Asia Pacific Office Market Report 2Q2011

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Statistics & Overview of the Asian Pacific Real Estate Market for 2nd Quarter 2011

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  • 1.AsiA PAcificOffice Market Overview2Q 2011Accelerating success.

2. table Of cOntentsAsiA PAcific office mArket overview | 2Q 2011regional overview 3Greater china 4-6Beijing, China ....................................................................................................................................4Chengdu, China .................................................................................................................................4Guangzhou, China .............................................................................................................................5Shanghai, China ................................................................................................................................5Hong Kong SAR, China .....................................................................................................................6Taipei, Taiwan ...................................................................................................................................6North Asia7Seoul, South Korea ........................................................................................................................... 7Tokyo, Japan ..................................................................................................................................... 7southeast Asia8-10Jakarta, Indonesia.............................................................................................................................8Kuala Lumpur, Malaysia ....................................................................................................................8Manila, Philippines ............................................................................................................................9.Singapore ..........................................................................................................................................9.Bangkok, Thailand ........................................................................................................................... 10Hanoi, Vietnam ................................................................................................................................. 11Ho Chi Minh City, Vietnam ............................................................................................................... 11india12-13Bengaluru (Bangalore) ................................................................................................................... 12Chennai ........................................................................................................................................... 12Mumbai ............................................................................................................................................ 13.New Delhi ........................................................................................................................................ 13.Australasia14-17Adelaide, Australia .......................................................................................................................... 14Brisbane, Australia ......................................................................................................................... 14Canberra, Australia ......................................................................................................................... 15Melbourne, Australia ....................................................................................................................... 15Perth, Australia ............................................................................................................................... 16Sydney, Australia ............................................................................................................................ 16Auckland, New Zealand ...................................................................................................................17Wellington, New Zealand .................................................................................................................17Prime office supply and rentals18-19trends & forecasts20-21Definitions & terminology 22-23contacts 24-25 3. regiOnal OverviewecoNomic overviewDuring 2Q 2011 the region continued to be challenged by inflationary pressures. In order tomoderate expectations on further inflation the various central banks in Asia implementedfurther rate hikes during 2Q 2011. The Peoples Bank of China increased its one-yearlending rates to 6.56%, as consumer prices showed no sign of abating during the period.Due to the typical time lag of such monetary policy changes, such measure have not beenimmediately felt and but are expected to reduce growth in the second half of 2011. Inaddition to inflationary concerns, the disruption to the production and supply chain in theaftermath of the catastrophic earthquake in Japan in March 2011 is also predicted to dampenthe economic growth of Japan in 2011. Based on the inflationary pressures in China andrebuilding efforts in Japan the prospective economic growth of the key economies in Asiahave been revised downwards by about 50 basis points during 2Q 2011. For example,economic growth forecast in China has been revised down from 10% to 9..5% for 2011.In Japan, the prospective economic growth this year is also lowered from 1.6% to 1.0%.leAsiNG mArketOn the leasing front, the average office rental in the region slowed distinctively, from 1.7%q-o-q in 1Q 2011 to 0.4% in 2Q 2011. Individual cities in South Asia registered notablerental declines during the period. Although Hong Kong, Beijing and Singapore continued tobe the key performers, with rental growth in the order of 2-3.% q-o-q, there was a generalmarket slowdown in terms of the growth pace of volume during 2Q 2011.sAles mArketBuying momentum varied across various sub-regions during 2Q 2011. In the GreaterChina sub-region, the volume of sale transactions in Beijing was relatively quiet comparedto the previous quarter. Hong Kong was one of the few performers with a double-digitincrease during the period, thanks to the increase of strata-title sales in non-core markets.In other cities of China, demand remained firm, since domestic enterprises continued tolook for quality office space for self-use or investment during the period. However, qualitystock listed for sale remained scarce. In the Australasian sub-region, the volume of theinvestment sale market was generally quiet. In Brisbane, there was only one transactionin the CBD during the first half of 2011. There was also a distinct lack of investment salesin the Sydney CBD during 2Q 2011.mArket outlookLooking ahead, the overall market momentum is anticipated to stage further slowdown asthe current interest rate cycle in the region takes its toll over the near to medium term.Individual markets with the prevailing tight credit conditions are going to show a moresignificant slowdown of transactional sale volume. However, it is our view that occupierswith long-term business commitments in the region will continue with their real estateplans, including upgrading, expansion and consolidation. Individual markets will see anincrease of activity when more quality developments are due for completion in the currentsupply cycles in the next 12 months. colliers iNterNAtioNAl |P. 3 4. asia pacific office market overview | 2Q 2011 cHiNA BEIJING OFFICE SUPPLY, TAKE-UP &Beijing VACANCY RATE No new project was completed during 2Q 2011. Demand for quality office space remained 1.00 25.0%robust, underpinned by MNCs and domestic enterprises active pursuit of premises for 0.80 20.0%expansion, relocation, renewal and new leasing. The overall vacancy rate in the Beijing Grade A office market dropped by 2.21 percentage points q-o-q to 5.3.5%. On the other Vacancy Rate15.0%Million sq m 0.60 hand, the average rent surged to RMB23.1.83. per sq m per month, up 12.3.7% q-o-q - the largest growth ever. 0.40 10.0% 0.20 5.0% As options for tenants securing sufficient spaces were limited, most large-size deals 0.00 0.0%20082009 20102011 F 2012 F were clustered in newly launched projects or ongoing developments. For example,SupplyTake-up Vacancy Rate China Construction Bank and Volkswagen Finance took up 26,000 sq m and 8,000 sq m at Beijing IFC, respectively. Monsanto and Sojitz Corporation committed to take 2,800 sq m and 2,000 sq m, respectively, at Phoenix Place Phase II, which is scheduled for completion in the second half of 2011. BEIJING OFFICE CAPITAL AND RENTAL VALUES 700.00 70,000 The Beijing office investment market was relatively quiet compared to previous quarters. 600.00 60,000 Only one en bloc sales transaction was concluded in the Wangjing area. Media Tek from 500.00 50,000 Taiwan purchased a building under construction within the Beijing Electronic City for a Capital Values 400.00 40,000 total consideration of RMB412 million.Rentals 300.00 30,000 200.00 20,000 mAjor trANsActioNs 100.00 10,000 BuilDiNGleAse (l) / teNANt / PurcHAser AreA 0.00 0sAle (s)(sq ft) 1Q 20081Q 2013 F 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F A building under construction S Media Tek 279,900 Rentals (RMB / sq m / Month) Capital Values (RMB / sq m)within the Beijing Electronic City Beijing IFC L China Construction Bank86,100 Beijing IFC L Volkswagen Finance 36,600 Beijing IFC L AIA30,100 Phoenix Place Phase IIL Sojitz 48,400 Raycom Infotech Park TowerL National Instruments 43,100Corporation Silver TowerLHNA Group 36,600 CHENGDU OFFICE SUPPLY, TAKE-UP & chengdu VACANCY RATE The new projects introduced in Q3. 2010 continued a positive leasing progress, but some 0.25 50.0% newly signed tenants just moved to a new office building from an original one, so the 0.20 40.0% actual take-up volume was very limited. Thus, the vacancy rate of general market was 22.29.%, dropping slightly by 1.66% compared to last quarter. The average rent increased Vacancy Rate 0.15 30.0%Million sq m 0.10 20.0%1.9.8% q-o-q to RMB13.2.9.0 per sq m in 2Q 2011. 0.05 10.0% The Central Business District was relatively active in Q2 2011, with average rent at 0.002008 20092010 2011 F2012 F0.0% RMB13.4.3.1 per sq m, up by 3..72% q-o-q, and vacancy rate at 3.5.24%, down 2.67 perSupplyTake-up Vacancy Rate cent compared to last quarter. Yanlord Landmark contributed a significant stimulating effect to this area, as the rent of this project rose by 11.25% q-o-q. CHENGDU OFFICE CAPITAL AND RENTAL VALUES In Q2 2011, most leasing transactions in Grade A office buildings were along the Metro 225.00 22,500 Line 1. 200.00 20,000 175.00 17,500 150.00 15,000 mAjor trANsActioNs Capital Values 125.00 12,500Rentals 100.00 10,000 BuilDiNGleAse (l) / teNANt / PurcHAser AreA75.00 7,500sAle (s)(sq ft)50.00 5,00025.00 2,500Yanlord LandmarkL Bayer Health Care21,500 0.00 0 Yanlord LandmarkL Bayer Material Science2,900 1Q 2008 1Q 2009 2Q 2008 3Q 2008 4Q 2008 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F CDB International Plaza LQifeng Group17,400 Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) Western Tower LHuachuang Securities 3,000P. 4| colliers iNterNAtioNAl 5. asia pacific office market overview | 2Q 2011cHiNA GUANGZHOU OFFICE SUPPLY, TAKE-UP &guangzhou VACANCY RATE No new project was completed in 2Q 2011. Strong demand drove the overall vacancy 2.50 50.0%rate to drop steeply by 5.5 percentage points q-o-q to 17.4%. It is expected that seven2.0040.0%new projects, with a total of over 863.,000 sq m office space, will be launched onto the market in the second half-year. Vacancy Rate30.0%Million sq m 1.50 1.00 20.0% Driven by activities like new leasing, expansion, and relocation from enterprises in 0.50 10.0% financial, manufacturing, IT and trading industries, the leasing market was active during this quarter. The asking price of Grade A office in the central districts was marked up0.000.0%2008 2009 20102011 F2012 F by the landlord, resulting in a 6.2% q-o-q increase of average rental to RMB147.26 perSupplyTake-up Vacancy Rate sq m per month. The good performance of the economy fired demand of domestic enterprises for high quality office space for self-use or investment purposes. However, limited projects were GUANGZHOU OFFICE CAPITALon sale in the market during 2Q 2011. The demand-supply imbalance pushed average AND RENTAL VALUES 180.00 36,000 sales price up by 5.2% q-o-q, to RMB27,522 per sq m in 2Q 2011. 160.00 32,000 140.00 28,000 mAjor trANsActioNs 120.00 24,000 Capital Values 100.00 20,000 BuilDiNGleAse (l) /teNANt / PurcHAserAreARentals 80.0016,000sAle (s)(sq ft) 60.0012,000 40.008,000 Centre PlazaL Guangzhou Ochirly Information29,100 20.004,000Technology Co. Ltd0.000Poly Centre LChina Southern Power Grid 20,000 1Q 2008 1Q 2009 2Q 2008 3Q 2008 4Q 2008 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 FCorporation GT. Land PlazaL Carlsberg19,800 Rentals (RMB / sq m / Month) Capital Values (RMB / sq m) Poly Centre L Guangzhou Hefu Investment Co. Ltd 9,100 Poly Centre L Individual4,900shanghai SHANGHAI OFFICE SUPPLY, TAKE-UP & VACANCY RATE During 2Q 2011, IFC Two, Lujiazui Fund Tower and Lujiazui Investment Tower in Pudong 1.50 25.0%district were completed, thus bringing in a total of 180,500 sq m of new supply to the 1.20 20.0% market. The strong fundamentals of Shanghais economy and the inflow of FDI in the tertiary Vacancy Rate15.0%Million sq m 0.90 0.60 10.0%industry kept demand for Grade A office space robust in 2Q 2011. 0.30 5.0% The vacancy rate in Shanghais Grade A office market rose 1.0 percentage points to0.000.0% 10.6% in 2Q 2011, due to the relocations of tenants to new projects. Demand remained2008 200920102011 F 2012 F strong and average rental rates increased 2.7% q-o-q to RMB7.8 per sq m per day inSupplyTake-up Vacancy Rate 2Q 2011. Developers tended to extend rent-free periods as a leasing strategy for their new SHANGHAI OFFICE CAPITAL AND RENTAL VALUES developments. Supported by sustained rising demand and inflationary pressure, office rents are anticipated to stay firm.15.00 60,00012.00 48,000 mAjor trANsActioNs Capital Values 9.00 36,000 BuilDiNGleAse (l) / teNANt / PurcHAser AreARentals 6.00 24,000sAle (s)(sq ft) 3.00 Westgate Mall LIpsos 58,10012,000 Calton Building L Heng Da Real Estate32,3000.000 Groupon China LManpo International Plaza 16,100 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F Estee LauderLThe Centre 6,500 Rentals (RMB / sq m / Day) Capital Values (RMB / sq m)Shanghai World Financial Centre SBread n Butter35,900 colliers iNterNAtioNAl |P. 5 6. asia pacific office market overview | 2Q 2011 H o N G ko N Ghong kongHONG KONG OFFICE SUPPLY, TAKE-UP & More occupiers have expressed their resistance to current market rentals and the pace ofVACANCY RATE4.50 9.0%rental growth has tapered off. Grade A office rentals increased 4.0% q-o-q to HK$67.814.00 8.0% per sq ft per month in May 2011, compared with 12.7% q-o-q in February 2011.3.50 7.0%3.00 6.0% The banking and financial industries remained one of the major sources of leasing demand Vacancy RateMillion sq ft2.50 5.0%2.00 4.0%in 2Q 2011. Mainland banks happened to be the key highlight in terms of the number of 3.0% confirmed deals during the period. In addition, leasing demand attributed to a batch of1.501.00 2.0%0.50 1.0%newly set up hedge funds, private equities and the existing players in the professional0.00 2008 200920102011 F2012 F 0.0% sector continued to drive the market during 2Q 2011.SupplyTake-upVacancy Rate The prospective pace of rental growth is anticipated to taper off further in the next 12 months, after having accumulated growth of 65% in the past two years. Overall, upgrading and expansion demand are predicted to push average rental upward by another 15%HONG KONG OFFICE CAPITAL over the next 12 months.AND RENTAL VALUES150.00 30,000 mAjor trANsActioNs125.00 25,000 BuilDiNGleAse (l) /teNANt / PurcHAserAreA100.00 20,000sAle (s)(sq ft) Capital ValuesRentals 75.00 15,000 International Commerce Centre LNatixis Corporate Solutions 53,300 50.00 10,000 Windsor House LNew York Life Insurance103,800 25.00 5,000 One Kowloon L Carrefour Global Sourcing23,2000.00 0 AIA Central LChina Construction Bank 12,3001Q 20082Q 20083Q 20084Q 20081Q 20092Q 20093Q 20094Q 2009 1Q 20102Q 20103Q 20104Q 20101Q 2011 2Q 2011 3Q 2011 F 4Q 2011 F 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F Millennium City Phase 5 L Bank of China25,000 Rentals (HK$ / sq ft / Month)Capital Values (HK$ / sq ft) Cheung Kong CentreLKKR 22,000 44-45/F, Lippo Centre Tower 1 SMainland China corporation19,400 10 floors, Millennium CitySAEW 81,400 Phase 3 tA i wA NTAIPEI OFFICE SUPPLY, TAKE-UP &taipeiVACANCY RATEWith no increase in new stock, vacancy rate fell 84 basis points to 13..3.1% amid steady35,000 35.0% demand for office space during 2Q 2011.30,000 30.0%25,000 25.0%Hsin Yi outperformed the other submarkets, since financial institutions were the main contributors to the overall take-up during the period. In West District, Metropolitan Vacancy Rate20,000 20.0%Ping15,000 15.0% International Centre has been gradually taken up by financial institutions and a number10,000 10.0% of technology companies since the relocation of Yahoo to Nangang. 5,000 5.0% 0.0%0 2008 2009 2010 2011 F2012 F The effective rent of Grade A office increased by 0.14% q-o-q to NT$2,462 per ping-5,000 -5.0%SupplyTake-upVacancy Rate per month in 2Q 2011. In Hsin Yi district, the effective rent increased 0.3.2% q-o-q to NT$2,846 per ping per month. On the sales front, China Life Insurance Company, Ltd purchased Continental Po AiTAIPEI OFFICE CAPITAL AND RENTAL VALUES Building with 1,527 ping for NT$750 million. The deal shows that investors remained 3,000 1,200,000 keen for office properties with reasonable yields, particularly the new developments in 2,500 1,000,000 West District. 2,000 800,000 Capital Values mAjor trANsActioNsRentals 1,500 600,000 1,000 400,000 BuilDiNG leAse (l) /teNANt / PurcHAser AreA500200,000 sAle (s) (sq ft)00 Sin Yi Building L Allianz Taiwan Life Insurance56,3001Q 20083Q 20104Q 20102Q 20083Q 20084Q 20081Q 20092Q 20093Q 20094Q 2009 1Q 20102Q 20101Q 2011 2Q 2011 3Q 2011 F 4Q 2011 F 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F Metropolitan International Center L GreTai Securities Market 30,600 Taipei Financial Center LChina Ocean Shipping20,800 Rentals (NT$ / Ping / Month) Capital Values (NT$ / Ping) Walsin Hsin Yi Building L Invesco Taiwan Limited 13,400 Continental Po Ai BuildingS China Life Insurance 54,300P. 6 | colliers iNterNAtioNAl 7. asia pacific office market overview | 2Q 2011s o u t H ko r e A SEOUL OFFICE SUPPLY, TAKE-UP &seoul VACANCY RATE The average Grade A office rental grew 1.28% q-o-q to KRW 76,553. per pyung during300,00012.0% 2Q 2011. The CBD and GBD registered growth of 0.65% and 0.75% q-o-q, respectively,250,00010.0% but the YBD saw a fall of 0.57% during 2Q 2011.200,0008.0% Vacancy rate in the CBD surged to 9.% in 2Q 2011 due to the completion of new Vacancy RatePyung150,0006.0% developments in 2011. In the GBD, vacancy increased slightly to 1.9.1% in 2Q 2011. In100,0004.0% anticipation of more new supply entering the pipeline, the overall office vacancy in Seoul 50,0002.0% is predicted to rise to 9.% in late 2011. The current tenants market situation will persist 020082009 2010 2011 F 2012 F 0.0% until the end of 2012. Supply Take-up Vacancy Rate On the investment front, there was only one Grade A office sale transaction with floor area more than 10,000 pyung. Sales prices remained soft. Full recovery will be deferred as investors continue to price in thick risk premium on yields. SEOUL OFFICE CAPITAL AND RENTAL VALUES250,00025,000,000mAjor trANsActioNs200,00020,000,000 BuilDiNGleAse (l) / teNANt / PurcHAser AreAsAle (s)(sq ft) Capital Values150,00015,000,000Rentals Daeryung Secho TowerL Lotte Capital28,500100,00010,000,000 Grace Tower L Samsung SDS80,100 50,0005,000,000 Centre OneLYonhap News 96,100 0 0 Centre OneLSamsung Life Insurance40,900 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F Hana Daetoo IB BuildingSMirae Asset MAPS Global 530,700Investments Co. LtdRentals (Won / Pyung / Month) Capital Values (Won / Pyung) Kyongam Building SNCsoft Corporation288,900 Fmr. Beom yang Hq Bldg SNURI Telecom Co Ltd71,800JV NexG Co. Ltd KLC - Korea Line Corporation STuksu Construction112,000jA PA N TOKYO OFFICE SUPPLY, TAKE-UP &tokyo VACANCY RATE Overall demand is stable rather than increasing.200,00010.0%180,0009.0% Newer properties, and lower floors of skyscrapers, enjoy increasing interest due to160,0008.0%140,0007.0%seismic sensitivities. Vacancy Rate120,0006.0%Tsubo100,0005.0% 4.0% Rents weak, but only declining modestly. 80,000 60,0003.0% 40,0002.0% Relatively large new supply in 2Q 2011 to benefit from fewer completions during 20,0001.0% 0 0.0% 3.Q 2011.20082009 2010 2011 F 2012 F Supply Take-up Vacancy Rate Vacancy rate showing improvement; but significant new supply in the pipeline. TOKYO OFFICE CAPITAL AND RENTAL VALUESmAjor trANsActioNs 60,00012,000,000 BuilDiNGleAse (l) / teNANt / PurcHAser AreAsAle (s)(sq ft) 50,00010,000,000 Nakano Central Park EastL Nihon Koden 177,500 40,0008,000,000 Kojimachi 2-chome Project L Nittobo88,750 Capital ValuesRentals 30,0006,000,000 Mesonic 38 MT BuildingL IT Frontier 177,500 20,0004,000,000 Toyosu Cube LAskul 53,250 10,0002,000,000 Shinjuku Front TowerL Mizuho Information &124,250 0 0Research Institute 1Q 2008 3Q 2010 4Q 2010 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 FRentals (Yen / Tsubo / Month) Capital Values (Yen / Tsubo) colliers iNterNAtioNAl | P. 7 8. asia pacific office market overview | 2Q 2011 i N D o N es i AJAKARTA OFFICE SUPPLY, TAKE-UP &jakartaVACANCY RATE A relatively small amount of new office space of only 145,279. sq m in the CBD during500,000 20.0%2011 will help regulate the occupancy level. Of the new office buildings coming in400,000 16.0%2Q 2011 (in the CBD and outside of CBD), the overall commitment level so far has reached 70%. Vacancy Rate300,000 12.0%sq m200,000 8.0% A number of local companies have been the driver for the sale volume in the strata-title100,000 4.0% market. Outside the CBD, a total of 104,423. sq m of strata-title office space has been 82% sold. Likewise, a number of existing strata-title offices in the CBD has reported 00.0%2008200920102011 F 2012 Fcontinued absorption, particularly from local companies. SupplyTake-up Vacancy Rate Rental rates for prime quality office buildings in the CBD are approaching US$40.00 per sq m per month - a historic high in the office market. Looking forward, relocation andJAKARTA OFFICE CAPITAL AND RENTAL VALUES expansionary requirements are going to buoy occupancy rates, despite the prospective210,000 35,000,000 increase in new office developments.180,000 30,000,000150,000 25,000,000 mAjor trANsActioNs Capital Values120,000 20,000,000 BuilDiNGleAse (l) / teNANt / PurcHAser AreARentals 90,000 15,000,000sAle (s)(sq ft) 60,000 10,000,000 The Plaza L Deloitte 57,300 30,000 5,000,000 Plaza SimatupangLAlstom34,200 00 K-Link TowerLGroup M 26,900 1Q 2008 4Q 2010 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F The EastL PWC21,500 Rentals (Rupiah / sq m / Month) Capital Values (Rupiah / sq m)The Plaza L Mead Johnson Indonesia 16,500 Office 8SBayan Resources 80,700 The EastSSynco Global (Archean Group)11,800 m A l Ays i AKUALA LUMPUR OFFICE SUPPLY, TAKE-UP kual a lumpur& VACANCY RATE Overall economic growth slowed during 2Q 2011 and is expected to remain stable during30.0% the second half of 2011. 3.00 2.50 25.0% 2.00 20.0% Only one building, Capital Square Office Tower 2, was completed during 2Q 2011, adding Vacancy RateMillion sq ft 1.50 15.0%600,000 sq ft to the market. Redevelopment and refurbishment works on aged office 1.00 10.0%buildings have been actively progressing. 0.50 5.0% Due to the delay of office completions and the improvement on net take-up, vacancy fell 0.00 0.0%2008200920102011 F2012 F slightly from 13..6% in 1Q 2011 to 12.3.% in 2Q 2011. SupplyTake-up Vacancy Rate Rentals and capital values are expected to remain generally stable during the second half of 2011.KUALA LUMPUR OFFICE CAPITAL ANDmAjor trANsActioNsRENTAL VALUES12.00 1,200BuilDiNG leAse (l) /teNANt / PurcHAser AreA sAle (s) (sq ft)10.00 1,000 Wisma Perkeso,LSyarikat Perumahan Negara 83,000* 8.00 800 Off Jalan Tun RazakBerhad (SPNB)Capital ValuesRentals 6.00 600 Wisma Perkeso,LRanhill Berhad100,000 4.00 400Off Jalan Tun Razak 2.00 200G-Tower LAlliance Bank Berhad 4,000 0.00 0Menara Multi-purposeLC H Williams Talhar & Wong 8,000 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2013 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F Capital Square Tower 2L Tradewinds International 10,000*Insurance Brokers Sdn Bhd Rentals (Ringgit / sq ft / Month) Capital Values (Ringgit / sq ft) Block 6, The HorizonSN2N Connect Berhad46,100 (Phase 1**)* Concluded by CH Williams Talhar & Wong Sdn BhdData sourced from C H Williams Talhar & Wong Sdn Bhd** Multimedia Super Corridor (MSC) status building located in Kuala Lumpur fringe areaP. 8| colliers iNterNAtioNAl 9. asia pacific office market overview | 2Q 2011P H i l i PP i N esMANILA OFFICE SUPPLY, TAKE-UP &manil aVACANCY RATE While the development of offices across major CBDs is expected to grow at more than120,000 12.0%twice that of 2010, Makati prime stock remains unchanged at 865,59.1 sq m. However,100,000 10.0% an increase in stock is expected as the Zuellig Building nears its completion in 1Q 2012.80,0008.0% The offshoring and outsourcing (O&O) industry continued to drive demand for offices Vacancy Rate60,0006.0%sq m40,0004.0% across Metro Manila. Net take-up for Prime office in Makati is expected to reach around2.0%20,000 3.3.,000 sq m in 2011, which will more than double that of 2010. 00.0%2008200920102011 F 2012 F-20,000 -2.0% Looking forward, office rental rates are predicted to rise by 6% y-o-y, the fastest rate-4.0% since the last quarter of 2008.-40,000 SupplyTake-up Vacancy Rate Capital values in 2Q 2011 were generally 6.8% higher than the same quarter last year.MANILA OFFICE CAPITAL AND RENTAL VALUES1,200 120,000 mAjor trANsActioNs1,000 100,000 BuilDiNG leAse (l) /teNANt / PurcHAser AreA 80080,000 sAle (s) (sq ft)Capital ValuesRentals 60060,000 MDC 100LANZ Global Services and 157,600 40040,000 Operations (Manila) 20020,000 MDC 100L Stellar Philippines Inc.59,200 00Goodland BuildingLAditya Birla Minacs27,600 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F Piccadilly StarL Microsourcing Philippines, Inc. 22,600 Trafalgar PlazaLPro V International15,400Rentals (Peso / sq m / Month)Capital Values (Peso / sq m) (Philippines) siNGAPoresingaporeSINGAPORE OFFICE SUPPLY, TAKE-UP & Occupiers initial exuberance for office space in response to the economic turnaroundVACANCY RATE 2.50 25.0%from the global financial crisis subsided and leasing activities moderated to a normalised level in 2Q 2011. The overall average occupancy rate for Grade A office space in the2.0020.0% CBD, hence, dipped to 9.3..5% in 2Q 2011, compared with 9.4.2% in 1Q 2011. Vacancy Rate 1.50 15.0%Million sq ft 1.00 10.0% Flight to quality, driven mainly by the financial services sector, continued in 2Q 2011, albeit at a slower pace. This is in line with the stabilisation of expansion and consolidation 0.50 5.0% plans of major large space users. For example, CITIC Bank Internationals intended move0.0020082009 2010 2011 F 2012 F0.0% to Asia Square Tower 1. SupplyTake-up Vacancy Rate The average monthly gross rents of Grade A office space in the CBD recorded a stable growth of 6.2% q-o-q, to reach S$8.9.0 per sq ft in 2Q 2011.SINGAPORE OFFICE CAPITAL ANDRENTAL VALUES Office rents are expected to remain on an uptrend on the back of healthy demand drivers. 30.003,000However, given the presence of global economic downside risks, rental growth in the 25.002,500CBD could taper off from 12.6% in 1H 2011 to not more than 8% in 2H 2011. 20.002,000Capital Values mAjor trANsActioNsRentals15.00 1,5001,00010.00 BuilDiNGleAse (l) /teNANt / PurcHAserAreA 5.00 500 sAle (s)(sq ft)0.000 Asia Square Tower 1 LCITIC Bank International 15,000 1Q 20081Q 2013 F 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 FOcean Financial CentreL Verizon Communications32,100Singapore Pte LtdRentals (Singapore$/ sq ft / Month)Capital Values (Singapore$ / sq ft)Bank of China Plaza LInformatics Education Ltd21,100Anson House SING Real Estate77,20022 Martin RoadSUndisclosed31,600PSA BuildingS Mapletree Commercial Trust 414,000colliers iNterNAtioNAl | P. 9 10. asia pacific office market overview | 2Q 2011 tHAilAND BANGKOK OFFICE SUPPLY, TAKE-UP &Bangkok VACANCY RATE The office market showed tentative signs of positive movement in light of growing120,000 24.0%economic confidence. However, this is still tempered by ongoing global uncertainties100,000 20.0%and the current domestic political situation in Thailand, with general elections to take80,00016.0%place at the beginning of Q3. 2011. Vacancy Ratesq m60,00012.0% An influx of 100,000 sq m of new office supply in the CBD in 2011 is likely to exacerbate40,0008.0% the continuing softened market conditions for the rest of the year.20,0004.0% 020082009 20102011 F2012 F0.0% With less supply forecast for 2012 and 2013., occupancy rates are likely to strengthen SupplyTake-upVacancy Rate in the coming years following an expected uptick in demand for office space due to improving economic conditions. It remains to be seen to what extent the next government will open the service sector BANGKOK OFFICE CAPITAL AND RENTAL VALUESto more competition as a result of regional economic integration by 2015 through the ASEAN Economic Community.1,400140,0001,200120,0001,000100,000 mAjor trANsActioNsCapital Values 800 80,000Rentals 600 60,000 BuilDiNGleAse (l) /teNANt / PurcHAser AreA 400 40,000sAle (s) (sq ft) 200 20,000 Asia CentreLAstra Zeneca International Co. Ltd15,100 0 0 4Q 2009 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2013 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F Sindhorn Tower 1 LLeo Burnett (Thailand) Co. Ltd16,700 Sindhorn Tower 3 LLeo Burnett (Thailand) Co. Ltd19,700Rentals (Baht/ sq m / Month) Capital Values (Baht / sq m)P. 10| colliers iNterNAtioNAl 11. asia pacific office market overview | 2Q 2011vietNAm HANOI CITY OFFICE SUPPLY, hanoi TAKE-UP & VACANCY RATE Rentals increased for the first time for six consecutive quarters, by US$3..4 per sq m120,00060.0%per month during 2Q 2011. Average occupancy rate also picked up by 7.74 percentage100,00050.0%points, breaking the market mark of 9.0% occupancy rate and US$40 rentals. There has 40.0%80,000been a restoration of confidence in developers, although fears of worsened businessVacancy Rate60,000 30.0%conditions remain, due to the continued credit crunch and prudent financial policy.sq m40,000 20.0% 10.0% No new buildings were completed during 2Q 2011. Supply of grade A buildings has been20,000 0 0.0%2008 2009 20102011 F2012 Fscarce. Looking into 2012, two high-rise office buildings, Keangnam Landmark Tower-20,000-10.0%-40,000-20.0%and Indochina Plaza Hanoi, will be coming online, providing occupiers more real estate SupplyTake-upVacancy Ratealternatives. HANOI OFFICE RENTAL VALUES mAjor trANsActioNs60BuilDiNG leAse (l) / teNANt / PurcHAser AreAsAle (s)(sq ft)50Charmvit Grand PlazaLHuawei 14,5004063 Ly Thai To BuildingL International Monetary Fund4,300Rentals30Pacific Place LDelegation of the European 20,60020Commission to Vietnam 10International CentreLCitibank7,500 0Vietcombank Tower LBaker & McKenzie4,800 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 FDaeha CentreLAeroflot5,400 Rentals (US/ sq m / Month)Sun CityLANZ Bank 23,700Pacific Place LKPMG 14,100Charmvit Grand PlazaSState Capital Investment 26,500Corporation HO CHI MINH CITY OFFICE SUPPLY, ho chi minh cit y TAKE-UP & VACANCY RATE Rental rates eased as competition for tenants remained fierce. There was greater landlord180,00030.0%recognition of covenant value to their buildings.150,00025.0%120,00020.0% In addition to competitive rental rates, tenants have been lured by lease incentives andcreative packages.Vacancy Rate90,000 15.0%sq m60,000 10.0% Due to the uncertainties in both the local and global environment, tenants have been30,000 5.0%cautious in committing to any acquisition of new space. The overall process of lease 0 0.0%2008200920102011 F2012 Fagreement has therefore lengthened.-30,000-5.0% SupplyTake-upVacancy Rate HO CHI MINH CITY OFFICE RENTAL VALUESmAjor trANsActioNs70BuilDiNGleAse (l) /teNANt / PurcHAserAreA sAle (s)(sq ft)6050KumhoL Vilaf Hong Duc 5,00040KumhoLViterra 1,200Rentals30KumhoLChina Trust Bank15,80020KumhoL Dell 2,400 10 KumhoL JFE Steel2,600 0KumhoLP&G18,400 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2013 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 FBitexco Financial TowerLKris Energy 2,200 Rentals (US/ sq m / Month) Bitexco Financial TowerLCC Group (Do Thanh Viet)2,200 colliers iNterNAtioNAl |P. 11 12. asia pacific office market overview | 2Q 2011iNDiA Bengaluru (Bangalore) BENGALURU OFFICE SUPPLY, TAKE-UP & VACANCY RATE A number of projects were completed in Bangalore in 2Q 2011, contributing approximately 12.00 24.0%0.8 million sq ft to the citys grade A office space. Of this total, new supply of around 10.00 20.0%0.5 million sq ft was located in the special economic zone. 8.0016.0% Overall, the average rental in Bangalore remained stable. However, a 4% to 5% increaseVacancy Rate Million sq ft 6.0012.0%in asking prices was observed in locations such as EPIP Zone/Whitefield, Electronic 4.008.0%City and Outer Ring road. The positive employment scenario and increased corporate 2.004.0%leasing activities were the key contributors to the rental rise. 0.000.0% 2008 200920102011 F2012 FSupplyTake-up Vacancy Rate In 2Q 2011, about a million sq ft of space in the special economic zone were launchedin PBD location Hebbal, which is expected to be completed by 2013.. BENGALURU OFFICE CAPITAL AND mAjor trANsActioNs RENTAL VALUES 808,000BuilDiNGleAse (l) / teNANt / PurcHAserAreA 707,000 sAle (s) (sq ft) 606,000LOGOS L Zingo 40,000 505,000 Capital ValuesMaruthi Chamber LTally20,000 Rentals 404,000 303,000Prestige Blue ChipLReligare Technologies20,246 202,000Prestige ExoraL Continuous Computing58,837 101,000Maruthi SapphireLCauseway Software10,00000Adarsh Eco PlaceL Qualcomm28,0001Q 20081Q 2009 1Q 2013 F2Q 20083Q 20084Q 20082Q 20093Q 20094Q 2009 1Q 20102Q 20103Q 20104Q 20101Q 2011 2Q 2011 3Q 2011 F 4Q 2011 F 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 FPrestige Shanthiniketan LHuawei 31,458 Rentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft)World Trade CentreL Logica 100,000Prestige TowerL Playdom 14,000 CHENNAI OFFICE SUPPLY, TAKE-UP & chennai VACANCY RATE Approximately 0.5 million sq ft of grade A office space was completed in 2Q 2011 in 16.00 32.0%the CBD. 14.00 28.0% 12.00 24.0% Average rental value remained stable in nearly all the micro-markets except the CBD as 10.00 20.0%new buildings with grade A specification started fetching better prices.Vacancy Rate Million sq ft 8.0016.0% 6.0012.0% A number of IT/ITES office space transactions were observed in PBD locations. The 4.008.0% 2.004.0% demand remained healthy from sectors such as IT/ITES, BFSI, Trade, including the CRS, 0.000.0% Healthcare, Real Estate and Construction, Media & Entertainment, Manufacturing and 2008 200920102011 F2012 FSupplyTake-up Vacancy RateEducation, Research & Consulting sectors. CHENNAI OFFICE CAPITAL AND mAjor trANsActioNs RENTAL VALUES 808,000BuilDiNGleAse (l) / teNANt / PurcHAserAreA 707,000 sAle (s) (sq ft) 606,000Independent Building L Shriram Group35,000 505,000 Capital ValuesRamanujan IT SEZ L CTS 600,000 Rentals 404,000 303,000TVH Agnito L Alcatel 122,000 202,000DLF SEZL L&T IES71,000 101,000DLF SEZL MphasiS42,000 00DLF SEZLZOHO75,0001Q 20082Q 20083Q 20084Q 20081Q 20092Q 20093Q 20094Q 2009 1Q 20102Q 20103Q 20104Q 20101Q 2011 2Q 2011 3Q 2011 F 4Q 2011 F 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 FNesal HouseLTake Solutions18,000 Rentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft)P. 12 | colliers iNterNAtioNAl 13. asia pacific office market overview | 2Q 2011 iNDiAmumBaiMUMBAI OFFICE SUPPLY, TAKE-UP & Approximately 1.3. million sq ft of Grade A office space was added in 2Q 2011 in LowerVACANCY RATE18.00 24.0%Parel, a suburban business district. Projects contributing to this supply were 1.2 million15.00 20.0%sq ft in Peninsula Business Park, and Benefice Business Park, measuring 75,000 sq ft.12.00 16.0% Average rental values for Grade A office space witnessed a marginal increase in the Vacancy RateMillion sq ft 9.00 12.0% range of 1.5% q-o-q, primarily on account of few SBD and PBD micromarkets.6.008.0%3.004.0% Demand for Grade A office space was primarily from the BFSI, IT/ITES, Transport and0.000.0% Storage, Media, Education and communication sectors. However, due to the continued20082009 20102011 F2012 F addition of new supply in the market, it did not result in significant appreciation. SupplyTake-up Vacancy RateMUMBAI OFFICE CAPITAL AND RENTAL VALUESmAjor trANsActioNs 35070,000 BuilDiNGleAse (l) /teNANt / PurcHAserAreA 30060,000sAle (s)(sq ft) 25050,000 The Capital L Patni20,000Capital Values 20040,000 Urmi Estate Tower 1 LSwissair10,000Rentals 15030,000 Peninsula Corporate ParkLBaring Private Equity6,300 10020,000 Rustomjee NatrajLFeedback Ventures 15,7625010,000 00 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 FRentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft)NEW DELHI OFFICE SUPPLY, TAKE-UP &new delhiVACANCY RATE CBD registered an increase in rental values in the range of 4% to 5%. However, SBD12.00 24.0%locations observed a decrease in the range of 5% to 8% owing to large available supply.10.00 20.0% Rental values in PBD locations Noida and Gurgaon remained stable for both IT/ITeS and8.0016.0% non-IT office space during 2Q 2011. Vacancy RateMillion sq ft6.0012.0%4.008.0% A number of commercial projects were launched in PBD locations such as Noida and2.004.0% Gurgaon, which are expected to complete by 2013., thus adding approximately 1.4 million0.000.0% sq ft.2008 200920102011 F2012 F SupplyTake-up Vacancy Rate A decline in the property registration was observed in the capital in 2Q 2011 as the state government made building sanction plans and structural safety certificates mandatory for registration of all kinds of structural transactions in the city.NEW DELHI OFFICE CAPITAL AND RENTAL VALUES 35035,000 30030,000 mAjor trANsActioNs 25025,000 BuilDiNG leAse (l) / teNANt / PurcHAserAreACapital Values 20020,000Rentals 15015,000 sAle (s) (sq ft) 10010,000 Rectangle One L Tata Telecom3,000505,000Rectangle One LSwatch Group 9,500 00Salcon AurumL Bose Corp.9,000 3Q 2009 4Q 2009 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F IFCI TowerLONGC10,000Rentals (Rupee/ sq ft / Month) Capital Values (Rupee / sq ft) Southern Park LGateway Rail Freight 9,000colliers iNterNAtioNAl |P. 13 14. asia pacific office market overview | 2Q 2011Aust r A l i AADELAIDE OFFICE SUPPLY, TAKE-UP & adel aideVACANCY RATE With no new development without significant pre-commitment until at least 2013.-14, 90,000 9.0%pressure will remain on existing stock to satisfy short-term demand, which will keep 80,000 8.0% 70,000 7.0%vacancy low. 60,000 6.0% Forecast is for a positive absorption rate until at least 2013. and a consistent decline inVacancy Rate 50,000 5.0% sq m 40,000 4.0%overall vacancy over the short term. 30,000 3.0% 20,000 2.0%10,0001.0% Prime rents should remain relatively stable over the next three to six months, with growth0 0.0%returning in the second half of the year. 2008 200920102011 F2012 F SupplyTake-upVacancy Rate Demand for major CBD office assets remains steady, with enquiries coming in from abroad group of investors, including continued interest from offshore groups.ADELAIDE OFFICE CAPITAL AND RENTAL VALUES Prime office yields have begun to compress, a trend that should continue through to the700 7,000second half of 2011.600 6,000500 5,000mAjor trANsActioNsCapital Values400 4,000 Rentals300 3,000 BuilDiNG leAse (l) /teNANt / PurcHAser AreA200 2,000 sAle (s) (sq ft)100 1,00055 Currie Street S ARC Equity Partners (Syndicate)276,9000041 Currie Street SCahaya Global Ventures Pty Ltd 63,9004Q 20091Q 20082Q 20083Q 20084Q 20081Q 20092Q 20093Q 2009 1Q 20102Q 20103Q 20104Q 20101Q 2011 2Q 2011 3Q 2011 F 4Q 2011 F 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 F68 Grenfell Street LCapgemini Business Services22,200 Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m) Australia Pty LtdBRISBANE OFFICE SUPPLY, TAKE-UP & BrisBaneVACANCY RATE Occupier demand was robust during the first half of 2011, as reflected by strong leasing 180,00018.0% volumes and several large transactions. Future leasing activity will be underpinned by 160,00016.0% 140,00014.0%significant and rising levels of tenant requirements. 120,00012.0% Strong tenant demand, combined with low levels of development completions are likelyVacancy Rate 100,00010.0% sq m 80,000 8.0%to lead to a significant decline in vacancy by mid-2011. However, vacancy is expected to 60,000 6.0% 40,000 4.0%rise again from mid-2011 to mid-2012 due mostly to the scheduled completion of some 20,000 2.0%142,100 sq m, of which 50,3.00 sq m is still vacant.0 0.0%2008 200920102011 F2012 F SupplyTake-upVacancy Rate Prime rental values are likely to remain relatively flat during 2011, although there is somepotential for incentives to begin falling back later in the year. Some rental growth maybe witnessed by the second half of 2012. Sales volumes were strong during 2010, underpinned by several transactions involving BRISBANE OFFICE CAPITAL AND RENTAL VALUESlarge prime assets. This momentum has continued into 2011 with the sale of three1,20012,000 significant assets: Waterfront Place (50% interest); 55 Elizabeth Street; and 150 Charlotte1,00010,000 Street. Prime yields are expected to remain relatively static during 2011, but yields will8008,000begin to tighten once the potential for significant rental growth returns.Capital ValuesRentals6006,0004004,000mAjor trANsActioNs2002,000BuilDiNG leAse (l) / teNANt / PurcHAserAreA00sAle (s) (sq ft)1Q 20081Q 20092Q 20083Q 20084Q 20082Q 20093Q 20094Q 2009 1Q 20102Q 20103Q 20104Q 20101Q 2011 2Q 2011 3Q 2011 F 4Q 2011 F 1Q 2012 F 2Q 2012 F 3Q 2012 F 4Q 2012 F 1Q 2013 FBrisbane Transit Centre,L DHL22,400151-171 Roma St Rentals (Australian $/ sq m / Year) Capital Values (Australian $ / sq m)Brisbane Transit Centre,L Department of Defence20,600151-171 Roma StBrisbane Transit Centre,LQ Build 19,800151-171 Roma StWaterfront Place, 1 Eagle StSThe Future Fund636,000(50% interest)55 Elizabeth Street SCredit Suisse Asset Management 204,900150 Charlotte StreetS Walker Corporation113,000P. 14| colliers iNterNAtioNAl 15. asia pacific office market overview | 2Q 2011Aust r A l i A CANBERRA OFFICE SUPPLY, TAKE-UP & canBer ra VACANCY RATE Sales activity remains subdued, with limited sales being completed. 80,00016.0% 70,00014.0% The ACT Government has recently announced plans for the development of a 3.5,000 60,00012.0%sq m office complex in the CBD. 50,00010.0%Vacancy Ratesq m 40,0008.0% Prime yields and rents remained steady during the first half of 2011. 30,0006.0% 20,0004.0% Secondary yields remain volatile and increasing incentives have caused effective rents 10,0002.0%for secondary office stock to fall. 0 0.0% 20082009 2010 2011 F2012 F SupplyTake-up Vacancy Rate CANBERRA OFFICE CAPITAL AND RENTAL VALUESmAjor trANsActioNs 800 8,000BuilDiNGleAse (l) /teNANt / PurcHAser AreA 700 7,000 sAle (s) (sq ft) 600 6,000Pharmacy Guild House SPrivate Investor69,200 500 5,000 Capital Values51 Allara Street L Dept of Industry Innovation85,000Rentals 400 4,000and Tourism 300 3,000 200 2,000221 London Circuit LAustralian Organ Tissue 8,200 100 1,000 Donation 0 0 1Q 2008 3Q 2010 4Q 2010 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2013 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 FRentals (Australian $/ sq m / Year)Capital Values (Australian $ / sq m) MELBOURNE OFFICE SUPPLY, TAKE-UP & melBourne VACANCY RATE Although enquiry levels remained stable, leasing deals are currently taking longer to250,00010.0%complete.200,0008.0% Tenants are renewing leases because of the lack of available space, and also in anticipationVacancy Rate150,0006.0%of future rent rises.sq m100,0004.0% Net face rents increased marginaly but incentives have also increased to stimulate deals. 50,0002.0%As such, Net Effective Rents have remained relatively stable. 0 0.0%200820092010 2011 F2012 F The strong tenant demand for office space will see vacancy drop further in 2011. It is SupplyTake-up Vacancy Ratelikely to moderate in 2012 upon delivery of new developments/refurbishments. MELBOURNE OFFICE CAPITAL AND mAjor trANsActioNs RENTAL VALUES 700 7,000BuilDiNGleAse (l) / teNANt / PurcHAser AreA 600 6,000 sAle (s)(sq ft) 500 5,000661 Bourke StreetL Defence Force 204,800 Capital Values 400 4,00085 Spring Street SPrivate Investor 115,200Rentals 300 3,00031 Queen StreetSChallenger Diversified Trust 209,500 200 2,000470 Collins Street SSuleman Family 107,200 100 1,000990 La Trobe StreetSMotor Accident Commission136,200 0 0of S.A. 1Q 2008 1Q 2009 4Q 2010 2Q 2008 3Q 2008 4Q 2008 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 FRentals (Australian $/ sq m / Year)Capital Values (Australian $ / sq m) colliers iNterNAtioNAl |P. 15 16. asia pacific office market overview | 2Q 2011Aust r A l i A PERTH OFFICE SUPPLY, TAKE-UP & perth VACANCY RATE Continued strong investment spending in the State has led to strong demand for office120,00012.0%space in the first half of 2011 and this is forecast to continue into the second half of 2011.100,00010.0% 80,0008.0% Rents have risen in the first half of 2011 and incentives decreased.Vacancy Rate 60,0006.0%sq m 40,0004.0% Vacancies have fallen since the second half of 2010 and are expected to continue to fall 20,0002.0% through the second half of 2011. Options for larger tenants now remain very limited. 0 0.0% 2008 20092010 2011 F2012 F-20,000-2.0% Investment sales activity remained subdued in the second quarter of 2011. However, it-40,000-4.0%is anticipated to improve in the second half of 2011 on the back of increasing investor SupplyTake-up Vacancy Rateconfidence in the Perth CBD market. PERTH OFFICE CAPITAL AND RENTAL VALUES mAjor trANsActioNs1,00010,000 BuilDiNG leAse (l) /teNANt / PurcHAser AreA 900 9,000sAle (s) (sq ft) 800 8,000 700 7,000AMP, 140 St Georges Terrace L Bechtel Australia Pty Ltd11,400 Capital Values 600 6,000190 St Georges TerraceL Thiess9,600Rentals 500 5,000 400 4,000100 St Georges TerraceLundisclosed 10,600 300 3,000Alluvion, 58 Mounts Bay RoadLCPA Australia8,300 200 2,0001001,000226 St Georges TerraceLURS Australia 24,200 0 0Westralia Plaza, 167 St Georges LSt George Bank27,400 1Q 2008 1Q 2009 2Q 2008 3Q 2008 4Q 2008 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2013 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 FTerraceRentals (Australian $/ sq m / Year)Capital Values (Australian $ / sq m)Westralia Plaza, 167 St Georges LFluor 27,400Terrace SYDNEY OFFICE SUPPLY, TAKE-UP & sydney VACANCY RATE Ongoing white collar employment growth has seen business expansion continue, leading200,00012.0%to a tightening of vacancy rates within Sydneys CBD office market.150,0009.0% Tenant demand has continued to remain strong over 2Q 2011 as evidenced by a number100,0006.0%of significant leases signed during the period.Vacancy Ratesq m 50,0003.0% 0 0.0% Face rents have begun to show signs of growth, while incentives continue to track 2008 20092010 2011 F2012 F-50,000downwards. -3.0%-100,000 -6.0% There has been a distinct lack of investment sales in the Sydney CBD during 2Q 2011, SupplyTake-up Vacancy Rateleading to the stabilisation of yields and capital values. SYDNEY OFFICE CAPITAL AND RENTAL VALUESmAjor trANsActioNs1,60016,000 BuilDiNGleAse (l) / teNANt / PurcHAser AreA1,40014,000sAle (s)(sq ft)1,20012,000215-217 Clarence Street SCFMEU 33,4001,00010,000 Capital Values10 Bridge StreetSPrivate Investor87,600Rentals 800 8,000 600 6,00042-44 Pitt Street SPrivate Investor19,500 400 4,000175 Pitt Street L Australian Human Rights44,600 200 2,000Commission 0 0227 Elizabeth StreetLAmalgamated Holdings40,300 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 FLimited2 Chifley SquareLMorgan Stanley Smith Barney 32,500Rentals (Australian $/ sq m / Year)Capital Values (Australian $ / sq m)14 Martin Place LInternational Bank for R D17,200P. 16 | colliers iNterNAtioNAl 17. asia pacific office market overview | 2Q 2011 New zeAlANDauckl and AUCKLAND OFFICE SUPPLY, TAKE-UP & Leasing activity has been relatively buoyant over the last 12 months. In particular, AMP VACANCY RATE80,00016.0%NZ Office Trust (ANZO) has enjoyed significant positive activity. One notable leasing70,00014.0%transaction in 2Q 2011 was the signing of ANZ National Bank, securing 17,700 sq m on60,00012.0% a new 15-year lease.50,00010.0% Vacancy Ratesq m40,0008.0% Prime vacancy is now anticipated to increase to 12.4% in 2013., as opposed to our30,0006.0%20,0004.0% previous forecast of 15.6% (an 18-year high) in 2013., had the ANZ National Bank decided 10,000 2.0% to relocate to the 85 Customs Street development. 00.0%2008 200920102011 F 2012 F Investment yields continue to ease in both the prime and secondary grade office sectorsSupply Take-up Vacancy Rate since the last quarter, with average indicative yields between 8.7% and 10.2%. AUCKLAND OFFICE CAPITAL AND Prime office rentals and capital values both fell 3..1% in the 12 months to June 2011. With RENTAL VALUES the rate of decline falling, we anticipate a relatively small decrease in prime rentals and6,000 capital values over the next 12 months. 600 5005,000 4004,000 mAjor trANsActioNsCapital ValuesRentals 3003,000 2002,000 BuilDiNG leAse (l) /teNANt / PurcHAserAreA sAle (s)(sq ft) 1001,000 70 Symonds StreetSPrivate Investor80,100 00 ANZ Centre LANZ National Bank190,500 1Q 2008 1Q 2009 2Q 2008 3Q 2008 4Q 2008 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F Zurich House LZurich General Insurance12,000Rentals (New Zealand $/ sq m / Year) Capital Values (New Zealand $ / sq m) 41 Shortland StreetLJackson Russell8,700 1 Queen Street L Rothbury Insurance Ltd 11,800 WELLINGTON OFFICE SUPPLY, TAKE-UP &wellington VACANCY RATE With the new Telecom Central building on 52 Willis Street being completed in September,100,000 5.0% the relocation of the communications giant will see around 20,000 sq m more secondary80,0004.0% office space becoming vacant. As a result, overall vacancy is anticipated to rise, while prime vacancy is to remain largely unchanged. Vacancy Rate60,0003.0%sq m40,0002.0% While there are a number of plans for major refurbishments in the pipeline, including the ANZ Tower and 110 Featherston Street, some developers are waiting for tenant20,0001.0% pre-commitment before they start their new office development projects. 00.0% 200820092010 2011 F 2012 FSupply Take-up Vacancy Rate Wellington CBD investment activity has been relatively strong in 2Q 2011 but also signals continued divestment by Australian funds. This has been highlighted by the sale of ANZ Tower on 215 Lambton Quay to Willis Bond Capital Partners for just over $25 million. WELLINGTON OFFICE CAPITAL AND Looking ahead, we anticipate prime office rents to remain steady over the next 12 months. RENTAL VALUES However, as incentives reach Auckland CBD levels, the difference between net face and 6006,000 net effective rents is anticipated to widen to some extent. 5005,000 4004,000 mAjor trANsActioNsCapital ValuesRentals 3003,000 BuilDiNG leAse (l) / teNANt / PurcHAser AreA 2002,000 sAle (s)(sq ft) 1001,000 ANZ TowerSWillis Bond Capital Partners 119,600 00 Aorangi HouseSPrivate Syndicate 53,900 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 20091Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 20112Q 20113Q 2011 F4Q 2011 F1Q 2012 F2Q 2012 F3Q 2012 F4Q 2012 F1Q 2013 F 111-113 Tory StreetLOgilvy New Zealand Ltd 6,000Rentals (New Zealand $/ sq m / Year) Capital Values (New Zealand $ / sq m) 36 Vivian Street L The Business Dojo Ltd 4,300 Axon House LEAP Services Ltd 2,900 colliers iNterNAtioNAl |P. 17 18. asia pacific office market overview | 2Q 2011Pr i m e o ff il i A uPP lyAust r A c e s FLOOR AREA (MILLION SQ FT)0.005.0010.00 15.0020.00 25.00GuangzhouShanghai Seoul Tokyo Chennai Jakarta Bengaluru New Delhi MumbaiBeijingKuala LumpurChengdu Singapore Sydney Hanoi PerthHong KongBrisbaneHo Chi Minh CityMelbourneBangkokManila Taipei WellingtonAucklandCanberraAdelaide 2011 F2012 FNote: Floor area in each of the above centre is the sum of the various key sub-markets outlined under the section of Definitions and TerminologyP. 18| colliers iNterNAtioNAl 19. asia pacific office market overview | 2Q 2011Pr i m e o ff il i A e N tA lAust r A c e rRENTALS (US$ / SQ FT / YEAR) 0.00 20.0040.00 60.0080.00 100.00 120.00140.00 Hong KongTokyoSingaporeSydneyPerthMumbai BrisbaneNew DelhiHanoiHo Chi Minh City Shanghai Beijing Melbourne Canberra AdelaideTaipeiWellington GuangzhouKuala LumpurSeoul Bangkok Auckland ChengduJakarta ManilaChennaiBengaluruNote: 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" colliers iNterNAtioNAl | P. 19 20. asia pacific office market overview | 2Q 2011 t r e N D s & fo r ec A s t s cityNew supplytake-upAverage vacancy total stock Average rentals(sq ft) (sq ft) (%) (sq ft) (us$ / sq ft / year)2011 f 2012 f2011 f 2012 f 2011 f 2012 f2011 f2012 f 2011 f 2012 f BeijiNG CBD 2,43.6,78603.,886,2523.81,1079..27.3. 19.,247,683.19.,247,683. 54.2159..73. Zhongguancun475,764 0 400,69.741,89.3.1.9. 1.3.8,09.5,529.8,09.5,529.3.6.3.3. 3.8.3.9. Financial Street 00145,13.01,9.3.8 0.40.49.,700,524 9.,700,524 55.05 60.53. Lufthansa1,43.1,59.9. 0 1,717,865 19.8,562 8.66.28,413.,549. 8,413.,549.3.7.513.9..81 East Chang An Avenue 00 116,2615,673. 1.1 1.16,3.07,064 6,3.07,064 42.57 46.49. East 2nd Ring0 1,521,251154,118 1,3.3.6,2529..010.03.,254,3.79.4,775,63.0 3.7.15 3.7.15 cHeNGDu Renmin Road 1,428,886 1,858,818 447,422 1,03.4,4223.0.03.5.0 3.,476,2885,3.3.5,106 22.74 23..26 CBD00589.,761 206,416 20.0 13..0 2,9.48,803.2,9.48,803.22.57 23..26 Financial Street 053.8,19.5 3.5,056 442,816 10.0 14.0500,801 1,03.8,9.9.625.84 25.84 GuANGzHou Yuexiu 3.44,445 019.1,09.279.,2019..27.5 4,683.,244 4,683.,24417.74 17.57 Tianhe11,162,9.29.9.,020,729.7,120,3.52 3.,877,523. 27.0 3.5.3. 23.,3.76,823. 3.2,3.9.7,55226.70 25.84 Haizhu 611,29.3.557,0103.12,9.28275,201 3.2.53.7.01,687,683.2,244,69.3. 16.3.716.3.7 sHANGHAi Huangpu00 3.,443.6,3.3.3.5.55.3.3.,3.3.3.,1823.,3.3.3.,182 3.9..683.9..58 Jingan 1,23.3.,1121,73.2,2673.75,3.23. 1,13.7,3.7418.9.23..5 8,09.7,703. 9.,829.,9.7045.3.044.78 Lujiazui-Pudong 7,9.48,042 823.,43.8 5,725,159. 3.,257,05218.4 12.8 22,429.,452 23.,252,89.0 3.9..3.4 3.9..69. Zhuyuan-Pudong627,848 474,774 3.9.9.,080477,703.15.3.12.6 3.,867,7614,3.42,53.53.4.67 3.3..9.0 Changning645,83.4845,870 3.9.1,4059.9.2,547 12.6 10.3. 5,49.6,63.9.6,3.42,5103.5.063.4.60 Luwan001,226,102 7,108 4.84.43.,554,207 3.,554,207 45.9.845.3.8 Xuhui 671,452 622,186-59.,3.77 426,604 7.5 14.54,9.61,264 5,583.,450 3.7.443.7.11 HoNG koNG Central228,53.9.19.1,250 103.,3.6513.3.,8753..6 3..8 21,49.5,16421,686,41419.8.70220.17 Wanchai023.7,3.44 58,089. 245,7422.62.5 11,09.5,26711,3.3.2,611 103..05116.68 HK Island East 00142,13.0 9.9.,49.14.0 3..1 10,854,77410,854,774 69..40 77.83. Tsim Sha Tsui0063.,143.26,8803..7 3..3.6,3.61,3.9.06,3.61,3.9.0 73..9.3.81.24 Kowloon East9.3.4,23.80 682,869.159.,064 9..9. 8.1 8,825,702 818,875 50.64 56.88 tAiPei CBD03.9.1,3.22485,808570,526 12.110.9. 19.,149.,669.19.,540,9.9.129..52 29..65 seoul CBD 6,9.3.3.,3.161,767,461 2,789.,473.3.,3.09.,45215.9.10.9.3.4,761,73.43.6,529.,19.525.21 25.60 KBD 1,49.0,709.1,146,814 1,460,865818,4673..9.4.9.27,206,3.44 28,3.53.,158 22.3.822.83. YBD 621,9.23.850,3.79.589.,286818,4674.74.7 14,518,3.54 15,3.68,73.3. 16.86 16.9.4 tokyo CBD 5,665,680 6,775,274 N/AN/A 8.58.0N/AN/A 104.84 105.26 jAkArtA CBD 1,266,9.004,773.,73.6 1,3.29.,611 3.,662,3.20 10.811.747,149.,23.051,9.22,9.6521.4022.49. Non-CBD 1,562,789. 1,422,19.11,003.,142 1,3.59.,545 13..214.9.20,79.0,3.44 22,212,53.516.1817.01 kuAlA lumPur KLCA2,450,69.52,013.,514 1,200,000 800,00012.3.15.2 3.0,579.,53.2 3.2,59.3.,04625.23.25.23. mANilA Makati 0617,3.42 3.55,015 677,1253..9. 3..1 9.,3.17,13.5 9.,9.3.4,477 18.12 19..25 Ortigas00 273.,3.3.8 67,7482.9.1.5 4,9.61,4044,9.61,40414.2015.3.8 siNGAPore CBD 2,073.,229. 510,3.9.7 1,409.,13.7 1,407,286 8.14.122,847,606 23.,3.58,003. 9.0.42 9.6.57P. 20 | colliers iNterNAtioNAl 21. asia pacific office market overview | 2Q 2011t r e N D s & fo r ec A s t scityNew supplytake-upAverage vacancy total stockAverage rentals (sq ft) (sq ft) (%) (sq ft)(us$ / sq ft / year) 2011 f 2012 f2011 f 2012 f 2011 f 2012 f2011 f2012 f2011 f 2012 fBANGkokCBD1,076,3.9.003.76,73.7 59.2,015 20.9.17.517,580,646 17,580,646 24.11 25.02Ho cHi miNH cityCBD643.,251775,00149.,89.8 176,3.9.9. 20.0 25.0 2,065,054 2,840,055 3.9..02 3.3..45HANoiCBD0666,027-21,528 21,5286.05.01,716,788 2,3.82,815 46.8244.59.Non-CBD1,020,418 19.0,521172,222 3.22,9.1770.0 68.01,504,79.3. 1,69.5,3.14 3.0.1026.76BeNGAluruOverall4,742,19.44,276,73.1 N/A N/A N/AN/A 73.,9.75,3.69. 78,252,100 12.3.4 13..42CBD 605,00044,000 N/A N/A N/AN/AN/A N/A18.5220.13.SBD1,045,000 4,012,73.1 N/A N/A N/AN/AN/A N/A11.2712.3.4PBD3.,09.2,19.4220,000N/A N/A N/AN/AN/A N/A 6.9.8 7.51cHeNNAiOverall7,59.4,878 4,000,000 N/A N/A N/AN/AN/A N/A12.88 13..15CBD1,026,417N/A N/A N/A N/AN/AN/A N/A18.2518.25SBD1,100,000N/A N/A N/A N/AN/AN/A N/A12.3.4 12.61PBD5,468,461N/A N/A N/A N/AN/AN/A N/A 8.3.28.59.mumBAiOverall 4,020,000 3.,000,000N/A N/A N/AN/A 88,248,000 9.1,248,00053..13. 54.74CBD 9.3.0,000 N/A N/A N/A N/AN/AN/A N/A 82.3.8 84.53.SBD1,440,000N/A N/A N/A N/AN/AN/A N/A51.79. 54.47PBD1,650,000N/A N/A N/A N/AN/AN/A N/A 25.49. 25.49.New DelHiOverall 5,200,000 2,500,000 N/A N/A N/AN/A 64,69.4,15867,19.4,158 47.5048.03.CBD 400,000 N/A N/A N/AN/A2,261,0002,261,00080.5080.50SBD0N/A N/A N/A N/AN/A7,850,000 7,850,000 43..74 44.54PBD 4,800,000 2,500,000 N/A N/A N/AN/A 54,583.,15857,083.,15818.5219..3.2ADelAiDeCBD0 19.3.,750 215,278 409.,0286.3. 5.514,024,9.42 14,046,89.0 3.1.23. 3.2.87BrisBANeCBD414,4101,115,140646,9.1069.1,0422.86.210,252,01211,3.67,152 51.9.152.3.4cANBerrACBD0 215,278161,459. 215,27810.25.02,79.8,6143.,013.,89.2 3.3..74 3.5.47melBourNeCBD0 1,3.9.6,79.9. 3.3.4,59.6 1,044,9.70 3..5 5.0 19.,519.,289. 20,9.16,088 3.8.9.3. 43..26PertHCBD688,158 1,180,3.4869.9.,654 9.14,9.3.27.58.2 16,185,16017,29.5,53.155.00 57.81syDNeyCBD1,777,3.46 489.,757 9.06,12759.6,8587.9. 6.126,540,63.426,674,10762.4665.40AucklANDCBD3.01,3.89. 0278,83.5 13.0,182 9..7 6.9.4,63.7,3.03. 4,63.7,3.03. 23..3.3.23..21welliNGtoNCBD3.57,3.6103.49.,827 11,840 4.1 2.7 2,887,73.9.2,887,73.9.26.29. 26.29.colliers iNterNAtioNAl | P. 21 22. asia pacific office market overview | 2Q 2011D e f i N i t i o N A N D t e r m i N o lo GyGreAter cHiNANortH AsiABeijingPrime office market in beijing consists of 6 sub-markets cbD (central seoulbusiness District), lufthansa, east 2nd ring, financial street, east changMajor office districts in seoul include the traditional central business areaan avenue and Zhongguancun. (cbD), gangnam business District (gbD) and Yeouido business District(YbD).rents are quoted in rMb per sq m per month on gross floor area basis,and exclusive of management fees and rent free period. capital values rents are quoted in won per pyung (also equivalent to 3.3 sq m) per monthare quoted on rMb per sq m. on gross floor area basis. generally, a deposit equivalent to 10 monthsis required, and is usually paid up front. Management fees are excludedchengdu from quoted rents. space is measured on gross floor area basis. capitalPrime office buildings in chengdu are mainly located in 3 sub-markets,values are quoted in won per sq m.renmin road, cbD and financial street.tokyorents are quoted in rMb per sq m per month on gross floor area basis, the quality office buildings in tokyo are located in the central businessand exclusive of management fees. capital values are quoted on rMbarea (cbD) area covering six wards namely, chiyoda-ku, chuo-ku,per sq m. Minato-ku, shinjuku-ku, shibuya-ku and shinagawa-ku.Guangzhourents are asking rents quoted in Yen per tsubo (i.e. 3.3 sq m) per month,Prime office buildings in guangzhou are located in 3 principal sub-marketswhich are inclusive of service charges. Office space is measured on an Haizhu, Yuexiu and tianhe.internal floor area basis. capital values are quoted in Yen per tsubo.rents are quoted in Us$ per sq m per month on gross floor area basis,and exclusive of any management fees and government taxes. capitalvalues are quoted on Us$ per sq m.soutHeAst AsiAshanghaijakartaPrime office buildings in shanghai are located in 7 principal sub-marketsthe quality office buildings in Jakarta are located in the cbD covering Huangpu, Jingan, lujiazui, Zhuyuan, changning, luwan and Xuhui.the districts thamrin, sudirman, gatot subroto, rasuna said and Megakuningan. the areas outside the above districts are collectively calledrents are quoted in rMb per sq m per day on gross floor area basis, andas non-cbD.exclusive of any management fees. capital values are quoted on rMbper sq m.rents are commonly quoted in rupiah per sq m per month, which areinclusive of service charges but exclusive of government taxes. OfficeHong kongspace is measured on lettable floor area basis. capital values are quotedPrime office properties in Hong kong are concentrated in 5 sub-marketsin rupiah per sq m. central, wanchai / causeway bay, island east, tsim sha tsui andkowloon east.kuala lumpurPrime office buildings located in the kuala lumpur central area (klca)rents are commonly quoted in Hk$ per sq ft per month on either gross, netonly. the klca comprises areas generally within the central businessor lettable floor area basis, which are exclusive of management fees, anddistrict.government tax. Prices are quoted in Hk$ per sq ft, and are measurableon gross floor area basis.rents are commonly quoted in ringgit Malaysia (rM) per sq ft per monthon net floor area basis, which are inclusive of service charges and propertytaxes. capital values are quoted in ringgit per sq ft.taipeiPrime office properties in taipei are concentrated in 7 districts, comprisingmanilananking sung chiang (nk-sc), Minsheng tun Hwa north (Ms-tn), Hsin Yi,Prime office buildings in Manila are located in two principal sub-marketswest, tun Hwa south (tUn-s), Jen ai Hsin sheng (Ja-Hs) and nanking Makati and Ortigas.east road (nk-4/5).rents are quoted in Peso per sq m per month on net floor area basis,the local unit of measurement is a ping (i.e. 3.3 sq m). rents and pricesand exclusive of any management fees. capital values are quoted in Pesoare quoted in local currency i.e. new taiwan Dollar (nt$) on gross floorper sq m.area basis.P. 22 | colliers iNterNAtioNAl 23. asia pacific office market overview | 2Q 2011D e f i N i t i o N A N D t e r m i N o lo Gychennaisingapore Prime office properties in chennai are located in 3 principal submarketsthe quality office buildings covered in the report are located in the central cbD (central business District), (suburban/secondary business District)business District of singapore. and PbD (Peripheral business District). sbD consists of guindy andvelechery while PbD includes other areas such as Old Mahaballipuramrents are quoted in s$ per sq ft per month on net floor area basis (i.e. area road, ambattur and gst road amongst others.less common areas such as corridors, toilets, lift lobby etc. but includingcolumns), and are inclusive of service charge. capital values are quotedrents are commonly quoted in rupee per sq ft per month, which are usuallyon the basis of strata area for strata-titled buildings, and net area for non-exclusive of maintenance charges, parking charges and property taxes.strata-titled developments. Office space is commonly measured on *super built up area basis.Bangkok mumbaiPrime office properties in bangkok are located in a wide area encompassingPrime office properties in Mumbai are primarily concentrated in cbDeastern silom and sathorn roads starting from narathiwas ratchanakarin, (central business District) consist of nariman Point, ford and ballardrama iv from Phayathai to ratchadaprisek, along ratchadaprisek from estate; sbD (secondary business District) including bandra (west andrama iv to sukhumvit and along sukhumvit from asoke to the whole of east), kalina, lower Parel and worli/Prabhadevi and PbD (PeripheralPleonchit and then rama i to Phayathai. business District) including navi Mumbai, vashi, Powai, goregaon.rents are quoted in baht per sq m per month on a net floor area basis, andrents are commonly quoted in rupee per sq ft per month, which are usuallyinclusive of service charges. capital values are quoted in baht per sq m. exclusive of maintenance charges, parking charges and property taxes.Office space is commonly measured on *super built up area basis.Ho chi minh citythe quality office buildings in Ho chi Minh city are located in DistrictNew DelhiOne - the central business district in the city.Prime office properties in new Delhi are primarily concentrated incbD (central business District) consist of connaught Place; sbDrents are commonly quoted in Us$ per sq m per month on net floor area (secondary business District) including nehru Place, Jasola, saket andbasis, and exclusive of management fees and government tax. capital netaji subhash Place and PbD (Peripheral business District) includingvalues are quoted on Us$ per sq m.gurgaon and noida.Hanoi rents are commonly quoted in rupee per sq ft per month, which are usuallyPrime quality office building in Hanoi are mostly located in Hoan kiemexclusive of maintenance charges, parking charges and property taxes.district, with individual quality buildings located in cau giay district andba Dinh district. the central location of the city is perceived as beingOffice space is commonly measured on *super built up area basis.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 areabasis. rents are inclusive of service charges and exclusive of value addedAustrAlAsiAtax, which is currently at 10% level.AustraliaPrime office buildings are located in the cbD and generally favoured byMncs.iNDiArents are quoted on net floor area basis, and in a$ per sq m per annumBengaluru (Bangalore) excluding management fee and government charges. capital values arePrime office properties in bengaluru are can be divided in 3 principal sub- quoted on a$ per sq m.markets cbD (central business District), sbD (suburban/secondarybusiness District) consisting of bannerghatta road & Outer ring roadNew zealandand PbD (Peripheral business District) including PbD Hosur road, ePiP Prime office buildings are located in the cbD.Zone, electronic city and whitefield.rents are quoted on net floor area basis, and in nZ$ per sq m per annumrents are commonly quoted in rupee per sq ft per month, which are usually excluding management fee and government charges. capital values areexclusive of maintenance charges, parking charges and property taxes. quoted on nZ$ per sq m.Office space is commonly measured on *super built up area basis.* 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 caretakers office/flat throughoutthe building.** Built-up area refers to the carpet area plus the thickness of external walls and area under columns. colliers iNterNAtioNAl | P. 23 24. asia pacific office market overview | 2Q 2011for further details, please contact:greater chinataipei, taiwanmanila, Philippines 49f taiPei 101 tOwer10f tower 2 rcbc Plaza,Beijing, china no. 7 Xin Yi road sec 5, taipei 110 ayala avenue, Makati city502 tower w3, Oriental Plaza tel : 886 2 8101 2000 Philippines1226no 1 east changan avenue,fax : 886 2 8101 2345 tel : 63 2 888 9988Dongcheng District Andrew liufax : 63 2 845 2612beijing 100738 Managing Director David youngtel : 86 10 8518 1633andrew.liu@colliers.com Managing Directorfax : 86 10 8518 1638david.a.young@colliers.comAmanda GaoManaging Director, north china north asiaamanda.gao@colliers.comsingapore seoul, south korea1 raffles Place 10f korea tourism Organization bldg., #45-00 One raffles Placechengdu, china 10 Da-dong, singapore 048616Unit 1504 Yanlord landmark Jung-gu, seoul 100-180tel : 65 6223 23231 renmin south road section 2tel : 82 2 6740 2000fax : 65 6222 4901chengdu 610016 fax : 82 2 318 2015 Dennis yeotel : 86 28 8658 6288jay yun Managing Directorfax : 86 28 8672 3226senior Director & general Manager singapore & industrial services | asiajacky tsai jay.yun@colliers.comdennis.yeo@colliers.comgeneral Managerjacky.tsai@colliers.com tokyo, japanBangkok, thailand Halifax building17/f Ploenchit centerGuangzhou, china 3-16-26 roppongi2 sukhumvit road702 teem tower,Minato-ku, tokyo 106-0032 Japan klongtoey, bangkok 10110208 tianhe roadtel : 81 3 5563 2111tel : 66 2 656 7000guangzhou 510620 fax : 81 3 5563 2100fax : 66 2 656 7111tel : 86 20 3819 3888james finkPatima jeerapaetfax : 86 20 3819 3899senior Managing DirectorManaging Directoreric lam james.fink@colliers.co.jp patima.jeerapaet@colliers.comManaging Directoreric.lam@colliers.com Ho chi minh city, vietnam south east asia Ho chi Minh city, vietnamshanghai, china7f bitexco building jakarta, indonesia19-25 nguyen Hue street16f Hong kong new world tower 10f world trade centre, District 1, Ho chi Minh city300 Huaihai Zhong road Jl Jenderal sudirmantel : 84 8 827 5665shanghai 200021 kav 29-31 Jakarta 12920 fax : 84 8 827 5667tel : 86 21 6141 3688 tel : 62 21 521 1400Peter Dinningfax : 86 21 6141 3699 fax : 62 21 521 1411general Directorlina wong mike Broomell peter.dinning@colliers.comManaging Director, east and Managing Directorsouth west china mike.broomell@colliers.comlina.wong@colliers.com Hanoi, vietnam vinaplast - tai tam building, kuala lumpur, malaysia9th floor,Hong kong, HksAr c/o mark lampard* 39a ngo Quyen street5701 central Plaza, Managing Director Hoan kiem District, Hanoi, vietnam18 Harbour road corporate solutions | asia Pacifictel : 84 4 220 5888wanchai, Hong Hong te : 65 6531 8601 84 4 220 5566company licence no: c-006052 fax : 65 6557 0649fax : 84 4 220 1133tel : 852 2828 9888 mark.lampard@colliers.com Do le Quanfax : 852 2828 9899 * based in singaporeDeputy general Directorrichard kirkeManaging Directorquan.do@colliers.com Research data provided byrichard.kirke@colliers.com c H williams talhar & wong sdn Bhd 30-01, 30th floorPiers Brunner (e-183614) Menara Multi-Purpose @ capsquarechief executive Officer - asia 8 Jalan Munshi abdullahpiers.brunner@colliers.com P O box 12157 50100 kuala lumpur Malaysia tel : 603 2616 8888 fax : 603 2616 8899 Url : http://www.wtw.com.my foo Gee jen Managing Director fgj@wtw.com.myP. 24 | colliers iNterNAtioNAl 25. asia pacific office market overview | 2Q 2011indiaNew Delhi, india melbourne, Australia 204/205, 2nd floor,level 32 367 collins streetBengaluru, india kanchenjunga building, Melbourne vic 3000Prestige garnet, level 2, Unit no.201/20218 barakhamba road tel : 61 3 9629 888836 Ulsoor road, bengaluru 560 042new Delhi 110 001fax : 61 3 9629 8549tel : 91 80 4079 5500tel : 91 11 4360 7500john marascofax : 91 80 4112 3131fax : 91 11 2335 6624state chief executiveGoutam chakraborty Ajay rakheja john.marasco@colliers.comOffice DirectorOffice Directorgoutam.chakraborty@colliers.comajay.rakheja@colliers.comPerth, Australialevel 19, 140 st georges terracechennai, india Pune, indiaPerth wa 6000Unit 1c, 1st floor, Heavitree complex, vatika business center, level-5tel : 61 8 9261 666623 spurtank road, chetpet, c wing, Panchsheel tech Park-1,fax : 61 8 9261 6665chennai 600 031Yerwadak. imran mohiuddintel : 91 44 2836 1064Pune 411 006 state chief executivefax : 91 44 2836 1377tel : 91 20 4011 1356imran.mohiuddin@colliers.comkaushik reddyfax : 91 20 6640 3138Office Directorsuresh castellinokaushik.reddy@colliers.com Office Directorsydney, Australia suresh.castellino@colliers.com level 12, grosvenor Place,225 george streetGurgaon, indiasydney nsw 2000g3, newbridge business centers, tel : 61 2 9257 0222technoPolis, Dlf golf course australasiafax : 61 2 9251 3297Main sector roadmalcom tysonsector 54, gurgaon 122 002 Adelaide, Australiastate chief executivetel : 91 124 4375807 level 10, 99 gawler Place, malcom.tyson@colliers.comfax : 91 124 4375806 adelaide sa 5000saacketh chawlate : 61 8 8305 8888Office Directorfax : 61 8 8231 7712 Auckland, New zealandsaacketh.chawla@colliers.com james younglevel 27, 151 Queen street, auckland state chief executivetel : 64 9 358 1888 james.young@colliers.com fax : 64 9 358 1999kolkata, indiamark synnottinfinity business centre, infinity benchmarkManaging Directorlevel 18, room no 13, Plot g - 1,Brisbane, Australiamark.synnott@colliers.comblock eP & gP, sector v, salt lake level 20 central Plaza Onekolkata 700 091345 Queen streetwest bengalbrisbane QlD 4000wellington, New zealandtel : 91 33 2357 6501tel : 07 3229 1233 level 10, 36 customhouse Quayfax : 91 33 2357 6502fax : 07 3120 4555 wellingtonAjay rakheja simon Beirne tel : 64 4 473 4413Office Directorstate chief executivefax : 64 4 499 1550 (agency)ajay.rakheja@colliers.comsimon.beirne@colliers.com: 64 4 470 3902 (valuation)richard findlayManaging Directormumbai, indiacanberra, Australiarichard.findlay@colliers.com31-a, 3rd floors, film centre, ground floor, 21-23 Marcus clarke street68 tardeo road canberra act 2601Mumbai 400 034 tel : 61 2 6257 2121tel : 91 22 4050 4500fax : 61 2 6257 2937fax : 91 22 2351 4272Paul PowderlyPoonam mahtani state chief executiveOffice Directorpaul.powderly@colliers.compoonam.mahtani@colliers.comGeorge mckaysouth asia DirectorOffice & integrated servicesgeorge.mckay@colliers.comThis document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied,regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers Internationalexcludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted propertyof Colliers International and/or its licensor(s). 2011. All rights reserved.Colliers International is the third largest global real estate services company.colliers iNterNAtioNAl |P. 25 26. asia pacific office market overview | 2Q 2011 reveNues couNtries officesreal estate is a location business.thats why we do business where 1.5 61 512 BILLIONyou do business. Professionals & staff: 12,510 Square feet managed: 979 million* Lease/sale transactions: 73,972 Total transaction value: $59.6 billionColliers International is leading global real estate services organisation definedAsiA PAcificby our spirit of enterprise. Through a culture of service excellence and a sharedsense of initiative, we have integrated the resources of real estate specialistsworldwide to accelerate the success of our partners.Our headquarters in Seattle, Washington and more than 512 offices worldwideshare a common brand and vision to provide the best service experienceavailable. With expertise in the major markets, Colliers is also committed toproviding our clients with access to emerging markets in Asia, Eastern Europeand Latin America.* The combination of Colliers International and FirstService results in 2.2 billion under management - 2nd largest in the world.P. 26| colliers iNterNAtioNAl 27. www.colliers.com