Savills World Research Asia Pacifi c Survey Prime Benchmark 1 January 2018 savills.com.hk/research
SURVEY PRIME BENCHMARK 5 39 Of Asia s Savills Asia Pacific Network Australia Adelaide Brisbane Canberra Gold Coast Gordon Lindfield Melbourne Notting Hill Parramatta Perth Roseville St Ives Sunshine Coast Sydney Turramurra China Beijing Chengdu Chongqing Dalian Guangzhou Hangzhou Nanjing Shanghai Shenyang Shenzhen Tianjin Wuhan Xiamen Xi an Zhuhai Hong Kong Central (2) Taikoo Shing (2) Tsim Sha Tsui India Bangalore Mumbai Gurgaon Indonesia Jakarta Japan Tokyo Macau Macau Malaysia Johor Bahru Kuala Lumpur Penang 3 New Zealand Auckland Christchurch Singapore Singapore (3) South Korea Seoul Taiwan Taichung Taipei Thailand Bangkok Vietnam Da nang Hanoi Ho Chi Minh City Austr 17 Australia & New Zealand Of s 6
1 January 2018 An introduction to Savills Savills is a leading global real estate service provider listed on the London Stock Exchange. The company, established in 1855, has a rich heritage with unrivalled growth. The company now has over 600 offices and associates throughout the Americas, Europe, Asia Pacific, Africa and the Middle East. In Asia Pacific, Savills has 56 regional offices comprising over 25,000 staff. Asia Pacific markets include Australia, China, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Viet Nam. Savills provides a comprehensive range of advisory and professional property services to developers, owners, tenants and investors. These include consultancy services, facilities management, space planning, corporate real estate services, property management, leasing, valuation and sales in all key segments of commercial, residential, industrial, retail, investment and hotel property. A unique combination of sector knowledge and entrepreneurial flair gives clients access to real estate expertise of the highest calibre. We are regarded as an innovativethinking organisation supported by excellent negotiating skills. Savills chooses to focus on a defined set of clients, offering a premium service to organisations and individuals with whom we share a common goal. Savills is synonymous with a high-quality service offering and a premium brand, taking a long-term view of real estate and investing in strategic relationships. savills asia pacific services Asset Management Facilities Management Hotels Industrial Services International Residential Investment & Sales Occupier Services Office Services Project Management Property Management Research & Consultancy Residential Services Retail Services Serviced Apartment Services Valuation & Professional Services Assumptions: 1) 1 sq m = 10.7639 sq ft/0.3025 ping/0.3025 tsubo 2) As of 31 December 2017, RMB/USD = 6.5259; USD/HKD = 7.8114; USD/TWD = 29.81; USD/JPY = 112.01; USD/KRW = 1,071.4; USD/SGD = 1.3363; USD/MYR = 4.0620; USD/VND = 22,800; AUD/USD = 0.80; USD/PHP = 49.92; USD/IDR = 13,548 This report has been prepared to provide a benchmark of occupancy costs of selective prime properties in various cities in Asia, inclusive of rents, management fees and government taxes/rates. Except for the hotel sector, all the costs are quoted on a net floor area basis per month, which is defined as the floor area exclusively allocated to a unit, excluding common areas. As only a small basket of 5 to 10 prime buildings are monitored in each sector, the rental data and occupancy costs reported in this publication might be higher than the average market figures being reported elsewhere. Given varying local market practices, necessary assumptions and judgments are made by our real estate professionals in local offices to achieve comparable results among the different cities. savills.com.hk/research 03
OFFICES 1 January 2018 MARKET CYCLE JAKARTA HO CHI MINCH CITY TOTAL OCCUPANCY COST (TOP 5 AVERAGE) HO CHI HO CHI MINH CITY JAKARTA 0 50 100 150 200 250 300 CITY TOTAL COST RENT (US$ psm net eff. pm) MANAGEMENT FEE () GOV T RATES/TAX () 278.6 145.0 115.3 100.4 96.1 248.8 I 17.3 I 12.4 135.0 I inclusive I 10.0 107.5 I 7.8 I Inclusive 76.2 I 24.3 I Inclusive 96.1 I Inclusive I Inclusive 91.5 79.9 79.1 74.2 66.7 82.0 I 9.5 I Inclusive 74.0 I Inclusive I 5.9 76.0 I 0.7 I 2.4 67.7 I 6.5 I Inclusive 59.3 I 4.4 I 3.0 HO CHI MINH CITY JAKARTA 52.5 52.4 39.9 38.3 33.4 45.9 I 6.6 I Inclusive 41.7 I 6.5 I 4.2 28.9 I 7.4 I 3.6 34.8 I Inclusive I 3.5 27.4 I 4.0 I 1.9 26.5 26.5 I Inclusive I Inclusive 04 Survey Prime Benchmark
OFFICES 1 January 2018 COST CHANGES JUL-DEC 2017 Rental changes in US$ Rental changes in local currency (HKD) (JPY) (CNY) (KRW) (SGD) (CNY) (JPY) (AUD) (CNY) (TWD) (CNY) HO CHI MINH MINH CITY CITY (VND) JAKARTA (IDR) (VND) (PHP) JAKARTA (MYR) -10% -5% 0% 5% 10% 15% 20% 2.4% 2.5% 1.2% 1.2% 4.2% 0.3% 8.0% 1.5% 9.2% 6.0% 4.1% 0.3% 5.4% 5.4% 11.0% 6.7% 5.3% 1.4% 2.7% 1.1% 5.0% 1.2% 0.4% 0.4% -0.7% -0.5% -1.4% -1.4% 2.4% 1.3% 5.7% TOTAL OCCUPANCY COST 2H/2007-2H/2017 Beijing Hong Shanghai Kong Taipei Kong Tokyo Seoul Singapore Sydney 300 250 US$ per sqm per mth net 200 150 100 50 0 savills.com.hk/research 05
RETAIL MALLS 1 January 2018 MARKET CYCLE HO CHI MINH CITY JAKARTA TOTAL OCCUPANCY COST (TOP 5 AVERAGE) # # JAKARTA HO CHI HO CHI MINH CITY 0 200 400 600 800 1,000 1,200 1,400 CITY TOTAL COST RENT (US$ psm net eff. pm) MANAGEMENT FEE () GOV T RATES/TAX () # 1,241.3 525.0 467.2 374.9 362.1 1,152.3 I 31.4 I 57.6 486.1 I inclusive I 38.9 467.2 I Inclusive I Inclusive 361.9 I 12.9 I Inclusive 348.5 I 13.6 I Inclusive 275.5 253.0 232.1 210.4 196.9 275.5 I Inclusive I Inclusive 229.1 I 12.4 I 11.5 223.1 I 9.0 I Inclusive 195.5 I 14.9 I Inclusive 182.3 I inclusive I 14.6 JAKARTA HO CHI MINH CITY 176.7 170.7 134.2 122.2 114.2 160.0 I 16.7 I Inclusive 170.7 I Inclusive I Inclusive 122.0 I Inclusive I 12.2 97.4 I 13.7 I 11.1 95.6 I 9.0 I 9.6 47.6 39.3 I 5.4 I 3.0 # As prime retail mall rental figures are not available for Tokyo, average prime high street retail rents are used instead. 06 Survey Prime Benchmark
RETAIL MALLS 1 January 2018 COST CHANGES JUL-DEC 2017 Rental changes in US$ Rental changes in local currency (HKD) (JPY) # (SGD) (CNY) (CNY) (AUD) (TWD) (CNY) (CNY) (JPY) (KRW) (MYR) (VND) JAKARA (IDR) JAKARTA HO CHI MINH MINH CITY CITY (VND) (PHP) -10% -5% 0% 5% 10% 15% -0.1% 4.0% 0.9% 1.9% -1.8% 6.2% 2.3% 4.0% 0.8% -0.7% 9.9% 5.9% 9.1% 5.1% 3.9% 3.8% 7.5% 1.0% 5.7% -1.6% -1.6% -3.3% -1.6% 0.4% 0.4% 3.5% 2.4% TOTAL OCCUPANCY COST 2H/2007-2H/2017 Hong Beijing Shanghai Kong Taipei Tokyo Seoul Singapore Sydney 1,400 1,200 US$ per sqm per mth net 1,000 800 600 400 200 0 # As prime retail mall rental figures are not available for Tokyo, average prime high street retail rents are used instead. savills.com.hk/research 07
LUXURY APARTMENTS 1 January 2018 MARKET CYCLE TOTAL OCCUPANCY COST (TOP 10 AVERAGE) * 0 20 40 60 80 100 CITY TOTAL COST RENT (US$ psm net eff. pm) MANAGEMENT FEE () GOV T RATES/TAX () * 95.8 74.2 60.9 40.9 39.5 83.0 I 8.6 I 4.2 74.2 I Inclusive I Inclusive 60.9 I Inclusive I Inclusive 40.9 I Inclusive I Inclusive 39.5 I Inclusive I Inclusive 35.1 32.9 31.0 28.8 26.2 35.1 I Inclusive I Inclusive 28.8 I 2.6 I 1.4 31.0 I Inclusive I Inclusive 28.8 I Inclusive I Inclusive 26.2 I Inclusive I Inclusive 23.1 21.6 9.0 22.3 I 0.8 I Inclusive 21.6 I Inclusive I Inclusive 9.0 I Inclusive I Inclusive * Seoul s rent = (Security deposit x Interest rate) / 12 + Monthly payment 08 Survey Prime Benchmark
LUXURY APARTMENTS 1 January 2018 COST CHANGES JUL-DEC 2017 (HKD) -10% -5% 0% 5% 10% 15% 20% 25% 4.6% 4.6% Rental changes in US$ Rental changes in local currency (JPY) * (KRW) (CNY) * (SGD) (CNY) -2.1% -2.1% 9.0% 2.4% 4.3% 0.5% 2.4% -0.6% 5.5% 1.7% (TWD) (JPY) 0.2% -1.3% 2.9% 2.9% (CNY) (AUD) (CNY) (PHP) (MYR) 18.3% 14.0% 4.0% -4.5% -8.0% 3.4% 2.2% 7.5% 1.7% TOTAL OCCUPANCY COST 2H/2007-2H/2017 Hong Beijing Shanghai Kong Tokyo Seoul Singapore 140 120 US$ per sqm per mth net 100 80 60 40 20 0 * Seoul s rent = (Security deposit x Interest rate) / 12 + Monthly payment savills.com.hk/research 09
VILLAS/TOWNHOUSES 1 January 2018 MARKET CYCLE TOTAL OCCUPANCY COST (TOP 5 AVERAGE) 0 20 40 60 80 100 120 CITY TOTAL COST RENT (US$ psm net eff. pm) MANAGEMENT FEE () GOV T RATES/TAX () 101.6 58.0 37.6 34.1 86.6 I 10.6 I 4.3 58.0 I Inclusive I Inclusive 37.6 I Inclusive I Inclusive 34.1 I Inclusive I Inclusive 31.6 31.1 25.6 31.6 I Inclusive I Inclusive 31.1 I Inclusive I Inclusive 25.6 I Inclusive I Inclusive 010 Survey Prime Benchmark
VILLAS/TOWNHOUSES 1 January 2018 COST CHANGES JUL-DEC 2017 Rental changes in US$ (HKD) -10% -5% 0% 5% 10% 15% 2.4% 2.5% Rental changes in local currency (AUD) 4.0% (CNY) 3.0% -0.8% (CNY) 4.0% 0.2% (SGD) 3.1% (CNY) 4.8% 0.9% (CNY) 5.8% 1.9% TOTAL OCCUPANCY COST 2H/2007-2H/2017 Beijing Shanghai Singapore Hong Kong 160 140 US$ per sqm per mth net 120 100 80 60 40 20 0 savills.com.hk/research 011
LUXURY SERVICED APARTMENTS 1 January 2018 MARKET CYCLE HO CHI MINH CITY TOTAL OCCUPANCY COST (TOP 5 AVERAGE) 0 20 40 60 80 100 120 140 160 180 200 HO CHI HO CHI MINH CITY CITY TOTAL COST RENT (US$ psm net eff. pm) MANAGEMENT FEE () GOV T RATES/TAX () 184.9 126.0 104.0 103.9 95.2 175.2 I Inclusive I 9.7 126.0 I Inclusive I Inclusive 94.8 I Inclusive I 9.2 103.9 I Inclusive I Inclusive 95.2 I Inclusive I Inclusive 87.6 86.0 61.5 60.1 54.6 87.6 I Inclusive I Inclusive 86.0 I Inclusive I Inclusive 61.5 I Inclusive I Inclusive 60.1 I Inclusive I Inclusive 54.6 I Inclusive I Inclusive HO CHI MINH CITY 44.9 38.9 36.6 29.2 10.9 44.9 I Inclusive I Inclusive 35.4 I Inclusive I 3.5 32.1 I 3.2 I 1.3 26.5 I Inclusive I 2.7 10.9 I Inclusive I Inclusive 012 Survey Prime Benchmark
LUXURY SERVICED APARTMENTS 1 January 2018 COST CHANGES JUL-DEC 2017 (AUD) -10% -5% 0% 5% 10% 15% 4.0% Rental changes in US$ Rental changes in local currency (HKD) (KRW) 9.1% 9.2% -5.9% (JPY) 1.9% 1.8% (SGD) 1.3% -1.7% (JPY) 1.5% 1.5% (PHP) (CNY) (CNY) (CNY) (CNY) 2.4% 1.3% 7.0% 3.1% 3.8% 6.6% 2.7% 3.7% -0.1% (VND) (TWD) -5.7% -5.7% -0.7% -2.2% HO CHI MINH MINH CITY CITY (VND) (MYR) -8.4% -8.4% 2.7% -2.8% TOTAL OCCUPANCY COST 2H/2007-2H/2017 Hong Beijing Shanghai Kong Tokyo Seoul Singapore US$ per sqm per mth net 180 160 140 120 100 80 60 40 20 0 savills.com.hk/research 013
HOTELS 1 January 2018 MARKET CYCLE HO CHI MINH CITY TOTAL OCCUPANCY COST (TOP 5 AVERAGE) US$ per room per night 0 100 200 300 400 500 600 700 HO CHI HO CHI MINH CITY CITY ROOM RATE US$ per room per night 627.2 624.9 502.2 478.4 419.1 375.6 342.9 324.2 298.6 291.0 HO CHI MINH CITY 289.6 212.2 167.0 155.3 139.5 014 Survey Prime Benchmark
HOTELS 1 January 2018 COST CHANGES DEC 2017 YoY (AUD) -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 7.1% 0.4% Rental changes in US$ Rental changes in local currency (JPY) (HKD) (SGD) 5.4% 0.9% 15.2% 16.0% 14.6% 5.8% (JPY) (KRW) (TWD) 5.9% 1.4% 17.9% 4.5% 12.9% 4.4% (CNY) (PHP) (CNY) (CNY) (CNY) 18.0% 11.7% 1.4% 1.6% 2.6% -3.6% 5.7% 26.1% 19.4% (VND) 27.5% 27.5% HO CHI MINH CITY HO CHI MINH CITY (VND) (MYR) -6.4% -6.4% 24.4% 13.5% TOTAL OCCUPANCY COST 2H/2007-2H/2017 Hong Beijing Shanghai Kong Tokyo Seoul Singapore 900 800 700 US$ per room per night 600 500 400 300 200 100 0 savills.com.hk/research 015
ASIA PACIFIC HEADQUARTERS 23/F Two Exchange Square, Central, Hong Kong Tel: (852) 2842 4400 Fax: (852) 2868 4386 ASIA PACIFIC EXECUTIVE COMMITTEE CEO, Greater China Contact: Raymond Lee E-mail: rlee@savills.com.hk Contact: Christian Mancini E-mail: cmancini@savills.co.jp Contact: Robert McKellar E-mail: rmckellar@savills.asia CEO, South East Asia Contact: Christopher Marriott E-mail: cjmarriott@savills.asia Contact: Tim Robinson E-mail: tbrobinson@savills.asia CEO, Australia & New Zealand Contact: Paul Craig E-mail: pcraig@savills.com.au SAR Savills (Hong Kong) Limited 23/F Two Exchange Square, Central, Hong Kong Tel: (852) 2842 4534 Fax: (852) 3007 2458 Contact: Raymond Lee E-mail: rlee@savills.com.hk EA Co. Licence: C-002450 Savills Valuation and Professional Services Limited 23/F Two Exchange Square, Central, Hong Kong Tel: (852) 2840 4806 Fax: (852) 3007 4523 Contact: Charles Chan E-mail: ccchan@savills.com.hk EA Co. Licence: C-023750 Savills Property Management Holdings Limited 805-13 Cityplaza One, 1111 King s Road, Taikoo Shing, Hong Kong Tel: (852) 2534 1688 Fax: (852) 2508 1883 Contact: Johnnie Chan E-mail: jckchan@savills.com.hk EA Co. Licence: C-002993 Savills Guardian (Holdings) Limited 7/F Cityplaza One, 1111 King s Road, Taikoo Shing, Hong Kong Tel: (852) 2512 1838 Fax: (852) 2887 3698 Contact: Peter Ho E-mail: peterho@savillsguardian.com.hk EA Co. Licence: C-004089 MACAU SAR Savills - Macau Savills (Macau) Limited Suite 1309-10, 13/F Macau Landmark, 555 Avenida da Amizade, Macau Tel: (853) 8506 6288 Fax: (853) 2878 1805 CHINA Savills - Shanghai 25/F Two ICC, 288 South Shaanxi Road, Shanghai 200031, China Tel: (86) 21 6391 6688 Fax: (86) 21 6391 6699 Contact: Siu Wing Chu E-mail: siuwing.chu@savills.com.cn Savills - Beijing 2101 East Tower, Twin Towers, B-12 Jianguomenwai Avenue, Chaoyang District, Beijing 100022, China Tel: (86) 10 5925 2288 Fax: (86) 10 5925 2299 Contact: Billy Chau E-mail: billy.chau@savills.com.cn Offices in Chengdu, Chongqing, Dalian, Guangzhou, Hangzhou, Nanjing, Shenyang, Shenzhen, Tianjin, Xiamen, Xi an and Zhuhai ASIA Savills - Indonesia PT Savills Consultants Indonesia Panin Tower Senayan City, 16th Floor, Unit C JI. Asia Afrika Lot. 19, Jakarta 10270, Indonesia Tel: +62 (21) 293 293 80 Fax: +62 (21) 293 293 81 Contact: Craig Williams Email: craig.williams@savills.co.id Savills - Japan Savills Japan Co., Ltd 15/F Yurakucho ITOCiA, 2-7-1 Yurakucho, Chiyoda-ku Tokyo 100-0006, Japan Tel: (81) 03 6777 5150 Fax: (81) 3 6777 5105 Contact: Christian Mancini E-mail: cmancini@savills.co.jp Savills - Korea Savills Korea 13/F Seoul Finance Center, 136 Sejong-daero Jung-gu, Seoul 04520, Korea Tel: (82) 2 2124 4201 Fax: (82) 2 2124 4188 Contact: Crystal Lee E-mail: csjlee@savills.co.kr Savills - Malaysia Savills (Malaysia) Sdn Bhd Level 9, Menara Milenium, Jalan Damanlela, Bukit Damansara 50490 Kuala Lumpur, Malaysia Tel:+603 2092 5955 Contact: Christopher Boyd Email: chris.boyd@savills.com.my Savills - Singapore Savills (Singapore) Pte Ltd. 30 Cecil Street, #20-03 Prudential Tower, Singapore 049712 Tel: (65) 6836 6888 Fax: (65) 6836 2668 Contact: Christopher Marriott E-mail: cjmarriott@savills.asia Savills - Taiwan Savills (Taiwan) Limited 21/F Cathay Landmark, No.68, Sec. 5, Zhongxiao E. Road Xinyi District, Taipei City 110, Taiwan Tel: (886) 2 8789 5828 Fax: (886) 2 8789 5929 Contact: Cynthia Chu E-mail: cchu@savills.com.tw Office in Taichung Savills - Thailand Savills (Thailand) Limited 26/F Abdulrahim Place, 990 Rama IV Road Silom, Bangrak, Bangkok 10500, Thailand Tel: (66) 2 636 0300 Fax: (66) 2 636 0339 Contact: Robert Collins E-mail: rcollins@savills.co.th Savills - Vietnam Savills Vietnam Ltd. Co. 18/F, Ruby Tower, 81-85 Ham Nghi Street District 1, Ho Chi Minh City, Vietnam Tel: (84) 28 3823 9205 Fax: (84) 28 3823 4571 Contact: Neil MacGregor E-mail: nmacgregor@savills.com.vn Offices in Danang, Hanoi and Ho Chi Minh City INDIA Savills - Bangalore WeWork EGL, 4th Floor, Cinnabar Hills, Embassy Golf Links, Intermediate Ring Road, Domlur, Bangalore 560017 India Tel: (91) 95351 29604 Contact: Bryan Kidd Email : bkidd@savills.in Offices in Gurgaon and Mumbai AUSTRALIA Savills - Sydney Savills (Aust) Pty Ltd. Level 25, 1 Farrer Place, Sydney, Australia NSW 2000 Tel: (61) 2 8215 8830 Fax: (61) 2 8215 8899 Contact: Simon Fenn E-mail: sfenn@savills.com.au Savills - Melbourne Level 48, 80 Collins Street, Melbourne VIC 3000 Tel: (61) 3 8686 8000 Fax: (61) 3 8686 8088 Contact: Stuart Fox E-mail: sfox@savills.com.au Offices in Adelaide, Brisbane, Canberra, Gold Coast, Notting Hill, Parramatta, Perth and Sunshine Coast NEW ZEALAND Savills - New Zealand Level 6, 41 Shortland Street, Auckland NZ 1010 Tel: (64) 9 951 5911 Contact: Paddy Callesen E-mail: pcallesen@savills.co.nz Offices in Auckland and Christchurch THE AMERICAS Savills New York Savills Studley, 399 Park Avenue, 11th Floor, New York, NY 10022 Tel: (1) 212 326 8610 Fax: (1) 212 326 1034 Contact: Mitchell Steir E-mail: msteir@savills-studley.com Offices across Canada, the Caribbean, Colombia, Mexico and the United States UNITED KINGDOM, EUROPE, THE MIDDLE EAST AND AFRICA Savills - Europe Savills, 33 Margaret Street, London W1G 0JD Tel: (44) 207 499 8644 Fax: (44) 207 495 3773 Contact: Mark Ridley E-mail: mridley@savills.com Offices across Austria, Bahrain, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Guernsey, Hungary, Ireland, Italy, Jersey, Luxembourg, Monaco, Netherlands, Norway, Poland, Portugal, Qatar, Russia, South Africa, Spain, Sweden, Switzerland, UAE and the United Kingdom Upd U a d ted: 5 March r 18 s globally. This document is prepared by Savills for information only. Whilst reasonable care has been exercised in preparing this document, it is subject to change without prior notice and these particulars do not constitute, nor constitute part of, an offer or contract; interested parties should seek independent professional advice from lawyer, accountant and surveyor and should not rely on the statements or representations herein but must satisfy themselves by inspection or otherwise as to the accuracy, completeness and correctness of the contents hereto. No warranties or representations whatsoever is given by Savills in respect of the contents hereto. 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. Savills (Hong Kong) Limited. 2018 (III/18)