Average rents in prime areas rose 4.2%, the lowest q-o-q growth since 2004. Nevertheless, Grade A rents continued to set historic highs in Central, with both Two IFC and AIG Tower securing transactions at close to the HK$150 (US$19.2) psf per month level, albeit for relatively small units. Occupiers in these two districts are mainly MNCs and insurance companies whose tenancies appear relatively secure. Strong office leasing momentum is noted in Quarry Bay as One Island East has recently commenced its pre-leasing campaign, nine months ahead of its expected completion in March 2008.



Newell Rubbermaid entered negotiations regarding the space formerly held by Olympus in The Gateway, while City University and Mass Mutual leased 15,000 sf and 30,000 sf, respectively, in Mong Kok's Grand Century Place. The initial phase of International Commerce Centre (ICC) will be completed in December, providing a gross floor area of approximately 930,000 sf, of which every floor is under serious negotiation, with firm commitments expected to confirm shortly.

ICC is expected to give a substantial boost to the Kowloon market, attracting prospective tenants who previously had only considered Hong Kong Island locations.As supply in the traditional CBD areas is already tight, the fresh demand could push rents and occupancy up further. Vacancy rates for Grade A space are unlikely to increase until the end of 2007, if at all, and rentals in prime CBD locations are expected to remain at high levels for the foreseeable future.

The Taipei office market saw a significant decline in activity in the second quarter of 2007, with net take-up dropping to 69,100 sf, a decline of 75% q-o-q. The most significant transaction in the period under review was the relocation of Toshiba, which took up approximately 49,100 sf of space in the Shingkong Minsheng Building. Elsewhere, Motorola occupied two floors, about 47,700 sf, in the Uni-President Building.

Property Valuation industry is emerging to capture all other industry of valuation and make the reputed name in the real estate field. The average rental for Grade A office space increased 1.7% y-o-y in the second quarter of 2007, reaching NT$2,341 pping (US$2.01 psf) per month.The rental increases in these two areas confirm the continuing eastward shift of Taipei’s prime business areas. The next prominent building scheduled to come on stream for lease is the Walsin Lihwa Xinyi Building in Xinyi area, which will be released to the market in late 2008.

The next prominent building scheduled to come on stream for lease is the Walsin Lihwa Xinyi Building in Xinyi area, which will be released to the market in late 2008. As Xinyi-Jilong has emerged as a top destination for office occupiers seeking quality space, the Walsin Lihwa Xinyi Building is likely to attract significant attention from office relocators upon its completion.

Work on two projects scheduled for completion during or after 2010 has commenced: International Finance Center, being developed by AIG Global Real Estate and Parc 1, a mega-project developed by Skylan Development. Leasing momentum remained strong in the National Capital Region (NCR), with most new or newly vacated office and IT space being pre-leased. Further, Grade B stock in the industrial areas of Okhla and Mohan Co-operative has also remained a preferred destination for SMEs. The demand-supply imbalance has hardened rental and capital rates.



Gurgaon, the favourite choice for both back offices and corporates, continued to enjoy its premium position, with demand far outstripping space available.With pockets of development in Sohna Road, Ghata and areas up to Manesar specified under the district’s new master plan, Gurgaon is expected to witness another wave of large absorption and tenant movement. Developers have already acquired large land banks in these areas in anticipation of the shift in demand towards these regions, and the large number of projects coming on stream in these areas over the next year is expected to considerably ease supply pressure.

Notable Gurgaon transactions included those by WNS (150,000 sf) and Nokia (300,000 sf) in DLF (buildings 9A and 9B) and Ernst & Young (100,000 sf) in Unitech Infospace. With nearly 800,000 sf of space added in the second quarter and similar supply expectations in the second half of 2007, rental and capital values are likely to remain at current levels. Key transactions in Noida included take-up by Birla Soft (150,000 sf) and Oracle (150,000 sf).

This will enhance supply levels in this area. Rentals in BKC are currently around INR 325 (US$7.98) psf per month. For making the property valuer qualifications to a much higher level they will need training for getting that knowledge. New office buildings in Jasola will add another secondary commercial micro-market south of Delhi: with as many as six projects nearing completion, and fit-outs by prospective clients underway, Jasola will emerge as a new option for corporates and retailers. In addition, increasing preference for Noida as a commercial destination due to its proximity to Delhi is expected to enhance space take-up by mid-sized IT/ITeS firms.

These two sub-markets were the first office clusters developed in Taipei and the majority of office space is classified as Grade B. As the flight-to-quality trend becomes more prevalent among occupiers and the demand for Grade A office space continues to outstrip that for Grade B space, owners of Grade B offices are likely to face increasing pressure to upgrade their office facilities or lower their rents.



Given that Phase III is zoned for commercial use and the developer has set the benchmark rent at NT$1,500 pping (US$1.27 psf) per month, below the average Grade B rental of US$1.46 psf per month, this new supply is expected to exert increasing pressure on office rents in downtown Taipei's Grade B buildings.Many companies have enquired about leasing conditions in the Xinyi-Jilong Area, an emerging CBD in which average rentals are now the highest among the city's six office sub-markets. Because of the scarcity of prime office space coming on stream in the near future, major landlords in prime locations are expected to be less flexible in negotiating rents and the rentals for quality office space are likely to follow an upward trajectory for at least the next few quarters. It is also a good idea for valuers to have a look at the insurance premium payable on such villas which will give an opportunity to evaluate the risk factors.

Located in a fast growing district, Nangang Software Park Phase III is scheduled to open at the beginning of 2008, with 1.35 million sf of leasable floor area. With major domestic and foreign financial institutions aggressively recruiting to boost headcounts, securing Grade A space in the prestigious Marunouchi and Otemachi districts has become a means of attracting and retaining key talent. The quarter saw the average prime rents for new lettings in prime Tokyo locations reach JPY 51,500 per tsubo (US$11.7 psf) per month (exclusive of common area management fees), registering increases of 1.5% q-o-q and 17.7% y-o-y.

However, with rents continuing to increase, weighing cost versus location has become a real consideration for some businesses. Increasing numbers of cost-conscious occupiers have begun to give greater consideration to cheaper solutions in more peripheral Tokyo locations such as Osaki and Toyosu. Reflecting this trend, Nissan Motor recently decided to accelerate its relocation from Tokyo's Ginza to Minato-Mirai in Yokohama, and will complete the move by 2009, one year ahead of schedule. Shin-Marunouchi Building was the quarter's only completion, providing approximately 829,000 sf of net leasable prime space in the Marunouchi area.



Given its prestigious address and superior specifications, the building was fully pre-committed to tenants some 18 months ahead of its April opening. With occupiers displaced as a consequence of the redevelopment taking the majority of space in the new schemes, and excess space already pre-committed following low-key marketing, vacancy in the Marunouchi and Otemachi districts is likely to remain tight for the foreseeable future. www.melbournevaluers.net.au

All of the schemes are expected to be fully let at opening, having secured commitments over the past 12 to 18 months.Grade A office rents in Seoul's major submarkets continued to edge upward in the second quarter, with average rent rising 0.6% q-o-q to KRW 21,261 psm (US$2.14 psf) per month. Vacancy rates in all submarkets remained at the 1% level, despite two new office completions during the period under review.

Samsung Life Seocho Tower in the Gangnam Business District and the Taeyoung Building in Yeouido were completed in April, providing a collective 1.6 million sf of new space, though both were fully leased by the end of the quarter.At 0.97% Yeouido's vacancy rate was especially low, reflecting the strong demand for office space in the area, the keen demand fuelled by expansion in the financial industry.

Vacancy was also low in Gangnam (0.99%) with tenants filling vacant space in the Gangnam Finance Center, which had seen vacancy as high as 20% in 2005. Meanwhile, the vacancy rate in the CBD increased marginally (0.19 percentage points) due to the relocation of Samsung SDI from the Samsung Headquarters in the CBD to Suwon in the Gyeonggi-do area. The market continued to see high levels of office leasing activity.

In the quarter's largest leasing transactions in terms of area, ING took 348,710 sf (100% of leasable area) in the CBD's M Tower, completed in December 2006, and Ernst & Young occupied 160,120 sf (50% of leasable area) in the newly completed Taeyoung Building in Yeouido. Space in the other six properties had been fully absorbed by the end of the second quarter of 2007.

Several projects currently under construction in the designated areas, including Platina and Naman Centre, have already opted to purchase additional FSI. Ceejay House in Worli, perceived as one of Mumbai's premium commercial buildings, witnessed a transaction at about INR 475 (US$11.65) psf per month, with a European investment bank taking up approximately 15,000 sf.



Chembur and Sion are emerging as commercial destinations and alternatives to Andheri East, with these areas witnessing construction of increasingly high quality developments. Information, vicinity of brain can give exact property valuation adjustment factors results. Rentals in the secondary business district of Andheri East have also breached their all-time highs, with a transaction above INR 200 (US$4.90) psf per month.

In prominent transactions during the second quarter, Standard Chartered Bank rented approximately 200,000 sf at Titanium in the peripheral region of Jogeshwari; Accenture took approximately 200,000 sf at Infinity and VSNL took approximately 65,000 sf in Corporate Centre, Andheri. However, the rate of increase is likely to be lower than that seen in recent quarters.

In the CBD, Menara Karya, Menara Kuningan and The East all offered space strata-title, however the majority of office buildings in the pipeline are offering space on a lease basis. Graha Energy has secured MEDCO Energy as anchor tenant, the Ratu Prabu 2 office tower is anchored by ConocoPhillips and local bank BCA will anchor Menara BCA, the office tower in the Grand Indonesia complex.

Banking, services providers and construction companies will remain the major demand drivers for office space; and secondary areas located near the CBD, such as MT. Haryono, Mampang, Grogol, Gunung Sahari and Hayam Wuruk, are becoming increasingly attractive office locations. Vacancy in the CBD edged up about 0.1 percentage point q-o-q to 14.9%. Absorption of new supply in the CBD was strong, and net take-up in the second quarter was 385,800 sf.

The only completion in the quarter was The East, in the Mega Kuningan area, offered for sale strata-title. The most significant CBD leasing transaction in the first half of 2007 was local TV company Surya Citra Televisi (SCTV), occupying all 220,000 sf in the Senayan City Office Tower (to be renamed the SCTV Tower).In secondary areas, Thailand's PEARL OIL took 25,000 sf in Wisma Pondok Indah, and large local bank Bank Madiri opened a branch in TB Simatupang's Ratu Prabu 2.

Kuala Lumpur's prime office leasing market was fairly active in the first half of 2007, the period witnessing the large-scale occupation of a number of office buildings completed in 2006. However the quantum of prime office space to be released on to the leasing market in the short-term is still limited, with only one completion expected in the second half of 2007.



Prime office rents in the Makati CBD increased by 11.1% q-o-q during the second quarter, to PHP 1,000 psm (US$2.01 psf) per month. The vacancy rate for prime office space in the Makati CBD tightened to 1.1% during the second quarter.

Developer Ayala Land Inc will accelerate its development of BPO space over the next three years, aiming to build 5.4 million sf of BPO space by 2010, as compared with its current inventory of 560,000 sf, located mostly in Makati, Taguig, and Laguna provinces.

Outside Metro Manila, developer Bertaphil launched its third BPO facility at the Clark Special Economic Zone, the 32,300-sf Center@Clark, and Cebu continued to attract investors and developers. Cebu Property Ventures and Development Corp developed the remaining five-hectare site in phase two of Asiatown IT Park, constructing a PHP 700 million nine-storey BPO building. If you are having any problem in the process of property valuation they you can ask it to www.valsqld.com.au and they will help you to solve your query.

Accenture Inc has also committed to open another office in Cebu, and will occupy six floors of a highrise building currently under construction in the Cebu Business Park. Prime office rents in the Makati CBD are expected to increase further given the continuous demand for office space, while vacancy rates are projected to hover at the 1% level. However, despite these projections, the local BPO industry faces new competition from Vietnam, which is emerging as an outsourcing hub for foreign investors.

Prime office rent averaged S$10.8 (US$7.06) psf per month, rising 25.6% q-o-q and 80% y-o-y. Prime rents have exceeded the 1996 peak (S$9.9 psf per month) and are fast closing on the 1990 historic peak of S$11.5 psf per month.The limited supply scenario over the next two years is expected to see continued improvement in rental growth, peaking in the region of 7% in 2004. However, the potential rush of supply in the Sydney CBD during 2005 and 2006 will see the little supplied north shore markets perform more steadily in the final two years of our forecast period.Chatswood will see the construction of the Pacific Place development in 2005, bringing 37,000m 2 of space onto the market.

The North Sydney market has the potential to supply over 100,000m 2 from 2005 to 2007 although, developers will most likely adopt a sit and wait attitude with regard to new projects, as the imposition of a levy on development within the North Sydney Council area will increase costs. This is the first significant new building for nearly a decade, and is likely to have a major impact on the locality unless a substantial pre-commitment is achieved. With some 445,000m 2 of accommodation proposed over the next three years the essential questions are how much and when this new supply will enter the market.



Based on our assumptions it is anticipated that the vacancy rate will increase to 11.8% in early 2004, before peaking at 13.9% in July 2006. After an extended period of net loss of office space due to withdrawal for conversion to other uses and negligible re-supply.

Prior to the merger, Andersen pre-committed to leasing part of Grocon ’ s QV development for ten years. Subsequently, the developer of the HWT site Cbus (through its wholly owned development arm Australian Super Developments) has assumed the Andersen liability and will pay the annual rent to Grocon upon the building ’ s completion or sub-lease the pre- committed 20,000m 2 .

Some 125,324m 2 of refurbished space is scheduled for completion this year and a further 115,852m 2 of new construction (a total of 241,176m 2 ) with a further 107,193m 2 of new space due for completion in 2004. The A-grade rental market will potentially suffer the most with B grade building tenants remaining within that market paying rents of sub $200/m 2 (net). Property valuation course is continually positive for everybody and to make it more supportive in an expansive manner secure a guaranteed and experienced property valuer to manage your entire framework for concerning property.

Recently, a shortage of cheaper office space on Collins Street has seen discounted property in a good location leasing well.

• For the purpose of our CBD forecasts LandMark White has developed a scenario which assumes the completion of all currently known projects within their announced timeframes, as at the time of writing.

• The vacancy rate will climb during the remainder of 2003, before peaking at around 13.9% before moderating.

However rental growth has been constrained as tenants remain in control and existing landlords work hard to retain he city ’ s major tenants in the face of one Government and two new private sector building completions later this year.Net additions to commercial accommodation in the next five years are dominated by the two building completions of Riparian Plaza and Macarthur Central in late 2003.

The later completion of the new BCC headquarters is largely mitigated by the expected withdrawal of their old accommodation for refurbishment, however this space returning to the market in early 2006 will provide some backfilling challenges to the market. LandMark White estimates that the effective net rental rate fell slightly during the 12 months to January 2003 resulting in negative rental growth during 2002 of (0.4%).



• Vacancies are not anticipated to become severe with the forecasts falling within the band of 6.5% - 8.7%. moderate in the range of 2.8% to 3.4% over the remainder of the forecast period

• Our forecasts show the vacancy rate potentially falling further (sub 6%) to July 03 in a climate of no new supply However once the three additional buildings under construction enter the market the vacancy is anticipated to broach the 9.0% barrier before gradually moderating again to trending downwards over the next 12 months, returning to 2001 levels in the order of 6.0% before turning upwards again.

• These conditions are expected to largely remain in force during 2003, although some rental growth to mid-year may occur, only to be dissolved once the new office space is completed.

• While rentals are anticipated to show no growth during 2003, as the newly constructed (and backfill) space is absorbed. Much of the softness in prime net effective rentals can be traced to the premium end of the market, where the landlords of the two older premier Brisbane buildings have been defending their tenancy profiles.

• This, however has come at a cost with lower effective rentals than passing rents negotiated in many cases At LandMark White we have dubbed this “ preventative pain ” whereby the future cashflow stream has been secured, however with a short-term downside in the market rental rates.

• The irony is that there is very little large scale good quality contiguous space currently available, Overall the average net absorption over the next five years equates to approx 23,960m 2 per annum, running slightly behind the past five years ’ average of 25,215m 2 .

• While the expected timing of supply will keep a lid on anticipated rental growth there are minimal oversupply concerns at this time.errorism (events of September 11) and the collapse of Ansett in 2001, the Bali bombing in 2002 and more recently the war in Iraq and the threat of the SARS virus.

The conflict in Iraq, followed by the outbreak of the SARS virus has generated an unprecedented slump in demand for world travel, with Sydney being no exception, as in times of uncertainty, people are reluctant to commit to long haul travel. You require property valuer estimator once a conclusive worth is required, as in an exceptionally settlement, debate determination, an expired home, quality bookkeeping and administration, to get fund to purchase, refinancing or to draw down on the value in your property. On the positive side, events in early 2003 are expected to boost domestic travel for the remainder of the year, as Australian’s defer international travel.

Occupancy levels across all star grades of accommodation increased during the 2002 calendar year. Overall, occupancy levels rose by 3.6% to be 67.4% (up from 63.8% in 2001). Four and five star accommodation experienced the largest increase in occupancies, rising by 3.7% to 70.9% (up from 67.2% in 2001).coupled with the effects of a weaker global economy and domestic corporate travel cutbacks. Estimating the value of real property is imperative to an assortment of attempts, including land financing, posting land available to be purchased, venture examination, property protection and the assessment of land. The largest decline was experienced by one and two star accommodation, which decreased by 4.6% to an ADR of $76 (down from $80 the previous year).Three star accommodation also suffered a reasonable decline, falling 3.7% to $102 (down from $106 in 2001). The combination of higher occupancy rates and lower average daily rates resulted in room yields for the Sydney market increasing during 2002 to be $96, up from the $92 recorded in 2001.



When rooms were yielding $110. REV PAR is expected to improve, although modestly, over the coming 12 months as both international and domestic visitor numbers improve in 2004.Which combined to successfully disregard the continued weakness in the global arena and terrorism related concerns. Developers have been active in the Sydney region with over 2,600 rooms (excluding refurbishments) lost to residential conversion, although 90% of this loss was in the inner east area.

The largest sale of the past year was the ANA Harbour Grand Hotel in the Sydney CBD, Also sold (but not included in the list below for confidentiality reasons) was the Sydney Airport Hilton, which was valued by LandMark White. Recent sales activity reflects buyer expectations of stronger trading conditions over the next one to three years, and therefore indicate low initial yields of between 6 and 7%. The Tourism Forecasting Council expect that international visitor arrivals will slump by 20% during the June quarter, and fall a total of 5.3%, to approx 4.6 million visitors for the year 2003.

The hotel comprises 266 rooms and was sold to a group of developers for $21.2 million (with an additional undisclosed sum paid to Hilton to buy-out its lease).This is expected to rebound strongly in 2004, with growth of 13.1% anticipated as arrivals recover and the average expenditure per trip increases.It is expected that tourism operators will have to lower prices to fill excess capacity left by the decline in international guests, which in turn will be filled by domestic travellers. The recent downturn in international visitor arrivals is expected to be temporary, with numbers to rebound in 2004, growth of nearly 10% forecast.
Despite the brighter outlook, the fact remains that no assistance was provided to the tourism sector in the federal government budget, and more recently federal cabinet rejected a rescue package for the industry, leaving the sector currently in a state of flux. Domestic tourism operators are expected to suffer in the short-term, as international visitor arrival numbers recently experienced the largest monthly fall in more than three decades.



The Tourism forecasting council expect that domestic travel will show positive growth for the first time in two years, as Australian ’ s choose to holiday at home rather than overseas. Departures by Australian residents are forecast to fall during 2003 as confidence about traveling abroad continues to be negatively impacted, first by the war in Iraq, with positive income growth prospects in the short to medium term. Higher levels of forecast visitor arrivals are expected to improve levels of occupancy across all standards of accommodation.

The outlook for domestic travel in 2003 is more positive, actually benefiting from the recent travel concerns generated by the war in Iraq and terrorism in general.Improved hotel trading conditions are anticipated towards the end of 2003 and in 2004 due to improved international demand, the strengthening global economy, reduced hotel supply and initially a boost from the Rugby World Cup.The sale took place n the middle of 2002 but the hotel was part of a portfolio of properties and individual sales prices have just been released.

The Insurance Commission of Western Australia has reportedly purchased two retail properties for $51 million.The first acquisition is the Livingston Marketplace shopping centre which reportedly cost around $30 million. The Livingston Marketplace transaction will reportedly be acquired on a yield of 8.5% after an expansion program has been finished in October 2004.The second acquisition consisted of an 18.7 hectare regional shopping centre site at Ellen brook for $21 million. Sterling Buntline has reportedly purchased Lissadell the Kimberley cattle station for $11.5 million. The cattle station was 117,250 hectares and was sold with 18,000 head of cattle.

The sale included the 47,000 hectares of a Waters and Rivers Commission lease over grazing land fronting Lake Argyle.The Victorian Government as part of its election campaign promised to ban shops opening on Easter Sunday from this year. Property valuation becomes successful only if performed by expert valuers from www.valsnsw.com.au.

The shopping centre trading hours in Victoria were deregulated more than six years ago and it is the view of the SCCA that the economic advantage which deregulated trading hours gave Victoria will begin eroding with the introduction of such bans. Shell Australia will be moving from its Melbourne CBD tower to a new low-rise office building in Hawthorn. Shell had previously occupied 22,000 m2 at 1 Spring St, Melbourne.

Shell Australia will take up 8,000 square meters at the new suburban office building which is being developed by Hudson Conway. The Melbourne nightclub industry has reportedly called for a halt to residential construction until such time as clubs are protected from complaining residents. The Nightclub Owners Association has laid part of the blame for this situation with Melbourne City Council who has reportedly allowed new apartments near venues without requiring soundproofing. Phileo Australia has reportedly negotiated two lease deals for the $100 million Estate One project.



The Estate One project will be located on the 46 hectare site of the old GMH car factory located south-east of Melbourne. We can assist with cutting down the time needed and suggestions during property valuation transactions. The Mirvac group has announced that they plan to develop and retain the 22,000 square meters of commercial space on the site as well as developing and selling about 30 residential apartments and 8 strata retail/commercial premises.

Mirvac reportedly paid about $40 million for the development site.The Sydney Harbor Foreshore Authority has reportedly sold the Darling Island II site at Piermont to the Mirvac Group.The Philip Court building which is located on Elizabeth Street next to the Sydney Sheraton was reportedly sold for $13 million to Andrew Richardson and Tjeerd la Growing in late December 2002. The property is expected to be demolished and an up market $50 million New York style apartment tower to be constructed.General Property Trust is reportedly planning a $10 million facelift for the MLC Centre.

The centre which was completed in 1975 has aged with smog causing stains and cracks on its once white quartz surface.General Property Trust are considering wrapping the building in a metal of plastic ‘skin’ to protect it and states that the refurbishment of the building may take up to seven years. The NSW and QLD state governments have called on the Federal government for a national regulatory scheme for the property investment market.