Asia Pacific Office Market Overview 1Q 2012

Download Asia Pacific Office Market Overview  1Q 2012

Post on 27-Oct-2014

23 views

Category:

Documents

1 download

Embed Size (px)

TRANSCRIPT

AsiA PAcific Office Market Overview1Q 2012

Accelerating success.

table Of cOntentsAsiA PAcific office mArket overview | 1Q 2012

regional overview Greater china

3 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

8-11

Jakarta, Indonesia.............................................................................................................................8 Kuala Lumpur, Malaysia ....................................................................................................................8 Karachi, Pakistan...............................................................................................................................9 Manila, Philippines ............................................................................................................................9 Singapore ........................................................................................................................................ 10 Bangkok, Thailand ........................................................................................................................... 10 Hanoi, Vietnam ................................................................................................................................. 11 Ho Chi Minh City, Vietnam ............................................................................................................... 11

india

12-13

Bengaluru (Bangalore) ................................................................................................................... 12 Chennai ........................................................................................................................................... 12 Mumbai ............................................................................................................................................ 13 New Delhi ........................................................................................................................................ 13

Australasia

14-17

Adelaide, Australia .......................................................................................................................... 14 Brisbane, Australia ......................................................................................................................... 14 Canberra, Australia ......................................................................................................................... 15 Melbourne, Australia ....................................................................................................................... 15 Perth, Australia ............................................................................................................................... 16 Sydney, Australia ............................................................................................................................ 16 Auckland, New Zealand ...................................................................................................................17 Wellington, New Zealand .................................................................................................................17

Prime office supply and rentals trends & forecasts Definition & terminology contacts

18-19 20-21 22-23 24-25

regiOnal OverviewecoNomic overviewDespite the continued challenges in the external environment, a number of macro-variables in the region, including capital flows and domestic consumption, suggested that the economy showed signs of improvements in 1Q 2012 compared to the preceding six months. In addition, the prevailing monetary policies adopted by a number of central banks remained accommodative. For example, the Reserve Bank of India has cut its repo rate by 50 basis points to 8.00% in mid-April 2012. Meanwhile, China lowered its banks reserve requirement ratio again in 1Q 2012 in an attempt to create a soft landing for its economy.

leAsiNG mArketOn the leasing front of the office market in the region, a number of corporate occupiers continued to proceed with their relocation and consolidation plans, particularly in individual centres where brand-new developments are available for occupation. Similar to the last two quarters, tenants engaging in IT, technology and electronics were found to be the most active in looking for office space during 1Q 2012. Office rents in most centres were either stable or increased mildly during 1Q 2012 although Hong Kong and Singapore showed 4 - 5% QoQ downward adjustments due to softening leasing demand attributed primarily to the banking and finance industries. China continued to see a steady growth of 1 - 2% QoQ. Beijing stood out the most with rents increasing by 6% QoQ because of the continued tight supply situation. Rents in Australasia remained solid, thanks to the strong investment expenditure by the Government in the resources sector. Overall, the average office rent grew slightly by 0.2% QoQ in 1Q 2012.

sAles mArketOn the sales front, the average transacted office prices increased further by 1.8% QoQ, signifying continuous lowering of the overall investment yields during 1Q 2012. In China, local companies with strong balance sheets continued to be the key players, snapping up quality office developments for either owner occupation or long-term investment. In Australasia, there was sustained buying activity attributed to real estate funds in 1Q 2012. For example, Dexus Wholesale Property Fund (DWPF) acquired the Riverside Plaza office property at 452 Flinders Street, Melbourne for a net purchase price of US$186 million.

mArket outlookGiven the recent upgrade of the global economic growth expectations for 2012 and 2013 by the International Monetary Fund, leasing demand for offices in the region continues to look positive. Notwithstanding the potential for negative shock arising from the lingering European debt issues, it is our view that investment appetite for office real estate in the region will remain strong. Investors will certainly focus more on office real estate amid the tightening measures implemented by various governments on individual residential markets. However, the availability of credit for office real estate financing remains one of the key hurdles for buyers who require a certain level of gearing in order to achieve their targets of return on equity.

colliers iNterNAtioNAl |

P. 3

asia pacific office market overview | 1Q 2012

cHiNABEIJING OFFICE SUPPLY, TAKE-UP & VACANCY RATE1.00 0.80 Million sq m 0.60 0.40 0.20 0.00 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Vacancy Rate

Beijing There was no new supply in Beijings Grade A office property market in 1Q 2012. However, the two projects located in the CBD and Wangjing submarkets were upgraded. This led to a small adjustment in the total Grade A office stock, which measured 5.17 million sq m as of the end of 1Q 2012. The leasing market in 1Q 2012 turned out to be somewhat lacklustre, attributing to seasonality factors and the current high occupational cost. However, the overall vacancy rate continued to decline by 1.0 percentage point QoQ to 3.8% due to the absence of new supply. Significant transactions included the lease of 9,000 sq m in One Indigo to Daimler and the commitment of China Jianyin Investment Technology to take it up 2,429 sq m in China Overseas International Centre. Only one en bloc sales transaction was booked in 1Q 2012 a domestic buyer acquired 60,000 sq m at China Electronics Plaza Tower B for a total consideration of approximately RMB1.6 billion. Due to the limited quality of new supply coming in the next two years and the sustained positive demand fundamental; effective rentals increased 5.8% QoQ to RMB290.28 per sq m per month in 1Q 2012.mAjor trANsActioNs BuilDiNG China Electronics Plaza Tower B Zhongguancun Building One Indigo IFC China Overseas International Centre leAse (l) / sAle (s) S L L L L teNANt / PurcHAser A domestic buyer Panasonic Daimler Yida Real Estate China Jianyin Investment Technology AreA (sq ft) 645,800 26,900 96,900 16,100 26,100

2009

2010Supply

2011Take-up

2012 F

2013 F

Vacancy Rate

BEIJING OFFICE CAPITAL AND RENTAL VALUES700.00 600.00 500.00 Rentals 400.00 300.00 200.00 100.00 0.00 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Capital Values

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F 2Q 2013 F 3Q 2013 F 4Q 2013 FRentals (RMB / sq m / Month) Capital Values (RMB / sq m)

CHENGDU OFFICE SUPPLY, TAKE-UP & VACANCY RATE0.50 0.40 0.3