Asia Pacific Office Markets Sentiment Survey Q2 2015

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1. Asia Pacific Office Markets Sentiment Survey The JLL Office Markets Sentiment Survey aims to capture, measure and track the sentiment and outlook for key office leasing markets around the region. Q2 2015 2. INCREASED ACTIVITY STABLE DECREASED ACTIVITY Will leasing activity increase or decrease? 3. EXPANSIONARY SLIGHTLY CONTRACTIONARY SLIGHTLY EXPANSIONARY NEUTRAL Will tenant activity be expansionary? 4. RENTS EXPECTED TO RISE STABLE RENTS EXPECTED TO FALL Will rents increase or decrease? 5. NEUTRALLANDLORD TENANT Is it a landlord or a tenants market? 6. Limited Supply Rising Rents Strong Demand Large incentives Oversupply Rents Falling Weak Demand Tenant MarketLandlord Market No incentives What are the key factors driving the market? 7. Which sectors are the most active? 8. RENT INCREASED Q on Q STABLE RENT DECREASED Q on Q $11.8 $7.9 $5.5 $4.2 $2.8 $3.6 $2.4 $2.1 $1.8 $1.7 $6.4 $6.2 $4.1 $2.6 $2.7 9. CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY AUCKLAND $2.4 USD PSF PM Building supply in the pipeline, but existing availability restricted. $1.7 USD PSF PM BANGKOK Call centres for insurance companies are very active in terms of office demand - rental to increase steadily but at a slower pace compared to last year. BEIJING Tenant quality remains a focus. Few options in core locations. Companies interested more and more on air quality filtration. Beijing's urban sprawl continues with new submarkets coming, but few are willing to jump in. $7.9 USD PSF PM NEW DELHI Low grade A supply. Tenants in expansionary mode has resulted in a high demand for office space and thus rental values have increased. $2.8 USD PSF PM Asia Pacific Fast Facts 10. HO CHI MINH CITY $3.6 USD PSF PM IT, FCMG, Pharmaceutical companies, Foreign banks, and Logistics businesses are key occupiers and quite active in terms of expansion. Asking still flat for now. Net absorption vacancy rates decreasing $11.8 USD PSF PM HONG KONG Central vacancy is falling quite quickly with the activity on Citibank Plaza. This will lead to the Landlord community in this core location being more aggressive on raising rents. JAKARTA Under Government regulations, transactions have to be in Rupiah effective 1st July 2015 instead of USD. Where 80% of Grade A rents are in USD, this could force landlords to change to Rupiah as requested by tenants. $2.6 USD PSF PM MANILA Back office banking functions are expanding. Rents are continuously rising in the major cities and pre-commitments to space prior to building delivery is still active. $1.8 USD PSF PM CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY Asia Pacific Fast Facts 11. $4.2 USD PSF PM Markets still tenant oriented and will move to Landlord oriented market over the next 12 - 15 months. Absorbtion likely to increase marginally over this quarter, and rentals will also witness a minor increase. $2.1 USD PSF PM Limited Grade A space in the Umeda area is leading large scale tenants to consider space in Yodobashi No large re- development projects scheduled for the Umeda area till 2022. New supply additions will decline and tenant demand is expected to improve over the next 12 months (compared with the past year). As a result, vacancy will fall causing tenant incentives to decline slightly although they will still remain generous as vacancy will remain well above the historical average $4.1 USD PSF PM Domestic tenants are still active especially in the financial, professional services and retail sectors. Possible upward trend in rentals for 2H 2015. $6.4 USD PSF PM CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY MUMBAI OSAKA SEOUL SHANGHAI Asia Pacific Fast Facts 12. $6.2 USD PSF PM Vacancy starting to increase moderately due to handback of space by large banking and finance occupiers. CITY RENT Q-on-Q SENTIMENT MARKET COMMENTARY $2.7 USD PSF PM High level of net absorption, driven by the time lag of transactions and the usual higher number of transactions being completed by year end. Limited new supply in the next few years and continuing expansionary demand is expected to continue to drive rental growth over the next few quarters. $5.5 USD PSF PM SYDNEY TOKYO SINGAPORE Asia Pacific Fast Facts