Asia Pacific sectIon contents Adelaide, Australia Brisbane, Australia Melbourne, Australia Perth, Australia Sydney, Australia Beijing, China Guangzhou, China Hong Kong, SAR, China Shanghai, China Shenzhen, China Xi’an, China Guam Chennai, India Mumbai, India Pune, India Punjab, India Jakarta, Indonesia Tokyo, Japan Kuala Lumpur, Malaysia Auckland Central, New Zealand Christchurch, New Zealand Wellington, New Zealand Singapore Seoul, South Korea Taipei, Taiwan Ho Chi Minh City, Vietnam
Adelaide, Australia Brisbane, Australia Contact <strong>NAI</strong> Harcourts Brock Commercial +61 8 8203 1399 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 2,969,907 3.5% $1,297.83 $57,661.88 3.0% 5.1% 4.8% 22.508 The global economic woes continue to influence the economic growth in Australia. The uncertainty of the resolution of global issues, which includes the European crisis, US rating downgrade and <strong>report</strong>s of a slow down in China, have had a significant influence on the confidence of Australian banks and buyers alike. The South Australian economy reflects the national in terms of much discussed two tiered economy, i.e. businesses related to mining and those not. South Australian and Federal Governments’ recent announcement to support mining Olympic Dam in SA is genuinely positive, although BHP and partners still need to fund this with an announcement expected in <strong>2012</strong>. This mine has the potential to make a significant positive impact on the economy for the next 20 years or more. Interest rates are expected to remain at 4.75% or slightly less for 6 to12 months on the basis of ongoing global financial uncertainty. Buyers and tenants are looking carefully at moving and purchasing. The banking sector, with limited funds to lend, is being selective. Opportunistic buyers are looking more intently at the property investment market for attractive acquisitions. The number of listings is beginning to increase but there is still a shortage of major investment opportunities to gauge market. There is a continued appetite for investment properties with proven tenants. Lenders are comfortable providing funding for properties that offer more secure cash flow but this is stock tightly held and investors tend to release only marginal property. CBD office leasing market continues to experience historically low vacancies. There is one new building being developed that is not pre-committed before construction. Current vacancy of approx. 7.8% is expected to decrease in short to medium term. There is limited new office supply over medium term and positive absorption, although low take-up rates due to limited supply. Refurbishment opportunities exist for B and C grade buildings over the next two to three years as the new ATO tower is completed. Vacancy is expected to remain above 5% until at least 2013. The recent announcement of Adelaide Bendigo Bank pre-commitment for 18,000 plus SM has been the most significant leasing in the Adelaide market for some time. The sub-lease market, as a result of a lack of new development, has tightened. Frame office market continues to attract demand from office space users with 400 King William Street now 100% occupied. Fringe office market continues to experience low vacancies with limited incentives available to tenants. Contact <strong>NAI</strong> Harcourts Brisbane +61 7 3839 3100 Country Data Area (Sq Mi) GDP Growth GDP 2011 (US$ B) GDP/Capita (US$) Inflation Rate Unemployment Rate Interest Rate Population (Millions) 2,969,907 3.5% $1,297.83 $57,661.88 3.0% 5.1% 4.8% 22.508 After serious flooding in the first quarter of the year in many parts of the state including the Brisbane CBD, the Queensland economic forecast was revised downwards. The Australian Dollar strength has had an adverse effect on the international tourism market. The resources sector has brought some relief to an otherwise lackluster economy and corporations continue to take a cautious approach to investment as they wait for a recovery in the global economy. The office leasing market in Brisbane has proven many forecasters wrong with strong demand stemming from the resource sector and associated services companies. Vacancies have fallen from 11% at the end of last year to less than 8% across the city and less than 5% for premium space in the CBD. Rents have remained stable with new supply coming on stream next year, while mostly pre-committed, it will mean some substantial pockets in secondary buildings. Incentives for new commitments also have remained stable although there are some early signs of some reductions at year end. During <strong>2012</strong> these incentives are expected to fall with continued demand gradually reducing vacancies. The Investment market has remained relatively active with international funds showing strong interest in Brisbane along with other capital cities in Australia. Good buildings with realistic expectations of price are selling with interest from several different sectors. The Industrial market, especially in the lower investment end under $5 million remains active with local funds and private investors. Larger industrial property is harder to move as investors at this end play a waiting game. The retail sector was slow in the first half of the year but showed signs of improvement coming to year end. Any retail development was mostly at the low end of a smaller nature in the suburbs with some refurbishment activity in the city. Cairns, the Sunshine Coast and the Gold Coast have all been adversely affected by the downturn in overseas tourist arrivals which has had a knock on effect on the overall economies of these three centers. Lack of investor interest in all market sectors in these centers means prices continue to soften. Investment sales volumes in general are down and are expected to remain slow until we see signs of the global economy improving. Adelaide At A Glance conversion 0.97 aud = 1 us$ RENT/M 2 /YR US$ RENT/SF/YEAR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) AUD425.00 AUD450.00 AUD250.00 AUD350.00 AUD530.00 AUD520.00 AUD350.00 AUD420.00 $ $ $ $ 40.70 43.10 23.94 33.52 $ $ $ $ 50.76 49.80 33.52 40.23 2.10% 7.20% 9.80% N/A Class A (Prime) Class B (Secondary) IndustrIal AUD 280.00 AUD 100.00 AUD AUD 350.00 250.00 $ $ 26.82 9.58 $ $ 33.52 23.94 N/A N/A Bulk Warehouse AUD 80.00 AUD 110.00 $ 7.66 $ 10.54 N/A Manufacturing AUD 60.00 AUD 80.00 $ 5.75 $ 7.66 N/A High Tech/R&D retaIl AUD 80.00 AUD 120.00 $ 7.66 $ 11.49 N/A Downtown AUD 700.00 AUD 1,500.00 $ 67.04 $ 143.66 N/A Neighborhood Service Centers Community Power Center AUD350.00 N/A AUD450.00 N/A $ 33.52 N/A $ 43.10 N/A N/A N/A Regional Malls Solus Food Stores AUD 400.00 N/A AUD 700.00 N/A $ 38.31 N/A $ 67.04 N/A N/A N/A deVeloPment land low/m 2 High/m 2 low/acre High/acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential AUD 2,500.00 AUD 3,000.00 $10,430,058.43 $ 12,516,070.11 AUD 2,000.00 AUD 3,000.00 $ 8,344,046.74 $ 12,516,070.11 AUD 300.00 AUD 450.00 $ 1,251,607.01 $ 1,877,410.52 AUD 300.00 AUD 400.00 $ 1,251,607.01 $ 1,668,809.35 AUD 800.00 AUD 1,000.00 $ 3,337,618.70 $ 4,172,023.37 AUD 900.00 AUD 1,200.00 $ 3,754,821.03 $ 5,006,428.05 Brisbane At A Glance conversion 0.97 aud = 1 us$ RENT/M 2 /YR US$ RENT/SF/YR low High low High Vacancy doWntoWn offIce New Construction (AAA) Class A (Prime) Class B (Secondary) suburban offIce New Construction (AAA) Class A (Prime) Class B (Secondary) IndustrIal Bulk Warehouse Manufacturing High Tech/R&D retaIl Downtown Neighborhood Service Centers Community Power Center Regional Malls Solus Food Stores deVeloPment land low/m 2 High/m 2 low/acre High/acre Office in CBD Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-park Retail/Commercial Land Residential AUD 550.00 AUD 700.00 $ 52.68 $ 67.04 5.00% AUD 500.00 AUD 700.00 $ 47.89 $ 67.04 5.00% AUD 400.00 AUD 450.00 $ 38.31 $ 43.10 9.00% AUD 375.00 AUD 550.00 $ 35.92 $ 52.68 8.00% AUD 400.00 AUD 500.00 $ 38.31 $ 47.89 7.00% AUD 270.00 AUD 370.00 $ 25.86 $ 35.44 9.00% AUD 100.00 AUD 120.00 $ 9.58 $ 11.49 N/A AUD 100.00 AUD 110.00 $ 9.58 $ 10.54 N/A AUD 100.00 AUD 120.00 $ 9.11 $ 11.49 N/A AUD 1,500.00 AUD 4,000.00 $ 143.66 $ 383.10 N/A AUD 400.00 AUD 800.00 $ 38.31 $ 76.62 N/A N/A N/A N/A N/A N/A AUD 1,100.00 AUD 1,700.00 $ 105.35 $ 162.82 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A AUD 100,000.00 AUD 2,000,000.00 $ 417,202,337.08 $ 8,344,046,741.68 N/A N/A N/A N/A AUD 200,000.00 AUD 1,000,000.00 $ 834,404,674.17 $ 4,172,023,370.84 <strong>2012</strong> <strong>Global</strong> <strong>Market</strong> Report n www.naiglobal.com 30
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- Page 45 and 46: Calgary, Alberta, Canada Edmonton,
- Page 47 and 48: Halifax, Nova Scotia, Canada Ottawa
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Birmingham, Alabama Huntsville/Deca
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Little Rock, Arkansas Bakersfield,
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Oakland, California Orange County,
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San Francisco, California Ventura C
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Hartford, Connecticut Wilmington, D
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Fort Lauderdale, Florida Ft. Myers/
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Miami, Florida Ocala/Gainesville, F
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Tampa Bay, Florida Atlanta, Georgia
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Boise, Idaho Southeast (Idaho Falls
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Fort Wayne, Indiana Indianapolis, I
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Des Moines, Iowa Sioux City, Iowa C
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Baton Rouge, Louisiana Lake Charles
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Greater Portland, Maine Baltimore,
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Greater Springfield, Massachusetts
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Minneapolis/St. Paul, Minnesota Jac
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Billings, Montana Bozeman, Montana
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Omaha, Nebraska Las Vegas, Nevada C
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Portsmouth, New Hampshire Atlantic
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Ocean/Monmouth Counties (“Shore M
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Las Cruces, New Mexico Albany, New
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Westchester, New York Asheville, No
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Raleigh/Durham, North Carolina Farg
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Oklahoma City, Oklahoma Tulsa, Okla
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Berks County, Pennsylvania Bucks Co
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Philadelphia, Pennsylvania Philadel
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Wilkes-Barre/Scranton/Hazleton, Pen
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Sioux Falls, South Dakota Chattanoo
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Memphis, Tennessee Nashville, Tenne
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Corpus Christi, Texas Dallas, Texas
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Houston, Texas Contact NAI Houston
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Salt Lake City, Utah Washington Cou
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Northern Virginia Seattle/Puget Sou
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Madison, Wisconsin Milwaukee, Wisco
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n Glossary n Acre Area of land equa