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<ul><li><p>8/2/2019 Asia Pacific Market Briefs</p><p> 1/8</p><p>ASIA PACIFICMARKETBRIEFSA CushmAn &amp; WAkefield ReseARCh PubliCAtion</p><p>mAY 2011An oVeRVieW of the AsiA PACifiC offiCe mARket</p></li><li><p>8/2/2019 Asia Pacific Market Briefs</p><p> 2/8</p><p>1</p><p>ASIA PACIFIC MARKETBRIEFS</p><p>It is expected that the area will become more populated aterthe completion o residential and retail projects in the next ewquarters.</p><p>PERTHAter staying in the negative territory orthree years, absorption in Perth pickedup in 2010. Currently, the vacancy rate isat 9.5%. Another 1.5 million square eet(ms) is expected or delivery in 2011and 2012. I the past average absorption</p><p>o about 0.7 ms per year is continued, vacancy rate may stabilize.Te sales environment seems dicult with no sales aboveAUD$45 million and ew transactions in the AUD$8-AUD$30million range in the past six months.</p><p>SYDNEYSydney rebounded this quarter onan 8.2% vacancy actor, a positiveresult ater two and a hal years oincreasing vacancy. As the economicoutlook is positive, it is expected thatleasing activity will increase especially</p><p>or companies looking to hire more sta and expand to largerpremises. With ew construction projects in the pipeline, vacancyrate is likely to continue to all.</p><p>CHINA</p><p>CHENGDUTere is strong leasing interest inChengdus market largely due to new andurnished completions o Grade A ocebuildings. Rental rates have increased andvacancies have declined. Despite positiveabsorption this quarter, with more new</p><p>supply (about 21.85 ms) coming on stream, it is expected thatthe vacancy rate will rise and rental rates will decline slightly.</p><p>BEIJINGIncreased tenant demand caused rentsto rise signicantly by 10% comparedto the previous quarter. Tis uptrendis expected to continue, especially withlow supply in core markets through2012. Tere is 15ms o supply in the</p><p>pipeline. O that total, 5.5 ms will be delivered in 2011 and 0.4ms is already pre-leased. Domestic tenants are accounting ora larger share o the absorption and they have been competingwith MNCs or space regardless o higher rents. Te tight marketin CBD area may result in tenants looking or alternatives indowntown submarkets where choices are abundant and rentalsmore avourable.</p><p>REGIONAL</p><p>APACTe Asia Pacic region continuedto grow amid an uncertain global</p><p>environment. At the same time, dueto ast growth coupled with improvedlabour market conditions and risingoil prices, infation has become a main</p><p>concern or many countries across the region. Nevertheless,improved economic conditions have translated to risingoccupancies in many oce markets in the region. Higher rentsare observed, with notable increases in Beijing, Hong Kong andSingapore. Investment activity, however, has eased comparedto the same period last year. Overall, the economic outlookremains positive, albeit expansion will be slower than in 2010.Occupancies and rents this year and next are expected to remain</p><p>high.</p><p>SELECT COUNTRIES</p><p>AUSTRALIA</p><p>BRISBANEVacancy rate is still high at 9.4% andBrisbane struggled with an oversupplyo inventory accumulated over thepast two years. wo natural disasters,a food and a cyclone, also aected theoverall economy. However, two large</p><p>sales closed at the end o 2010 provided a much-needed boost</p><p>to the oce market in Brisbane. Tere are new projects beingannounced and tenants may be seeking opportunities to upgradeto newer acilities thus creating some pick up in the absorption.</p><p>CANBERRACanberra recorded a vacancy rate o13.4%. Tere is continuous supply inthe coming years until till 2013 and thevacancy level is expected to remain high.Tus, some tenants may be lookinginto relocation and upgrading to newer</p><p>premises. Nevertheless, absorption is likely to continue at average</p><p>levels i there are no changes in Government policies; the maincatalyst or absorption perormance in Canberra.</p><p>MELBOURNECompared to the previous quarterwhere there were a couple o largesales or more than AUD$100 millionand many in the AUD$25-AUD$100million range, Melbourne witnessedewer sale transactions this quarter.</p><p>With a wide variety o sectors contributing to the oce market,Melbournes vacancy continued to decline rom 6.7% to 6.3%</p><p>this quarter. Consequently, eective rents remained high and aregradually increasing. O the new construction in the pipeline,almost hal is located in the up and coming Docklands precinct.</p><p>Note: (1) All vacancy and rent changes are quarter-on-quarter basis</p><p>Y--Y cag 12- </p><p>Vacacy+1.2%</p><p>R+3.6% Vacacy</p><p>+3.9%R-3.1%</p><p>Y--Y cag 12- </p><p>Y--Y cag 12- </p><p>Vacacy-17.3%R</p><p>+3.6%</p><p>Y--Y cag 12- </p><p>Vacacy</p><p>+4.8%R0.0%</p><p>Y--Y cag 12- </p><p>Vacacy-6.1%R+17.5%</p><p>Vacacy-3.6%R</p><p>-4.0%</p><p>Y--Y cag 12- </p><p>Vacacy+24.0%</p><p>R+18.0%</p><p>Y--Y cag 12- </p><p>Vacacy-62.5%R</p><p>+31.9%</p><p>Y--Y cag 12- </p></li><li><p>8/2/2019 Asia Pacific Market Briefs</p><p> 3/8</p><p>2</p><p>ASIA PACIFIC MARKETBRIEFS</p><p>SHANGHAIenant activity is buoyant in Shanghai.Although a huge amounto new supply was added to the marketthis quarter, vacancy rose only slightly rom6.1% in Q4 2010 to 6.9% this quarter.Average net eective rents have also risen.</p><p>Both domestic and oreign companies have also been actively takingup space, with omson group purchasing one foor in Shanghai WorldFinancial Center and another domestic company buying up two foors.Going orward, occupier demand is set to strengthen urther, withrental rates poised or more growth.</p><p>HONG KONGTe oce market in Hong Kong remainedred-hot; with low vacancy rate and high</p><p>rentals. Tis is largely due to strong demandrom corporate organic growth and newset-ups. Coupled with limited supply atonly 0.7ms over the next three years, the</p><p>rental growth is expected to be around 25-30% this year. Facing atight market, tenants have started looking at other alternatives such asmoving back-oce departments to lower-rent locations and increasingthe seating density. Positive investor interest is also sustained with totalsales transactions risen by 6.5% quarter-on-quarter at over 1,000 deals.</p><p>INDONESIA</p><p>JAKARTA</p><p>Leasing activity in the rst quarter increased,due to rms expanding and the need toupgrade existing premises. On the back oan improved economy and positive outlook,this trend is set to continue. Higher take-upwill help to absorb the new supply o about</p><p>4.1 ms due or delivery in 2011. Rental rates are projected to remainstable.</p><p>INDIA</p><p>AHMEDABADAhmedabad has seen buoyant demand</p><p>or oce space. Rentals are on the riseand positive absorption is expected. Whiletelecom and banking sectors remainedthe main drivers, there are gradually moreenquiries rom other sectors such as I and</p><p>auto ancillary sector. Vacancy level stands at about 8 -9%.</p><p>BANGALORE</p><p>Persistent demand coupled withconservative supply resulted in rentals onthe uptrend or Bangalore. O the 6.5 msadditional supply on stream in 2011, 35%is already pre-committed. With positiveabsorption expected or the balance o the</p><p>year, the vacancy rate is expected to decline.</p><p>CHENNAIRentals remain relatively stable drivenby local demand and lower supply thisquarter. Te upcoming supply would beabout 5.73 ms, with more distribution innon CBD locations. Te lesser supply inthe CBD location may exert pressure on</p><p>rentals. Rental escalation is also expected in non CBD locations dueto perpetuating demand.</p><p>HYDERABADWith better overall economy, there wasincreased demand or space especially romthe I/Ies sector looking at expansionand accommodating headcount growth.Although 2.1 ms was added to the market</p><p>this quarter, majority o the space wasalready pre-committed. With buoyant demand and limited Grade Aspace, landlords and developers have started to revise their rates andit is anticipated that rentals would be on the uptrend.</p><p>KOLKATA</p><p>Te Kolkata oce market saw in general,appreciation in rental values o allsubmarkets except or Rajarhat whichremained stable due to high vacancylevels. Tis quarter saw 0.9 ms o supplyadded. Over 40% was pre-committed and</p><p>the demand came mainly rom the I/Ies sector. Te improvedabsorption will lead to a slight decline in vacancy rates and rentalsare expected to be slightly higher across all submarkets.</p><p>MUMBAIWith uncertainty on the transition romSotware echnology Park o India toSpecial Economic Zone, most developersremained cautious and rerained romincreasing rentals. Nevertheless, demandwas broad-based this quarter, with</p><p>transactions not only rom I/Ies but also Logistics, Healthcare</p><p>and Automobile sectors. Te market will witness a large supply inthe next ew quarters and rentals are expected to remain stable.</p><p>NCR</p><p>Rentals appreciated across most othe submarkets. Tis quarter saw newcompletions o 1.05 ms. About 4.7 msis expected in the next two quarters andvacancy rates might be marginally higher.In spite o the high level o vacancy and</p><p>massive under development projects in the pipeline, Gurgaon</p><p>continues to record rental appreciation as evident or the largestshare o demand during the quarter.</p><p>Vacacy</p><p>0.0%R</p><p>+18.3%</p><p>Y--Y cag 12- </p><p>Vacacy-14.6%</p><p>R+3.3%</p><p>Y--Y cag 12- </p><p>Vacacy+12.5%R+6.1%</p><p>Y--Y cag 12- </p><p>Vacacy</p><p>-11.4%R+5.3%</p><p>Y--Y cag 12- </p><p>Vacacy+25.0%</p><p>R0.0%</p><p>Y--Y cag 12- </p><p>Vacacy+3.0%R+10.2%</p><p>Y--Y cag 12- </p><p>Vacacy-42.3%</p><p>R-2.1%</p><p>Y--Y cag 12- </p><p>Vacacy+5.3%</p><p>R+12.3%</p><p>Y--Y cag 12- </p><p>Y--Y cag 12- </p><p>Vacacy-28.1%</p><p>R+19.2%</p><p>Vacacy</p><p>-19.6%</p><p>R+9.1%</p><p>Y--Y cag 12- </p></li><li><p>8/2/2019 Asia Pacific Market Briefs</p><p> 4/8</p><p>3</p><p>ASIA PACIFIC MARKETBRIEFS</p><p>SOUTH KOREA</p><p>SEOULOverall vacancy rate in Seoul rose to 7.3%rom 6.7% last quarter and the rate was</p><p>more pronounced in CBD where it soaredto 11.9% ollowing the completions oseveral projects. enants with 2010-2011expirations took advantage o this situation</p><p>renewing at same rental rates and combined with generous concessionpackages such as rent-ree periods.</p><p>TAIWANTAIPEI</p><p>Leasing activity was active mainly due tothe expansion o MNCs and new oces setup by Chinese companies. Tere are only a</p><p>ew construction deliveries this year and it isexpected to see rents rising and a reductionin vacancy rate. Investor sentiments, however</p><p>is marred by the recent hike in interest rate and introduction o Luxuryax Act, reducing prot margin. Tose on the lookout or short-terminvestments have become less active.</p><p>THAILANDBANGKOK</p><p>Te overall oce market in Bangkokremained steady with rents unchanged andslight increase in vacancy rates. Going orward,</p><p>the economy is expecting growth and coupledwith political stability ater the electionsscheduled this year, business sentiments will</p><p>improve. Te outlook is promising and positive absorption is expected.</p><p>VIETNAM</p><p>HANOIHanois Grade A oce space has seen rentsdecreasing while Grade B rents remainedstable. Likewise, vacancy rate or Grade Ahas increased while the rate or Grade Bhas reduced slightly. More projects will becompleted this year and this will urther put a</p><p>pressure on the overall vacancy rate. Landlords are expected to oer moreincentives packages and abatements on rents in a bid to retain existingtenants and attract new ones.</p><p>HO CHI MINH CITYTere will be signicant constructioncompletions in 2011 and 2012, addingpressure on the vacancy rate. Vacancy standsat 21% or Grade A space and it is likelyto remain elevated over the next ew years.Rentals are observed to be stable with leasing</p><p>activity relatively active. Positive absorption is anticipated i the overalleconomy continues to recover and grow.</p><p>PUNEWith availability o new Grade A space,Special Economic Zone spaces and lowerrentals at the suburban and peripherallocations, it has attracted some corporaterelocations and expansions. As such, therentals at CBD have decreased by 3%.</p><p>Pune is expecting about 5.9 ms o supply this year and rentals arelikely to be stable and increase steadily over the medium term.</p><p>JAPAN</p><p>TOKYOLeasing activity remained sluggish andstagnant. Vacancy has also been slowlycreeping up. With competition to attracttenants, there is pressure on rents todecline slightly or remain constant, evenor buildings in prime locations. Overall, it</p><p>remains a tenants market. While the earthquake and tsunami in March2011 has added to its economic woes, it is not expected to overturn theeconomic situation. Tere will be a temporary slowdown in the next 1-2quarters but with reconstruction activity, the overall economy is expectedto weather the storm and the outlook remains positive.</p><p>MALAYSIA</p><p>KUALA LUMPURIn view o additional supply into themarket in the next one to two years,rentals are expected to soten. Landlordso older buildings are also using this</p><p>opportunity to do reurbishing andalteration works in an attempt to staycompetitive while tenants whose leases are due or expiration wouldbe looking or better deals in newer buildings</p><p>PHILIPPINES</p><p>MANILALeasing activity in Manila remainedrelatively unchanged. So ar, rents arestable but are expected to pick up,especially with better overall economyand no signicant construction</p><p>completions this year. Investor sentimentshave also improved, albeit more cautious in the light o variousmacroeconomic events that have happened</p><p>SINGAPORE</p><p>Prime oce leasing remained active,albeit at a slower pace compared to 2010.Overall, prime rents have increasedanother 5% rom year end and thus,it remains a landlords market whereoverall availability o prime oce space is</p><p>limited. Investor interest was upheld as evidenced by deals closed this</p><p>quarter including Capital Square achieving a record selling price o$2,300 per square oot. Te outlook remains positive and rentals areexpected to continue to increase.</p><p>Vacacy+31.3%R-18.0%</p><p>Y--Y cag 12- </p><p>Vacacy0.0%R</p><p>+6.0%</p><p>Y--Y cag 12- </p><p>Vacacy+2.3%</p><p>R-1.1%</p><p>Y--Y cag 12- </p><p>Vacacy+4.5%R-4.6%</p><p>Y--Y cag 12- </p><p>Vacacy+9.6%R</p><p>0.0%</p><p>Y--Y cag 12- </p><p>Vacacy+25.0%</p><p>R</p><p>+1.6%</p><p>Y--Y cag 12- </p><p>Vacacy</p><p>+67.4%</p><p>R+0.6%</p><p>Y--Y cag 12- Vacacy+1.2%</p><p>R+7.4%</p><p>Y--Y cag 12- </p><p>Vacacy</p><p>-45.3%R+28.3%</p><p>Y--Y cag 12- </p><p>Vacacy-9.8%R-0.6%</p><p>Y--Y cag 12- </p></li><li><p>8/2/2019 Asia Pacific Market Briefs</p><p> 5/8</p><p>4</p><p>ASIA PACIFIC MARKETBRIEFS</p><p>Table: 1</p><p>Table: 2</p><p>Table: 3</p><p>Table: 4</p><p>Source: Cushman &amp; Wakefield Res earch</p><p>1Q 2011 siGnifiCAnt neW sAle tRAnsACtions</p><p>Cry/Cy bg sar byr sqar fPrca</p><p>Prc (usd$)</p><p>Japa-ty oac PAl Cya (Cbd) m fa 300,565 876,600,000</p><p>sgapr Capa sqar Ra Pac ntuC ic 386,525 705,439,013</p><p>sgapr 16 Cyr Qay Ra Pac ntuC ic 279,560 524,516,521</p><p>Araa-syy 310-322 P sq CbdCwa Reit/macarrC Prpry</p><p>313,865 206,716,849</p><p>Araa-syy 55 Carc s Cbdera f maag/ARiA</p><p>161,501 86,123,394</p><p>1Q 2011 siGnifiCAnt ConstRuCtion ComPletions</p><p>Cry/ Cy bg sar majr ta sqar fCp</p><p>da</p><p>Ca-saga CitiC spyar-Pa i ljaz n/A 2,071,039 1Q11</p><p>ia-ma brag-Pa 2 Ar n/A 1,180,000 1Q11</p><p>Ca-saga PgA iraa fac Cr ljaz n/A 848,324 1Q11</p><p>ia-nCR Asf iga Grga tCs 750,000 1Q11</p><p>Ca-Cg sca iv bg nayaxascadvphg</p><p>742,709 1Q11</p><p>Source: Cushman &amp; Wakefield Rese arch</p><p>1Q 2011 siGnifiCAnt PRoJeCts undeR ConstRuCtion</p><p>Cry/ Cy bg sar majr ta sqar fCp</p><p>da</p><p>Japa-ty Pa Cya (Cbd) bag 1,517,711 2Q12</p><p>ia-nCR laar Cyr Par Grga n/A 1,500,000 3Q11</p><p>Ca-bjg G Cr ea 2 Rg Ra n/A 1,442,363 4Q11</p><p>kra-s 101 P Av Cbd n/A 1,399,232 4Q11</p><p>sgapr Aa sqar twr 1 mara bay C Grp 1,300,000 2Q11</p><p>Cry/Cy bg sar ta sqar f</p><p>Ca-Cg sca iv bg nayaxasca vphg C. 355,209</p><p>ia - Jaara sra saya iii saya bag 322,917</p><p>ia- kaa uc ipac Rajara Cgza 270,000</p><p>kra-s Cr 1 Cbdmcy,Rjkra,hawa e&amp;C</p><p>261,294</p><p>ia-P dlf Ar hjwa Cgza 250,000</p><p>Source: Cushman &amp; Wakefield Res earch</p><p>1Q 2011 siGnifiCAnt neW leAse tRAnsACtions</p><p>Source: Cushman...</p></li></ul>