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7/31/2019 Asia Pacific Industrial 2012 H1
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ASIA PACIFICINDUSTRIAL MARKET OVERVIEW
Accelerating success.
May 2012
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TABLE OF CONTENTSASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
Regional Overview 3
Australia 5-6
Melbourne .................................. ..................................... ..................................... 5
Sydney ................................ ..................................... ..................................... ....... 6
China 7-9
Beijing ...................................................................................................................7
Guangzhou ................................. ..................................... ..................................... 8
Shanghai .................................... ..................................... ..................................... 9
Hong Kong SAR 10-11
India 12
New Delhi ...........................................................................................................12
Indonesia 13-14
Jakarta ................................................................................................................13
Japan 15
Greater Tokyo .....................................................................................................15
New Zealand 16-17 Auckland .............................................................................................................16Wellington .................................. ..................................... .................................... 17
Singapore 18-19
Taiwan 20
Taiwan ................................................................................................................20International Comparison 21-27
Single-user Warehouse Land Values, Capital Values
and Monthly Gross Rents ...................................................................................21
Single-user Factory Land Values, Capital Values
and Monthly Gross Rents ................................... ...................................... ......... 24
Multi-user High-Specs Average Monthly Gross Rents..................................... 27
Local Market Norm 28-30
Single-user Warehouse Land Values, Capital Values
and Monthly Gross Rents ................................... ...................................... ......... 28
Single-user Factory Land Values, Capital Values
and Monthly Gross Rents ................................... ...................................... ......... 30
Defnitions & Terminology 31
This is the 14th issue of the Asia Pacic Industrial Market
Overview, which covers 13 cities in nine countries,
for the review period of October 2011 to March 2012.
With this bi-annual update, we hope to provide an
overview of industrial markets catering to multinational
corporations and a comparison of industrial real estate
costs across the key cities in the Asia-Pacic region.
Three types of industrial properties are tracked in this
report, namely single-user factory premises, single-user
warehouse premises and multi-user high-specications
industrial premises, as these are the preferred choices
of multinational corporations. This publication features
land and capital values, as well as rents of single-user
industrial premises; and rents of multi-user high-
specication factories.
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REGIONAL OVERVIEW
Weighed down by the persistent uncertainties surrounding the United States (US) and
the Eurozone economic situations, the Asia-Pacic region generally experienced slower
economic growth in the nal quarter of 2011. Reduced demand for exports from the Eurozone
as well as massive oods in Thailand that disrupted manufacturing production lines, also
contributed to the slowdown in economic growth in 4Q 2011. However, the overall economic
situation in the Asia-Pacic region appeared to have improved somewhat in the rst three
months of 2012 in response to signs of improvement in the US economy and eorts by the
European Central Bank to resolve the sovereign debt crisis.
Against this backdrop, the performance of the industrial markets in the 13 Asia-Pacic cities
surveyed softened over the period between October 2011 and March 2012. Although the
majority of the submarkets surveyed continued to enjoy appreciation in land, capital and
rental values, most reported either stable or a slower rate of growth.
In the industrial land segment, the majority (44 out of 55) of single-user industrial submarkets
surveyed saw land values rise or hold steady compared to the previous six-months. The
remaining 11 submarkets saw declines in land values.
Leading the price increases were Indonesias Karawang and Bekasi areas, where land
prices surged by another 38.6% and 24.9% respectively during the current review period,
as Indonesias sustained economic growth and low labour costs continued to appeal to
manufacturers. However, the growth rate moderated from the blistering 45.0% recorded
in the preceding period. Similarly, while land prices in Singapore continued to rise on the
back of robust industrial land sales, the rate of increase slowed. In contrast, industrial land
prices in Greater Tokyo fell for the seventh consecutive review period, albeit at a slower
pace during the October 2011 to March 2012 period amid signs of an improving economy.
Underpinned by healthy sales, capital values in the majority (52 out of 58) of the submarkets
surveyed either held steady or experienced some upside over the six months ending March
2012. This was relatively unchanged from the previous review period where 51 out of 58
submarkets recorded growth or maintained their capital values.
Notably, average capital values growth in Shanghai accelerated to close to 12.0% in the
current review period, compared to just 1.4% in the preceding six months, as the lowering
of the reserve requirement ratio for banks facilitated the acquisition of ready-built industrial
facilities. Likewise in Auckland, the relatively active industrial sales market led to a
strengthening in capital values growth. However, it was a dierent picture in Wellington
where a slight softening of yields caused capital values to fall. Meanwhile, capital values
in Greater Tokyo exhibited greater stability with marginal declines recorded on the back
of healthy investment sales.
The survey also revealed a rise in the number of single-user industrial submarkets
experiencing a rent decline in the October 2011 to March 2012 period. Overall, rents fell
in eight out of 53 submarkets surveyed, compared to just one out of 54 submarkets in the
preceding six-month period. This was mainly due to weaker rents in New Zealand, where
a slowdown in industrial leasing activity in Auckland caused net rents to fall. Likewise, in
New Zealands Wellington region, net rents fell for the rst time since March 2010 due to
increased insurance costs arising from the Christchurch earthquakes that was typically
passed on to tenants.
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REGIONAL OVERVIEW
Rents of high-specication (high-specs) multi-user industrial facilities were moreresilient. Although the number of submarkets reporting a rise in rents had declined
from 12 in the last survey, to seven in the most recent survey (out of 17 submarkets),
only one submarket (Yokohama) saw rents fall due to weak leasing demand. The
remaining eight submarkets reported stable rents during the current review period.
Amid signs of an uplift in economic prospects, the majority of the submarkets surveyed
are expected to experience stability or growth in values and rents over the next 12
months, on the back of healthy demand and reduced vacancy. The exceptions are
Singapore, Hong Kong and Taipei where industrial rents and values are forecasted
to decline due to the presence of downside risks in the external environment, which
is expected to aect demand. In Wellington, while land values are expected to staystable in the next 12 months, capital values and net rents are projected to fall over
the same period as earthquake issues surrounding the property market are expected
to remain a dampening factor in the industrial market.
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
COLLIERS INTERNATIONAL | P. 5
ECONOMIC INDICATORS FOR MELBOURNE
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth October - March .%
Year-on-Year Manufacturing Output Growth Rate October - March -.%
Total Imports October - March A. billion
Total Exports October - March A. billion
Container Throughput (TEUs) October - March ,,
Air Cargo Throughput (Tonnes) October - March n.a.
AUSTRALIA
MELBOURNE
Factory and Warehouse
Demand for industrial space remained stable during the reviewperiod between October 2011 and March 2012 supported by
companies move to expand and consolidate their premises on
the back of a robust trade market. The market saw imports and
exports holding relatively stable at A$30.6 billion and A$9.6 billion
respectively between October 2011 and March 2012, as compared
to A$30.1 billion and A$10.8 billion achieved in the previous review
period.
However, unresolved sovereign debt issues in the Eurozone
continued to impinge on the global economic recovery and has put
a cap on the growth of Melbournes industrial land and capital values
as well as rents, which thus remained stable during the six-monthreview period between October 2011 and March 2012.
On the sales front, a total of eight investment sale transactions (A$5
million and above) took place between October 2011 and March 2012.
The total value transacted during the review period was in excess of
approximately A$145 million. This is lower than the A$270 million
garnered from 11 investment sales done in the preceding six-month
period. Sale transactions concluded during the current review period
included GPTs acquisition of a 299,594-sq ft warehouse at Citiport
Business Park, Port Melbourne and Quintessential Equities purchase
of a 268,228-sq ft warehouse at 8 Dunlop Court, Bayswater.
The industrial leasing market remained healthy in the six monthsleading up to March 2012 but the average lease term is now shorter
(i.e. ve years) than the long term average of seven to 10 years.
Approximately 3.5 million sq ft of space (involving deals above
32,000 sq ft) was leased between October 2011 and March 2012,
with the bulk taking place in the West (1.80 million sq ft) and in the
South East (1.25 million sq ft). This is an improvement from the
2.2 million sq ft leased in the previous review period between April
and September 2011. Recent leasing deals include Silk Logistics
committing to a 474,004-sq ft warehouse at Kororoit Creek Road,
Altona North; Trimas taking up a 270,209-sq ft warehouse along
Atlantic Drive, Keysborough; and Corning leasing a 188,704-sq ft
warehouse at 71-83 Whiteside Road, Clayton.
Increase in tenant demand for new space resulted in increased
construction activity. Approximately A$173 million worth of industrial
space was initiated between October 2011 and March 2012 as
opposed to A$87 million committed over April to September 2011.
Overall, the industrial market is expected to continue to perform well
in 2012 as limited availability of quality stock coupled with increasing
tenant demand should see a decline in vacancies. Rents, capital
values and land values are thus expected to increase marginally due
to the tighter space market over the next 12 months.
MAJOR TRANSACTIONS IN MELBOURNE
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
- Plummer Street, Port Melbourne Industrial Lease Chrysler Australia ,
Atlantic Drive - Warehouse A, Keysborough Industrial Lease ESR Holdings ,
- Whiteside Road, Clayton Industrial Lease Corning ,
Atlantic Drive, Keysborough Industrial Lease Trimas ,
Kororoit Creek Road, Altona North Industrial Lease Silk Logistics ,
- Studley Court, Derrimut Industrial Sale Private Investor ,
Dunlop Court, Bayswater Industrial Sale Quintessential Equities Pty Ltd ,Citiport Business Park, Port Melbourne Industrial Sale GPT ,
Mount Derrimut Road, Derrimut Industrial Sale Private Investor ,
* n.a. denotes not available
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
ECONOMIC INDICATORS FOR SYDNEY
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth July - December .%
Year-on-Year Manufacturing Output Growth Rate October - March n.a.
Total Imports August - January A. billion
Total Exports August - January A. billion
Container Throughput (TEUs) August - January ,,
Air Cargo Throughput (Tonnes) October - March n.a.
AUSTRALIA
SYDNEY
Factory, Warehouse and High-Specs
High interest rates and ongoing growth in the economy that was
driven mainly by the mining and resources boom has caused the
Australian dollar to remain strong against the US dollar. This has
led to strong import growth, which in turn supported demand for
warehouse and storage space for goods, despite the uncertain global
economic environment.
Land values, rents and capital values have all remained stable across
Sydney over the past six months, as tenant demand and owner
occupier sale transactions have remained steady.
Functional, well designed and correctly priced developments
continued to receive healthy interest from owner occupiers and
private investors during the review period. The largest deal that
took place in Sydney over the past six months was Qube Logisticss
A$123 million purchase of Stocklands 55% stake in the Moorebank
Industrial Property Trust in March 2012. The trust owns the
Moorebank Intermodal Terminal.
However, quality industrial space remains limited in stock.
Institutional landowners, who have taken advantage of the lack of
available space in the market to speculatively build new industrial
assets, have benetted from the robust occupier demand. This is
evident from the high commitment rates of all recently completed
speculatively built stock. The largest of these commitments is the
Dexus lease of a 226,042-sq ft newly built facility in Lenore Lane,
Erskine Park to DB Schenkar.
The availability of Prime Grade stock on the market is expected to
continue to tighten over the next 12 months, as existing supply and
speculative new developments continues to fall short of demand.
This will likely lead to a reduction in the availability of lower grade
stock, as demand spills over from the Prime Grade market into the
Secondary Grade market. This decline in vacancy levels is expected
to support the return of rents and capital values growth of up to
2.4% over the next 12 months across a number of Sydneys industrial
markets while incentives for tenants should begin to fall in the short
term.
* n.a. denotes not available
MAJOR TRANSACTIONS IN SYDNEY
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Hale Street, Botany Warehouse Lease TOLL Paper ,
Britton Street, Smitheld Warehouse Lease Cope Sensitive Freight ,
- Lenore Drive, Erskine Park Warehouse Lease DB Schenkar ,
Moorebank Intermodal Terminal [% stake] Intermodal Terminal Sale Qube Logistics n.a.
Richmond Rd, Marsden Park Land Sale Ikea n.a.
L, Central Hills Business Park , Gregory Hills Land Sale Owner Occupier ,
- Doody St, Alexandria Warehouse Sale Owner Occupier ,
Wicks Rd, North Ryde Warehouse Sale Owner Occupier ,
- Orion Rd, Lane Cove Warehouse Sale Private Investor ,
Williamson Rd, Ingleburn Warehouse Sale Owner Occupier ,
Worth St, Chullora Warehouse Sale Private Investor ,
* n.a. denotes not available
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
COLLIERS INTERNATIONAL | P. 7
ECONOMIC INDICATORS FOR BEIJING
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth January December .%
Year-on-Year Manufacturing Output Growth Rate January December .%
Total Imports July December US. billion
Total Exports July December US. billion
Container Throughput (TEUs) July December n.a.
Air Cargo Throughput (Tonnes) July December ,
CHINA
BEIJING
Factory and Warehouse
Beijing managed to achieve a gross domestic product (GDP) and a
manufacturing output growth of 8.1% year-on-year (YoY) and 7.9%
YoY respectively in 2011. Meanwhile, exports and imports amounted
to US$32 billion and US$171.9 billion during 2H 2011, up 6.5% and
34.2% YoY respectively. On the other hand, air cargo throughput
declined 5.2% YoY in the same period, but still managed to clock
780,600 tonnes.
Beijings stable economy in 2011 paved the way for a strong industrial
property market that saw hikes in land and capital values as well as
rents during the review period between October 2011 and March
2012. On average, land values expanded by between 2.7% and 3.5%,whilst capital values strengthened by between 2.7% and 4.3% over
the six-month period. Rents of industrial properties also experienced
increases across the board, ranging between 4.3% and 5.3%.
State-owned and domestic enterprises continue to be the main
demand generators for industrial land, mostly purchasing land to
construct facilities for self-occupancy. Some examples include
Beijing Hi-tech Business Innovation Service Centres purchase of a
parcel with a land area of 4.43 million sq ft in the Miyun Economic
and Development Zone for CNY248 million and Beijing Jingdong
Century Commerce Companys acquisition of a 2.25 million sq ft-plot
in Yizhuang for CNY290 million. In addition, Beijing LiandongyongleInvestment and Management Company recently bought a piece of
land, which covers an area of 0.93 million sq ft, for CNY42 million.
The leasing market was supported by occupier demand from various
overseas and domestic companies including Business-to-Consumers
(B2C) industries, third party logistics (3PL) companies and retailers.
For example, during the review period, DHL took up 43,055-sq ft
of warehouse space at Crown Logistics Centre, Unipart Logistics
committed to 53,819-sq ft of warehouse space at GLP Park Beijing
Capital Airport and Gome leased 269,100-sq ft of warehouse space
at Dewei.
Supply-wise, three new projects were added to Beijings industrial
market stock during this review period. One was the Goodman Beijing
Airport Logistics Centre that has a gross oor area (GFA) of 320,624sq ft. The others were GLPs completed projects, namely GLP Park
Beijing Capital Airport and GLP City Park Daxing with GFA of 0.32
million sq ft and 1.02 million sq ft respectively.
Despite the expected deceleration of Chinas economy, Beijings
industrial market is expected to maintain its upward trend in the
coming 12 months, underpinned by the continued strong demand
from 3PL, B2C and e-business companies as well as retailers.
However, growth could be limited by rising operational and
transportation costs facing logistics players. Therefore, average
rents are expected to grow more moderately by up to about 4%,
underscored by the continued strong occupier demand. Land andcapital values are expected to inch up around 2-3% during this
period.
MAJOR TRANSACTIONS IN BEIJING
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Crown Logistics Centre Warehouse Lease DHL ,
GLP Park Beijing Capital Airport Warehouse Lease Unipart Logistics ,
Dewei Warehouse Lease Gome ,
Tongzhou Land Sale
Beijing Liandongyongle Investment and
Management Company ,
Yizhuang Land SaleBeijing Jingdong Century Commerce
Company,,
Miyun Economic and Development Zone Land SaleBeijing Hi-tech Business Innovation Service
Centre,,
* n.a. denotes not available
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
ECONOMIC INDICATORS FOR GUANGZHOU
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth January December .%
Year-on-Year Manufacturing Output Growth Rate January December .%
Total Imports July December US. billion
Total Exports July December US. billion
Container Throughput (TEUs) July December . million
Air Cargo Throughput (Tonnes) July December ,
CHINA
GUANGZHOU
Factory and Warehouse
Notwithstanding the slowdown in global economic recovery andthe contagion of the Eurozone sovereign debt crisis, Guangzhous
economy grew by a steady 11.0% YoY in 2011. The export and import
volumes also maintained steady growth in the second half of 2011
to US$29.5 billion and US$31.8 billion respectively, up 12.7% and
10.3% compared to the same period in 2010.
Supported by a healthy economic environment and an expanding
domestic retail market, leasing demand for industrial properties
remained robust between October 2011 and March 2012. The demand
for warehouse space came mainly from domestic enterprises in
sectors such as food, clothes, electronic components and the fast
moving consumer goods industry while factory space was in demand
by the medicine, mechanical and electric equipment and material
industrial companies. On the other hand, the availability of high quality
industrial facilities for lease in the district remained limited. These
provided the impetus for average rents of warehouse and factory
space in Guangzhou Economic & Technology Development District
(GETDD) to grow by 4.0% and 2.6% to reach CNY2.85 per sq ft
per month and CNY2.73 per sq ft per month respectively during
the review period.
The average capital value of industrial properties also trended
up by 4.2% over the review period to CNY269.50 per sq ft while
the average land value rose by 0.9% in the six-month period to
CNY56.67 per sq ft by the end of March 2012. These gures were
fuelled by robust demand on the back of the favourable economic
performance and increasing domestic consumption demand. In
particular, enterprises from the logistics, electric instruments,medicine, mechanical and electric equipment and material industries
were active in looking to purchase ready-built industrial properties
and land plots during the review period.
Domestic enterprises continued to dominate land purchases,
acquiring 12 out of the 15 industrial land plots launched for sale
in GETDD in the six months ending March 2012. For example,
Guangzhou Jingdong Trade Co. Ltd, a famous e-business company
in China, acquired an industrial land plot with a total site area of
1.08 million sq ft in Jiulong Industrial Park for CNY60.41 million. In
addition, Guangzhou Nanxin Medicine acquired an industrial land
plot with a total site area of 0.44 million sq ft in Guangzhou ScienceCity for CNY25.09 million.
The three deals by foreign or multinational rms were Guangzhou
Procter & Gambles acquisition of a 2.16 million sq ft plot in China-
Singapore Knowledge City, Yakult (Guangzhou) Co. Ltds acquisition
of 0.36 million sq ft plot in Yonghe, GETDD and Vejesto Electrics
acquisition of a 0.14 million sq ft site in Jiulong Industrial Park.
Underpinned by continuous healthy performance of the domestic
economy and the limited new supply of industrial space (especially
for warehouses), rental and capital values of warehouse and factory
space in GETDD are expected to continue to grow by between 2.6%and 4.2% in the next 12 months. Land values, on the other hand,
will likely hold relatively stable with upsides of about 0.4% in the
same period.
MAJOR TRANSACTIONS IN GUANGZHOU
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Jiulong Industrial Park Land Sale Vejesto Electric ,
Jiulong Industrial Park Land Sale Guangzhou Zhenghan Material Technology ,
Development Zone, Yonghe, GETDD Land Sale Yakult (Guangzhou ) Co.Ltd ,Guangzhou Science City Land Sale Guangzhou Nanxin Medicine ,
Jiulong Industrial Park Land SaleGuangzhou Jingdong Trade Co. Ltd
(buy.com),,
China-Singapore Knowledge City, GETDD Land Sale Guangzhou Procter & Gamble ,,
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ECONOMIC INDICATORS FOR SHANGHAI
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth October March .%
Year-on-Year Manufacturing Output Growth October March .%
Total Imports October March US. billion
Total Exports October March US. billion
Container Throughput (TEUs) October March . million
Air Cargo Throughput (Tonnes) October March . million
CHINA
SHANGHAI
Factory and Warehouse
Aimed partly at stimulating Chinas domestic retail sales and easelending for small and medium-sized businesses, the Chinese Central
Bank lowered the reserve requirement ratio for banks twice in the
review period between October 2011 and March 2012 by 50 basis
points in November 2011 and another 50 basis points in February
2012. An estimated CNY800 billion was released into the market
as a result. Thus, Shanghais economy managed to stay on the
expansion path in the six months ending March 2012 in spite of the
troubled global economy. In fact, Shanghais Purchasing Managers
Index (PMI) for March 2012 outperformed Chinas national levels for
the rst time since May 2011, with a reading of 53.2, indicating that
the citys manufacturing sector is in a recovery period.
The lowering of the reserve requirement ratio for banks also
facilitated the acquisition of land and ready-built industrial facilities.
As a result, average land and capital values of industrial properties
increased by about 4% and 12% respectively during the six-month
review period ending March 2012.
Notable land transactions done during this period include XCMGs
acquisition of a 3.75 million sq ft plot in Fengxian district and AVIC
Civil Aviation Electronics purchase of a 2.65 million sq ft industrial
land parcel in the Minhang district.
Likewise, average rental values achieved a 6.0% growth in thecurrent six-month period. Increasing demand for industrial space
from e-commerce businesses and multinational companies, whichoutpaced new supply, drove up occupancy rates and supported rental
growth. Major leasing transactions sealed during the review period
include Nissans lease of a 0.43 million sq ft warehouse facility in
Songjiang district and KWEs lease of a 0.32 million sq ft warehouse
in Pudong New Area.
As Shanghai moves up the manufacturing value chain, traditional
manufacturing activity is increasingly being phased out and is being
replaced by high value, high-technology, research and development
(R&D) and pharmaceutical activities. This is likely to result in
some existing low end industrial facilities being withdrawn from the
industrial stock when they are being redeveloped for more valuableuses. Coupled with the low pipeline supply of industrial space, the
market is poised to remain tight, thus providing the impetus for the
average land, capital and rental values to increase by up to 6% in the
next 12 months. The medium to long term prospects of Shanghais
industrial property market look bright too as it is likely to enjoy
strong demand from occupiers and investors alike on the back of the
Shanghai Municipal Governments target for Shanghai to achieve an
average economic growth rate of 8% for the next ve-year period
from 2011.
MAJOR TRANSACTIONS IN SHANGHAI
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Vailog Dianshan Lake Warehouse Lease IHUSH ,
GLP PVG Warehouse Lease KWE ,
Blogis Songjiang Warehouse Lease Nissan ,
Minhang Workshop Sale AVIC Civil Aviation Electronics ,,
Fengxian Workshop Sale XCMG ,,
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
ECONOMIC INDICATORS FOR HONG KONG SAR
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth July - December .%
Year-on-Year Manufacturing Output Growth Rate September February -.%
Total Imports September February HK, billion
Total Exports September February HK, billion
Container Throughput (TEUs) September February . million
Air Cargo Throughput (Tonnes) September February . million
HONG KONG SAR
HONG KONG SAR
Factory
The Government of Hong Kong announced in the 2012-13 Budget, twomeasures to incentivise the conversion from conventional industrial
to data centre space necessary to support the sustainable growth of
Hong Kongs traditional pillar industries like nancial services, trading
and logistics. First, fees for changing parts of eligible industrial
buildings to data centre use will be exempted. Second, the premium
payable for modifying land leases to allow high-tier data centre
usage on industrial sites, will be assessed on the basis of actual
development intensity and high-tier data centre use. Targeted to
be implemented as early as mid-2012 for application until 31 March
2016, these measures are foreseen to boost the supply of data centre
space in land-scarce Hong Kong while at the same time, facilitate
the rejuvenation of old industrial estates.
Similar to past quarters, the interest cost for vendors holding
industrial premises remains low. Most of the vendors also remained
rm on their asking prices in view of sustained occupational demand
from tenants and stable rental income from their premises. On the
prospective buyers front, the banks are more willing to oer them
nancing support for acquiring premises, which helped the recovery
in the transaction volume during the second half of the review period.
The number of strata-titled transactions plunged 30.2% quarter-
on-quarter (QoQ) to 956 in 4Q 2011 but rebounded by 35.7% QoQ
to 1,297 in 1Q 2012.
However, in view of the global economic uncertainties, more end-
users are on tighter budgets for their business addresses. This has
caused factory rental and capital value growth to slow down. During
the period from October 2011 to March 2012, factory rents increased
3.6% to HK$9.00 per sq ft per month. Meanwhile, factory prices
increased 3.3% to HK$2,630 per sq ft during the same period.
Looking ahead, while the US economy has recently fared better-
than-expected and the Eurozone sovereign debt crisis has stabilised
somewhat lately, the still-weak fundamentals of these advanced
economies will continue to weigh on their import demand. Signs of
negative spill-over to the Asian region have also been increasinglyevident. Demand for industrial premises is thus anticipated to soften
amid a deceleration of growth in local consumption and exports of
goods and services. As such, average factory rents and prices are
expected to decline 4% and 6%, respectively, over the coming 12
months.
Warehouse
The pace of external trade growth slowed signicantly amidst a
rocky global economic environment but remained positive over the
review period. During the period from September 2011 to February
2012, re-exports increased 4.0% YoY to HK$1,619 billion, down
from an increase of 10.2% YoY in the preceding six-month period.
Nevertheless, the sustained outsourcing activities from retailers have
translated into demand from third-party logistics companies (3PLs)
for prime quality warehouses. This group of tenants is looking for
ramp access warehouse premises in the range of 50,000 sq ft to
100,000 sq ft in size.
Robust demand for warehousing facilities saw the average rents of
cargo lift access warehouses increase by 9.3% to HK$7.45 per sq ft
per month while those of ramp access warehouses increased 10.4%
to HK$10.83 per sq ft per month during the current review period.
Take-up for new warehousing facilities has been healthy. Interlink,
a new logistics warehouse in Tsing Yi, which was ocially opened
in March 2012, is now almost fully leased to a range of well-known
multinationals and 3PLs players, including Nippon Express. The next
upcoming major logistics warehouse new supply will be two new
projects also located in Tsing Yi, although the construction work is
yet to start. Upon completion, the two projects will add a total of
about 2.1 million sq ft of warehouse space to the market.
In view of the uncertain external environment, warehouse rentals
are anticipated to decrease 2% to 3% over the next 12 months while
prices are expected to decline 4% to 5% during the same period.
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
ECONOMIC INDICATORS FOR INDIA
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth September - February .%
Year-on-Year Manufacturing Output Growth Rate September - February .%
Total Imports September - February US. billion
Total Exports September - February US. billion
Container Throughput (TEUs) October - March n.a.
Air Cargo Throughput (Tonnes) October - March n.a.
INDIA
NEW DELHI
Factory and Warehouse
Thanks to the moderation in Indias ination rates, the Reserve Bank
of India (RBI) has softened their monetary policy stance for the rst
time in one and a half years by reducing the Cash Reserve Ratio
(CRR) of nancial institutions in two tranches (i.e. 50 basis points
in January 2012 and a further 75 basis points in March 2012). As a
result, the CRR stood at 4.75% by the end of March 2012 from 6.0%
in December 2011. The RBI recently also lowered its repo rate (i.e. the
rate at which the Reserve Bank of India lends money to commercial
banks) to 8% from 8.5% to boost Indias sagging economic growth.
These measures have helped to stamp falling growth rates in Delhis
industrial sector. The manufacturing sector, which accounts for
over 75% of Indias Index of Industrial Production (IIP) displayed
a healthy 4.0% expansion in February 2012, relative to the 1.4%
growth in January 2012 and the low 2.6% growth in December 2011.
Nevertheless, the average growth rate of the manufacturing sector
remains at a low 1.9% over the six month period from September
2011 to February 2012, as compared to 8.3% in the same period a
year ago.
Despite a slowdown in Indias manufacturing sector, sentiments
in Delhis industrial property market remained healthy on the back
of continuous eorts by the government to develop and grow their
industrial sector. For example, to encourage non-polluting small andmedium scale industries to the capital, the Delhi State Industrial and
Infrastructure Development Corporation (DSIIDC) is planning to set
up a multi-level manufacturing hub in Rani Khera in north west Delhi
with an estimated cost of INR 31 billion. The project is expected to
generate 100,000 direct employment opportunities and 200,000
indirect employment opportunities. Additionally, to further improve
basic infrastructure and amenities in industrial locations, the Delhi
Government has recently called for bids to maintain some industrial
estates under a Public Private Partnership (PPP) Model. Under this
model, projects will be tendered on a build-operate-transfer system
whereby concessionaires will redevelop the estates in two years and
maintain it during the concession period.
Thus, demand for Delhi/NCR industrial properties remained stable
during the review period. Coupled with their limited supply, the
average land and capital values as well as rents of Delhi/NCR
industrial properties registered marginal increases of 1.5%, 0.6%
and 1.1%, respectively, between October 2011 and March 2012.
Recent sales transactions include Bhushan Steels purchase of a
144,000-sq ft factory at NH 24 and Jee Chemicals acquisition of a
100,000-sq ft factory at Bhiwadi while a notable lease transaction
concluded in the review period was Eichers lease of a 100,000-sq
ft factory at Palwal.
With the continuous improvements in Delhis industrial infrastructure
and the governments proactive approach in transforming Delhi into
an advanced industrial hub, Delhi could emerge as an attractiveinvestment destination in the coming years. This could fuel demand
for industrial space to accommodate the growing businesses. Thus,
average land, capital values and rents of the industrial properties
are expected to grow by up to 4.4% in the next 12 months.
MAJOR TRANSACTIONS IN NEW DELHI
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
NH Warehouse Lease Om Pipes ,
Palwal Factory Lease Eicher ,
Bhiwadi Warehouse Sale Swastik ,
Bhiwadi Factory Sale Jee Chemical ,
NH Factory Sale Bhushan Steel ,
* n.a. denotes not available
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MAJOR TRANSACTIONS IN JAKARTA
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Modern Cikande Land Sale Samotor Gas ,
MM Land Sale autoparts company (name undisclosed) ,
Delta Silicon Land Sale Warehouse company ,
Indotaisei Land Sale Asahimas (glass) ,
Modern Cikande Land Sale Jeewong (textile from Hong Kong) ,
Modern Cikande Land Sale Mikakuto (confectionary from Japan) ,
Suryacipta Land Saleautomotive component (name
undisclosed),
Delta Silicon Land Sale Japanese autoparts (name undisclosed) ,
Delta Silicon Land Sale Japanese autoparts (name undisclosed) ,
ECONOMIC INDICATORS FOR JAKARTA
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth January March .%
Year-on-Year Manufacturing Output Growth Rate January March -.%
Total Imports October March US. billion
Total Exports October March US. billion
Container Throughput (TEUs) January December . million
Air Cargo Throughput (Tonnes) October March n.a.
INDONESIA
JAKARTA
Factory and Warehouse
Indonesias large domestic market has shielded the country from the
volatile global economic environment and has helped the economy
to expand by 6.5% in 2011, its fastest pace since the Asian Financial
Crisis in 1997.
Continued economic growth coupled with low labour costs has
paved the way for Indonesia to grow as an attractive destination
for manufacturers. This has translated into a healthy demand for
industrial land. While Japanese companies were still the major
demand generator for industrial land in Jakarta, South Korean
investors have also become quite active in searching for sizeable
industrial land. In terms of the type of industries, the automotive
and other related industries remain the major buyers. Other active
industries include manufacturing, steel and related industries,
pharmaceutical, logistics and building material industries. For
example, during the review period, two undisclosed Japanese
auto part makers each bought land at Delta Silicon. A number of
automotive component companies have also recently bought land
of various sizes in Suryacipta.
There is, however, a lack of ready-to-use industrial land. Some
industrial estates situated within strategic locations like Karawang
or Bekasi have reported that they have had very limited land to sell
throughout 2012 and this has triggered them to further increase
their land prices. During the review period, land prices in these two
regions went up by an average of 29.5%. Meanwhile, due to the small
market size, rents and prices of industrial buildings recorded milder
growths averaging 13.1% and 3.9% respectively in the six months
ending March 2012.
The Asian Development Bank (ADB) forecasts that Indonesias
economic growth could slow marginally to 6.4% in 2012 from 6.5%
in 2011 due to weaker external demand. Lagging development of
infrastructure, especially in the transportation and energy sectors,
also continues to be a major constraint to economic growth.
Nonetheless, land and capital values as well as rents of industrial
properties are expected to continue to post strong increases of up
to 25% in the next 12 months on the back of robust demand and the
scarcity of ready-to-use industrial land. Although some industrial
estates are observed to be rushing to develop their land bank into
ready-to-use industrial plots, new industrial land supply will only
be ready in early 2013 given the time needed for the preparation
works.
* n.a. denotes not available
continued on next page >
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
INDONESIA
MAJOR TRANSACTIONS IN JAKARTA
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Suryacipta Land Saleautomotive component
(name undisclosed),
Suryacipta Land Saleautomotive component
(name undisclosed),
Jababeka Land Salepharmacy
(name undisclosed),
Suryacipta Land Saleautomotive component
(name undisclosed),
Suryacipta Land Saleplastic
(name undisclosed),
Suryacipta Land Saleautomotive component
(name undisclosed) - # ,
Suryacipta Land Saleautomotive component
(name undisclosed) - #,
Jababeka Land Salemanufacturing & electronics
(name undisclosed),
Suryacipta Land Saleautomotive component
(name undisclosed),,
< continued from previous page
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ECONOMIC INDICATORS FOR GREATER TOKYO
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth July - December -.%)
Year-on-Year Manufacturing Output Growth Rate July - December -.%)
Total Imports July - December . tillion)
Total Exports July - December . tillion)
Container Throughput (TEUs) July - December . million)
Air Cargo Throughput (Tonnes) July - December ,)
JAPAN
GREATER TOKYO
Factory and Warehouse
Japans economic progress in 2011 was aected by a series of
unfavourable events including the Great East Japan (Tohoku)
Earthquake, the appreciation of the Japanese Yen, the oods in
Thailand, and the Eurozone debt crisis. Consequently, real GDP
growth which contracted by 0.8% YoY in the rst half of 2011,
continued to contract in the second half of the year, albeit by a
smaller margin of 0.6% YoY.
While the quake in March 2011 and the resulting liquefaction have not
led to major tenants relocating from the bay area to inland locations,
weak leasing demand drove rents in some bay areas like Kawasaki
and Yokohama to decline by 3.1% and 9.1% respectively during the
six months ending March 2012.
Although industrial land prices had declined for the seventh
consecutive review period, the rate of decline was slower during
the current October 2011 to March 2012 period, compared to six
months earlier, amid signs of an improving economy. Supported by
acquisition activities by both foreign and local property funds, capital
values also showed greater stability during the review period with
marginal declines recorded.
The largest transaction involved the acquisition of 15 logistic facilitieswith a total gross oor area (GFA) of 8.3 million sq ft by a joint
venture of Global Logistic Properties and China Investment Co.
from LaSalle Investment Management for JPY122.6 billion. More
than 90% of the total GFA is located within the Greater Tokyo and
Osaka areas. Another signicant transaction was Mapletree Logistic
Trusts acquisition of seven logistic facilities for JPY17.5 billion. Of
the aggregate GFA of 1.3 million sq ft, more than 70% is located in
Greater Tokyo and 15% is in Greater Osaka and Greater Nagoya.
Acquisitions by JREITs included IIF Investments acquisition of IIF
Atsugi logistic centre in the Kanagawa prefecture for JPY2.29 billion
and the Japan Logistics Fund, Inc.s purchase of Misato logistic centre
in Saitama prefecture for JPY6.36 billion.
In terms of new supply, Mitsubishi Estate Co. and Mitsui & Co. Ltd.
completed a build-to-suit ve-storey warehouse facility for Nakano
Shokai Co. Ltd., a warehousing and logistic company with total GFA
of 339,418 sq ft in the Koto ward in Tokyo during the review period.
Prospects for the Japanese economy appear to be brighter, with the
International Monetary Fund (IMF) forecasting real GDP growth of
2.0% and 1.7% for 2012 and 2013 respectively, up from the negative
0.7% growth for 2011. This is expected to lend support to rents, land
prices and capital values, which are forecast to remain stable over
the next 12 months.
1) Nationwide
2) Tokyo port (Tokyo-kou, Narita) and Yokohama Port (Yokohama, Kawasaki, Yokosuka, Chiba and Kisarazu)3) Tokyo custom and Yokohama custom
4) Narita Airport
MAJOR TRANSACTIONS IN GREATER TOKYO
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
IIF Atsugi Logistic Centre III Logistics Sale IIF Investment Co. ,
Misato Logistic Centre Logistics Sale Japan Logistics Fund, Inc. ,
Tsurugashima Logistic Centre Logistics Sale Orix Real Estate Co. ,
Seven Logistic facilities (more than %located in Tokyo, % in Greater Osaka
and Greater Nagoya)
Logistics Sale Mapletree Logistic Trust ,,
Three Logistic facilities located inKawasaki
Logistics Sale SPC of Fortress Investment Group ,,
logistic facilities (more than %located in Greater Tokyo and Osaka)
Logistics SaleThe joint venture of Global Logistic Properties
and China Investment Corporation,,
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ECONOMIC INDICATORS FOR NEW ZEALAND
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth December .%
Year-on-Year Manufacturing Output Growth Rate December .%
Total Imports October March NZ. billion
Total Exports October March NZ. billion
Container Throughput (TEUs) October March . million
Air Cargo Throughput (Tonnes) October March ,
NEW ZEALAND
AUCKLAND
Ofce/Warehouse
New Zealands economic recovery continues to be shallow, as delaysin the Canterbury rebuild continue to dampen market activity. This
is reected in the marginal GDP growth of 0.3% YoY in 4Q 2011,
compared to 0.7% YoY in the previous quarter.
The shallow economic recovery slowed down industrial leasing
activity, resulting in the overall industrial vacancy in Auckland rising
marginally to 6% in February 2012 (latest available gures), from
the 5.3% recorded in February 2011. Thus, industrial net rental
rates across the greater Auckland region generally declined over the
current review period from October 2011 to March 2012. Except for
the Manukau submarket where net rents stayed constant, net rents of
oce / warehouse premises in the former Auckland City and NorthShore submarkets saw declines of 0.7% and 1.2%, respectively over
the review period.
While rents eased over the six months to March 2012, land values
saw a marginal upside of up to 0.7% during the review period. Land
continues to be in limited supply particularly in the North Shore
submarket, and what is available is tightly held. As a consequence,
North Shore has the highest land values in the greater Auckland
region.
Capital values, on the other hand, were supported by the relativelyactive industrial sales market over the six months to the end of March
2012, rising by between 2.6% and 6.1% across the three submarkets.
Industrial sales over NZ$2 million made up 50% of all commercial
sales in the second half of 2011 in the greater Auckland region. A
notable transaction was the sale of 36 - 50 Wilkinson Road in Penrose
by Trevor Rands and a group of investors from APN Print Media for
NZ$25.5 million. However, the rise in capital values against softer
rents led prime industrial yields in the greater Auckland region to
tighten over the review period from October 2011 to March 2012,
most notably in the former Auckland City and Manukau City precincts.
Going forward, prospects for the industrial sales market remainedpositive. Industrial investor condence in Auckland has recorded
the highest optimism since the inception of the Col liers Real Estate
Condence Survey in December 2008, with a net 51% of Auckland
industrial investors who participated in the March 2012 survey
forecasting improving conditions in the next 12 months, up from
41.0% six months earlier. As a result, land and capital values are
forecast to rise over the next 12 months. However, prime rents and
incentives are expected to remain static as leasing activity is forecast
to stay soft on the back of the shallow economic recovery.
MAJOR TRANSACTIONS IN AUCKLAND
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
- Jarvis Way, East Tamaki Oce/Warehouse Lease Royal Wolf Trading New Zealand ,
- Westeld Place, Mt Wel lington Oce/Warehouse Lease Mazda Motors ,
Sir Wil liam Avenue, East Tamaki Oce/Warehouse Lease LFA (NZ) ,
- Carbine Road, Mt Wellington Oce/Warehouse Lease Rentokil Initial ,
Rockridge Ave, Penrose Oce/Warehouse Lease Rilee Signs ,
- Sims Road, Penrose Oce/Warehouse Lease Loadlift ,
Carbine Road, Mt Wellington Oce/Warehouse Lease Southern Pine Products ,
- Wilkinson Road, Penrose Oce/Warehouse Sale Trevor Rands and Investors , - Harris Road, East Tamaki Oce/Warehouse Sale Direct Property Fund ,
Woodcocks Road, Warkworth Oce/Warehouse Sale Private Investor ,
Hugo Johnston Drive, Penrose Oce/Warehouse Sale Jerdi Partnership ,
Great South Road, Penrose Oce/Warehouse Sale Akoranga Properties ,
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NEW ZEALAND
WELLINGTON
Ofce/Warehouse
The Christchurch earthquakes have led to signicantly increased
insurance premiums around New Zealand. This increased cost,
typically passed on to tenants, has caused net rental rates in Petone
and Seaview to fall by more than 3% in the current six-month review
period to March 2012, and by 2.0% in Ngauranga. This marks the
rst decline in net rents in the Wellington industrial market since
March 2010.
Gross rents on the other hand (which includes all operating
expenses) held relatively stable given that leasing activity gathered
momentum over the six months ending March 2012. The largest
leasing transaction that took place during the review period was the60,278 sq ft secured by Wellington Regional Council at 201 Eastern
Hutt Road for three years.
While leasing activity has picked up, the majority of the industrial
transactions during the second half of 2011 remains largely in the
sub-NZ$2 million price bracket, totalling over NZ$35.5 million. A
slight softening of yields during the October 2011 to March 2012
period has led to capital values declining by between 8.4% and 8.6%
across the three submarkets. Land values also declined over the past
six months by 14.8% in Ngauranga and 16.0% in Petone. However,
land values rose by 15.0% in Seaview.
Overall investor condence in Wellington continues to improve slowly
with 11% of respondents remaining pessimistic in the March 2012
Colliers Real Estate Condence Survey, as compared to 25% during
the September 2011 survey. Although still recording the lowest level
of condence among the main centres in New Zealand, industrial
investor condence in Wellington is now in positive territory, with a
net 2% of respondents indicating optimism for the next 12 months.However, earthquake issues surrounding the property market will
continue to be a dampening factor in the Wellington industrial market
in the near future. As a result, while land values are expected to
stay stable in the next 12 months, capital values and net rents are
projected to fall over the same period.
MAJOR TRANSACTIONS IN WELLINGTON
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Unit , Blenheim St, Upper Hutt Oce/Warehouse Lease Fuji Xerox New Zealand ,
Unit & , Port Road, Seaview Oce/Warehouse Lease Forman Building Systems ,
Uniplas Building, Eastern Hutt Road,Lower Hutt
Oce/Warehouse Lease Wellington Regional Council ,
- Jackson Street & Te PuniStreet
Oce/Warehouse Sale Tom Hudig Trust ,
Parkside Road, Lower Hutt Oce/Warehouse Sale Private Investor ,
Broken Hill, Porirua Oce/Warehouse Sale Takakopa Properties ,
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ECONOMIC INDICATORS FOR SINGAPORE
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth October March .%
Year-on-Year Manufacturing Output Growth Rate October March .%
Total Imports October March S . billion
Total Exports October March S . billion
Container Throughput (TEUs) October March . million
Air Cargo Throughput (Tonnes) October March ,
SINGAPORE
SINGAPORE
Factory and Warehouse
The Government of Singapore introduced a slew of measuresduring the current review period between October 2011 and March
2012. These measures include disallowing the strata subdivision of
industrial projects on selected state land parcels in the rst 10 years
after the completion of the project and specifying the minimum size of
a unit in a multi-user industrial development at 1,615 sq ft. Developers
selling industrial properties are also required by the authorities to
stipulate the approved use of units sold in the purchase options and
sales-and-purchase agreements. These measures should weed out
unauthorised users and ensure industrial space caters to the needs
of genuine industrialists. In so doing, it is hoped that runaway rents
and prices of industrial space due to competition with unauthorised
users can be prevented, resulting in market stability.
Cautious expansion plans of industrialists on the back of the further
moderation of Singapores economic growth to 2.6% YoY in the
October 2011 to March 2012 period from the 3.6% YoY growth
recorded in the preceding six-month period led to a lacklustre leasing
market. Coupled with oncoming supply pressures, the gross monthly
rents for factories in the central area inched up a mere 1.3% in the
review period to average S$1.52 per sq ft per month by the end of
March 2012, while the average gross monthly rents for warehouse
space in the eastern part of the island stayed at at S$1.44 per sq
ft during the same period.
In contrast, industrial investment and land sales activities remained
robust, driven by institutional investors, especially REITs, as well as
end-users who were looking to secure their own landed premises.
Signicant REIT purchases in the review period include Cambridge
Industrial Trusts buy of a factory located on 16 Tai Seng Street for
S$59.25 million as well as a warehouse at 3C Toh Guan Road East
for S$35.5 million; and Cache Logistics Trusts purchase of Pan Asia
Logistics Centre on 21 Changi North Way for S$35.18 million. These
supported the continued uptrend in land and capital values albeit at
a slower pace of between 5.1% and 13.5% during the current review
period, down from 10.0% to 16.0% in the previous review period.
According to the Urban Redevelopment Authority (URA), the stock
of single-user factory space grew by a hefty 2.22 million sq ft in
the current review period, up from 1.91 million sq ft in the previous
six-month period. Developments completed in the six months
ending March 2012 include Tiong Seng Contractors 187,290-sq ft
Tiong Seng Prefab Hub at Tuas South Avenue 1, YHI Corporations
198,055-sq ft factory at 2 Pandan Road and CWTs 304,620-sq ft
Pandan Logistics Hub along Pandan Road.
Downside risks in the external environment such as the persistent
Eurozone debt crisis, the sluggish recovery in the US and the weak
growth momentum in Asia will continue to weigh on Singapore's
economic growth going forward and expose companies in the
manufacturing as well as the transport and storage sector to strong
headwinds. However, these rms are expected to maintain theirpresence in Singapore so as to leverage Singapores Global-Asia
positioning to tap into growth opportunities in Asia and the rest of
the world. In addition, Singapores sound economic fundamentals
should help the country and the industrial market ride through the
current uncertainties. Hence, while Singapores industrial land,
capital values and rents will likely soften in the next 12 months, the
fall is expected to be capped at 3%.
High-Specs Industrial Building
On top of slowing occupier demand from industrialists as they cut
back on expansion and capital investment plans, the high-specsindustrial sector also suered from easing spill-over demand from
the oce sector in line with its falling rents and rising stock of
suburban oce space.
Coupled with ample supply in the pipeline, the rents for high-specs
industrial space stood at S$3.50 per sq ft per month, based on a
new basket of high-specs spaces tracked. However, in the prime
central locality, some high-specs industrial space could still command
a strong rent of about S$3.80 to S$4.00 per sq ft while business
parks could achieve S$4.50 to S$5.00 per sq ft.
Notwithstanding the global uncertainties and the near-term pressure
on rents, REITs took advantage of the low interest rate environment
to secure yield accretive purchases. For example, in February 2012,
Ascendas REIT bought four high-specs buildings located in the
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MAJOR TRANSACTIONS IN SINGAPORE
ECONOMIC INDICATORS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Mapletree Business City, & PasirPanjang Road
High-Specs Lease Samsung Asia ,
Mapletree Business City, & PasirPanjang Road
High-Specs Lease Toshiba ,
UE Bizhub East, & Changi BusinessPark Avenue
High-Specs Lease Cisco Systems ,
,,,,, Howard Road Factory Sale Dairy Industries ,
Pioneer Crescent Factory Sale Cambridge Industrial Trust ,
Ubi Close Factory Sale Alpine Motors ,
Woodlands Loop Factory Sale Sabana REIT ,
Tai Seng Street Factory Sale Cambridge Industrial Trust ,
Admiralty Road Warehouse Sale Storhub ,
C Toh Guan Road East Warehouse Sale Cambridge Industrial Trust ,
Changi North Way Warehouse Sale Cache Logistics Trust ,
Changi Business Park Vista High-Specs Sale Ascendas REIT ,
Cintech I, II, III, IV High-Specs Sale Ascendas REIT ,
Corporation Place, Corporation Road High-Specs Sale Ascendas REIT ,
SINGAPORE
Singapore Science Park Cintech I, II, III and IV for a collective sum
of S$183.00 million. This comes shortly after their announcement
in December 2011 that they have acquired two properties, namely
Corporation Place at 2 Corporation Road and 3 Changi Business
Park Vista for a combined S$179 million.
Although overriding caution in the industrial property sector is
expected to weigh on current market sentiments, demand for
high-specs industrial space could be shored up by, among other
factors, expansion in research and development functions as well
as the setting up of new high-value information and communication
technology, bio-medical and digital media outts. This should help
to limit the dip in overall high-specs industrial rents to 3% for the
whole of 2012.
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ECONOMIC INDICATORS FOR TAIWAN
ECONOMIC INDICATORS
INDICATORS PERIOD DATA
Year-on-Year GDP Growth October - March .%
Year-on-Year Manufacturing Output Growth Rate October - March -.%
Total Imports October - March US. billion
Total Exports October - March US. billion
Container Throughput (TEUs) October - March . million
Air Cargo Throughput (Tonnes) October - March ,
TAIWAN
TAIWAN
High-Specs Industrial Building
Taiwans GDP growth rate slowed further to 0.6% YoY for the periodbetween October 2011 and March 2012, compared to the 4.2%
YoY recorded during the preceding six months ending September
2011. Over the same period under review, the manufacturing sector
contracted by about 2.2% YoY, on the back of declines in the output
value of electronic components, chemical materials, basic metals
and machinery equipment.
Against the weaker economic backdrop, the expansion in net take-
up of high-specs space in Neihu Technology Park fell by a hefty
59.6% to just 292,930 sq ft for the period between October 2011
and March 2012, from the 725,049 sq ft recorded for the previous
review period. Major leasing deals that took place during the reviewperiod included Nestle Taiwan Co. Ltd, Satellite Television Asia
Region Ltd, Taiwan Branch, E-Ten Information Systems Co. Ltd and
Jollywiz Digital Technology Co. Ltds take-up of 49,812 sq ft in Union
Freedom Plaza, 46,254 sq ft in Tokyo Technology Headquarters (A),
28,464 sq ft in Yang Ming Neihu Building and 17,790 sq ft in Guang
Yuan Technology Building, respectively.
Notwithstanding the marked slowdown in demand growth, the
average rents of high-specs space in Neihu Technology Park
managed to gain another 0.9% over the review period from NT$31.57
per sq ft per month in September 2011 to NT$31.86 per sq ft per
month in March 2012. This came on the back of the continued fall
in vacancy rate by 0.7 percentage points to 11.6% as of March 2012,
the lowest level since 4Q 2008. The persistent tightening of thevacancy rate, in turn, was the result of continued growth in demand
amid limited new completions.
Only one new project was completed during the review period. The
completion of the 120,865-sq ft S.I.T. Wanguo Centre in 1Q 2012,
raised the total stock of high-specs space in Neihu Technology Park
by just 0.4% to about 28.4 million sq ft as of March 2012.
On the investment front, the review period saw several transactions
for investment and owner-occupation purposes. Major transactions
included Delta Electronics Inc.s acquisition of the 263,292-sq ft Eten
Neihu Building for NT$2.53 billion, Mercuries Life Insurance Co. Ltds
acquisition of the 120,865-sq ft S.I.T. Wanguo Centre for NT$2.47
billion, TransAsia Airways Co. Ltds acquisition of the 42,583-sq ft
Green Energy Headquarters for NT$704 million and Taiwan Secom
Co. Ltds acquisition of the 28,262-sq ft Green Energy Headquarters
for NT$487 million.
Going forward, the Eurozone crisis and deceleration of Chinas
economic growth is expected to aect Taiwans economic growth
and impact demand for high-specs space in Neihu Technology Park.
And with more new high-specs space expected to enter the market
in the next 12 months, this may place some upward pressure on the
vacancy rate. As such, rents are forecast to remain at over the next12 months.
MAJOR TRANSACTIONS IN TAIPEI
TRANSACTIONS
BUILDING/LAND PLOT PROPERTY TYPE LEASE/SALE TENANT/PURCHASERFLOOR/LAND AREA
(SQ FT)
Guang Yuan Technology Building High-Specs Lease Jollywiz Digital Technology Co. Ltd ,
Yang Ming Neihu Building High-Specs Lease E-TEN Information Systems Co. Ltd ,
Tokyo Technology Headquarters(A) High-Specs LeaseSatellite Television Asia Region Ltd, Taiwan
Branch,
Union Freedom Plaza High-Specs Lease Nestle Taiwan Co. Ltd ,
Green Energy Headquarter High-Specs Sale Taiwan Secom Co. Ltd ,
Green Energy Headquarter High-Specs Sale TransAsia Airways Co. Ltd ,
S.I.T. Wanguo Centre High-Specs Sale Mercuries Life Insurance Co. Ltd ,
Eten Neihu Building High-Specs Sale Delta Electronics, Inc. ,
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COLLIERS INTERNATIONAL | P. 21
INTERNATIONAL COMPARISONThe purpose of the International Comparison tables is only to facilitate easy and equal comparison of single-user industrial costs. However, payment
schemes vary with each country. Some countries may have the practice of paying annual land rent, while others pay a lump sum land premium
or through other modes. Colliers International does not infer that industrial land and buildings in these cities may be acquired through the same
schemes or on the basis stated in the table.
SINGLE-USER WAREHOUSE
SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS
CITY
VALUE AS OF MARCH 2012 (US$) 12-MONTH FORECAST (US$) BASIS OF LAND AND CAPITAL VALUES
LANDVALUE1
(PSF)
CAPITALVALUE2(PSF)
MONTHLYGROSSRENT(PSF)
LANDVALUE1(PSF)
CAPITALVALUE2(PSF)
MONTHLYGROSSRENT(PSF)
LANDTENURE(YEARS)
PLOTRATIO
LANDAREA
(SQ FT)
GROSSFLOORAREA
(SQ FT)
Auckland
Former Auckland City . . . . . . . , ,
Manukau . . . . . . . , ,
North Shore . . . . . . . , ,
Beijing
Tianzhu . . . . . . . , ,Tongzhou . . . . . . . , ,
Greater Tokyo
Chiba - Urayasu - - - - - - . , ,
Kawasaki - Higashi Ogishima . . . . . . . , ,
Tokyo - Ariake . . . . . . . , ,
Tokyo - Heiwajima . . . . . . . , ,
Tokyo - Shinsuna . . . . . . . , ,
Yokohama - Daikokufuto . . . . . . . , ,
Guangzhou
GETDD . . . . . . . , ,
Hong Kong
Ramp Access - . . - . . . , ,
Cargo Lift Access - . . - . . . , ,Jakarta
Bekasi . . - . . - . , ,
Melbourne
East & Southeast . . . . . . . , ,
Fringe . . . . . . . , ,
North . . . . . . . , ,
West . . . . . . . , ,
New Delhi
Delhi - NH . - . . - . . , ,
Delhi - NH . . . . . . . , ,
Delhi - NH . . . . . . . , ,
Delhi - East . . . . . . . , ,
Delhi - North . . . . . . . , ,
Delhi - South . . . . . . . , ,
Delhi - West . . . . . . . , ,
Shanghai
Pudong New Area . . . . . . . , ,
Singapore
East . . . . . . . , ,
Sydney
South . . . . . . . , ,
Southwest . . . . . . . , ,
West . . . . . . . , ,
Wellington
Ngauranga . . . . . . . , ,
Petone . . . . . . . , ,
Seaview . . . . . . . , ,
1. Land values are expressed in US$ psf per plot ratio2. Capital values refer to the values of both land and building
3. Rental series for Auckland and Wellington are on a net basis
4. The Urayasu submarket remained ooded. Land, capital values and rents are not available5. Values provided are for multi-user warehouse buildings
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
INTERNATIONAL COMPARISON
INTERNATIONAL COMPARISON OF WAREHOUSE LAND VALUES(MARCH 2012)
INTERNATIONAL COMPARISON OF WAREHOUSE CAPITAL VALUES(MARCH 2012)
* Values provided are for multi-user warehouse buildings
05 01 00 1502 00 2503 00 3504 00
De lhi-NH8Jakarta-Bekasi
De lhi-NH24Guangzhou-GETDD
Melbourne-WestWellington-Seaview
Delhi-WestWellington-Petone
De lhi-EastBeijing-Tong zhouMelbourne-North
Wellington-Nga urangaShangh ai-Pudong New Area
Me lbourne-East & South EastDe lhi-NorthDelhi-South
Auckland-ManukauAuckland-Former Auckland City
Beijing-Tianzhu
Auckland-North ShoreSydney-SouthwestMe lbourne-Fringe
Sydney-WestSydney-South
Greater Tokyo-Yokohama-DaikokufutoSingapore-East
Greater Tokyo-Kawasaki-Higashi OgishimaGreater Tokyo-Tokyo-Ariake
Greater Tokyo-Tokyo-ShinsunaGrea ter Tokyo-Tokyo-He iwajimaHong Kong-Cargo Lift Access*
Hong Kong-Ramp Access*
Warehous e Capital Values (US$ psf)
0 50 100 150 200 250 300 350 400
Warehouse Capital Values (US$ psf)
Warehouse Land Values (US$ psf per plot ratio)
Guangzhou-GETDDMelbourne-West
Beijing-TongzhouMelbourne-North
Melbourne-East & South EastGreater Tokyo-Yokohama-Daikokufuto
Jakarta-BekasiSydney-Southwest
Delhi-NH1Wellington-SeaviewAuckland-Manukau
Auckland-Former Auckland CityBeijing-Tianzhu
Delhi-NH8Auckland-North Shore
Sydney-WestWellington-Ngauranga
Wellington-Petone
Delhi-NH24Greater Tokyo-Kawasaki-Higashi Ogishima
Melbourne-FringeShanghai-Pudong New Area
Singapore-East
Sydney-SouthDelhi-East
Greater Tokyo-Tokyo-AriakeGreater Tokyo-Tokyo-Heiwajima
Delhi-NorthGreater Tokyo-Tokyo-Shinsuna
Delhi-South
Delhi-West
0 50 100 150 200
Warehouse Land Values (US$ psf per plot ratio)
Delhi - WestDelhi - South
Greater Tokyo - Tokyo - ShinsunaDelhi - North
Greater Tokyo - Tokyo - HeiwajimaGreater Tokyo - Tokyo - Ariake
Delhi - EastSydney - South
Singapore - EastShanghai - Pudong New Area
Melbourne - FringeGreater Tokyo - Kawasaki - Higashi Ogishima
Delhi - NH 24Wellington - Petone
Wellington - NgaurangaSydney - West
Auckland - North ShoreDelhi - NH 8
Beijing - TianzhuAuckland - Former Auckland City
Auckland - ManukauWellington - Seaview
Delhi - NH 1Sydeny - Southwest
Jakarta - BekasiGreater Tokyo - Yokohama - Daikokufuto
Melbourne - East & South EastMelbourne - NorthBeijing - TongzhouMelbourne - West
Guangzhou - GET DD
Hong Kong - Ramp Access*Hong Kong - Cargo Lift Accees*
Greater Tokyo - Tokyo - HeiwajimaGreater Tokyo - Tokyo - Shinsuna
Greater Tokyo - Tokyo - AriakeGreater Tokyo - Kawasaki - Higashi Ogishima
Singapore - EastGreater Tokyo - Yokohama - Daikokufuto
Sydney - SouthSydney - West
Melbourne - FringeSydeny - Southwest
Auckland - North Shore
Beijing - TianzhuAuckland - Former Auckland CityAuckland - Manukau
Delhi - SouthDelhi - North
Melbourne - East & South EastShanghai - Pudong New Area
Wellington - NgaurangaMelbourne - NorthBeijing - Tongzhou
Delhi - EastWellington - Petone
Delhi - WestWellington - Seaview
Melbourne - WestGuangzhou - GET DD
Delhi - NH 24Jakarta - Bekasi
Delhi - NH 8
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
INTERNATIONAL COMPARISON
SINGLE-USER FACTORY
SINGLE-USER FACTORY LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS
CITY
VALUE AS OF MARCH 2012 (US$) 12-MONTH FORECAST (US$) BASIS OF LAND AND CAPITAL VALUES
LANDVALUE1
(PSF)
CAPITALVALUE2(PSF)
MONTHLYGROSSRENT(PSF)
LANDVALUE1(PSF)
CAPITALVALUE2(PSF)
MONTHLYGROSSRENT(PSF)
LANDTENURE(YEARS)
PLOTRATIO
LANDAREA
(SQ FT)
GROSSFLOORAREA
(SQ FT)
Beijing
Shang Di . . . . . . . , ,
Yi Zhuang . . . . . . . , ,
Greater Tokyo
Chiba - Ichikawa . . - . . - . , ,
Chiba - Mihama . . - . . - . , ,
Saitama - Ageo . . - . . - . , ,
Tokyo - Ota . . - . . - . , ,
Yokohama - Naka . . - . . - . , ,
Guangzhou
GETDD . . . . . . . , ,
Hong Kong
Low Quality - . . - . . . , ,
Mid Quality - . . - . . . , ,
Prime Quality - . . - . . . , ,
Jakarta
Bekasi . . - . . - . , ,
Karawang . . . . . . . , ,
Melbourne
East & South East . . . . . . . , ,
Fringe . . . . . . . , ,
North . . . . . . . , ,
West . . . . . . . , ,
New Delhi
Delhi - NH . - . . - . . , ,
Delhi - NH . . . . . . . , ,
Delhi - NH . . . . . . . , ,
Delhi - East . . . . . . . , ,
Delhi - North . . . . . . . , ,
Delhi - South . . . . . . . , ,
Delhi - West . . . . . . . , ,
Shanghai
Minhang District . . . . . . . , ,
Pudong New Area . . . . . . . , ,
Singapore
Central . . . . . . . , ,
1. Land values are expressed in US$ psf per plot ratio2. Capital values refer to the values of both land and building
3. Values provided are for multi-user factory buildings
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
COLLIERS INTERNATIONAL | P. 25
INTERNATIONAL COMPARISON OF FACTORY LAND VALUES(MARCH 2012)
INTERNATIONAL COMPARISON
INTERNATIONAL COMPARISON OF FACTORY CAPITAL VALUES(MARCH 2012)
* Values provided are for multi-user factory buildings
Beijing-Yi Zhuang
Guangzhou-GETDD
Melbourne-West
Jakarta-Karawang
Melbourne-North
Greater Tokyo-Saitama-Ageo
Melbourne-East & South East
Jakarta-Bekasi
Delhi-NH1
Delhi-NH8
Greater Tokyo-Chiba-Mihama
Shanghai-Minhang District
Shanghai-Pudong New Area
Delhi-NH24
Greater Tokyo-Yokohama-Naka
Greater Tokyo-Chiba-Ichikawa
Melbourne-Fringe
Beijing-Shang Di
Greater Tokyo-Tokyo-Ota
Delhi-East
Singapore-Central
Delhi-North
Delhi-South
Delhi-West
Factory Land Values (US$ psf per plot ratio)
500 100 150 200
Delhi-NH8
Jakarta-Karawang
Jakarta-Bekasi
Delhi-NH24
Guangzhou-GETDD
Melbourne-West
Shanghai-Pudong New Area
Shanghai-Minhang District
Delhi-East
Melbourne-North
Beijing-Yi Zhuang
Delhi-West
Melbourne-East & South East
Delhi-NorthGreater Tokyo-Saitama-Ageo
Greater Tokyo-Chiba-Mihama
Delhi-South
Greater Tokyo-Yokohama-Naka
Greater Tokyo-Chiba-Ichikawa
Greater Tokyo-Tokyo-Ota
Melbourne-Fringe
Beijing-Shang Di
Singapore-Central
Hong Kong-Low Quality*
Hong Kong-Mid Quality*
Hong Kong-Prime Quality*
0 100 150 200 250 300 350 400 450 500
Factory Capital Values (US$ psf)
50
Factory Capital Values (US$ psf)
Delhi - West
Delhi - South
Delhi - North
Singapore - Central
Delhi - East
Greater Tokyo - Tokyo - Ota
Beijing - Shanghai Di
Melbourne - Fringe
Greater Tokyo - Chiba - Ichikawa
Greater Tokyo - Yokohama - Naka
Delhi - NH 24
Shanghai - Pudong New Area
Shanghai - Minhang District
Greater Tokyo - Chiba - Mihama
Delhi - NH 8
Delhi - NH 1
Jakarta - Bekasi
Melbourne - East & South East
Greater Tokyo - Saitama - Ageo
Melbourne - North
Jakarta - Karawang
Melbourne - West
Guangzhou - GET DD
Beijing - Yi Zhuang
0 50 100 150 200
Factory Land Values (US$ psf per plot ratio)
Hong Kong - Prime Quality*
Hong Kong - Mid Quality*
Hong Kong - Low Quality*
Singapore - Central
Beijing - Shang Di
Melbourne - Fringe
Greater Tokyo - Tokyo - Ota
Greater Tokyo - Chiba - Ichikawa
Greater Tokyo - Yokohama - Naka
Delhi - South
Greater Tokyo - Chiba - Mihama
Greater Tokyo - Saitama - AgeoDelhi - North
Melbourne - East & South East
Delhi - West
Beijing - Yi Zhuang
Melbourne - North
Delhi - East
Shanghai - Minhang District
Shanghai - Pudong New Area
Melbourne - West
Guangzhou - GET DD
Delhi - NH 24
Jakarta - Bekasi
Jakarta - Karawang
Delhi - NH 8
0 50 100 150 200 250 300 350 400 450 500
Factory Capital Values (US$ psf)
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
INTERNATIONAL COMPARISON OF FACTORY MONTHLY GROSS RENTS(MARCH 2012)
INTERNATIONAL COMPARISON
* Values provided are for multi-user factory buildings
Delhi-NH1
Delhi-NH8
Delhi-North
Jakarta-Karawang
Delhi-NH24
Shanghai-Pudong New AreaShanghai-Minhang District
Guangzhou-GETDD
Melbourne-West
Melbourne-North
Melbourne-East & South East
Delhi-East
Delhi-West
Beijing-Yi Zhuang
Delhi-South
Hong Kong-Low Quality*
Melbourne-Fringe
Hong Kong-Mid Quality*
Singapore-Central
Beijing-Shang Di
Hong Kong-Prime Quality*
0.00
Factory Monthly Gross Rents (US$ psf)
0.50 1.00 1.50
Hong Kong - Prime Quality*Beijing - Shanghai Di
Singapore - Central
Hong Kong - Mid Quality*
Melbourne - Fringe
Hong Kong - Low Quality*
Delhi - South
Beijing - Yi Zhuang
Delhi - West
Delhi - East
Melbourne - East & South East
Melbourne - North
Melbourne - West
Guangzhou - GET DD
Shanghai - Minhang DistrictShanghai - Pudong New Area
Delhi - NH 24
Jakarta - Karawang
Delhi - North
Delhi - NH 8
Delhi - NH 1
0.00 0.50 1.00 1.50
Factory Monthly Gross Rents (US$ psf)
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
COLLIERS INTERNATIONAL | P. 27
INTERNATIONAL COMPARISON
MULTI-USER HIGH-SPECS
MULTI-USER HIGH-SPECS AVERAGE MONTHLY GROSS RENTS
CITY
AS OF MARCH 2012 12-MONTH FORECAST BASIS OF RENTAL RATES
AVERAGE MONTHLYGROSS RENT (US$ PSF)
AVERAGE MONTHLYGROSS RENT (US$ PSF)
LEASETERM
(YEARS)LOCATION
NET FLOORAREA
(SQ FT)
RENT FREEPERIOD
(MONTH)
Beijing . . Suburban ,
Hong Kong . . Suburban ,
Melbourne . . Suburban ,
New Delhi - NH . . to Suburban , Negotiable
New Delhi - NH . . to Suburban , Negotiable
New Delhi - NH . . to Suburban , Negotiable
New Delhi - East . . to Suburban , Negotiable
New Delhi - North . . to Suburban , Negotiable
New Delhi - South . . to Suburban , Negotiable
New Delhi - West . . to Suburban , Negotiable
Shanghai . . to Suburban , Singapore . . Suburban ,
Sydney . . Suburban ,
Taipei - Neihu Technology Park . . Suburban ,
Greater Tokyo - Hakusan . . Suburban ,
Greater Tokyo - Kanagawa . . Suburban ,
Greater Tokyo - Yokohama . . Suburban ,
INTERNATIONAL COMPARISON OF HIGH-SPECS MONTHLY GROSS RENTS(MARCH 2012)
1. With eect from May 2012, the basket used to compute Singapores high-specs industrial rents has been expanded to include an array of both independent high-specs industrial buildings and business parks.
New Delhi - NH1
New Delhi - NH8
New Delhi - NH24
New Delhi - North
New Delhi - East
New Delhi - West
New Delhi - South
Taipei - Neihu Technology Park
Sydney
Shanghai
Beijing
Melbourne
Hong Kong
Singapore
Greater Tokyo - Hakusan
Greater Tokyo - Yokohama
Greater Tokyo - Kanagawa
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
High-Specs Average Monthly Gross Rents (US$ psf)
Greater Tokyo - Kanagawa
Greater Tokyo - Yokohama
Greater Tokyo - Hakusan
Singapore
Hong Kong
Melbourne
Beijing
Shanghai
Sydney
Taipei - Neihu Technology Park
New Delhi - South
New Delhi - West
New Delhi - East
New Delhi - North
New Delhi - NH 24
New Delhi - NH 8
New Delhi - NH 1
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
High-Specs Average Monthly Gross Rents (US$ psf)
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
LOCAL MARKET NORMThe purpose of the Local Market Norm tables is only to provide an understanding of single-user industrial costs in the context of the various submarkets.
The land tenure, plot ratio, land and building size quoted are based on recent oerings and transactions in each local market. However, payment
schemes vary with each country. Some countries may have the practice of paying annual land rent, while others pay a lump sum land premium or
through other modes. Colliers International does not infer that industrial land and buildings in these cities may be acquired through the same schemes.
SINGLE-USER WAREHOUSE
SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS
CITYLOCAL
CURRENCY
IN LOCAL CURRENCY AS OFMARCH 2012
IN US$ AS OF MARCH 2012
BASIS OF LAND, CAPITAL VALUESAND MONTHLY GROSS RENTS
(LOCAL MARKET NORM)
LANDVALUE2
(PSF)
CAPITALVALUE3(PSF)
MONTHLYGROSSRENT(PSF)
LANDVALUE2(PSF)
CAPITALVALUE3(PSF)
MONTHLYGROSSRENT(PSF)
LANDTENURE(YEARS)
PLOTRATIO
LANDAREA
(SQ FT)
GROSSFLOORAREA
(SQ FT)
Auckland
Former AucklandCity
NZ . . . . . . Freehold . , ,
Manukau NZ . . . . . . Freehold . , ,
North Shore NZ . . . . . . Freehold . , ,
Beijing
Tianzhu CNY . . . . . . . , ,
Tongzhou CNY . . . . . . . , ,
Greater Tokyo
Chiba-Urayasu JPY - - - - - - Freehold . , ,
Kawasaki - HigashiOgishima
JPY ,. ,. . . . . Freehold . ,, ,,
Tokyo - Ariake JPY ,. ,. . . . . Freehold . , ,
Tokyo - Heiwajima JPY ,. ,. . . . . Freehold . ,, ,,
Tokyo - Shinsuna JPY ,. ,. . . . . Freehold . , ,
Yokohama -Daikokufuto
JPY ,. ,. . . . . Freehold . , ,
GuangzhouGETDD CNY . . . . . . . , ,
Hong Kong
Ramp Access HK - ,. . - . . N.A N.A N.A N.A
Cargo Lift Access HK - ,. . - . . N.A N.A N.A N.A
Jakarta
Bekasi Rp ,. ,. - . . - . , ,
Melbourne
East & South East A . . . . . . Freehold . , ,
Fringe A . . . . . . Freehold . , ,
North A . . . . . . Freehold . , ,
West A . . . . . . Freehold . , ,
New Delhi
Delhi - NH Rs ,. - . . - . . , ,
Delhi - NH Rs ,. ,. . . . . . , ,
Delhi - NH Rs ,. ,. . . . . . , ,
Delhi - East Rs ,. ,. . . . . Freehold . , ,
Delhi - North Rs ,. ,. . . . . Freehold . , ,
Delhi - South Rs ,. ,. . . . . Freehold . , ,
Delhi - West Rs ,. ,. . . . . Freehold . , ,
Shanghai
Pudong New Area CNY . . . . . . . , ,
Singapore
East S . . . . . . + . , ,
Sydney
South A . . . . . . Freehold . , ,
Southwest A . . . . . . Freehold . , ,
West A . . . . . . Freehold . , ,
Continued on next page >
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ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | MAY 2012
COLLIERS INTERNATIONAL | P. 29
LOCAL MARKET NORM
SINGLE-USER WAREHOUSE
SINGLE-USER WAREHOUSE LAND VALUES, CAPITAL VALUES AND MONTHLY GROSS RENTS
CITYLOCAL
CURRENCY
IN LOCAL CURRENCY AS OFMARCH 2012
IN US$ AS OF MARCH 2012BASIS OF LAND, CAPITAL VALUESAND MONTHLY GROSS RENTS
(LOCAL MARKET NORM)
L
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