COLLIERS INSIGHTS VALUATION & ADVISORY SERVICES | ASIA | DECEMBER 2019 ASIA INFRASTRUCTURE SNAPSHOT An Overview of Infrastructure Projects across Asia P.4-9 CHINA 37 4 143 FOREWORD AIRPORTS RAIL LINES METRO LINES 57.7M+ 65 2,100 1,754 2,800 additional passenger capacity stations km+ stations km+ During the next decade Asia will see massive investment in transportation infrastructure as cities become more connected and districts within cities P.10-15 become more accessible. The major investment will be in China and India, supported by their large populations, but many of the ASEAN countries are INDIA also investing in their transportation infrastructure. 18 1 18 AIRPORTS RAIL LINE METRO LINES Many of the airports built in Asia in the past 20 years have now reached or exceeded their design capacities leading to a programme of expansion 336M+ 12 508 884 1,130 in many of the leading cites, while the smaller cities are seeing the additional passenger capacity stations km stations km development of new airports either to replaced outdated facilities or to improve their connectivity with the major population centres. P.16-17 High speed rail has proven to be a viable substitute for air travel in China and other markets in the region are now expanding their rail development INDONESIA programmes, but it is mass transit systems in cities that are making the 3 1 5 AIRPORTS RAIL LINE METRO LINES greatest difference to urban travel to both reduce road congestion in city centres, and to open up suburban and fringe areas for new development. 40M 4 142 65 100 stations km+ The common thread across all the projects is real estate. Airport cities and additional passenger capacity stations km developments above and around railway and metro stations are being used to contribute to both the capital cost of development of infrastructure and P.18-23 also the ongoing operation, and no major transport system would now be planned without considering the contribution of real estate. PHILIPPINES This report sets out the major infrastructure developments in a selection of 6 4 6 AIRPORTS RAIL LINES METRO LINES Asian markets and outlines the investment and development opportunities that are likely to flow from them. 100M+ 59 959 52 89 additional passenger capacity stations km+ stations km DAVID FAULKNER Managing Director | Valuation & Advisory Services | Asia P.24-29 Tel: +852 2822 0525 SINGAPORE & Email: [email protected] MALAYSIA 2 6 11 AIRPORTS RAIL LINES METRO LINES 76M 51 1,548 218 304 additional passenger capacity stations km+ stations km+ Note: All the figures and measurements in this report are approximate and not absolute. ASIA INFRASTRUCTURE SNAPSHOT | VALUATION & ADVISORY SERVICES | ASIA | 5 SHANXI INNER MONGOLIA Shuozhou Airport Zhenglanqi Civil Airport Chifeng Linxi Airport CHINA Xilingol League Dongwuqi Airport SHAANXI Fugu Airport [2022] JILIN Baoji Airport [2021] Siping Airport [2020] Dingbian Airport [2021] HEILONGJIANG GANSU Suifenhe Airport [2020] AIRPORTS Pingliang Airport [2020] HENAN Lushan Airport 37 Shangqiu Airport [2021] MAJOR AIRPORT PROJECTS 3 XINJIANG Tashkurgan Airport HEBEI Yu Tian Airport Xingtai Airport 57.7M+ ADDITIONAL PASSENGER CAPACITY SHANDONG Heze Airport [2019] Zaozhuang Shanting Airport [2022] Colliers identified 37 new or expansion airport projects across China, the majority of which ANHUI Bengbu Airport [2025] are in regional cities with no or limited airlift. CHONGQING Wuhu Xuancheng Airport [2020] Wulong Airport [2018–2020] Haozhou Airport [2022] The development of new airports across China will bring the country closer to CHENGDU becoming the largest air transport market in Chengdu Tianfu International Airport [Stage 1: 2021] the world by 2024. Leshan Airport [2017–2022] ZHEJIANG Jiaxing Airport [2021] Colliers expects airport projects to provide significant YUNNAN Lishui Airport [2020] benefits to the regional economies and real estate Nujiang Airport [2016–2020] markets, including: HUBEI > Support the development of new airport-oriented Huanggang Airport economic zones and logistics centres GUIZHOU Jingzhou Airport [2020] > Promote the economic diversification and regeneration Weining Airport [2022] of peripheral regional cities with limited airlift. Qianbei Airport > Boost the tourism industry of regional Chinese cities JIANGXI HUNAN Fuzhou Airport Xiangxi Airport [2020] Ruijin Airport [2020] Xinhua Youjia Town Chuntian Airport [2024] Loudi General Airport GUANGDONG Chenzhou Beihu Airport [2020] Shaoguan Airport [2025] Capital International Regional Domestic Civil-military co-use [Expected completion year] ASIA INFRASTRUCTURE SNAPSHOT | VALUATION & ADVISORY SERVICES | ASIA | 7 SHENYANG-BAIHE HIGH SPEED RAILWAY New rail line RAIL 438 km (HIGH SPEED RAIL) 13 stations > Connecting Liaoning and Jilin > Economic and residential development opportunities 4 are expected along the new rail corridor, which will RAIL LINE PROJECTS have an upward effect on land values BEIJING-KOWLOON HIGH SPEED New rail line (partial) 65 638 km STATIONS 16 stations > Beijing-Henan section 2,100km+ > Land values along the railway line TOTAL LENGTH are expected to rise, particularly in the Xiongan New Area (Hebei) SICHUAN-TIBET RAILWAY New rail line [2027] 403.11 km 18 stations > Connecting Chengdu to Lhasa > More development opportunities in Tibet > Local tourism industry enhanced by CHONGQING-KUNMING HIGH-SPEED RAILWAY reduced travelling time by train New rail line [2025] 698.96 km 18 stations > Connecting Chongqing to Kunming > Increased rail connectivity is expected to generate economic opportunities in a low-income region, particularly in the logistics sector Capital Rail line terminals Rail lines (for illustration purpose only) [Expected completion year] ASIA INFRASTRUCTURE SNAPSHOT | VALUATION & ADVISORY SERVICES | ASIA | 9 > The city express lines are planned > The land values in the sub-centres of Beijing expected to be positively for the city’s expanding development impacted with the reduced commuting time between the core city and beyond the core city to connect the surrounding new towns located northeast of Beijing surrounding areas with the core city > Land value and residential housing market along the new added lines METRO > Land value and residential housing are expected to significantly increase prices along the new lines are > Expansion of the transit system will open up new areas for commercial expected to significantly increase and residential development > Significant opportunities will emerge for transit-oriented developments 143 17 19 METRO LINE PROJECTS New & expansion [2023] New & expansion [2020] 450.41 km 248.2 km 222 stations 123 stations 1,754 WUHAN BEIJING STATIONS > Land value and residential housing prices along the new added lines are + expected to significantly increase 2,800km+ > Expansion of the transit system will TOTAL LENGTH open up new areas for commercial 9 and residential development New & expansion [2023] > Significant transit-oriented km 228.1 development (TOD) opportunities will 163 stations emerge around new stations TIANJIN 17 14 New & expansion [2023] New & expansion [2023] > The land value around Pi Town, core 418.06 km 289.19 km city and high-tech zone is expected 11 New & expansion [2023] to increase considerably 231 stations 170 stations 414.2 km > Significant transit-oriented NANJING development (TOD) opportunities CHENGDU 217 stations will emerge around new stations SHANGHAI 15 6 New & expansion [2023] New metro lines [2020] 258.1 km 53.77 km 26 New & expansion [2023] 210 stations 104 stations > Shorter commuting time will 465.3 km GUANGZHOU raise residential land values FOSHAN along the Guangfo line 314 stations SHENZHEN Capital City Bubble size proportional to the number of projects [Expected completion year] ASIA INFRASTRUCTURE SNAPSHOT | VALUATION & ADVISORY SERVICES | ASIA | 11 PROJECTS [2025–2030] > Managed by private operators, these airports cater to India’s largest INDIA Amritsar metropolitan regions. While Bangalore and Hyderabad are undergoing significant capacity expansion, Mumbai and Delhi airports are focused on monetizing landside real estate. These airports are expected to create 6-8 million sqm of office, hospitality, retail and entertainment JEWAR AIRPORT developments over the next 5-10 years [PHASE I: 2023] > 5,000 hectares airport to complement the existing Delhi airport in the PROJECTS National Capital Region. Planned to [2023] AIRPORTS have six runways, making it among the > Recently awarded to the private sector, these airports are expected to world’s largest airports add significant capacity, undergo modernization and create demand for > Zurich Airport recently emerged as landside development the successful bidder to implement on PPP basis. The project will create real Delhi Airport estate development opportunities along 18 the Yamuna Expressway in the State of AIRPORT PROJECTS Uttar Pradesh and the NCR Lucknow Airport Jaipur Airport Guwahati Airport 336M+ Varanasi ADDITIONAL PASSENGER CAPACITY Ahmedabad Airport Kolkata Airport Indore Pune Airport Raipur BHOGAPURAM AIRPORT Mumbai Airport [2024] Nagpur Airport Bhubaneswar > A new airport near Visakhapatnam > The PPP project will open up opportunities NAVI MUMBAI AIRPORT across all sectors in the newly formed [PHASE I: 2022] State of Andhra Pradesh, and also the industrial belt along India’s east coast > A new 1,160 hectare airport > Planned as a secondary airport to Hyderabad Airport decongest Mumbai airport, the project will have connectivity to metro as well PROJECTS as the Trans-Harbour Link.