Asia Pacifi c – Q1 2019
REPORT Savills Research Investment Quarterly Asia Pacifi c Investment Quarterly
Asia Pacifi c Network
Savills Asia Pacific Network
Asia Australia Hong Kong Taiwan Adelaide Central Taichung Brisbane Quarry Bay (3) Taipei Canberra Tsim Sha Tsui Gold Coast Thailand 5 Gordon India Bangkok Lindfield Bengaluru Chennai Vietnam 42 Melbourne Offices Notting Hill Gurgaon Da nang Parramatta Mumbai Hanoi Perth Ho Chi Minh City 3 Roseville Indonesia South Sydney Jakarta St Ives Sunshine Coast Japan Sydney Tokyo Turramurra 3 Macau Cambodia Macau Phnom Penh * Malaysia China Johor Bahru Beijing Kuala Lumpur & New Changsha Penang ia Z Chengdu l e New Zealand a a Chongqing r Auckland t la Dalian s Christchurch n Guangzhou u
d
Haikou A
Philippines Hangzhou Bonifacio Global City * Nanjing 18 Cebu * Shanghai Offices Shenyang Makati City * Shenzhen Singapore Tianjin Singapore (3) Wuhan Xiamen South Korea Xi’an Seoul Zhuhai
*Associate Office
Savills is a leading global real estate to developers, owners, tenants and organisation supported by excellent service provider listed on the London investors. negotiating skills. Savills chooses to Stock Exchange. The company, focus on a defi ned set of clients, off ering established in 1855, has a rich heritage These include consultancy services, a premium service to organisations with unrivalled growth. The company facilities management, space planning, and individuals with whom we share a now has over 600 offi ces and associates corporate real estate services, property common goal. throughout the Americas, Europe, Asia management, leasing, valuation and Pacifi c, Africa and the Middle East. sales in all key segments of commercial, Savills is synonymous with a high- residential, industrial, retail, investment quality service off ering and a premium In Asia Pacifi c, Savills has 60 regional and hotel property. brand, taking a long-term view of offi ces comprising over 25,000 staff . real estate and investing in strategic Asia Pacifi c markets include Australia, A unique combination of sector relationships. China, Hong Kong, India, Indonesia, knowledge and entrepreneurial fl air Japan, Macau, Malaysia, New Zealand, gives clients access to real estate Singapore, South Korea, Taiwan, expertise of the highest calibre. We Thailand and Viet Nam. Savills provides are regarded as an innovative-thinking a comprehensive range of advisory and professional property services
savills.com/research 2 Asia Pacifi c Investment Quarterly
Content
Australia 04 China (Northern) - Beijing 05 China (Northern) - Tianjin 06 China (Western) - Chengdu 07 China (Southern) - Guangzhou 08 China (Southern) - Shenzhen 09 China (Eastern) - Shanghai 10 Hong Kong 11 Japan 12 Macau 13 Malaysia 14 New Zealand 15 Philippines 16 Singapore 17 South Korea 18 Taiwan 19 Thailand 20 Viet Nam 21 Major transactions Q1 2019 22
3 Asia Pacifi c Investment Quarterly
Australia
Investment activity in Australian commercial property in Australia has had a tempering eff ect on the retail sector. In Paul Craig remained buoyant in the 12-month period to March 2019, with spite of this, long-term risk adjusted returns in the retail sector CEO +61 2 8215 8888 approximately $28.63 billion of assets transacted nationally. remained higher than in the industrial and offi ce sectors in [email protected] Though this was down on the near record high transaction December 2018, though not at the same premium as they were in levels recorded in the prior 12 month period, it still a strong the prior quarter, in signs that investors are now more cautious result, cementing Australia’s place on the global stage as an about retail investments. attractive investment destination. Despite a level of uncertainty surrounding the current retail Shrabastee Mallik Director According to the latest MSCI data, total returns for the offi ce climate in Australia, retail sales volumes remained above Research & Consultancy sector were recorded at 13.7% (December 2018), which was historical averages with $8.83 billion worth of transactions +61 2 8215 8880 primarily driven by strong returns within the fringe markets, recorded in the 12 months to March 2019. Domestic [email protected] which outperformed their respective CBDs. The Parramatta institutional groups were the most prominent purchaser offi ce market recorded the highest total return, at 20.5%. type accounting for 53.9% of total sales volumes. Whilst, Notably, total returns in the industrial sector (14.8%) surpassed total retail trade grew at a rate of 2.9% over the 12 months to the offi ce sector for the fi rst time since September 2016, on the February 2019, which was below long-term averages, total back of signifi cant growth in capital values, which was more growth was driven by non-discretionary retailing categories pronounced on East Coast markets. We saw the growth in online such as Supermarkets (4.9%) and Food (4.4%); a clear retailing (which is still relatively in its infancy) have a profound refl ection of strong population growth continuing to drive impact on demand for industrial property, particularly in those these retail sectors. Non-discretionary retailing growth in precincts, which are well connected to prime consumer bases. turn drove total returns for Neighbourhood shopping centres, There is a growing demand for industrial facilities that facilitate outperforming other centre types at 15.4% in the 12 months on last mile delivery opportunities, which will keep demand to December 2018. Not surprisingly, discretionary retailing for industrial assets strong. In addition, we are seeing a lack of continues to record subtle growth on the back of low wage developable industrial land in Sydney and Melbourne driving up growth, with capital value growth across sub-regional and land values. On the other hand, the proliferation of ecommerce regional centres notably muted.
Australia Property Sales, March 2004 to March 2019
Office Sales Industrial Sales Retail Sales 35
30
25
20
15 AUD BILLION 10
5
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 March
Source Savills Research & Consultancy Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
19 Martin Place Sydney, AUD720.0 mil/ Dexus Offi ce (50% Interest) NSW US$511.2 mil
2 Southbank Boulevarde Southbank, AUD342.0 mil/ GPT Group Offi ce (50% Interest) VIC US$242.8 mil
Macquarie Park, AUD231.2 mil/ 11 Talavera Road Goodman Group Offi ce NSW US$164.2 mil
Rockdale, AUD142.0 mil/ Rockdale Plaza Charter Hall Retail NSW US$100.8 mil
Brisbane, AUD115.0 mil/ Heitman & Marquette 288 Edward Street Offi ce QLD US$81.7 mil Properties
Cleveland, AUD103.0 mil/ Stockland Cleveland Haben Property Fund Retail QLD US$73.1 mil
Source Savills Research & Consultancy savills.com/research 4 Asia Pacifi c Investment Quarterly
China (Northern) - Beijing
Beijing’s en-bloc investment market witnessed the closing yet to commence construction, was acquired for a total Spring Cao of six deals in Q1/2019, registering a total consideration consideration of RMB758 million. Senior Director, Investment Savills Northern China of RMB11.28 billion. Purchasing demand was diverse with • State-owned dairy giant Yili Group acquired Noble Center +8610 5925 2048 deals closed across the offi ce, hotel and development site Phase III in Fengtai district. The offi ce building was [email protected] asset classes. Both domestic and foreign buyers were active acquired via an asset transaction for a total consideration of during the quarter. While individual buyer arrangements RMB1,546 million. represented the majority of transactions, a foreign-led Jack Xiong • Partners Group acquired a majority equity stake in Dinghao Head of PDC, Director consortium closed out the largest transaction in terms Plaza, a large mixed-use offi ce and retail complex in Research of consideration during the period. Major transactions Zhongguancun district. The purchase was made through a +86 10 5925 2042 included: consortium agreement with Ascent Real Estate Investors, [email protected] • Keppel Land China acquired the Besunyen Building in Sigma Delta Partners Investment, Partners Group Holding Zhongguancun district. The deal was closed for an aggregate AG and the Family Offi ce Company. The off -market consideration of RMB555 million. acquisition registered a total consideration of RMB5,720 • Sunac China acquired a development site from China million. Oceanwide Holdings for an undisclosed sum. The site Institutional investors are expected to continue to diversify is located next to Chaoyang Park and is approved for a their acquisition targets. While traditional asset classes such total of 668,500 sq m of residential, retail, offi ce and hotel as the offi ce, retail and hotel markets will continue to remain development space. popular investment targets, a lack of tradable assets will see • Domestic e-commerce giant JD Group acquired the Jade astute investors expand their Beijing investment horizons. Palace Hotel for a total consideration of RMB2,700 million. There will continue to be a shift away from speculative The aging project will be converted into a new offi ce building activity, and mature assets, which off er potential for value- and innovation centre. add, greater asset appreciation and return on investment, will • GLP purchased Vantone’s remaining stake in the CBD be increasingly targeted. Core Plot Area Z-03. The development site, which has
En-Bloc Investment Volumes, 2009 to Q1/2019
60 Q1
50 Q2
Q3 40
Q4 30
RMB BILLION RMB 20
10
0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source Savills Research & Consultancy Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
RMB555 mil/ Besunyen Building Haidian Keppel Land China Offi ce US$83 mil Beijing Oceanwide Development International Project Chaoyang Undisclosed Sunac China Holdings Limited site Land Lot 1 RMB2.7 bil/ Jade Palace Hotel Haidian JD Group Hotel US$402 mil
RMB758 mil/ Development CBD Core Plot Area Z-03 Chaoyang GLP US$113 mil site
RMB1.546 bil/ Noble Center Phase III Fengtai Yili Group Offi ce US$230 mil Ascent Real Estate Investors RMB5.72 bil/ / Sigma Delta Partners Dinghao Plaza Haidian Offi ce and retail US$852 mil Investment / Partners Group Holding / The Family Offi ce Co. Source Savills Research & Consultancy
5 Asia Pacifi c Investment Quarterly
China (Northern) - Tianjin
Tianjin's land market showed a steady rise in supply and a billion. The developer is required to hold a total of 38,100 Andy Chee sharp increase in transaction volume during Q1/2019, with sq m in commercial area and 3,600 sq m in residential area, Senior Director Savills Tianjin most of the closed deals requiring developers to own and lease accounting for 14.6% of the total construction area. The +86 22 5830 8888 the properties. average accommodation value was RMB12,736 per sq m. [email protected] Land supply increased by 20% quarter-on-quarter (QoQ) to Sunac won the bid for Xiqing District’s plot 2018-229(JXQ), 6.0789 million sq m, up 470% year-on-year (YoY) in Q1/2019. a 40,000 sq m plot with residential and commercial use, Total transaction volume rose by 165% QoQ to 6.874 million and a plot ratio ranging from 1.0 to 2.5. The total planned Jack Xiong Head of PDC, Director sq m, up 318% YoY. construction area is 99,000 sq m, with most reserved for Research The only land supply available in Tianjin’s city centre housing, and commercial covering an area of more than +86 10 5925 2042 during the quarter was a fraction of total supply—105,000 1,000 sq m. Total consideration was RMB2.05 billion, and [email protected] sq m. Suburban and fringe areas shared 95% of the total land the accommodation value was RMB20,621 per sq m. The supply, accounting for 64.6% and 30.6% respectively, while developer is required to hold 4,000 sq m, equivalent to 4% of the city centre and Binhai New Area accounted for 1.7% and all residences to be built. 3% of land supply, respectively. The suburban and fringe With a total of 58 land plot sales announced during Q1/2019, areas also dominated transaction volume, with 94% of total Tianjin’s land supply reached another peak. Similarly, deals, accounting for 51.9% and 42%, respectively. The city transaction volume also saw a turnaround during the quarter, centre and Binhai New Area accounted for 5.3% and 0.7%, with the transacted area totalling more than supply for the respectively. fi rst time. This turnaround in transaction volume after CIFI Group successfully bid for plot 2019-04 (JXQ) in sluggish volume levels over the three previous quarters— Jingwu Town, Xiqing District. The plot is designated for despite signifi cant land supply—indicates that the Tianjin real mixed-use development including residential and commercial, estate market is warming up and that developers’ confi dence with housing making up 86% of the total buildable area. The is rising. We expect land transactions volume to show an bidding started with a fl oor price of RMB3.032 billion, with upward trend in the near future. CIFI Group acquiring it at the ceiling price of RMB3.638
Land Supply And Transactions By Area, Q1/2011 to Q1/2019
City Core Supply Suburb Supply Fringe Supply Binhai Supply City Core Transactions Suburb Transactions Fringe Transactions Binhai Transactions 10 9 8 7 6 5 4
MILLION SQM 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
RMB732 mil/ Plot 2019-01 (JXQ) Xiqing China SCE Residential US$109 mil
RMB354 mil/ Residential, commercial Plot 2018-019 (JCZ) Beichen Tianjin New City Yilong US$53 mil and green space
RMB2.05 bil/ Residential and Plot 2018-229 (JXQ) Xiqing Sunac US$305 mil commercial
RMB2.23 bil/ Plot 2019-09 (JXQ) Xiqing Tianjin Zheng Ro Rong Tai Residential US$343 mil
RMB785 mil/ Residential and Plot 2019-025 (JBJ) Hebei Tianjin Hong US$117 mil commercial
Source Savills Research & Consultancy
savills.com/research 6 Asia Pacifi c Investment Quarterly
China (Western) - Chengdu
In Chengdu, the total grade A offi ce stock was approximately stagnant; the net absorption of Grade A offi ce space was only Suzie Qing 3.25 million sq m—fi fth in the nation—by the end of 2018. 33,000 sq m, a drop not seen since the depressed market Director Savills Western China New supply volume was about 220,000 sq m and net performance in the beginning of 2016. In terms of new supply, +86 28 8658 7418 absorption of Grade A offi ce hit a record high of approximately China Overseas International Center (Tower D) entered the [email protected] 430,000 sq m, pulling the vacancy rate for 2018 down to market, adding 50,000 sq m, which brought the total stock to 21.0%, the lowest level since 2012. Average rent was RMB102.5 3.15 million sq m. The vacancy rate increased slightly to 21.5% per sq m per month while three new projects opened in 2018: as of the end of Q1/2019. The average rent was RMB103.5 Dahuang Chen Associate Director Pinnacle One, World Financial Center Tower A and Lanrun per sq m per month, a slight rise of 0.3% quarter-on-quarter Research ISC. (QoQ). +86 23 6370 3388 Real estate, fi nance and information technology comprised In a reversal from 2018, demand from fi nance enterprises dahuang.chen@savills. com.cn the dominant industries in terms of demand, accounting for was the strongest during Q1/2019, activated by a relaxation in 60% of the total new leasing space, though the proportion both credit lines and capital. The proportion of operators of of fi nance and TMT (represented by IT) tenants decreased co-working spaces and other third parties is already at 6.8%, signifi cantly in 2018. By contrast, the proportion of retail though demand from this sector is expanding slower than & trade and commercial & professional services increased expected. rapidly. At the same time, co-working spaces and other third It is worth noting that many Grade A offi ce buildings raised parties were brought into the Grade A offi ce market in hopes their property management fees in Q1/2019 because of higher of upgrading the customer experience and the overall Grade A labour costs and more tenant demands for upgraded services. offi ce market in Chengdu. This has lead to higher overall costs for companies to enter the Activity in the offi ce market at the beginning of 2019 Grade A offi ce building market. has not been as optimistic as it was in 2018. Slow domestic Slow economic growth and limited company expansion economic growth has had an impact on the expansion plans plans caused a decline in demand for offi ce space in Q1/2019. of numerous companies as well as the overall offi ce market With market conditions unlikely to change, demand is in Chengdu. In Q1/2019, offi ce market demand remained expected to remain sluggish for the rest of 2019.
Grade A Offi ce Market Supply And Demand, 2010 to Q1/2019
New Supply (LHS) Net Absorption (LHS) Vacancy Rate (RHS) 500 50%
450 45%
400 40%
350 35%
300 30%
250 25%
200 20% '000 SQ M 150 15%
100 10%
50 5%
0 0% Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
5th Chadianzi and 4th RMB12.3 bil/ Huazhao Yin Menkou Jinniu Embrace Fortune Limited Offi ce US$1.83 mil Street 2th, 5th Banbianjie, RMB10.2 bil/ Xingcheng Renju Real 3th Baifo, Wuhou Residential US$1.52 bil Estate Jitouqiao Street Construction Committee RMB17.2 bil/ Land Site, Shuangliu Desung Group Mixed-use US$2.56 bil Chadianzi Street Source Savills Research & Consultancy
7 Asia Pacifi c Investment Quarterly
China (Southern) - Guangzhou
As a result of the collective impact of the economic slow- On the contrary, Pazhou, as one of the fast-growing Alvin Lau down, the elevated fi nancial regulations, and the seasonality emerging offi ce submarkets, attracted some leading overseas Managing Director, Guangzhou Deputy Managing Director, issue, demand in the Guangzhou offi ce property leasing and local property investors and developers, as well as Southern China market softened during Q1/2019. By the end of the quarter, the offi ce occupiers from the artifi cial intelligence, TMT and +86 20 3665 4888 [email protected] city-wide net absorption fell by 33.2% QoQ to 53,321 sq m, with e-commerce industries for its potential growth in both the overall vacancy rate increasing by 0.2 ppts QoQ to 4.9%. rental and capital values. In addition, incentive policies This was most obvious in Zhujiang New Town where the Carlby Xie created by the local district government and the improved Head of Research net absorption plummeted to -11,195 sq m during Q1/2019, transportation accessibility enabled some demand to diverge Southern China +86 20 3665 4874 increasing the vacancy rate of the submarket by 0.4 ppts from established submarkets like Zhujiang New Town. QoQ to 4.8%. Constrained by the rental threshold, some [email protected] The rise of the Pazhou submarket was best defi ned and small- to medium-sized offi ce occupiers from the fi nance exemplifi ed by the decrease of 20.4 ppts in vacancy rate from and professional services industries chose to relocate for 29.1% at the end of Q1/2016 to 8.7% at the end of Q1/2019. cost-saving purposes from Zhujiang New Town to other Meanwhile, rental values for Pazhou remained comparatively submarkets, such as Pazhou and Panyu, where occupational costs were considerably lower. The average rent of RMB206.6 competitive, although it grew from a lower base by 22% during per sq m per month by the end of Q1/2019 for Zhujiang the period from Q1/2016 to Q1/2019. By comparison, the rent New Town—which was 13% higher than the city-wide of RMB148 per sq m per month in Pazhou was still 19% and average—was a signifi cant factor to these kinds of occupiers 28% lower than that of the city-wide average and Zhujiang regardless of the additional considerations on CAPEX and New Town, respectively. staff commuting costs. In the light of this market trend, While it is expected that the Zhujiang New Town will though it is not obvious, many landlords in Zhujiang New remain one of the most preferred offi ce submarkets and Town became more prudent and realistic in stabilising their location by many organisations, it will irresistibly face asset performance through off ering more renovated fi nancial a growing amount of challenges from other peers which approaches and incentives to retain existing and attract may draw a signifi cant amount of offi ce occupiers for their prospective occupiers. competitive edges and the changing market landscape.
Net Absorption By Submarket, Q1/2019 VS Q1/2018
Q1/2018 Q1/2019 350,000
300,000
250,000
200,000
150,000 '000 SQ M
100,000
50,000
0 Tianhe Bei Zhujiang New Town Yuexiu Pazhou Overall
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
196 Kezhu Road RMB194.7 mil/ Huangpu GLP (Nesta) Industrial Plant US$28.9 mil
Source Savills Research & Consultancy
savills.com/research 8 Asia Pacifi c Investment Quarterly
China (Southern) - Shenzhen
Economic growth for Shenzhen slowed in 2018 as a refl ection curve. In some more extreme cases, offi ce occupiers some Woody Lam of China’s broader economic slowdown, after its decades- offi ce occupiers directly cut their budgets for corporate Managing Director Southern China long rapid growth, and the continued Sino-US trade war. real estate to counter the expected compressing of profi t +86 20 3665 4777 Correspondingly, Shenzhen’s GDP growth rate decreased margins for 2019. This was most apparent in the fi nance woody.lam@savills. by 1.2 percentage points (ppts) year-on-year (YoY) to 7.6%, industry, particularly companies located in Futian district. com.cn with GDP totalling RMB2,422 billion by the end of 2018, In response to shifting market conditions, many landlords according to the Shenzhen Statistics Bureau. Although in Shenzhen’s offi ce property market off ered more fi nancial Carlby Xie Head of Research the output of the tertiary industry increased by 8.2% YoY incentives, including cutting rents or providing longer rent- Southern China to RMB1,424 billion, as of the end of 2018, the growth free periods and higher commission rates in exchange for +86 20 3665 4874 rate decreased by 4.2 ppts from 2017’s level. Meanwhile, stable or higher occupancy rates. [email protected] elevated fi nancial regulations released by the People's Bank The leasing market in the Shenzhen offi ce property of China brought more challenges to the Chinese economic sector is set to be even more competitive in the rest of 2019 environment, intensifying the consolidation backdrop for as 15 Grade A offi ce developments with a total combined small- to medium-sized companies as well as the overall GFA of approximately 1.09 million sq m are scheduled for cautious sentiment in the market. On the back of this, the completion during the period. While demand is expected Shenzhen offi ce property market witnessed sluggish market to be subdued, the excessive supply will put pressure on digestion and softened asset performance in Q1/2019. many landlords’ shoulders. From an occupier’s perspective, With this macroeconomic backdrop, leasing demand— ongoing economic uncertainties coupled with cautious especially from small- to medium-sized fi nancial sentiments towards corporate real estate strategies will companies—for the Shenzhen offi ce property market continue to reduce rental thresholds for offi ce real estate softened during Q1/2019. Specifi cally, this was a result of occupancy, therefore leading to further constraint in average the abovementioned companies’ changed economic and net eff ective rental growth across the board. It is expected business outlook from positive to conservative combined that the citywide average rent for the Shenzhen Grade A with their plans to save real estate costs by slowing one-off offi ce market will edge down by approximately 3% YoY for CAPEX investment to stay competitive and ahead of the 2019.
New Supply, Net Absorption And Vacancy Rates, 2014 to Q1/2019
New Supply (LHS) Net Absorption (LHS) Quarterly Average Net Absorption (LHS) Annual Average Net Absorption (LHS) Vacancy Rates (RHS) 600 30%
The annual net absorption was 0.5 million sq m, 2014 - 2018 500 25%
400 20%
300 15%
200 10%
THOUSAND SQ M THOUSAND The quarterly net absorption was 0.1 million sq m, 2014 - 2018 100 5%
0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2014 2015 2016 2017 2018 2019
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
RMB6.6 bil/ Central Walk Futian Link REIT Retail USD1.0 bil
Source Savills Research & Consultancy
9 Asia Pacifi c Investment Quarterly
China (Eastern) - Shanghai
Faced with slower economic growth, the Chinese Financing costs remain elevated for developers. In Siu Wing Chu January 2019, onshore borrowing costs for developers Managing Director government may have started to step back—but not Central China necessarily turn away from—its campaign to fi nancially averaged 6.98%, down just 0.17% month-on-month (MoM), +86 21 6391 6688 de-risk the economy. In addition to the government’s with off shore borrowing averaging 7.86%, up by 0.32% [email protected] continuing encouragement of banks to fi nance small- and MoM. Smaller developers with lower ratings faced even medium-sized enterprises, the beginning of 2019 saw a higher interest rates—Modern Land issued US$150 million James Macdonald marked increase in developer bond issuances. Onshore bond senior notes due in 2020 at a face rate of 15.5%. While some Head of Research issuance by real estate developers reached RMB93 billion in developers may look to issue new debt to pay off old debt, China +86 21 6391 6688 January, the highest level since April 2016. others are asking creditors to extend expected maturity james.macdonald@ Nevertheless, it is important to keep in mind the dates—typically at much higher rates of interest. savills.com.cn enormous repayment pressure developers are facing in 2019. The government is walking a fi ne line between increasing Just in the fi rst quarter, a record US$23 billion worth of the availability of fi nancing to stabilise markets and stave off bonds came to maturity. Most of the issuing companies of more widespread defaults and undoing a lot of the hard-won new bonds noted that when they issued bonds, they intended progress in controlling debt levels that they have been able to use the proceeds to rollover existing debt. This certainly to achieve to date. The relaxation of the bond market should seems to be in line with a National Development and Reform be seen as providing companies and developers enough time Commission (NDRC) statement that was published last June and breathing space to acclimatise their businesses to the requiring Chinese developers to use the proceeds of off shore much leaner, less-credit fuelled times ahead. Developers and bonds to refi nance their maturing bonds and avoid default, investors alike would do well to heed their advice and plan rather than for investments into new domestic or overseas accordingly. real estate projects or using them to bolster cash fl ow.
Aggregate Financing (Newly Increased), 2013 to February 2019
Banker's Acceptance Bill Net Corporate Bond Financing Non Financial Enterprise Equity Financing Entrusted Loan 1,200
1,000
800
600
400
200
0 RMB BILLION RMB -200
-400
-600
-800 2013 2014 2015 2016 2017 2018 2019
Source PBOC, Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
Pudong Financial Square RMB2.35 bil/ Pudong Ant Finance Off ce Building 2 US$350 mil
RMB4.6 bil/ Yifang Tower Hongkou Keppel Capital Offi ce US$685 mil
RMB1.2 bil/ LCMetropolis Pudong GLP Capital Retail US$179 mil
50% of Dongjiadu land RMB12.0 bil/ Huangpu Greenland Group Development land blocks 13 & 15 US$1.79 bil
Source Savills Research & Consultancy
savills.com/research 10 Asia Pacifi c Investment Quarterly
Hong Kong
Hong Kong’s irrepressible investment market posted a strong Kong-Zhuhai-Macau Bridge and the imminent completion Peter Yuen fi rst quarter even as yields remain near decade lows. After a of the Tuen Mun-Chek Lap Kok Link in 2020 continued to Managing Director Head of Sales subdued last quarter of 2018 several factors turned sentiment boost values in Tuen Mun in particular, with new residential +852 2842 4436 around including a rebounding stock market, optimism projects attracting higher spending consumers to the [email protected] surrounding the outcome of the US/China trade dispute and district. a dovish Fed signally an end to the current interest rate hike In the local warehouse market, a lack of available Simon Smith cycle. Indicators suggest that, alongside local investors, the space has forced many tenants to renew existing leases as Senior Director fi rst quarter also witnessed an infl ux of capital from overseas landlords have become more bullish in rental negotiations. Head of Research looking for investment opportunities. The lower-for-longer interest rate environment and the +852 2842 4573 [email protected] Cooling offi ce prices late last year attracted bargain reintroduction of the revitalization policy allowing for easier hunters and end-users, giving support to values over the fi rst change of use prompted demand from investors looking quarter. Transactions evidence suggests that some buyers for redevelopment or conversion opportunities. Values and enjoyed slightly below market deals but landlords were quick volumes both rebounded over the fi rst quarter by 5% and to harden their negotiating position as interest picked up. On 67% respectively QoQ. Hong Kong Island most districts saw fl at prices while small The investment outlook is generally positive over the gains were registered in Kowloon. next three to six months although much will hinge on the In contrast to the offi ce market, the retail sector outcome of the US/China trade negotiations and the possible continued to fl ounder with lacklustre sales fi gures and wary impact on the mainland economy and the local Hong Kong investors unconvinced by the prospects for the core retail stock market. In the US, despite low unemployment and market. The result was a shift in focus to suburban areas healthy growth, weak infl ation suggests a benign outlook for better supported by local spending and in some instances interest rates over much of this year providing a safety net to by new residential developments. The opening of the Hong Hong Kong investors should sentiment falter.
Savills Hong Kong Price Indices By Sector, Q1/2003 to Q1/2019
Luxury Residential Price Mass Residential Price Grade A Office Price Prime Street Shop Price Industrial Price 1,000 900 800 700 600 500 400 Q1/2003=100 300 200 100 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
HK$8.6 bil/ Mapletree Bay Kwun Tong PAG Offi ce US$1.1 bil
HK$700 mil/ Centre Hollywood Sheung Wan HKICIM Group Offi ce US$89.7 mil
HK$824 mil/ 28/F The Center Central Gale Well Group Offi ce US$105.6 mil
HK$653 mil/ Lake Silver Shatin TBC Retail US$83.7 mil
Source Savills Research & Consultancy
11 Asia Pacifi c Investment Quarterly
Japan
GDP grew by 1.9% on an annualised basis in Q4/2018, as optimism. After strengthening to 107.66 on the fi rst business Christian Mancini consumer spending and capital expenditure rebounded day of the year, JPY softened to 110.99 per USD at the end of CEO, Asia Pacifi c (excl Greater China) from natural disasters that disrupted corporate activity in the quarter, virtually the same as last quarter’s exchange rate. Savills Japan the previous quarter. The consumption tax hike in October The TOPIX index rose 6.6% over the quarter to 1,592, with the +81 3 6777 5150 2019 may weigh on activity somewhat, but both the Japanese real estate sector up an impressive 12.6%. The J-REIT index [email protected] government and the IMF forecast moderate yet steady growth rose 7.5% to 1,907, and a basket of twelve offi ce-focused J-REITs for 2019 and 2020. The unemployment rate has remained at or was up 10.1%, more than any other sector basket, though all Tetsuya Kaneko Director below 2.5% since the beginning of 2018 and hit 2.3% in February. sectors rose steadily, due to strong interest, especially from Research & Consultancy Core CPI, though positive, registered at just 0.7% YoY as of international investors. +81 3 6777 5192 February. Preliminary estimates put transaction volumes for Q1/2019 [email protected] The US Federal Reserve has postponed additional rate hikes. at JPY809 billion, a little over half that seen in Q1/2018, though Meanwhile, the Bank of Japan (BOJ) continues to affi rm that fi nalised numbers are expected to be somewhat higher. policy will remain loose, though has kept reducing purchases Investors are interested in securing exposure to the Japanese of Japanese government bonds as yields moved into negative market, with its wide yield spread and stable politics and territory this quarter: the 10-year yield was above zero on just economy, but are a tad cautious over transacting at cyclically three occasions in February and March, and ended the quarter high prices and available opportunities are limited. Hotel at -0.08%. Purchases of J-REIT units by the BOJ continue to volumes were the most resilient, down 18% YoY, though if taper, with the total for Q1/2019 amounting to JPY9.6 billion, the exceptionally large Hilton Odaiba transaction, which less than half the JPY22.8 billion seen during the same period completed in Q2/2019 but was announced in Q1/2019, were to last year. While it does not directly impact the economy, May be included, volumes would have grown 61% YoY. 1st marked the start of the new “Reiwa” era by welcoming a new Average Grade A offi ce rents in the central fi ve wards (C5W) emperor, which might give positive momentum. of Tokyo rose to JPY35,257 per tsubo, up 1.9% QoQ and 5.6% In March, the manufacturing PMI index recorded 49.2, YoY. The average vacancy rate in the C5W was 0.4%, 0.1ppts slightly up from February’s 48.9 reading which had marked tighter QoQ and 0.4ppts tighter YoY. Pre-leasing demand is the fi rst contraction since August 2016. The Tankan survey sound out to 2020, quelling concerns over a large volume of of large manufacturers dropped to +12 in March from +19 in supply, and rents look set to rise steadily through 2019 unless an December 2018, as machinery companies tempered their external shock occurs.
Property Transactions By Sector, 2007 to Q1/2019*
Office Residential Retail Hospitality Logistics Other 8
7
6
5
4
3 TRILLION YEN
2
1
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1/2019
Source RCA, Savills Research & Consultancy *Q1/2019 volume is preliminary and tends to be lower than the fi nalised amount.
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
Minato, JPY84.0 bil/ Aoyama Building GAW Capital Partners Offi ce Tokyo US$750 mil
Minato, JPY62.4 bil/ Hilton Tokyo Odaiba Japan Hotel REIT Hotel Tokyo US$560 mil
Minato, JPY28.2 bil/ G-BASE Tamachi Nippon Building Fund Offi ce Tokyo US$259 mil
The Ritz-Carlton, Kyoto Nakagyo, JPY17.8 bil/ Sekisui House REIT Hotel (40%) Kyoto US$160 mil
Inazawa, JPY16.2 bil/ Mitsui Fudosan Logistics MFLP Inazawa Logistics Aichi US$150 mil Park REIT
Source Nikkei RE, RCA, Savills Research & Consultancy savills.com/research 12 Asia Pacifi c Investment Quarterly
Macau
The Macau residential market showed signs of a slight severe competition for renters due to the large amount of Franco Liu rebound at the end of Q1/2019 after a decline that began in supply and lack of tenants, not to mention the subsequent Managing Director Savills Macau October 2018. For the three months prior to March 2019, less decrease in rent. However, the situation is expected to change +853 2878 0623 than 500 transactions per month were concluded. This dip in after this initial period, when there will be less available units fl [email protected] activity was most dramatic in the holiday month of February and rents are likely to return to previous levels. when the market recorded only 279 transactions, nearly As of the fi rst half of March 2019, 253 transactions had been breaking the lowest single-month record of 268 transactions, recorded, with an average unit price of MOP9,451 per sq ft. Cindy Liu Senior Director and which was set also in February, in 2016. Driven by the strong performance of second-hand residence Head of Valuation (Macau) After some relief from unfavorable factors and some transactions, the average is 2.2% higher than 2018’s unit price +853 2878 0623 concessions from sellers, market sentiment warmed up in and 10.8% higher than in 2017, when comparing the same [email protected] March. At the same time, developers released new residential months. However, it’s still 18% lower than the market’s last units to the market while also providing tailor-made payment peak of MOP11,569 per sq ft, recorded in January 2018. plans and large discounts for both fi rst-time homebuyers and The prevailing market trend in late Q1 has been a non-fi rst-time homebuyers. Residential projects such as Grand confi dence booster for both potential buyers and sellers, Oasis and Pride Oceania provided extended payment periods, indicating that the residential market might have already rebate packages and other incentives to successfully draw the hit bottom and could now be on an upswing. Signs of a real interest of potential buyers, and their moves encouraged the estate rebound were seen not only in Macau, but in other second-hand market to follow suit as well. adjacent regions such as Hong Kong and southern China. A similar situation took place in the rental market. The Yet not all the negative factors have been fully settled, and supply side made concessions, more discounted units were the advantages enjoyed by the demand side are predicted to released to the rental market, and the demand side took remain in Q2/2019. In general, pressure still exists on the advantage, thereby facilitating more rental deals. Activity overall performance of the residential market—in terms of was especially strong for newly completed residences located number of transactions, unit prices and rents—but the risk in Taipa and Cotai, where the majority of recent rental deals of a downturn in the market is slightly less than in previous occurred. Owners of newly completed units faced relatively months.
Macau Residential Sales Transactions and Average Unit Price, January 2018 to March 2019
No. Of Transactions (LHS) Average Unit Price (RHS) 2,500 12,000
2,000 11,000 MOP PER SQ FT SQ PER MOP
1,500 10,000
1,000 9,000 NO. OF UNITS
500 8,000
0 7,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2018 2019
Source Financial Services Bureau, Government of the Macao Special Administrative Region, Savills Macau
13 Asia Pacifi c Investment Quarterly
Malaysia
Q1/2019 saw a rather muted Chinese New Year period, with 2,523-acres of agricultural land in Melaka and Negeri Datuk Christopher Boyd total transaction value down by 49% from the previous Sembilan to wholly-owned subsidiaries of Huat Lai Resource Executive Chairman Savills Malaysia quarter and year-on-year (YoY) value seeing a 78% decrease. Berhad for a consideration of RM175 million. + 603 2092 5955 ext 149 That being said, general sentiment appears to be improving On the political front, the restructuring of GLCs and [email protected] ever so slightly, and we hope that this improvement will lead government agencies appears to be slowly coming into to greater transactional activity in the coming months. focus, as the administration focuses on implementation of During the quarter, we witnessed the sale of two notable Nabeel Hussain their reform agenda. There has been pick-up in domestic Senior Director commercial assets, in the form of Royale Chulan Bukit institutional activity, which we anticipate will continue Capital Markets Bintang and Wisma MPL. The former asset was acquired over the coming quarters as they look to rebalance their Savills Malaysia by SGX-listed hotelier Hotel Royal Limited from Boustead +603 2092 5955 ext 126 portfolios and undertake numerous divestments and [email protected] Holdings for RM197 million. Malaysia Pacifi c Corporate acquisitions. Key movements this quarter included: 1) signs Berhad and its associated companies have successfully of greater willingness from domestic funds to engage with divested Wisma MPL to Asia New Venture Capital for a professional external asset managers for the funds’ domestic total consideration of RM189 million, slightly above the holdings; 2) PNB’s review of key investment strategies most recent valuation for the asset. During the same period, i.e.: with prioritization on portfolio diversifi cation as Royal Group was rumoured to have acquired Wisma KFC well as liquidity and risk management; and 3) Khazanah’s from the Malaysian Employee Provident Fund for a total restructuring and rebalancing of portfolio for sustainable consideration of RM130 million. and long-term gains. In terms of land sales, Mah Sing acquired a 4.63-acre Following the government’s ‘detoxifi cation’ and development site in Salak South, an established suburb of subsequent RM2.8 billion injections related to Greater KL, for a residential development with a proposed infrastructure of Tun Razak Exchange (TRX) development, GDV of RM500 million. The site was sold for RM90.3 this quarter Lendlease secured RM2.15 billion of funding million, with this sum being inclusive of development from a lending consortium led mainly by foreign lenders for charges and improvement service fund contributions. the 17-acre Lifestyle Quarter JV within TRX. United Malacca Berhad has closed a collective sale of
Malaysia GDP Growth, 2008 to 2019F
8.0% 7.4% 7.0% 6.0% 5.9% 6.0% 5.6% 5.1% 5.0% 4.8% 5.2% 4.9% 4.7% 4.7% 4.0% 4.2% 4.3% 3.0% Range between 4.3-4.9% 2.0%
1.0%
0.0%
-1.0% -1.5% -2.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F
Source Bank Negara
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
City Centre, RM130 mil/ Wisma KFC Royal Group Offi ce Kuala Lumpur US$31.46 mil
Royale Chulan City Centre, RM197 mil/ Royal Group Hotel Bukit Bintang Kuala Lumpur US$47.67 mil
City Centre, RM189 mil/ Wisma MPL Asia New Venture Capital Offi ce Kuala Lumpur US$45.74 mil
A 4.63-acre Suburban, RM90.3 mil/ Mah Sing Group Development land development land Kuala Lumpur US$21.85 mil
A 876-acre RM61.0 mil/ Huat Lai Resources Melaka Farmland agricultural land US$14.76 mil Berhad
Source Company announcements, Savills Research & Consultancy
savills.com/research 14 Asia Pacifi c Investment Quarterly
New Zealand
In 2018, we saw an increasing number of key international New Zealand’s retail sector remains positive on the back Paddy Callesen institutional players enter the New Zealand property market of a strong tourism sector, with retail sales recording a year Head of Industrial Sales and Leasing including Invesco’s purchase of a 50% stake of the ANZ centre on year growth rate of 3.0% in the 12 months to May 2018. Commercial Sales in Auckland for NZ$181 million and Blackstone’s NZ$636 With tourism helping to boost New Zealand’s economy, we +64 (0) 9 951 5911 million acquisition of the VXV portfolio, comprising 7 offi ce are beginning to see an increase in luxury retail with various [email protected] buildings in the Viaduct, establishing New Zealand as a global retail and mixed-use developments currently underway investment destination. With similar economic driver as particularly throughout Christchurch and Auckland. This Shrabastee Mallik Director Australia, it is likely that we will begin to see greater levels of includes Scentre Group’s Westfi eld Newmarket who have Research & Consultancy foreign investor activity over 2019, as investors increasingly already secured tenants including Louis Vuitton and Gucci. Savills Australia view New Zealand as a safe investment destination in the Asia Turning to the industrial sector, growth in the ecommerce +61 2 8215 8880 [email protected] Pacifi c region. sector continues to drive demand for industrial space in Despite the Reserve Bank of NZ suggesting that interests New Zealand, particularly in those industrial precincts rates will stay low for a period of time with the potential with good road connectivity and proximity to key consumer to even fall further, investments into residential property bases. With little developable land left within Auckland’s have tapered out somewhat, due to tight lending restrictions industrial precincts, industrial property values in this area combined with low rental yields. have continued to rise at historically high rates, accompanied We have begun to see greater levels of transactional by falling vacancy rates and increasing rents. The growth activity in the offi ce sector over the past 12 months. Whilst in ecommerce will likely continue to support demand for yields remain comparatively high (compared to Australia), industrial assets and help to support rental and capital value it is evident that a yield compression cycle is underway, with growth. competition for assets still strong. There has been a notable increase in the demand for quality offi ce assets, evidenced by the sale of The Spark building in Wellington, which sold for close to NZ$200 million, making it the most expensive offi ce transaction in the capital.
Sales Breakdown By Sector, 12 months to March 2019
Retail, NZD367.3 Hotel, 10% NZD134.9 4%
Office, NZD2414.7 Industrial, 67% NZD661.5, 19%
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
NZD78.5 mil/ 1 Radcliff e Rd Christchurch Miles Middleton Retail US$54.9 mil
NZD26.8 mil/ 8 Gilmer Ter Wellington -Offi ce US$18.7 mil
56-68 St Asaph St NZD23.6 mil/ Christchurch Box 112 Offi ce Christchurch Central US$16.5 mil
NZD18.8 mil/ 620 Karamu Rd N Hastings -Retail US$13.2 mil
NZD16.5 mil/ Property For Industry 51-61 Spartan Rd Takanini Industrial US$11.6 mil (PFI)
Source Savills Research & Consultancy
15 Asia Pacifi c Investment Quarterly
Philippines
Despite a challenging 2018, the Philippines economy was be able to address the industry’s biggest barrier to entry—poor Michael McCullough able to clock in GDP growth of 6.2% year-on-year (YoY)— infrastructure quality amidst a fragmented geography. With Managing Director KMC Savills, Inc supported by government spending which compensated public investments focused on rural areas, overall bottlenecks +632 217 1730 for weaker household consumption and fi xed capital in the country’s distribution channels should slowly dissipate [email protected] investment. However, higher infl ation and interest rate hikes over time. in late 2018 adversely aff ected capital market performance in Improvements in this network should also bode well for the Fredrick Rara the beginning of 2019. The Philippine stock index dropped manufacturing sector, which increased output by 4.9% YoY in Research Manager by 12.8% YoY in 2018, a turnaround from the 25.1% YoY gain 2018—buoyed by growth in electronics, food and beverages, KMC Savills, Inc in 2017. and fuel products. In addition to sustained domestic demand, +632 403 5519 fredrick.rara@ During the quarter, the local real estate investment market the sector’s growth is expected to be helped by the rise in kmcmaggroup.com experienced a similar outcome as we saw only one major foreign and local investments. Total approved investments transaction. MetroPac Movers, Inc., a subsidiary of Metro from promotion agencies stood at PHP1.1 trillion last year, Pacifi c Investments (MPI), consolidated and acquired parcels a growth of 19.3% YoY. Foreign investment pledges for of land in the province of Bulacan for its warehouse operations manufacturing took the largest share at PHP444.4 billion while as it anticipates a rapid buildup in volume in the coming years. transportation and storage amassed PHP125.1 billion. In addition to MPI, several listed companies have started In the coming months, household consumption should positioning themselves in the logistics industry: Ayala Land recover as infl ation normalises back to Bangko Sentral ng increased its stake in warehousing developer Prime Orion Pilipinas’s (BSP) target range, after dropping to a 15-month Philippines; SM Investments acquired a substantial ownership low of 3.3% in March. Together with the uncertain global in parcel delivery fi rm 2GO Group in 2017; while Udenna’s economic backdrop, the central bank is expected to continue logistics and shipping arm is pushing to acquire Trans- to reduce the banks’ reserve requirement in the near term and Asia Shipping Lines. Other than capitalizing on a domestic subsequently cut policy rates. As such, we expect domestic demand-driven economy, large players are betting on the demand to be buoyed by these factors, which should support government’s massive infrastructure program, which should both the manufacturing and logistics sectors.
GDP Growth, 2000 to 2018
Household Consumption Government Expenditure Capital Formation Net Trade GDP Growth 9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
-1%
-2% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
PHP204.78 mil/ San Rafael land Bulacan MetroPac Movers, Inc Industrial US$3.92 mil
Source Savills Research & Consultancy
savills.com/research 16 Asia Pacifi c Investment Quarterly
Singapore
Arising from the award of a few big sites under the Government Kerry Properties, was more realistic under the current market Christopher J Marriott Land Sales (GLS) programme, investment sales in the public situation. On the other hand, an executive condominium CEO Southeast Asia sector came in at S$2.13 billion in Q1/2019, signifi cantly higher (EC) site at Tampines Avenue 10 attracted a top bid of S$434.5 +65 6415 3888 than the S$44.1 million recorded in the previous quarter. million (or S$578 psf ppr) from Hoi Hup Realty and Sunway [email protected] Market sentiment in the residential segment remained cautious Developments, which was basically on par with EC sites at due to the lasting impact from the July 2018 private residential Anchorvale Crescent, Canberra Link and Sumang Walk, which revised cooling measures. This restraint could be seen in the were awarded in 2018. Limited supply and strong demand Alan Cheong Executive Director tender results for both the private residential site at Kampong for this class of “sandwich” fl ats have supported developers’ Research Java Road and the white site at Pasir Ris Central. Located in confi dence in this market segment, therefore land prices have +65 6415 3641 District 9 and within walking distance to Newton MRT Station, held fi rm. [email protected] the Kampong Java Road site was clinched by Chip Eng Seng After a wave of big-ticket block transactions concluded in Corp’s unit, CELH Development, with a bid of S$418.4 million, Q4/2018, investment activity in the private sector slowed down which works out to a land rate of S$1,192 per sq ft per plot ratio signifi cantly. Investment sales fell 35.9% quarter-on-quarter (psf ppr). The winning bid indicated a clear step down from (QoQ) to S$2.86 billion in the period Jan-Mar 2019. The other GLS sites in the Core Central Region (CCR) that sold biggest deal closed was the S$585.0 million sale of an integrated in the past two years. These included sites at Jiak Kim Street, industrial and warehouse facility at Tuas South Avenue 14 to Fourth Avenue, Handy Road and Cuscaden Road. After the July logistics property specialist LOGOS. Built on a 25-ha site, the 2018 revised cooling measures, developers adopted a cautious property has a total gross fl oor area (GFA) of 1.6 million sq ft land-bidding stance in conjunction with subdued buying of and will be leased back to the vendor, solar fi rm REC, for 20 residential homes. All through the dual-envelope concept and years. In the meantime, two shopping malls changed hands. price tender, the number of tenderers for the Pasir Ris Central The fi rst was Liang Court, a shopping mall located beside the white site was much lower than for two other sites, at Sengkang Clarke Quay riverside area, which was sold to CapitaLand and Central and Holland Village, whose tenders closed before July City Developments Limited for S$400.0 million, while the last year. The winning bid of nearly S$700.0 million or S$684 other was Rivervale Mall in Sengkang, which was purchased by psf ppr, from a joint venture between Allgreen Properties and SC Capital Partners for S$230.0 million.
Investment Sales Transaction Volumes By Property Type, Q1/2019
Industrial Hospitality S$0.99 bil, 20% S$0.92 bil, 18%
Mixed S$0.82 bil, 16%
Commercial S$1.03 bil, 21%
Residential S$1.22 bil, 25%
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
Phoenix Residential S$700.0 mil/ Government land Pasir Ris Central Pte Ltd & Phoenix White US$517.5 mil Commercial Pte Ltd
S$585.0 mil/ 20 Tuas South Avenue 14 Tuas South Avenue 14 LOGOS Industrial US$432.5 mil
S$562.2 mil/ Midtown Development Government land Club Street Hotel US$415.7 mil Pte Ltd
Hoi Hup Realty Pte S$434.5 mil/ Government land Tampines Avenue 10 Ltd and Sunway Residential US$321.2 mil Developments Pte Ltd
S$418.4 mil/ CELH Development Pte Government land Kampong Java Road Residential US$309.3 mil Ltd
Source Savills Research & Consultancy
17 Asia Pacifi c Investment Quarterly
South Korea
Total transaction volumes for the Seoul Offi ce Market in Jamsil Station, from Samsung SRA AMC for KRW628 billion Crystal Lee Q1/2019 stood at KRW2.04 trillion, a comparable level to the (KRW20.9 mil/3.3 sqm). Reports suggest that NH Investment CEO Savills Korea same period last year (KRW2.2 trillion in Q1/2018). In 2018, & Securities has agreed to sell-down to its affi liates and +82 2 2124 4163 transactions for large core assets in prime locations were other institutional investors. Currently, the building is 100% [email protected] prevalent, and included such deals as Centropolis (CBD), occupied by Samsung SDS and acts as their headquarters, with Yeouido SK Securities Building (YBD), and Samsung C&T the lease due to expire after six years. Seocho (GBD). On the other hand, there has also been a recent JS AMC acquired WeWork Tower (former PCA Life Tower), JoAnn Hong Director increase in the number of transactions involving assets with located in Yeoksam-dong, for KRW140.5 billion (KRW23.6 Research & Consultancy high-quality covenants, that are conversely located outside mil/3.3 sqm) via a share deal. In Q4/2017, following the merger +82 2 2124 4182 of Seoul’s three major business districts, in locations such as of PCA Life with Mirae Asset Life Insurance, the amalgamated [email protected] Jamsil, Yongsan, DMC and Mapo etc. organization relocated to Yeouido, causing the vacancy rate In Q1/2019 ARA Korea AMC acquired Seoul Square from of the building to soar to 55%. However, after WeWork took Alpha Investment Partners for KRW988.3 billion (KRW24.6 over 13 fl oors in Q2/2018 and the remaining vacant space was mil/3.3 sqm). NH Securities & Investments together with ARA leased, the building was aptly rebranded as WeWork Tower. Korea AMC are the principal investors in Seoul Square, with In Q1/2019, the average prime offi ce cap rate stood at mid- NH Securities & Investments expected to sell down its shares 4%, calculated using face rent and 90% occupancy. However, to investors. Previously, major occupiers such as LG affi liates considering leasing concessions (such as rent-free periods relocated to nearby HQs from Seoul Square, causing the and tenant-improvement incentives) and actual occupancy vacancy rate to rise to about 50% for almost a year. However, rates, the eff ective cap rate is at low 4%. The average fi ve- recent moves by WeWork, SK Planet and other tenants to the year treasury yield in Q1/2019 decreased to 1.9%, meaning a building lowered the vacancy rate to below 5%. As a result, the prime offi ce cap-rate spread of approximately 280 bps. The occupancy rate at the time of the sale was understood to be borrowing rate on core assets declined this quarter to 3.2%, around 97%. compared to 3.5-3.6% in the previous quarter, and the average NH Investment & Securities, in cooperation with Ryukyung LTV remains 55%. PSG AMC, purchased Samsung SDS Tower, located near
Offi ce Transaction Volumes, 2010 to Q1/2019
12 Q1
10 Q2
Q3 8 Q4
6
KRW TRILLION 4
2
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source Savills Korea
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
KRW988.3 bil/ ARA Korea AMC (NH Seoul Square CBD US$878.4 mil Investment & Securities)
WeWork Tower (formerly KRW140.5 bil/ GBD JS AMC PCA Life Tower) US$124.9 mil Offi ce KRW628.0 bil/ Ryukyung PSG AMC (NH Samsung SDS Tower Jamsil US$558.2 mil Investment & Securities)
Hanjin Heavy I&C Seoul KRW161.8 bil/ Yongsan Koramco REITs & Trust HQ US$143.8 mil
Source Savills Korea
savills.com/research 18 Asia Pacifi c Investment Quarterly
Taiwan
The land market continued to record notable growth with Aside from residential projects, developers moved Ricky Huang total transaction volume in Q1/2019 reaching NT$61.7 aggressively into offi ce and industrial offi ce development General Manager Savills Taiwan billion, an increase of 103% compared with last year. with 30% of their land acquisitions falling into these +886 2 8789 5828 This total—the highest quarterly volume in nine years— sectors. Several developers, including Highwealth, Huaku, [email protected] refl ected a strong appetite amongst developers, even though King’s Town and Hong Pu, were keen for commercial land residential market sales have been recovering at a slower and industrial land in Taipei City and New Taipei City. One pace. In 2018, there was a 32% increase in the number of notable deal involved Highwealth Construction, which has Erin Ting Director approved residential building permits, but that activity plans to launch 30 offi ce building projects in the next ten Research signifi cantly exceeded the growth of annual residential years. The company purchased a 456-pings commercial +886 2 8789 5828 transactions, which rose by only 4% over the same period. land plot in Taipei City for NT$5.1 billion and will build a [email protected] Developers dominated the land market and accounted 27-fl oor offi ce building on the site; the deal is equivalent to for 85% of transactions this quarter, equivalent to NT$52.5 NT$11 million per ping, amounting to the second highest billion and approximately 30% higher than the total land land unit price in market history. purchased by developers during the previous residential In the coming few quarters, we expect two factors to transaction peak in 2013. The mass market, such as New continue to drive demand in the land market. First, new Taipei City and Taichung City with their lower housing mayors, who took offi ce last December and are eager to prices, was especially favored by developers. Several land promote their local economies, will continue to court tenders also received good responses from the market. A investors, especially in the commercial property sector. For 6,000-ping plot of residential land in the fringe area of example, HPW Group acquired a foreclosure strata title New Taipei City attracted 16 bids and eventually sold for building for NT$5.4 billion in Kaohsiung City this March. NT$7 billion, closing at a 49% of premium. Taichung City Second, developers will be motivated to launch residential government sold development land by public tender for projects this year in order to avoid any impact from the a total of NT$4.5 billion, marking an 11% of premium on 2020 Taiwan presidential election. average.
Signifi cant Land Transactions By City, 2012 to Q1/2019
Taipei City New Taipei City Taichung City Kaohsiung City Others 160
140
120
100
80
60 NTD BILLION
40
20
0 2012 2013 2014 2015 2016 2017 2018 Q1/2019
Source Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
Land in NT$7.08 bil/ Maw Der Property Residential New Taipei City Tucheng District US$236 mil Development development site
Land in NT$5.1 bil/ Commercial Taipei City Highwealth Construction Zhongshan District US$170 mil development site
Land in NT$6.65 bil/ Commercial Taichung City Fong-Yi Group Nantun District US$221 mil development site
Land in NT$4.6 bil/ Maw Der Property Residential New Taipei City Xinzhuang District US$153 mil Development development site
Source Savills Research & Consultancy
19 Asia Pacifi c Investment Quarterly
Thailand
Interest in Thailand’s industrial sector, coupled with growing ongoing trade dispute between the United States and China, Robert Collins confi dence in key government initiatives, drove fi rst quarter a number of China-based manufacturers have cited concerns CEO Savills Thailand investment activity, with large-scale transactions taking place about tariff s as a key factor when considering establishing +66 2636 0300 across greater Bangkok and the eastern seaboard. production facilities in Thailand. [email protected] Thailand’s Eastern Economic Corridor (EEC), a 13,285 ECC provinces collectively saw an increase in total land sq km zone spanning Chachoengsao, Chonburi and Rayong transaction value of THB2.32 billion over Q4/2018, a rise of provinces, gained pace over Q1. The zone was bolstered by 9.71% from the third quarter. Chris Hobden Associate Director clarity surrounding big-ticket infrastructure commitments, In Bangkok, SET-listed LPN Development formed a Research & Consultancy with projects collectively worth a reported THB650 billion new joint venture with NYE Estate to undertake an offi ce +66 2636 0300 (US$20.37 billion) scheduled to be agreed with private building on Rama IV Road. The scheme is due to comprise [email protected] companies over the coming quarter. These projects include around 21,000 sq m of leasable offi ce space, in addition the THB224 billion (US$ 7.02 biliion) high-speed rail line 1,600 sq m of supporting retail. The project, with a reported connecting Bangkok to Rayong, the THB200 billion (US$ 6.27 investment value of THB3.79 billion (US$ 118.76 million), will billion) U-Tapao airport scheme, in addition to projects valued be developed on a leasehold plot within the Kluay Nam Thai at THB84 billion and (US$2.63 billion) THB55 billion (US$1.72 area. LPN and NYE Estate will each hold a 49% stake in the billion) for the third phases of Laem Chabang and Map Ta joint venture, with the remaining 2% held between LPN's chief Phut ports, respectively. fi nancial offi cer and NYE Estate's chief executive. Q1 continued to see China-based companies announce Pre-built PLC acquired an approximately 4,100 square plans to set-up operations within the EEC, with SET-listed metre site on Ramkhamhaeng Road, north-east of WHA Corporation launching a joint venture with JD.com, central Bangkok, announcing plans to develop a 344-unit registered as WHA-JD Alliance Co., Ltd, to operate a logistics condominium building. With planned rezoning of Bangkok’s centre in Chachoengsao. The scheme will include a 60,000 outer areas due to take eff ect next year, widely viewed as likely sq m fully-automated warehouse, located on a 55-rai (8.8 ha) to permit greater development density, we expect to see an site, with WHA holding 51% of shares and JD.com, via its increase in acquisitions of development sites across city fringe subsidiary JD Future Explore I, holding the minority stake. locations over 2019. While opinion is divided on the overall impact of the
Eastern Economic Corridor (EEC) Land Sales Value By Province, Q1/2017 to Q4/2018
Chonburi Rayong Chachoengsao QoQ Change 30,000 35% 30% 25,000 25% 20% 20,000 15% 10% 15,000 5% 0% THB MILLION 10,000 -5%
5,000 -10% -15% 0 -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018
Source REIC, Savills Research & Consultancy
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
Asia Industrial Estate, 688 ha land plot at THB9.12 bil/ Samut Prakan TICON, Rojana Industrial Commercial/Industrial Bang Na-Trad KM32 US$285.19 mil Park
48 ha land plot at THB825.09 mil/ Prinx Chengshan (Cayman) Chonburi Industrial Nong Yai US$25.7 mil Holding Limited
c. 0.48 ha land plot on THB2.39 bil/ NYE Estate, LPN Bangkok Offi ce/Retail Rama IV Road US$74.8 mil Development
c. 4,100 sqm land plot THB766 mil/ on Ramkhamhaeng Bangkok Pre-Built PLC Residential US$24 mil Road Source Company announcements, Savills Research & Consultancy
savills.com/research 20 Asia Pacifi c Investment Quarterly
Vietnam
As host for the second Trump-Kim Summit, held in have been contributing more to the economy, currently Neil MacGregor comprising the largest component of total investment. Managing Director February, Vietnam continued to elevate its standing in Savills Vietnam international aff airs, catching global attention for the In late December last year, Van Don International Airport +84 8 3823 7454 successful transformation of its economy over the last 30 opened in Van Don District, Quang Ninh Province, which is a [email protected] years. From one of Asia’s least-developed countries in the planned Special Economic Zone focusing on logistics, tourism 1980s, Vietnam has transformed into a booming middle- and luxury entertainment. The airport was developed by Troy Griffi ths income economy with GDP growth amongst the fastest Sun Group—a local real estate developer—under a private- Deputy Managing Director worldwide in recent years. public partnership structure with total investment of US$324 Advisory Services +84 8 3823 9205 In the fi rst quarter of 2019, Vietnam’s GDP grew 6.79% million. Another privately funded aviation project was Cam tgriffi [email protected] year-on-year (YoY) and is anticipated to be the highest Ranh Airport’s new international terminal. Total current in ASEAN from 2019-2023, whilst the Vietnam dong capacity is 4.5 million passengers per annum, but this number (VND) remains one of the region’s most stable currencies. is expected to reach eight million by 2030. This economic growth has been reinforced by abundant In the real estate capital market, there were two big FDI infl ow, in which the manufacturing and processing transactions in the fi rst quarter of 2019. Hanoi Hotel Tourism industries dominated, accounting for 75% of newly Development acquired 75% interest of InterContinental Hanoi registered capital. In January, Vietnam’s fi rst aircraft West Lake Hotel for approximately US$53 million, while Nam engine parts factory, Hanwha Aero Engines (Korea), began Long Group announced the acquisition of a 70% interest in shipping products following a US$200 million investment. Dong Nai Waterfront City project for approximately US$100 In March, Universal Alloy Corporation, the world’s leading million from Portsville Pte. Ltd, a subsidiary of Keppel manufacturer of aerospace products, began construction of Land Limited. The 170-ha township development project a 17-ha factory in Da Nang Hi-tech Park with an estimated is situated near the crossroads of Ho Chi Minh City, Binh total investment capital of US$170 million. Duong and Dong Nai provinces, an important economic hub Privately funded investments into infrastructure in southern Vietnam.
Vietnam's FDI Registered Capital, FDI Disbursement and GDP Growth, 2005 to Q1/2019
FDI Registered Capital FDI Disbursement Capital GDP Growth (RHS) 40 8
35 7 30 6 25
20 5 %
15 USD BILLION 4 10 3 5
0 2 2015 2016 2017 2018 Q1/2019
Source Vietnam General Statistics Offi ce, Ministry of Planning and Investment
Major Investment Transactions, Q1/2019
PROPERTY LOCATION PRICE BUYER USAGE
Dong Nai Waterfront VND2.313 tri/ Dong Nai Province Nam Long Group Township development (70% interest) US$100 million
InterContinental Hanoi Hanoi Hotel Tourism VND1.245 tri/ West Lake Hotel Hanoi Development Ltd Liability Hotel US$53 million (75% interest) Company Source Savills Research & Consultancy
21 Major Transactions Q1/2019
Australia
◄ Cleveland Shopping Centre Cleveland, QLD AU$103M/US$81M in March
Beijing/Shenzhen/Shanghai
◄ Beijing Oceanwide International ◄ Jade Palace Hotel Project Land Lot 1 Haidian, Beijing Chaoyang, Beijing RMB2.7B/US$402M in Q1 in Q1
Dinghao Plaza ▼ Haidian, Beijing ▼ CBD Core Area Z-03 RMB5.72B/US$852M Chaoyang, Beijing in Q1 ◄ Noble Center Phase III RMB758M/US$113M Fengtai, Beijing in Q1 RMB1.546B/US$230M in Q1
Zhongkun Plaza ► Haidian, Beijing RMB9.0B/US$1.34B in Q1 The Besunyen Building ► Haidian, Beijing RMB555M/US$82.7M in Q1 ◄ OCT Tower Nanshan, Shenzhen ◄ Central Walk RMB11.0B/US$1.64B Futian, Shenzhen in Q1 RMB6.5B/US$968.3M in Q1
Ascendas Plaza (45%) ▼ ◄ Ascendas Innovation Place Xuhui, Shanghai (45%) in Q1 Huangpu, Shanghai ► LCMetropolis in Q1 Pudong, Shanghai RMB1.2B/US$179M Pudong Financial Square in Q1 Building 2 ▼ Pudong, Shanghai RMB2.352B/US$350M in Q1
◄ Yifang Tower Hongkou, Shanghai RMB4.6B/US$685M in Q1
savills.com/research 22 Major Transactions Q1/2019
Hong Kong
Lake Silver ► Sha Tin HK$653M/US$83.7M in January
◄ Centre Hollywood Sheung Wan HK$700M/US$89.7M Mapletree Bay ► ▲28/F The Center in February Central Kwun Tong HK$824M/US$105.6M HK$8.6B/US$1.1B in January in February
India
◄ Horizon on the Highway (49% stake) (Hines) Udyog Vihar, Gurgaon Waverock ► INR8.96B/US$128M Hyderabad in March INR19.95B/US$285M in March
Japan
◄ G-BASE Tamachi Minato, Tokyo JPY28.2B/US$259M in February
Malaysia
◄ Wisma KFC Royal Chulan Bukit Bintang ▼ City Centre, Kuala Lumpur City Centre, Kuala Lumpur RM130M/US$31.46M RM197M/US$47.67M in February in March
A 4.63-acre development land ▲ Suburban, Kuala Lumpur Wisma MPL ► RM90.3M/US$21.85M City Centre, Kuala Lumpur in March RM189M/US$45.74M in March
23 Major Transactions Q1/2019
Singapore
◄ Ascott Raffl es Place Liang Court ► Singapore River Valley Road Finlayson Green S$400.0M/US$293.6M S$353.3M/US$259.4M in March in January ◄ Rivervale Mall Rivervale Crescent S$230.0M/US$168.8M in March
South Korea
Samsung SDS Tower ► Jamsil KRW628B/US$558.2M in January
◄ WeWork Tower (former PCA Life Tower) GBD ▲ Seoul Square KRW140.5B/US$124.9M CBD in February KRW988.3B/US$878.4M in March
Taiwan
◄ Leadwell Taichung Factory Nasa Technology Building (7/F-10/F) ► Taichung City Taipei City TWD1.82B/US$60M TWD2.16B/US$72M in January in February
85 Sky Tower (34/F, 35/F, 37/F-85/F) ► ◄ Next TV D Building Kaohsiung City Taipei City TWD5.44B/US$181M TWD1.45B/US$48M in March in March
savills.com/research 24 Asia Pacifi c Investment Quarterly
NOTES PAGE
25 Asia Pacifi c Investment Quarterly
NOTES PAGE
savills.com/research 26 Savills Regional Investment Advisory, Asia Pacifi c
Regional Investment Advisory Regional Research and Consultancy Frank Marriott Simon Smith Email: [email protected] Email: [email protected] Tel: +852 2842 4475 Tel: +852 2842 4573 23/F, Two Exchange Square, Central, Hong Kong 1202-04, Cityplaza One, 1111 King's Road, Taikoo Shing, Hong Kong
ASIA Indonesia Thailand PT Savills Consultants Indonesia Robert Collins Greater China Jeffrey Hong Email: [email protected] Hong Kong SAR Email: [email protected] Tel: +66 2 636 0300 Raymond Lee 26/F, Abdulrahim Place, 990 Rama IV Road, Tel: +62 21 293 293 80 Email: [email protected] Bangkok 10500, Thailand Tel: +852 2842 4518 Panin Tower - Senayan City, 16th floor, Unit C, Jl. 23/F, Two Exchange Square, Central, Hong Kong Asia Afrika Lot. 19, Jakarta 10270, Indonesia Viet Nam With offices in Tsim Sha Tsui and Taikoo Japan Neil MacGregor Christian Mancini Email: [email protected] Central China Email: [email protected] Tel: +84 8 3823 9205 Wing Chu 18/F, Ruby Tower, 81-85 Ham Nghi Street, District 1, Tel: +81 3 6777 5150 Email: [email protected] Ho Chi Minh City, Viet Nam Tel: +8621 6391 6689 15/F Yurakucho ITOCiA, 2-7-1 Yurakucho, Unit 2501-13, Two ICC, No. 288 South Shanxi Road, Chiyoda-ku, Tokyo 100-0006, Japan With an office in Ha Noi Shanghai 200031, PRC Korea AUSTRALASIA Northern China Crystal Lee Email: [email protected] Anthony Mcquade Australia Email: [email protected] Tel: +822 2124 4114 Paul Craig Tel: +8610 5925 2002 13/F, Seoul Finance Center, 84 Taepyungro-1-ga, Email: [email protected] Unit 01, 21/F East Tower, Twin Towers, B-12 Chung-gu, Seoul 100-768, Korea Tel: +61 2 8215 8888 Jianguomenwai Avenue, Chaoyang, Beijing 100022, PRC Malaysia Level 25, 1 Farrer Place, Sydney, Australia Southern China Christopher Boyd Woody Lam Email: [email protected] Offices throughout Sydney, Parramatta, Canberra, Email: [email protected] Tel: +60 3 2092 5955 Melbourne, Notting Hill, Adelaide, Perth, Brisbane, Tel: +8620 3665 4777 Level 9, Menara Milenium, Jalan Damanlela, Bukit Gold Coast and Sunshine Coast Suite 1301, R&F Center, No. 10 Hua Xia Road, Damansara, 50490 Kuala Lumpur, Malaysia Zhujiang New Town, Guangzhou 510623, PRC New Zealand With 2 branches throughout Malaysia Paddy Callesen Western China Phillipines Email: [email protected] Eric Wo Tel: +64 0 9 951 5911 KMC MAG Group Email: [email protected] Level 6, 41 Shortland Street, Auckland, Tel: +8628 8658 7828 Michael McCullough NZ 1010, New Zealand Room 2106, Yanlord Landmark Square, No. 1 Section 2, Email: [email protected] Renmin South Road, Jinjiang District, Chengdu, PRC Tel: +632 403 5519 NORTH AMERICA 8/F Sun Life Centre, 5th Ave, With offices in Chongqing, Dalian, Hangzhou, Savills Studley Bonifacio Global City 1634, Philippines Nanjing, Shenyang, Shenzhen, Tianjin, Wuhan, Woody Heller Xiamen, Xi'an and Zhuhai Singapore Email: [email protected] Christopher Marriott Tel: +1 212 326 1000 Macau SAR Email: [email protected] 399 Park Avenue, 11th Floor, New York, Franco Liu NY 10022 Email: [email protected] Tel: +65 6415 7582 Tel: +853 2878 0623 30 Cecil Street, #20-03 Prudential Tower, Suite 1309-10, 13/F Macau Landmark, Singapore 049712 UNITED KINGDOM & EUROPE 555 Avenida da Amizade, Macau Phillip Garmon-Jones Taiwan Email: [email protected] India Ricky Huang Tel: +852 2842 4252 Anurag Mathur Email: [email protected] 23/F Two Exchange Square, Central, Hong Kong Email: [email protected] Tel: +886 2 8789 5828 Tel: +91 22 4090 7300 21F, Cathay Landmark, Offices throughout the United Kingdom, Belgium, WeWork Forum, DLF Cyber City, Phase 3, Sector France, Germany, Hungary, Italy, Netherlands, No. 68, Sec. 5, Zho ngxiao E. Road, 24, Gurgaon, Haryana 122002 Poland, Spain and Sweden Associate offices in Xinyi District, Taipei City 110, Taiwan Austria, Greece, Norway, Portugal, Russia, Turkey With offices in Bengeluru, Chennai and Mumbai With an office in Taichung and South Africa
This document is prepared by Savills for information only. Whilst reasonable care has been exercised in preparing this document, it is subject to change, and these particulars do not constitute, nor constitute part of, an off er or contract; interested parties should not rely on the statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy. No person in the employment of the agent or the agent’s principal has any authority to make any representations or warranties whatsoever in relation to these particulars and Savills cannot be held responsible for any liability whatsoever or for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. This publication may not be reproduced in any form or in any manner, in part or as a whole without written permission of the publisher, Savills. (I/2019) 23/F, Two Exchange Square Central, Hong Kong
savills.com/research