Colliers AsiA offiCe leAsing survey

3Q 2012

exeCutive summAry

Colliers International is delighted to present the results of our 3Q 2012 Asia Office Leasing Survey. We surveyed all of our office leasing professionals in Asia through an on-line questionnaire in early September 2012.

Based on the findings of our Survey and the methodology of Diffusion Index (DI), Colliers Asia Office Leasing Market Confidence Index was at 55.1% in 3Q 2012 (2Q 2012:64.2%), indicating that market participants are holding positive views on market outlook but their confidence is not as strong as previous quarter. The sub-index of real estate requirements decreased to 60.4% in 3Q 2012 from 78.9% in 2Q 2012. It indicates the office tenants are seeking for expansion while the pace of expansion was less aggressive. In terms of rental expectations, market expectation is less strong when compared with 2Q 2012 since the reading of the rental expectations sub-index decreased to 67.0% in 3Q 2012 from 72.2% in 2Q 2012.

Colliers Asia Office Leasing Market Confidence Index

MAIN-INdex Market Confidence sub-INdex New Leasing Inquiry Real Estate Requirements Landlords Expectations Rental Expectations

1Q 2012 62.9% 1Q 2012 52.8% 79.3% 49.4% 70.0%

2Q 2012 64.2% 2Q 2012 54.4% 78.9% 51.1% 72.2%

3Q 2012 55.1% 3Q 2012 51.4% 60.4% 41.5% 67.0%

The readings of the Index and Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.

Colliers Asia Office Leasing Survey 3Q 2012

neW inQuiry groWing At sloWer PACe

New LeAsINg INQuIry
The overall level of new office leasing inquiry decreased in 3Q 2012. As reported, there were 25.5% of our brokers saying the level of inquiry was an increase, up from 23.3% in 2Q 2012. However, 22.6% of our brokers saw a decline in new leasing inquiry (2Q 2012: 14.4%). The diffusion index of clients new leasing enquiry was at 51.4% in 3Q 2012, decreased from the 54.4% in 2Q 2012.

Compared to last quarter, how do you see the level of new leasing inquiries in 3Q 2012?

New Leasing Inquiry Sub-Index

The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.

Colliers Asia Office Leasing Survey 3Q 2012

BAnKing AnD finAnCe is tHe most ACtive

Most ActIve teNANt groups
Similar to the preceding quarter, the most active office tenants groups remained Banking, Finance, Insurance (FIRE) and IT sectors during 3Q 2012. Breaking down by key business sectors, rise in activity happened in Banking, Finance, Insurance (FIRE), IT and Professional Consultants sectors.

Which of the following tenant groups are the most active in your market?

Colliers Asia Office Leasing Survey 3Q 2012

less Aggressive in exPAnsions

cLIeNts reAL estAte reQuIreMeNts
About 41.5% of our brokers saw an increase of real estate requirements from their clients; the percentage was lower than that in 2Q 2012 (i.e. 62.2%). Across the various key markets in the region, 20.8% of our brokers said a contraction of their clients real estate requirements during 3Q 2012, compared with 4.4% in previous quarter. The reading of diffusion index of clients real estate requirements was at 60.4% in 3Q 2012 as compared to 78.9% in 2Q 2012, suggesting the clients are less aggressive in taking on additional space in 3Q 2012.

In view of your clients requirements, what are their real estate requirements?

Real Estate Requirements Sub-Index

The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.

Colliers Asia Office Leasing Survey 3Q 2012

lAnDlorDs BeCAme CAutious

LANdLords expectAtIoNs
In 3Q 2012, over half of the landlords (ie. 54.7%) offered the same level of leasing incentives as previous quarter. More landlords (31.1% in 3Q 2012 vs 23.3% in 2Q 2012) were being more generous in offering leasing incentives. The reading of diffusion index of landlords' expectations was at 41.5% in 3Q 2012. Since it was below the 50%-mark, it signified that landlords generally took a cautious view on the market and were being more generous in offering lease incentives.

Looking at leasing incentives (free rent, cash, etc), are landlords in your market :

Landlords Expectations Sub-Index

The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.

Colliers Asia Office Leasing Survey 3Q 2012

Positive exPeCtAtions on rentAl groWtH

reNtAL expectAtIoNs
On a forward-looking basis, fewer brokers (46.2% in 3Q 2012 vs 56.7% in 2Q 2012) expected rents to increase over the next 12 months. Meanwhile, more brokers (41.5% in 3Q 2012 vs 31.1% in 2Q 2012) believed rents will remain stable over the next 12 months. The reading of diffusion index of rental expectations was at 67.0% in 3Q 2012, decreased from 72.2% in 2Q 2012. Since it was above the 50%-mark, our brokers remain positive on prospective trend of office rentals in the next 12 months.

Over the next 12 months, do you expect rents in your market to:

Rental Expectations Sub-Index

The readings of the Sub-Index fall within the range of 0% to 100%. A reading above 50% indicates the market trend is generally improving; below 50% indicates that it is generally declining.

Colliers Asia Office Leasing Survey 3Q 2012

metHoDology
Short questionnaires comprising five key questions had been sent to our office leasing brokers in the Asian region via an online survey platform during the first week of September 2012. Using the technique of * Diffusion Index (DI), the results were used to develop four sub-indices covering (1) New Leasing Inquiry, (2) Real Estate Requirements, (3) Landlords Expectations and (4) Rental Expectations. After all, Colliers Asia Office Leasing Market Confidence Index is a composite index based on the above four diffusion indexes with equal weights. * diffusion Index (dI) = (P1*1) + (P2*0.5) + (P3*0)
P1 = Percentage number of respondents that reported an improvement P2 = Percentage number of respondents that reported no change P3 = Percentage number of respondents that reported a deterioration A reading above 50 percent indicates the market trend is generally improving; below 50 percentage indicates that it is generally declining.

ThE MAIN INdEx

Colliers Asia Office Leasing Market Confidence Index (Leasing Confidence Index) is the main index. It is constructed by using the methodology of Diffusion Index (DI) and the consolidation of four component sub-indices - New Leasing Inquiry, Real Estate Requirements, Landlords Expectations and Rental Expectations. Applying equal weighs to the four sub-indices, the Leasing Confidence Index with reading above 50% indicates the Asia leasing market confidence is general improving. The Index indicates the market confidence is deteriorating when it reads below 50%. Colliers Asia Office Leasing Market Confidence Index = (dI1 + dI2 + dI3 + dI4 )/4 FOuR Sub-INdICES The construction of the four sub-indices is based on the each of the following four questions. NEW LEASINg INQuIRy INdEx Data is taken from the responses to the question Compared to last quarter, how do you see the level of new leasing inquiries in the current quarter?
P1 = Percentage number of respondents that reported an improvement of inquiries P2 = Percentage number of respondents that reported no change P3 = Percentage number of respondents that reported a deterioration of inquires

diffusion Index (dI1) of New Leasing Inquiry = (P1*1) + (P2*0.5) + (P3*0) This is a measurement of the change of clients inquiries during the quarterly period. Based on the methodology of Diffusion Index, the reading above 50% indicates the level of new leasing inquiries is improving during the quarter, and it is declining when it read below 50%.

Colliers Asia Office Leasing Survey 3Q 2012

REAL ESTATE REQuIREMENTS Data is taken from the responses to the question In view of your clients requirements, what are their real estate requirements?
P1 = Percentage number of respondents that reported an expansion of clients requirements P2 = Percentage number of respondents that reported no change P3 = Percentage number of respondents that reported a contraction of clients requirements

diffusion Index (dI2) of Real Estate Requirement = (P1*1) + (P2*0.5) + (P3*0)

This is a measurement of the change of clients requirements. Based on the methodology of Diffusion Index, the reading above 50% indicates the level of clients requirement is expanding during the quarter, and it is contracting when it read below 50%.

LANdLORdS ExPECTATIONS Data is taken from the responses to the question Looking at leasing incentives (free rent, cash, etc), are landlords in your market are being more generous, about the same or being less generous?
P1 = Percentage number of respondents that reported landlords are less generous P2 = Percentage number of respondents that reported about the same P3 = Percentage number of respondents that reported landlords are more generous

diffusion Index (dI3) of Landlords Expectations = (P1*1) + (P2*0.5) + (P3*0)

This is a measurement of landlords expectations on the leasing market with reference to the change of lease incentives being offered to their tenants. Based on the methodology of Diffusion Index, the reading above 50% indicates landlords expectations are improving during the quarter, but it is contracting when it read below 50%.

RENTAL ExPECTATIONS Data is taken from the responses to the question Over the next 12 months, do you expect rents in your market to increase quickly, increase slowly, remain fairly flat or decrease slowly?
P1 = Percentage number of respondents that reported rents to increase either quickly or slowing in the next 12 months P2 = Percentage number of respondents that reported rents to remain fairly flat in the next 12 months P3 = Percentage number of respondents that reported rents to decrease slowly in the next 12 months

diffusion Index (dI4) of Rental Expectations = (P1*1) + (P2*0.5) + (P3*0) This is a measurement of rental expectations on the leasing market with reference to the read of brokers. Based on the methodology of Diffusion Index, the reading above 50% indicates rental expectations over the next 12 months are positive during the quarter, but it is negative when it read below 50%.

Colliers Asia Office Leasing Survey 3Q 2012

For further details, please contact:

greAter cHINA beijing, China 502 Tower W3, Oriental Plaza No 1 East Changan Avenue Dongcheng District Beijing 100738 Tel : 86 10 8518 1633 Fax : 86 10 8518 1638 Amanda gao Managing Director, North China amanda.gao@colliers.com Chengdu, China Unit 1504 Yanlord Landmark 1 Renmin South Road Section 2 Chengdu 610016 Tel : 86 28 8658 6288 Fax : 86 28 8672 3226 Jacky Tsai General Manager jacky.tsai@colliers.com guangzhou, China 702 Teem Tower 208 Tianhe Road Guangzhou 510620 Tel : 86 20 3819 3888 Fax : 86 20 3819 3899 Eric Lam Managing Director eric.lam@colliers.com Shanghai, China 16F Hong Kong New World Tower 300 Huaihai Zhong Road Shanghai 200021 Tel : 86 21 6141 3688 Fax : 86 21 6141 3699 Lina Wong Managing Director East and South West China Investment Services, China lina.wong@colliers.com hong Kong, hKSAR 5701 Central Plaza 18 Harbour Road Wanchai, Hong Hong Company Licence No: C-006052 Tel : 852 2828 9888 Fax : 852 2828 9899 Richard Kirke (E-279867) Managing Director richard.kirke@colliers.com Piers brunner (E-183614) Chief Executive Officer - Asia piers.brunner@colliers.com

Taipei, Taiwan 49F TAIPEI 101 TOWER No. 7 Xin Yi Road Sec 5, Taipei 110 Tel : 886 2 8101 2000 Fax : 886 2 8101 2345 Andrew Liu Managing Director andrew.liu@colliers.com NortH AsIA Seoul, South Korea 10F Korea Tourism Organization Bldg. 10 Da-dong Jung-gu, Seoul 100-180 Tel : 82 2 6740 2000 Fax : 82 2 318 2015 Jay yun Senior Director & General Manager jay.yun@colliers.com Tokyo, Japan Halifax Building 3-16-26 Roppongi Minato-ku, Tokyo 106-0032 Japan Tel : 81 3 5563 2111 Fax : 81 3 5563 2100 James Fink Senior Managing Director james.fink@colliers.co.jp soutH eAst AsIA Jakarta, Indonesia 10F and 14F World Trade Centre Jl Jenderal Sudirman Kav 29-31 Jakarta 12920 Tel : 62 21 521 1400 Fax : 62 21 521 1411 Mike broomell Managing Director mike.broomell@colliers.com Kuala Lumpur, Malaysia c/o Mark Lampard* Managing Director Corporate Solutions | Asia Pacific Te : 65 6531 8601 Fax : 65 6557 0649 mark.lampard@colliers.com * Based in Singapore Karachi, Pakistan Suite 2-A, level 2, Harbour House 37-A, Lalazar Avenue Beach Hotel Road, Off. M.T Khan Road Karachi, Pakistan Tel : 92 21 3561 2550-2 Fax : 92 21 3563 6382 Mohammed yasir Qidwai Senior Manager, Corporate Solutions & Research research.khi@colliers.com

Lahore, Pakistan Suite 2, Mezzanine 2, Executive Floors Al-Qadir Heights, Main Boulevard New Garden Town, Lahore, Pakistan Tel : 92 42 3584 3474-6 Fax : 92 21 3563 6382 Ahmed Khan Country Manager ahmed.khan@colliers.com Islamabad, Pakistan ONE Constitution Avenue, Adjacent Convention Centre & Diplomatic Enclave Islamabad, Pakistan Tel : 92 51 834 7433 Fax : 92 51 831 4737 Waleed Murrawat Regional Sales Manager waleed.murrawat@colliers.com Manila, Philippines 10F Tower 2 RCBC Plaza Ayala Avenue, Makati City Philippines1226 Tel : 63 2 888 9988 Fax : 63 2 845 2612 david young Managing Director david.a.young@colliers.com Singapore 1 Raffles Place #45-00 One Raffles Place Singapore 048616 Tel : 65 6223 2323 Fax : 65 6222 4901 dennis yeo Managing Director Singapore & Industrial Services | Asia dennis.yeo@colliers.com bangkok, Thailand 17/F Ploenchit Center 2 Sukhumvit Road Klongtoey, Bangkok 10110 Tel : 66 2 656 7000 Fax : 66 2 656 7111 Simon Landy Executive Chairman simon.landy@colliers.com ho Chi Minh City, Vietnam Ho Chi minh City, vietnam 7f Bitexco Building 19-25 nguyen Hue street District 1, Ho Chi minh City, vietnam tel : 84 8 827 5665 fax : 84 8 827 5667 Peter dinning general Director peter.dinning@colliers.com

Colliers Asia Office Leasing Survey

www.colliers.com

hanoi, Vietnam 10f, Capital tower Building 109 tran Hung Dao street Hoan Kiem District, Hanoi, vietnam tel : 84 4 3941 3277 fax : 84 4 3941 3278 dane Moodie managing Director dane.moodie@colliers.com INdIA bengaluru, India Prestige garnet, level 2, unit no. 201/202 36 ulsoor road, Bengaluru 560 042 tel : 91 80 4079 5500 fax : 91 80 4112 3131 goutam Chakraborty office Director goutam.chakraborty@colliers.com Chennai, India unit 1C, 1st floor, Heavitree Complex 23 spurtank road, Chetpet Chennai 600 031 tel : 91 44 2836 1064 fax : 91 44 2836 1377 Kaushik Reddy office Director kaushik.reddy@colliers.com gurgaon, India 1st floor, technopolis Building Dlf golf Course main sector road sector 54, gurgaon 122 002 tel : 91 124 4375807 fax : 91 124 4375806 Ajay Rakheja office Director ajay.rakheja@colliers.com Kolkata, India infinity Business Centre, infinity Benchmark level 18, room no 13, Plot g - 1 Block eP & gP, sector v, salt lake Kolkata 700 091, West Bengal tel : 91 33 2357 6501 fax : 91 33 2357 6502 Soumya Mukherjee office Director soumya.mukherjee@colliers.com Mumbai, India 31-A, 3rd floors, film Centre 68 tardeo road mumbai 400 034 tel : 91 22 4050 4500 fax : 91 22 2351 4272 Prabhu Raghavendra office Director prabhu.raghavendra@colliers.com george McKay south Asia Director office & integrated services george.mckay@colliers.com

New delhi, India 204/205, 2nd floor Kanchenjunga Building 18 Barakhamba road new Delhi 110 001 tel : 91 11 4360 7500 fax : 91 11 2335 6624 Ajay Rakheja office Director ajay.rakheja@colliers.com Pune, India Bramha luxury Hotels ltd. (le meridien Pune) 101 r.B.m. road Pune 411 001, maharashtra tel : 91 20 4120 6435 fax : 91 20 4120 6434 Suresh Castellino office Director suresh.castellino@colliers.com AustrALAsIA Adelaide, Australia level 10, 99 gawler Place Adelaide sA 5000 tel : 61 8 8305 8888 fax : 61 8 8231 7712 James young state Chief executive james.young@colliers.com brisbane, Australia level 20 Central Plaza one 345 Queen street Brisbane QlD 4000 tel : 07 3229 1233 fax : 07 3120 4555 Simon beirne state Chief executive simon.beirne@colliers.com Canberra, Australia ground floor, 21-23 marcus Clarke street Canberra ACt 2601 tel : 61 2 6257 2121 fax : 61 2 6257 2937 Paul Powderly state Chief executive paul.powderly@colliers.com Melbourne, Australia level 32 367 Collins street melbourne viC 3000 tel : 61 3 9629 8888 fax : 61 3 9629 8549 John Marasco state Chief executive john.marasco@colliers.com

Perth, Australia level 19, 140 st georges terrace Perth WA 6000 tel : 61 8 9261 6666 fax : 61 8 9261 6665 K. Imran Mohiuddin state Chief executive imran.mohiuddin@colliers.com Sydney, Australia level 12, grosvenor Place 225 george street sydney nsW 2000 tel : 61 2 9257 0222 fax : 61 2 9251 3297 Malcom Tyson state Chief executive malcom.tyson@colliers.com Auckland, New Zealand sAP tower, level 27 151 Queen street Auckland 1140 tel : 64 9 358 1888 fax : 64 9 358 1999 Mark Synnott Chief executive officer, new Zealand mark.synnott@colliers.com Wellington, New Zealand level 10, 36 Customhouse Quay Wellington 6011 tel : 64 4 473 4413 fax : 64 4 499 1550 (Agency) : 64 4 470 3902 (valuation) Richard Findlay managing Director richard.findlay@colliers.com

Colliers Asia Office Leasing Survey

www.colliers.com

www.colliers.com
Copyright 2012 Colliers International. You are receiving this collateral because you either subscribed for it or expressed your interest to receive it at some point to Colliers International. If you do not wish to receive future communications from us, please contact Colliers International by email at unsubscribe.hongkong@colliers.com with your name and item to unsubscribe. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.