupational demand among small-to-medium-size financial tenants willing to pay the premium.

HONG KONG OFFICE CAPITAL AND RENTAL VALUES

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0.00

25.00

50.00

75.00

100.00

125.00

150.00

175.00

Rent

als

Capi

tal V

alue

s

Rentals (HK$ / sq ft / Month) Capital Values (HK$ / sq ft)

HONG KONG OFFICE SUPPLY, TAKE-UP & VACANCY RATE

0.00

0.50

1.00

1.50

2.00

2.50

3.00

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2010 2011 2012 2013 F 2014 F

Mill

ion

sq ft

Vaca

ncy

Rate


mAjor trANsActioNs



Akasaka Center Building L Oracle 120,700Watterras Tower L Hitachi Building Systems 177,500Kokusai Shin Akasaka L Ando Hazama Construction 152,700Toranomon Hills L Asatsu DK 230,800JP Tower L Net One Systems 177,500

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0

10,000

20,000

30,000

40,000

50,000

Rent

als

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

Capi

tal V

alue

s

Rentals (Yen / Tsubo / Month) Capital Values (Yen / Tsubo)

TOKYO OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F0

40,000

80,000

120,000

160,000

200,000

240,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%


Tsub

o

Vaca

ncy

Rate

TOKYO OFFICE SUPPLY, TAKE-UP & VACANCY RATE

jAPAN

mAjor trANsActioNs



Two IFC L UBS 205,000Kowloon Commerce Centre

Tower B

L Bank of America 117,000

Three Pacific Place L Societe Generale 108,000113 Argyle Street S Hang Seng Bank 340,000Manley Commercial Building S Macau-based investor 58,300



SeoUl• Seven office buildings were launched in 2012, covering 500,830 sq m of gross floor

area. In 1Q 2013, State Tower Gwanghwamun in the CBD with a gross floor area of 40,991 sq m was the only new supply to enter the market.

• Most upcoming office buildings in 2013 will be in the CBD and YBD. In the CBD, four Grade A office buildings will come on stream and two premium office towers, Three IFC and FDI tower, will be launched.

• The average rent for Grade A office buildings increased 1.11% from the previous quarter to KRW24,478 per sq m in 1Q 2013 as most prime-grade buildings maintained steady rental rates with no significant changes.

• The overall vacancy rate stood at 7.89% in 1Q 2013, relatively unchanged from the previous quarter as expansions/relocations to prime office buildings continued at a moderate pace.

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Rent

als

Capi

tal V

alue

s

Rentals (NT$ / Ping / Month) Capital Values (NT$ / Ping)

TAIPEI OFFICE CAPITAL AND RENTAL VALUES

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2010 2011 2012 2013 F 2014 F

Ping


Vaca

ncy

Rate

TAIPEI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

soutH koreA1Q

201

02Q

201

03Q

201

04Q

201

01Q

201

12Q

201

13Q

201

14Q

201

11Q

201

22Q

201

23Q

201

24Q

201

21Q

201

32Q

201

3 F

3Q 2

013

F4Q

201

3 F

1Q 2

014

F2Q

201

4 F

3Q 2

014

F4Q

201

4 F

Capi

tal V

alue

s

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

00

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Rent

als

Rentals (Won / sq m / Month) Capital Values (Won / sq m)

SEOUL OFFICE CAPITAL AND RENTAL VALUES

0

100,000

200,000

300,000

400,000

500,000

600,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2010 2011 2012 2013 F 2014 FVa

canc

y Ra

te

sq m


SEOUL OFFICE SUPPLY, TAKE-UP & VACANCY RATE

tAiwAN

mAjor trANsActioNs



Farglory International Centre L PAREXEL International 71,100Taipei 101 Tower L Ting Hsin International Group 27,700Fabulous International Commercial Building

L Brother Hotel 22,800

Walsin Xinyi Building L Eastspring Investments 17,800Manhattan World Trade Building L Insurance Company of North

America Taipei Branch13,200

tAipei• The completion Farglory Financial Center added 18,000 ping to Grade A office market.

Since the net take-up of Grade A offices during this quarter was lower than the new supply, the vacancy rate increased further by 1.2 percentage points QoQ to 11.14% in 1Q 2013. Meanwhile, vacancy rate in Hsin-Yi district increased to 13.5% due to the completion of the new building.

• In addition, the net take-up in the NK-SC district was 2,400 ping in 1Q 2013, causing the vacancy rate to decline by 6.2 percentage points QoQ, to 13.23% in 1Q 2013.

• The net take-up in the MS-TN district also reached 1,040 ping in 1Q 2013, which caused the vacancy rate to drop by 95 basis points QoQ, to 13.1% in 1Q 2013.

• The average effective Grade A office rents rose by 14 basis points or NT$4 QoQ to NT$ 2,442 per ping per month in 1Q 2013. Effective rents in the Hsin-Yi district rose by 0.72% QoQ to NT$ 2,844 per ping per month in 1Q 2013.

mAjor trANsActioNs



K Twin Tower L Woori Card 99,600

K Twin Tower L Microsoft 148,600

Center 1 L SMBC 72,800

Sewoo Building L IGIS Asset management 11,700

GS Yeokjeon Tower S Vastas Investment Management 429,600

Doosan E&C S Hana Daol Trust 234,400

Hyundai Capital HQ S Hyundai Life Insurance 400,500



iNDoNesiAjAkArtA• The average occupancy rate for office buildings in the CBD was registered at 97% in

1Q 2013. Expansion activity remains the main demand generator this year in view of promising economic growth. About 35% of the new projects coming on line in 2013 has been pre-committed.

• Office buildings located outside the CBD also enjoy a robust market. About 70% of the new projects scheduled for completion this year has been pre-committed.

• Grade A office rents soared quite substantially in 1Q 2013. There are increasing demand for more affordable property options.

• The growing T.B. Simatupang market in South Jakarta will be the major source of new supply in 2013, accounting for about 50% of the total in non-CBD areas. The tenants of the new space are mainly from the mining and oil & gas industries.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

Capi

tal V

alue

s

Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m)

JAKARTA OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F

sq m

0

100,000

200,000

300,000

400,000

500,000


0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

Vaca

ncy

Rate

JAKARTA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Rent

als

200

400

600

800

1,000

1,200

Capi

tal V

alue

s

0

Capital Values (Ringgit / sq ft)Rentals (Ringgit / sq ft / Month)

KUALA LUMPUR OFFICE CAPITAL AND RENTAL VALUES

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%

28.0%

2010 2011 2012 2013 F 2014 F

Mill

ion

sq ft

Vaca

ncy

Rate


KUALA LUMPUR OFFICE SUPPLY, TAKE-UP & VACANCY RATE

kUAlA lUmpUr• There were no new completions during the review period in Central Kuala Lumpur. The

only prime office development which is expected to be completed by the end of this year is Menara Hap Seng 2, contributing 509,000 sq ft of net lettable area to the existing supply.

• As the new office space completed in 2012 was gradually absorbed, the vacancy rate decreased to 7.5% in 1Q 2013 from 13.9% in the previous quarter.

• Older buildings are being refurbished or demolished to make way for modern buildings. Among these are Tradewinds Corp Bhd demolishing the Crowne Plaza Mutiara Kuala Lumpur and Kompleks Antarabangsa to build the RM6 billion Tradewinds Centre, and the 35-storey Kompleks Dayabumi undergoing upgrades worth RM900 million in a conversion to a high-rise office and residential tower.

mAjor trANsActioNs



Menara Haw Par L Pac Lease Berhad 16,000Integra Tower @ Intermark L Michael Page International

Sdn Bhd

5,000

Pavilion Tower L KL Metro Group 9,800Menara CitiBank L Foster Wheeler E & C

(Malaysia) Sdn Bhd

17,900

mAlAysiA

mAjor trANsActioNs



BRI 2 L GE International Operations Company Inc.

44,600

World Trade Center II L PT Avrist Assurance 21,200Menara 165 L PT Energy Equity Epic (Seng-

kang) Pty. Ltd25,900

Menara 165 L Rajawali Swiber Cakrawala 13,000Menteng Office Park S Harmoni Dinamik Indonesia 78,000Gran Rubina S Mandiri Healthcare 33,100



PHil iPPiNesmAnilA• In 1Q 2013, the overall vacancy rate in all of the sub-markets in Metro Manila dropped

to the 3% level, mainly driven by the strong expansion demand from the outsourcing & off-shoring industry. In the Makati CBD, premium vacancy declined to 3.48% QoQ and will remain below the 4% level over the next twelve months.

• The vacancy rate in the Makati CBD will remain low in the long term as the supply for new office space remains limited. Only one new office building is expected to be completed this year - Alphaland Makati Tower (38,400 sq m). Meanwhile, V-Corporate Center (23,000 sq m) is targeted to be completed in 2014.

• As landlords gained more pricing power resulting from the relatively low vacancy rate, rents in Makati CBD increased substantially by 8.7% QoQ to almost P840.00 per sq m per month. The rental rate will eventually exceed the P900 per sq m level by the end of the year.

mAjor trANsActioNs



Hanston Square L Flextronics (Project Management)

27,200

RCBC Plaza L GXS 9,4000

200

400

600

800

1,000

1,200

1,400

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Capital Values (Peso / sq m)Rentals (Peso / sq m / Month)

Capi

tal V

alue

s

Rent

als

MANILA OFFICE CAPITAL AND RENTAL VALUES

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2010 2011 2012 2013 F 2014 F

sq m

Supply Take-up Vacancy RateVa

canc

y Ra

te

MANILA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

SingApore• Leasing momentum in the CBD stayed relatively muted in 1Q 2013, dominated by renewal

deals and tenants’ flight to quality.

• The average occupancy rate for Premium Grade office space in the Raffles Place / New Downtown micro-market increased from 88.5% in 4Q 2012 to 90.2% in 1Q 2013, although the average occupancy rate for Grade A office space in the wider CBD slipped from 94.5 to 93.6% over the same period.

• The average monthly gross rents for CBD Premium and Grade A office space continued to ease by another 0.7% QoQ in 1Q 2013 to reach S$8.41 per sq ft as of March 2013.

• Weighed down by downside risks on the global economic front, CBD office rents are expected to stay on a downtrend in 2013, but improving local market fundamentals could cap the fall in office rents to less than 5% for the whole year.

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0.00

5.00

10.00

15.00

20.00

25.00

Rent

als

30.00

500

1,000

1,500

2,000

2,500

3,000

Capi

tal V

alue

s

0

Capital Values (Singapore$ / sq ft)Rentals (Singapore$/ sq ft / Month)

SINGAPORE OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

0.00

0.50

1.00

1.50

2.00

2.50

Mill

ion

sq ft

Vaca

ncy

Rate


SINGAPORE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

siNgAPore

mAjor trANsActioNs



The Metropolis L Procter & Gamble 300,000The Metropolis L Neptune Orient Line 150,000The Metropolis L Shell 140,000The Metropolis L Singapore Exchange 80,00016 Collyer Quay (51% stake in holding company)

S NTUC Income 278,400

2HR, 2 Havelock Road S Guthrie GTS 173,900

Note: A re-basketing exercise was conducted in 1Q 2013 to update Colliers International’s basket of properties in the different micro-markets so as to better reflect the quality and physical building specifications under the current office built-up landscape.



tHAilAND1Q

201

02Q

201

03Q

201

04Q

201

01Q

201

12Q

201

13Q

201

14Q

201

11Q

201

22Q

201

23Q

201

24Q

201

21Q

201

32Q

201

3 F

3Q 2

013

F4Q

201

3 F

1Q 2

014

F2Q

201

4 F

3Q 2

014

F4Q

201

4 F

Rent

als

0

200

400

600

800

1,000

1,200

1,400

120,000

Capi

tal V

alue

s

20,000

40,000

60,000

80,000

100,000

140,000

0

Capital Values (Baht / sq m)Rentals (Baht/ sq m / Month)

BANGKOK OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F


sq m

0

20,000

40,000

60,000

80,000

100,000

120,000

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%

Vaca

ncy

Rate

BANGKOK OFFICE SUPPLY, TAKE-UP & VACANCY RATE

BAngkok• Overall, Bangkok office market rental rates increased in 2012 and are expected to continue

to rise in 2013, especially in the CBD.

• The limited availability of land at reasonable prices in the CBD area is the major obstacle for office building development. Therefore, most of the new office supply is located outside the CBD area.

• New international companies are entering the Thailand market, while many existing companies are expanding or planning to expand their offices.

• The prospects under the Asean Economic Community (AEC) in 2015 and the opening up of Myanmar will increase demand for office buildings in Bangkok as Thailand is seen as an increasingly important regional centre for companies with operations in the sub-region, i.e. Myanmar, Laos and Cambodia.

mAjor trANsActioNs



Chamchuree Square L AIRA Securities Group 30,200

mAjor trANsActioNs



Bitexco Financial Tower L Sabic 2,700Bitexco Financial Tower L Murphy Oil 9,700Bitexco Financial Tower L SoftBank 2,200President Place L Microsoft 32,300

vietNAm

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0

10

20

30

40

50

Rent

als

Rentals (US$/ sq m / Month)

HO CHI MINH CITY OFFICE RENTAL VALUES

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

-6.0%

-3.0%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

2010 2011 2012 2013 F 2014 F

sq m

Vaca

ncy

Rate


HO CHI MINH CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

Ho CHi minH City• Due to a number of delayed projects and continued difficulty in accessing financing,

there will not be any major increases in supply during 2013 or 2014. Current movement in investments from international enterprises should push growth in the long term.

• The lack of new supply should keep rents relatively stable. However, rental rates are expected to slide slightly more in 2013 before increasing again in 2014 as the market faces pressure from increasing demand and no major new supply until 2015.

• The lack of new supply in coming years is expected to lower vacancy rates to below 10% in the Premium Grade sector over the next two years.

• Future development of Premium Grade office projects will continue to be centred in the CBD (District 1).



HAnoi• An increasing proportion of new supply over the coming years will be coming from

large-scale projects being developed outside the CBD, particularly in Cau Giay and Tu Liam districts.

• The lower rental rates in the non-CBD projects will continue to drive average rental rates down across the city, as the projects compete with CBD projects for large-scale tenants.

• As the economy is still recovering from the slowdown of previous years, it is expected that demand and take-up will remain at lower levels despite the increased supply. Meanwhile, vacancy levels are expected to increase in the coming years.

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0

10

20

30

40

50

Rentals (US$/ sq m / Month)

Rent

als

HANOI OFFICE RENTAL VALUES

-50,000

0

50,000

100,000

150,000

200,000

250,000

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

2010 2011 2012 2013 F 2014 F

sq m

Vaca

ncy

Rate


HANOI CITY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

vietNAm

mAjor trANsActioNs



Pacific Place L Honeywell 1,100

iNDiA

0

10

20

30

40

50

60

70

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Rent

als

Capi

tal V

alue

s

Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Month)

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

BENGALURU OFFICE CAPITAL ANDRENTAL VALUES

2010 2011 2012 2013 F 2014 F0.00

2.00

4.00

6.00

8.00

10.00

12.00

Mill

ion

sq ft

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%

Vaca

ncy

Rate

0.0%


BENGALURU OFFICE SUPPLY, TAKE-UP & VACANCY RATE

BengAlUrU (BAngAlore)• In 1Q 2013, absorption improved in the IT/ITeS sector, the traditional driver of office

demand in the city. More than 2.5 million sq ft of Grade A office space was absorbed during the quarter. Most of the demand was generated by small and medium enterprises in the IT/ITeS sector, in micro-markets such as Whitefield, Electronic City and ORR.

• During 1Q 2013, construction activities in Bengaluru remained active, resulting in numerous completions. More than 1.5 million sq ft of Grade A office space was added to the city’s total inventory.

• Rental values for Grade A properties remained stable across all the sub-markets due to a supply and demand equilibrium.

• There will be limited new supply in the near- to medium-term. Developers are refraining from speculative development due to the uncertainty in the future performance of the IT/ITeS sector, and price competition from alternative locations like Pune and Hyderabad. Short- to medium-term rents are anticipated to remain stable.

mAjor trANsActioNs



Prestige Tech Park L LinkedIn 80,000RPS Green Space L VM Ware 60,000Golden Supreme Tech Park L Siemens 240,000

Pritech Park L Saffron 80,000

Renaissance First Face L Microchip 155,000



iNDiA

0

10

20

30

40

50

60

70

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Rent

als

Capi

tal V

alue

s

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F


CHENNAI OFFICE CAPITAL ANDRENTAL VALUES

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0.00

2.00

4.00

6.00

8.00

10.00

2010 2011 2012 2013 F 2014 F

Mill

ion

sq ft

Vaca

ncy

Rate


CHENNAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

CHennAi• In 1Q 2013, the city witnessed moderate leasing activities, with demand mostly driven

by IT/ITeS occupants in the Special Economic Zones (SEZs). The total office space absorption was recorded at around 1 million sq ft.

• The city has not witnessed any major completions in 1Q 2013. Developers have adopted a cautious approach due to high vacancy levels, and have slowed the pace of their construction works.

• During the surveyed quarter, no major movement of capital and rental values were recorded, hence both remained stable across all micro-markets.

• A moderate level of absorption momentum is expected in the coming quarters. With controlled supply in the near future, rentals are expected to remain at current levels in preferred micro-markets such as the CBD, OMR and Guindy. However, there may be some downward pressure in locations outside city areas because of lower demand.

mAjor trANsActioNs



Ramanujan IT SEZ L TCS 100,000Ramanujan IT SEZ L Mindtree 200,000Ramanujan IT SEZ L Pershing 60,000RMZ L Flextronics 80,000DLF SEZ L Barclays 69,000

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0

50

100

150

200

250

0

5,000

10,000

15,000

20,000

25,000

Rent

als

Capi

tal V

alue

s


DELHI NCR OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%

28.0%

Mill

ion

sq ft

Vaca

ncy

Rate


DELHI NCR OFFICE SUPPLY, TAKE-UP & VACANCY RATE

DelHi nCr• Steady occupier demand was observed during 1Q 2013. NCR witnessed the absorption

of more than 1.5 million sq ft during the quarter. More than 60% of this absorption was recorded in Gurgaon.

• Approximately, 3 million sq ft of Grade A office space was added to the city’s total inventory in 1Q 2013.

• The investment market continued to remain sluggish with no major en bloc sales transactions concluded in 1Q 2013.

• Rental values for new completed buildings in the CBD were higher than the market average due to their state-of-the-art facilities and amenities. However, the overall rents and capital values for Grade A offices remained stable in all micro-markets

mAjor trANsActioNs



Modelama L Jacob Engineering 116,000Konnectus L VFS Global 50,000DLF Atria L Cairn Energy 200,000Building No. 5 L American Express 150,000DLF IT Park L Fiserv 200,000



iNDiA1Q

201

02Q

201

03Q

201

04Q

201

01Q

201

12Q

201

13Q

201

14Q

201

11Q

201

22Q

201

23Q

201

24Q

201

21Q

201

32Q

201

3 F

3Q 2

013

F4Q

201

3 F

1Q 2

014

F2Q

201

4 F

3Q 2

014

F4Q

201

4 F

0

10,000

20,000

30,000

40,000

50,000

60,000

0

50

100

150

200

250

300

Rent

als

Capi

tal V

alue

s


MUMBAI OFFICE CAPITAL AND RENTAL VALUES

0.00

2.00

4.00

6.00

8.00

10.00

12.00

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%

2010 2011 2012 2013 F 2014 F

Mill

ion

sq ft

Vaca

ncy

Rate


MUMBAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

mUmBAi• Healthy leasing activities were observed during 1Q 2013. Office space absorption was

recorded at more than 2 million sq ft. A number of large-sized leases (40,000 – 100,000 sq ft) were signed. BFSI and IT/ITeS were the primary sectors contributing to this demand.

• No major movements in rental values were recorded across the sub-markets, except for a marginal decrease in the range of 1 -3% in areas like Nariman Point and Lower Parel.

• In the medium-term, occupier demand is expected to remain healthy with micro-markets like Andheri, BKC and Lower Parel continuing to be the preferred destination for occupiers, due to the availability of Grade A office space. Overall, rents across the micro-markets are expected to remain unchanged, while rents for premium office space may increase slightly due to limited availability.

kArACHi• The Karachi office market is struggling due to the prevailing uncertainty regarding the

macro-economic levels and the upcoming elections.

• Marhaba Trade Centre is the only office development launched in March 2013 on a sales model basis wherein small sized offices range from 1,800 to 2,200 sq ft.

mAjor trANsActioNs



Al Tijarah Centre L Lotte Pakistan 12,000

PAkistAN

KARACHI OFFICE CAPITAL AND RENTAL VALUES

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

0

20

40

60

80

100

120

140

160

Capital Values (Rupee / sq ft)Rentals (Rupee/ sq ft / Year)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Capi

tal V

alue

s

2010 2011 2012 2013 F 2014 F0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

Mill

ion

sq ft

1.60

Vaca

ncy

Rate

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%


KARACHI OFFICE SUPPLY, TAKE-UP & VACANCY RATE

mAjor trANsActioNs



Lodha Sim Tools L Sutherland 75,000L&T Business Park L Colgate Palmolive 100,000Solitaire 14 L UTV-Disney 90,000Lodha Sim Tools L Tata Group 100,000Arena Space L Johnson & Johnson 150,000Nirlon L Barclays 180,000Gigaplex S Axis Bank 300,000



AustrAliA1Q

201

02Q

201

03Q

201

04Q

201

01Q

201

12Q

201

13Q

201

14Q

201

11Q

201

22Q

201

23Q

201

24Q

201

21Q

201

32Q

201

3 F

3Q 2

013

F4Q

201

3 F

1Q 2

014

F2Q

201

4 F

3Q 2

014

F4Q

201

4 F

0

100

200

300

400

500

600

700

Rent

als

1,000

2,000

3,000

Capi

tal V

alue

s

4,000

5,000

6,000

7,000

0

Capital Values (Australian $ / sq m)Rentals (Australian $/ sq m / Year)

ADELAIDE OFFICE CAPITAL AND RENTAL VALUES

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

0

200

400

600

800

1,000

1,200

Capi

tal V

alue

s

10,000

12,000

0

2,000

4,000

6,000

8,000


BRISBANE OFFICE CAPITAL AND RENTAL VALUES

-20,000

0

20,000

40,000

60,000

80,000

100,000

120,000

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2010 2011 2012 2013 F 2014 F

sq m

Vaca

ncy

Rate


BRISBANE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

2010 2011 2012 2013 F 2014 F0

20,000

40,000

60,000

80,000

100,000

120,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

sq m

Vaca

ncy

Rate


ADELAIDE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

ADelAiDe• In 4Q 2012, Adelaide recorded its largest commercial office sale in almost a decade

with the sale of 400 King William Street to German group Real I.S. AG for $97.9 million. The building, which sold off-market at a yield of 8.2%, demonstrates the strong appetite from national and offshore investors for prime quality investment assets in Adelaide.

• Due to incoming backfill and new uncommitted supply, the overall CBD vacancy rate is forecast to continue to trend upwards until 4Q 2013.

• Two new buildings will officially come on line in 2013, including the speculatively constructed private development at 70 Franklin Street in February 2013, and Bendigo and Adelaide Bank’s new headquarters at 80 Grenfell Street, due to be completed in November 2013.

• Yields are likely to firm marginally by late 2013 or early 2014, when the vacancy rate starts to rebound and rent growth recovers.

mAjor trANsActioNs



101 Grenfell Street S Private 142,000 153 Wakefield Street L Sydac 12,900 44 - 60 Rundle Mall L University of Adelaide 35,300 211 Victoria Square L Statewide Super 22,600 25 - 27 Franklin Street L Gallagher Bassett Services 32,500 30 Flinders Street L Fyfe 13,500

BriSBAne• The Queensland government has adjusted its property stance which has resulted in a

withdrawal from a number of privately owned assets as well as much consolidation and amalgamation in state owned buildings.

• An increase in vacancy over the last six months can be largely attributed to the ample supply of secondary backfill space as well as the initial hand-back of government space.

• Domestic and offshore institutional buyers are expected to dominate the investment landscape, citing potential yield compression and the divergence in total returns compared to secondary assets.

• Sophisticated investors and developers have placed their confidence in market growth as evidenced by the progression of several significant new office developments that could see up to 250,000 sq m of floor space delivered by 2017.

mAjor trANsActioNs



400 George Street

(50% Interest)

S Motor Accident Commission 468,200

1 Eagle Street L Origin Energy 57,900

410 Ann Street L Jacobs Engineering 36,700

111 Eagle Street L Ernst & Young 16,100

288 Edward Street L Wood Group Wagners 14,800



AustrAliA1Q

201

02Q

201

03Q

201

04Q

201

01Q

201

12Q

201

13Q

201

14Q

201

11Q

201

22Q

201

23Q

201

24Q

201

21Q

201

32Q

201

3 F

3Q 2

013

F4Q

201

3 F

1Q 2

014

F2Q

201

4 F

3Q 2

014

F4Q

201

4 F

100

200

300

400

500

600

700

Rent

als

0


1,000

2,000

3,000

4,000

5,000

6,000

Capi

tal V

alue

s

7,000

0

MELBOURNE OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

sq m

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Vaca

ncy

Rate


MELBOURNE OFFICE SUPPLY, TAKE-UP & VACANCY RATE

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

0

100

200

300

400

500

600

700

800

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Capi

tal V

alue

s


CANBERRA OFFICE CAPITAL AND RENTAL VALUES

2010 2011 2012 2013 F 2014 F0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

sq m

Vaca

ncy

Rate


CANBERRA OFFICE SUPPLY, TAKE-UP & VACANCY RATE

CAnBerrA• Office supply in Canberra will remain tight with no new supply in the CBD area expected

for the next two years.

• Continued demand for quality office space will place downward pressure on Grade A vacancy levels.

• Strong interest is seen from foreign investors chasing after safe investment returns.

• Secondary yields have remained steady, while prime yields have firmed in 1Q 2013.

mAjor trANsActioNs



4 Mort Street S Private investor 58,800216 Northbourne Avenue L M5 12,9008 Brisbane Avenue L IBM 43,100

melBoUrne• The vacancy rate has increased from 5.6% in July 2012 to 6.9% as of January 2013.

• Face rents were reasonably flat over the year to January 2013; however, incentives leapt from an average of 16% in July 2012 to 24% in January. As such, Prime Grade net effective rents decreased by 8.9%.

• Enquiries for office space availability were at 60% of the levels recorded in 2011.

• Even though the slowdown in demand was anticipated and significant levels of additional supply became available, net absorption remained positive over both the first and second halves of 2012.

• After a mere 36,000 sq m of new supply was added to the market in 2011, the total figure for 2012 was about 130,000 sq m after completions of some major new CBD and Docklands buildings.

mAjor trANsActioNs



699 Bourke Street L AGL 161,500567 Collins Street L Corrs Chambers Westgarth 94,700300 Latrobe Street L Telstra 268,800390 Latrobe Street L TAL 65,60011 Exhibition Street L BUPA 126,500242 Exhibition Street S Investa Office Fund 683,500150 Collins Street S GPT Wholesale Office Fund 215,300477 Collins Street S AVIVA Investors 119,400501 Swanston Street S Vince Giulano 183,000555 Lonsdale Street S LaSalle Investment Management 174,400



1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

0

200

400

600

800

1,000

1,200

Rent

als

0

2,000

4,000

6,000

8,000

10,000

12,000

Capi

tal V

alue

s


PERTH OFFICE CAPITAL AND RENTAL VALUES

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2010 2011 2012 2013 F 2014 F

sq m

Vaca

ncy

Rate


PERTH OFFICE SUPPLY, TAKE-UP & VACANCY RATE

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

0

200

400

600

800

1,000

1,200

1,400

1,600

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Capi

tal V

alue

s

0


SYDNEY OFFICE CAPITAL AND RENTAL VALUES

0

40,000

80,000

120,000

160,000

200,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2010 2011 2012 2013 F 2014 F

sq m

Vaca

ncy

Rate


SYDNEY OFFICE SUPPLY, TAKE-UP & VACANCY RATE

pertH• Net face rents have generally remained stable in 1Q 2013. However, due to an increase

in vacancy in second half of 2012, landlords increased the incentive offerings which resulted in some contraction in net effective rents during the quarter.

• The market is showing signs of a marginal reversion to a tenants’ market with some softening in effective rents in 1Q 2013.

• Supply in 2013 is minimal and consists mostly of refurbishments; this is likely to keep the vacancy rate relatively stable.

• High net absorption in the past is unlikely to be repeated in the short to medium term.

mAjor trANsActioNs



Central Park, 150 St Georges Ter-

race

L INPEX 61,400

66 St Georges Terrace L Dimension Data 10,800256 St Georges Terrace L Schlumberger 16,100

SyDney• Investment activity and enquiry levels remained strong across the Sydney CBD office

market in 1Q 2013.

• Demand from investors continued to come from new offshore groups looking to get a foothold in the Australian market, as well as domestic institutions who have increased their appetites for acquisitions.

• Overall incentives have continued to increase, while rent growth was slightly higher than the rate of inflation, driven chiefly by rent reviews.

• Lease renewals remained the key driver behind leasing activity with new lease enquiries coming from metropolitan tenants and business firms looking for more affordable accommodation in the CBD area.

mAjor trANsActioNs



231 Elizabeth Street S Bright Ruby 250,5009 Castlereagh Street S Charter Hall 231,000383 - 395 Kent Street L WorkCover 17,00019 - 29 Martin Place L TressCox Lawyers 36,9002 Chifley Square L Agricultural Bank of China 17,000

AustrAliA



New zeAlAND1Q

201

02Q

201

03Q

201

04Q

201

01Q

201

12Q

201

13Q

201

14Q

201

11Q

201

22Q

201

23Q

201

24Q

201

21Q

201

32Q

201

3 F

3Q 2

013

F4Q

201

3 F

1Q 2

014

F2Q

201

4 F

3Q 2

014

F4Q

201

4 F

Rent

als

0

100

200

300

400

500

600

0

1,000

2,000

3,000

4,000

5,000

6,000

Capi

tal V

alue

s

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

AUCKLAND OFFICE CAPITAL AND RENTAL VALUES

0

5,000

10,000

15,000

20,000

25,000

30,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2010 2011 2012 2013 F 2014 F

sq m

Vaca

ncy

Rate


AUCKLAND OFFICE SUPPLY, TAKE-UP & VACANCY RATE

1Q 2

010

2Q 2

010

3Q 2

010

4Q 2

010

1Q 2

011

2Q 2

011

3Q 2

011

4Q 2

011

1Q 2

012

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

F3Q

201

3 F

4Q 2

013

F1Q

201

4 F

2Q 2

014

F3Q

201

4 F

4Q 2

014

F

Rent

als

Capi

tal V

alue

s

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

0

100

200

300

400

500

600

0

1,000

2,000

3,000

4,000

5,000

6,000

WELLINGTON OFFICE CAPITAL AND RENTAL VALUES

-20,000

0

20,000

40,000

60,000

80,000

100,000

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

2010 2011 2012 2013 F 2014 F

Vaca

ncy

Rate

sq m


WELLINGTON OFFICE SUPPLY, TAKE-UP & VACANCY RATE

AUCklAnD• Overall, the Auckland CBD vacancy rate stood at 10.6% in 1Q 2013 which is the lowest

recorded in 18 months. Furthermore, this was the third consecutive decline and it was below the two decade average of 13%. The drop is being driven by a historically low prime vacancy rate which is at 7.9% in 1Q 2013.

• Supply constraints remain an issue. The impact of ASB‘s move to Wynyard Quarter is reduced given Auckland Council’s commitment, albeit decisions on Council’s existing space are still to be made. ANZ’s consolidation in their new premises in Albert Street in 2Q 2013, provides some opportunity for tenants with backfill space likely to be refurbished to a high standard. High profile new build market proposals for new office HQs between now and 2016 may provide some relief to CBD supply constraints.

• Correlating with the reduction in prime vacant office space in Auckland is the reduction in incentives and the increase in net effective rents. Over the last year, average prime incentives have decreased and are now just under two months per year of lease term. Rents are forecast to increase steadily over the next five years.

• Prime yields for office buildings are firming, which is in tandem with the projected increase in rents and capital values.

mAjor trANsActioNs



1 Queen Street S Precinct Properties 208,800L9, 41 Shortland Street L Morgan Coakle 8,700

wellington• Demand in Wellington’s CBD office market remains focused on higher quality premises as

a result of business and seismic preference. However, only 5% of the circa 230,000 sq m of vacant office space in Wellington is considered to be prime office space.

• In Wellington, the cautious approach from landlords and tenants led to incentives remaining low and stable. However, our tenant office survey indicates a rising gross rent outlook for tenants due to higher insurance costs.

• Forecasts for the overall performance of the sector remains mixed, given the high proportion of secondary space that will need to be investigated for earthquake resistance. Clarity around strengthening requirements and how it will be conducted remains elusive. This will be positive for the prime sector with demand for the surety of prime space commanding a premium. As a result, prime rents are expected to rise by 2% in 2013.

• Argosy Property Trust announced their purchase of NZ Post House for NZ$60 million. Seismic strengthening is required for the project and is estimated at NZ$40 million. The work is expected to be completed in early 2016 and will not detrimentally affect operations of tenants who will reportedly continue to occupy the building throughout the process. The strong covenant provides a 20-year lease with three-yearly market reviews.

mAjor trANsActioNs



New Zealand Post House, 7 Waterloo Quay

S Argosy Property 268,900

The Freyberg Building, 20 Aitken Street

L Government Department 34,400

16 Willis Street L Chorus 12,800 181 Wakefield Street L EDMI NZ 8,400



Note: Rental figure in each of the above centre is the average of the various key sub-markets outlined under the section of "Definitions and Terminology"

AustrAliAPrime office reNtAl

Hong Kong

Tokyo

Singapore

Sydney

Perth

Beijing

Brisbane

Shanghai

Hanoi

Ho Chi Minh City

Mumbai

Delhi NCR

Jakarta

Canberra

Adelaide

Melbourne

Guangzhou

Taipei

Bangkok

Wellington

Auckland

Kuala Lumpur

Seoul

Chengdu

Manila

Chennai

Bengaluru

Karachi

RENTALS (US$ / SQ FT / YEAR)

0.00 20.00 40.00 60.00 80.00 100.00 120.00



Delhi NCR 12,200,000Guangzhou 6,785,132Bengaluru 9,090,000Chennai 5,240,000Mumbai 8,700,000Seoul 4,837,867Chengdu 4,628,477Shanghai 4,042,942Tokyo 3,091,015

Jakarta

Guangzhou

Seoul

Shanghai

Chengdu

Hong Kong

Taipei

Singapore

Hanoi

Beijing

BangkokManila

Ho Chi Minh City

Over 3,000,000 sq ft

1,000,000 - 3,000,000 sq ft

Below 1,000,000 sq ft

Hong Kong 927,384Manila 413,334Kuala Lumpur 509,000Adelaide 454,936Ho Chi Minh City 117,316Singapore 733,000Brisbane 200,209Karachi 145,000Auckland 193,750Perth 100,524Bangkok 0Canberra 0Wellington 0

Kuala Lumpur

MelbourneAuckland

Canberra

Wellington

Delhi NCR

Bengaluru

Mumbai

Chennai

Tokyo

SydneyAdelaide

Brisbane

Karachi

Perth

Beijing 2,730,242Hanoi 1,748,165Melbourne 1,442,363Jakarta 1,564,339Taipei 1,074,641Sydney 1,304,994

Prime office New suPPly forecAst for 2013

Source: Colliers

City new Supply take-up Average Vacancy total Stock Average rentals (sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year) 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F

BeijiNg

CBD 1,614,585 538,195 679,195 1,263,682 9.7 6.3 22,157,679 22,695,874 64.53 71.75

Zhongguancun 0 624,306 26,318 231,908 0.9 5.3 8,095,529 8,719,835 48.03 51.85

Financial Street 406,875 0 366,188 28,967 1.0 0.7 10,107,399 10,107,399 72.95 80.46

Lufthansa 708,781 0 196,867 425,269 8.4 3.2 8,185,871 8,185,871 56.62 61.87

East Chang An Avenue 0 0 152,385 32,292 3.6 3.1 6,307,067 6,307,067 52.15 54.70

East 2nd Ring 0 0 108,500 4,447 1.2 1.1 3,012,514 3,012,514 48.96 50.86

Other areas 0 1,531,918 6,028 453,548 0.5 40.4 1,151,307 2,683,225 50.74 47.77

sHANgHAi

Huangpu 837,991 1,904,801 429,580 1,268,532 11.5 15.0 10,015,691 11,920,492 49.97 52.79

Jingan 2,099,143 0 1,339,070 388,688 12.0 8.0 9,717,208 9,717,208 61.59 65.07

Lujiazui-Pudong 0 1,469,272 553,159 592,370 6.0 10.0 18,249,369 19,718,641 52.09 55.03

Zhuyuan-Pudong 0 1,147,808 342,160 734,073 10.0 15.0 4,831,290 5,979,099 38.09 40.24

Changning 1,213,210 215,278 1,296,059 312,953 9.5 8.0 7,659,807 7,875,085 42.54 44.94

Xuhui 0 0 76,738 24,359 5.0 4.5 4,871,881 4,871,881 52.54 55.51

guANgzHou

Yuexiu 0 165,635 85,627 -271,016 5.0 13.8 4,683,244 4,848,879 19.89 20.10

Tianhe 6,785,132 6,262,674 4,478,482 4,723,361 26.0 27.2 31,569,356 38,519,951 29.45 29.44

Haizhu 0 0 64,487 194,738 30.7 22.1 2,244,693 2,244,693 17.39 17.06

cHeNgDu

Renmin Road 0 645,834 180,192 444,609 16.0 20.0 1,801,446 2,447,280 29.52 30.23

CBD 0 0 919,722 204,742 25.0 16.0 2,274,913 2,274,913 23.12 24.36

Financial Street 1,376,251 4,240,977 867,960 2,027,962 45.0 49.0 3,373,395 7,614,372 21.34 22.23

Tianfu Avenue 857,506 0 838,272 356,647 40.0 27.0 2,743,438 2,743,438 21.34 22.59

HoNg koNg

Central 40,700 0 120,378 237,714 4.7 3.6 21,770,869 21,770,869 166.11 182.72

Wanchai 0 0 25,388 64,609 3.9 3.3 11,439,007 11,439,007 100.05 108.05

HK Island East 0 0 -320,000 25,118 0.7 0.4 10,404,774 10,404,774 71.94 75.53

Tsim Sha Tsui 0 0 5,600 4,736 1.6 1.5 6,361,390 6,361,390 84.62 91.39

Kowloon East 886,684 799,551 766,053 757,430 8.5 8.3 10,078,565 10,878,116 59.89 62.88

tokyo

CBD 3,091,015 5,622,161 N/A N/A 7.8 7.5 82,421,242 88,043,403 96.11 96.11

seoul

CBD 1,872,843 2,446,193 844,859 2,701,674 12.8 10.4 36,654,685 39,100,879 28.51 29.19

GBD 0 0 275,782 16,555 4.1 4.0 28,697,841 28,697,841 24.91 25.78

YBD 2,965,024 0 717,263 1,429,306 17.6 10.5 20,103,758 20,103,758 21.70 22.62

tAiPei

CBD 1,074,641 2,113,137 624,375 1,141,475 11.6 14.8 20,402,183 22,515,320 27.56 27.69

jAkArtA

CBD 1,564,339 2,223,154 3,185,565 2,152,780 1.1 1.5 51,580,835 53,803,989 39.08 44.41

Non-CBD 1,793,007 4,377,183 1,676,639 2,480,735 3.5 9.5 24,824,266 29,201,449 23.56 24.58

kuAlA lumPur

KLCA 509,000 2,459,266 1,000,000 1,000,000 12.2 15.4 33,424,552 35,883,818 25.25 25.25



treNDs & forecAsts

2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014 F 2013 F 2014

mANilA

Makati 413,334 0 533,642 373,378 3.7 3.9 10,347,811 10,347,811 24.51 26.69

Ortigas 876,074 0 791,663 15,629 5.9 5.6 5,837,489 5,837,489 15.93 17.02

siNgAPore

CBD 732,545 700,000 393,573 399,125 7.4 8.7 19,430,913 20,130,913 79.67 79.67

BANgkok

CBD 0 0 861,112 645,834 8.0 7.0 17,580,646 17,580,646 27.39 28.92

Ho cHi miNH city

CBD 117,316 98,221 118,403 172,222 12.9 5.8 2,301,860 2,311,677 39.35 39.02

HANoi

CBD 987,136 678,126 188,368 172,222 40.6 47.4 2,712,535 3,390,661 45.71 43.48

Non-CBD 761,029 1,368,479 602,778 688,890 37.3 41.8 2,396,615 3,765,094 28.43 30.10

BeNgAluru

Overall 9,090,000 6,000,000 7,500,000 7,000,000 15.0 16.0 93,517,175 99,517,175 10.48 10.73

cHeNNAi

Overall 5,240,000 8,000,000 4,000,000 5,000,000 21.0 22.0 46,032,483 54,032,483 10.59 10.59

DelHi Ncr

Overall 12,200,000 10,000,000 6,500,000 7,000,000 18.0 20.0 82,804,158 92,804,158 37.95 37.73

mumBAi

Overall 8,700,000 5,000,000 7,000,000 7,000,000 14.5 15.0 110,158,000 115,158,000 39.49 39.27

kArAcHi

CBD 145,000 476,000 100,000 124,000 40.0 42.0 15,376,929 15,852,929 1.01 1.05

ADelAiDe

CBD 454,936 0 139,931 322,917 9.8 9.4 14,432,022 14,860,371 34.31 35.38

BrisBANe

CBD 200,209 0 -144,764 45,704 8.3 6.8 11,484,209 11,484,209 57.03 58.81

cANBerrA

CBD 0 0 21,528 32,292 5.0 4.0 3,013,892 3,013,892 36.71 37.43

melBourNe

CBD 1,442,363 721,181 1,294,660 818,056 7.3 7.0 45,911,553 46,934,124 28.60 29.76

PertH

CBD 100,524 395,057 113,021 188,368 5.3 5.5 17,161,661 17,395,259 67.05 67.05

syDNey

CBD 1,304,994 607,084 740,556 382,980 7.4 7.7 53,246,290 53,340,388 67.95 70.96

AucklAND

CBD 193,750 0 224,987 102,419 7.2 5.1 4,800,204 4,805,586 27.04 28.36

welliNgtoN

CBD 0 0 15,328 -14,327 3.5 4.0 3,256,973 3,256,973 27.21 27.83

City new Supply take-up Average Vacancy total Stock Average rentals (sq ft) (sq ft) (%) (sq ft) (US$ / sq ft / year)



treNDs & forecAsts



DefiNitioN AND termiNology

NortH AsiA

BeijingPrime office market in beijing consists of 6 sub-markets – cbD (central business District), lufthansa, east 2nd ring, financial street, east chang an avenue and Zhongguancun.

rents are quoted in rMb per sq m per month on gross floor area basis, and exclusive of management fees and rent free period. capital values are quoted on rMb per sq m.

shanghaiPrime office buildings in shanghai are located in 6 principal sub-markets – Huangpu, Jingan, lujiazu-Pudong, Zhuyuan-Pudong, changning, and Xuhui.

rents are quoted in rMb per sq m per day on gross floor area basis, and exclusive of any management fees. capital values are quoted on rMb per sq m.

guangzhouPrime office buildings in guangzhou are located in 3 principal sub-markets – Haizhu, Yuexiu and tianhe.

rents are quoted in rMb per sq m per month on gross floor area basis, and exclusive of any management fees. capital values are quoted on rMb per sq m.

chengduPrime office buildings in chengdu are mainly located in 3 sub-markets, renmin road, cbD and financial street.

rents are quoted in rMb per sq m per month on gross floor area basis, and exclusive of management fees. capital values are quoted on rMb per sq m.

Hong kongPrime office properties in Hong kong are concentrated in 5 sub-markets – central, wanchai / causeway bay, island east, tsim sha tsui and kowloon east.

rents are commonly quoted in Hk$ per sq ft per month on either gross, net or lettable floor area basis, which are exclusive of management fees, and government tax. Prices are quoted in Hk$ per sq ft, and are measurable on gross floor area basis.

tokyothe quality office buildings in tokyo are located in the central business area (cbD) area covering six wards namely, chiyoda-ku, chuo-ku, Minato-ku, shinjuku-ku, shibuya-ku and shinagawa-ku.

rents are achievable rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month, which are inclusive of service charges. Office space is measured on an internal floor area basis. capital values are quoted in Yen per tsubo.

seoulMajor office districts in seoul include the traditional central business area (cbD), gangnam business District (gbD) and Yeouido business District (YbD).

rents are quoted in won per sq m per month on gross floor area basis. generally, a deposit equivalent to 10 months is required, and is usually paid up front. Management fees are excluded from quoted rents. space is measured on gross floor area basis. capital values are quoted in won per sq m.

taipeiPrime office properties in taipei are concentrated in 7 districts, comprising nanking sung chiang (nk-sc), Minsheng tun Hwa north (Ms-tn), Hsin Yi, west, tun Hwa south (tUn-s), Jen ai Hsin sheng (Ja-Hs) and nanking east road (nk-4/5).

the local unit of measurement is a “ping” (i.e. 3.3 sq m). rents and prices are quoted in local currency i.e. new taiwan Dollar (nt$) on gross floor area basis.

soutHeAst AsiA

jakarta the quality office buildings in Jakarta are located in the cbD covering the districts thamrin, sudirman, gatot subroto, rasuna said and Mega kuningan. the areas outside the above districts are collectively called as “non-cbD”.

rents are commonly quoted in rupiah per sq m per month, which are inclusive of service charges but exclusive of government taxes. Office space is measured on lettable floor area basis. capital values are quoted in rupiah per sq m.

kuala lumpurPrime office buildings located in the kuala lumpur central area (klca) only. the klca comprises areas generally within the central business district.

rents are commonly quoted in ringgit Malaysia (rM) per sq ft per month on net floor area basis, which are inclusive of service charges and property taxes. capital values are quoted in ringgit per sq ft.

manilaPrime office buildings in Manila are located in two principal sub-markets – Makati and Ortigas.

rents are quoted in Peso per sq m per month on net floor area basis, and exclusive of any management fees. capital values are quoted in Peso per sq m.

singapore the quality office buildings covered in the report are located in the central business District of singapore.

rents are quoted in s$ per sq ft per month on net floor area basis (i.e. area less common areas such as corridors, toilets, lift lobby etc. but including columns), and are inclusive of service charge. capital values are quoted on the basis of strata area for strata-titled buildings, and net area for non-strata-titled developments.



Def iNitioN AND termiNology

* Super built-up area refers to the total **built-up area of a building plus a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretaker’s office/flat throughout the building.

** Built-up area refers to the carpet area plus the thickness of external walls and area under columns.

BangkokPrime office properties in bangkok are located in a wide area encompassing eastern silom and sathorn roads starting from narathiwas ratchanakarin, rama iv from Phayathai to ratchadaprisek, along ratchadaprisek from rama iv to sukhumvit and along sukhumvit from asoke to the whole of Pleonchit and then rama i to Phayathai.

rents are quoted in baht per sq m per month on a net floor area basis, and inclusive of service charges. capital values are quoted in baht per sq m.

Ho chi minh citythe quality office buildings in Ho chi Minh city are located in District One - the central business district in the city.

rents are commonly quoted in Us$ per sq m per month on net floor area basis, and exclusive of management fees and government tax. capital values are quoted on Us$ per sq m.

HanoiPrime quality office building in Hanoi are mostly located in Hoan kiem district, with individual quality buildings located in cau giay district and ba Dinh district. the central location of the city is perceived as being close to Hoan kiem lake, which is within Hoan kiem district.

rents are commonly quoted in Us$ per sq m per month on net floor area basis. rents are inclusive of service charges and exclusive of value added tax, which is currently at 10% level.

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Bengaluru (Bangalore)Prime office properties in bengaluru are can be divided in 3 principal sub-markets – cbD (central business District), sbD (suburban/secondary business District) consisting of bannerghatta road & Outer ring road and PbD (Peripheral business District) including PbD Hosur road, ePiP Zone, electronic city and whitefield.

rents are commonly quoted in rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes. Office space is commonly measured on *super built up area basis.

chennaiPrime office properties in chennai are located in 3 principal submarkets– cbD (central business District), (suburban/secondary business District) and PbD (Peripheral business District). sbD consists of guindy and velechery while PbD includes other areas such as Old Mahaballipuram road, ambattur and gst road amongst others.


Delhi NcrPrime office properties in Delhi ncr are primarily concentrated in cbD (central business District) – consist of connaught Place; sbD (secondary business District) including nehru Place, Jasola, saket and netaji subhash Place and PbD (Peripheral business District) including gurgaon and noida.

rents are commonly quoted in rupee per sq ft per month, which are usually exclusive of maintenance charges, parking charges and property taxes.

mumbaiPrime office properties in Mumbai are primarily concentrated in cbD (central business District) – consist of nariman Point, ford and ballard estate; sbD (secondary business District) including bandra (west and east), kalina, lower Parel and worli/Prabhadevi and PbD (Peripheral business District) including navi Mumbai, vashi, Powai, goregaon.


Office space is commonly measured on *super built up area basis.

karachiPrime office buildings in karachi are located in the central business area (cbD) covering 4 sub-markets – i.i chundrigar road, shahrah-e-faisal, clifton and Mai kolachi.

rents are quoted in rupee per sq ft per year on gross floor area basis and are exclusive of service charges or management fee. capital values are quoted in rupee per sq ft.

AustrAlAsiA

Australia Prime office buildings are located in the cbD and generally favoured by Mncs.

rents are quoted on net floor area basis, and in a$ per sq m per annum excluding management fee and government charges. capital values are quoted on a$ per sq m.

New zealandPrime office buildings are located in the cbD.

rents are quoted on net floor area basis, and in nZ$ per sq m per annum excluding management fee and government charges. capital values are quoted on nZ$ per sq m.loor area basis, and in nZ$ per sq m per annum excluding management fee and government charges. capital values are quoted on nZ$ per sq m.



nortH ASiA

mAinlAnD CHinABeijinggeorge YeungManaging Director | north chinatel : 86 10 8518 [email protected]

Shanghailina wongManaging Directoreast and south west chinainvestment services, chinatel : 86 21 6141 [email protected]

guangzhoueric lamManaging Directortel : 86 20 3819 [email protected]

ChengduJacky tsaiManaging Director tel : 86 28 8658 [email protected]

Hong kong, HkSArcompany licence no: c-006052

richard kirke (e-279867)

Managing Directortel : 852 2828 [email protected]

Piers brunner (e-183614)

chief executive Officer | [email protected]

For FUrtHer DetAilS, pleASe ContACt:

SoUtH eASt ASiA

inDoneSiAjakartaMike broomellManaging Directortel : 62 21 521 [email protected]

mAlAySiAkuala lumpurc/o Mark lampard*Managing Directorcorporate solutions | asia [email protected] : 65 6531 8601* based in singapore

research data provided by

c H williams talhar & wong sdn bhdUrl : http://www.wtw.com.myfoo gee JenManaging Directortel : 603 2616 [email protected]

pHilippineSmanilaDavid YoungManaging Directortel : 63 2 888 [email protected]

SingAporeDennis YeoManaging Directorsingapore & industrial services | asiatel : 65 6223 [email protected]

tHAilAnDBangkoksimon landyexecutive chairmantel : 66 2 656 7000 [email protected]

jApAn tokyoJames finksenior Managing Directortel : 81 3 5563 2111 [email protected]

SoUtH koreASeoulJay Yunsenior Director and general Managertel : 82 2 6740 [email protected]

tAiwAntaipeiandrew liuManaging Directortel : 886 2 8101 [email protected]

VietnAmHo chi minh cityPeter Dinninggeneral Directortel : 84 8 3827 [email protected]

HanoiDane MoodieManaging Directortel : 84 4 3941 [email protected]



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inDiABengalurugoutam chakrabortyOffice Directortel : 91 80 4079 [email protected]

Chennaikaushik reddyOffice Directortel : 91 44 2836 [email protected]

Delhi nCrajay rakhejaOffice Directortel : 91 11 4360 [email protected]

gurgaonajay rakhejaOffice Directortel : 91 124 [email protected]

kolkatasoumya MukherjeeOffice Directortel : 91 33 2357 [email protected]

mumbaiPrabhu raghavendraOffice Directortel : 91 22 4050 [email protected]

george Mckaysouth asia DirectorOffice and integrated [email protected]

punesuresh castellinoOffice Directortel : 91 20 4120 [email protected]

AUStrAlASiA

AUStrAliAAdelaideJames Youngstate chief executivetel : 61 8 8305 [email protected]

Brisbanesimon beirnestate chief executive tel : 07 3229 [email protected]

CanberraPaul Powderlystate chief executivetel : 61 2 6257 [email protected]

melbourneJohn Marascostate chief executivetel : 61 3 9629 [email protected]

perthk. imran Mohiuddinstate chief executivetel : 61 8 9261 [email protected]

SydneyMalcom tysonstate chief executivetel : 61 2 9257 [email protected]

pAkiStAnkarachiMohammed Yasir Qidwaisenior Manager, corporate solutions & researchtel : 92 21 3561 [email protected]

lahoreahmed khancountry Managertel : 92 42 3584 [email protected]

islamabadwaleed Murrawatregional sales Managertel : 92 51 834 [email protected]

new zeAlAnDAucklandMark synnottchief executive Officer, new Zealandtel : 64 9 358 [email protected]

wellingtonrichard findlayManaging Directortel : 64 4 473 4413 [email protected]



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