Asia Pacific Business Overview

Rob Blain CEO, Asia Pacific

December 6, 2012

Revenue by Country 2007 2% 1% 8% 5% 45% 15% 13% 40% 9% YTD Q3 2012 1% 1% 16% 26% 18% Pacific Japan China/Hong Kong/Taiwan India Singapore Korea Other CBRE | Page 2 .

Revenue by Service Line 2007 4% 16% 12% 13% YTD Q3 2012 1% 13% YTD Q3 2012 1% 36% 17% 36% 17% 31% 37% 33% 33% Property & Facilities Management Lease Sales Appraisal & Valuation Other CBRE | Page 3 .

although APAC companies more buoyant  We believe that Asia Pacific should benefit first and most from a recovery in global economic sentiment  Solid medium term growth prospects Source : Oxford Economics CBRE | Page 4 .Asia Pacific Economy Real GDP Growth (%. y-o-y) 15 Forecast 10 Asia-Pacific China 5 0 United States -5 Western Europe -10 2005-Q1 2006-Q1 2007-Q1 2008-Q1 2009-Q1 2010-Q1 2011-Q1 2012-Q1 2013-Q1 2014-Q1  GDP growth remains relatively healthy – the global bright spot  Still driven by domestic consumption and rising intra-regional trade  Increased caution on the part of multi-national corporations.

 Domestic investors remain subdued but there have been early signs of improvement in Q3 2012  Attractive yields and healthier fundamentals are driving interest from international investors Source : Oxford Economics CBRE | Page 5 . Office rental growth moderating in most markets. y-o-y) 20 Australia Forecast Asia Pacific 15 Australia 10 5 0 -5 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1  Two speed economy with challenged domestic sectors but strong natural resource driven growth  Demand generally weakened outside the natural resource markets.Macro Trends Real GDP Growth (%.

Source : Oxford Economics CBRE | Page 6 . we believe rents are bottoming  Strong investor interest in core Tokyo real estate.Macro Trends Real GDP Growth (%. y-o-y) 20 15 10 5 0 -5 -10 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 Japan Forecast Asia Pacific Japan  Economic prospects recover but uncertainties remain with fiscal stimulus effects fading and on-going political tensions  Office demand stimulated by new supply and affordable rents. driven by very low interest rates and readily available debt  Industrial sector also attracting interest due to higher yield and the need for consolidating operations to modern facilities.

y-o-y) 16 14 12 10 8 6 4 2 0 -2 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 China Forecast Asia Pacific China  World’s 2nd largest economy and key engine of global growth  Slowing growth due to lower exports and residential real estate policy tightening  Signs that economy may be turning the corner  Occupier demand has eased but still plenty of activity amidst a strong development pipeline in all sectors  Retail sector popular with rising demand for industrial Source : Oxford Economics CBRE | Page 7 .Macro Trends Real GDP Growth (%.

y-o-y) 20 India Forecast Asia Pacific 15 India 10 5 0 -5 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1  Growth has slowed significantly. largely due to internal challenges  Signs of reform in many areas could be the catalyst for stronger growth in future  Opening the retail sector to more foreign direct investment creates significant opportunity  Foreign investment remains challenging but domestic investor sentiment has improved slightly in recent months Source : Oxford Economics CBRE | Page 8 .Macro Trends Real GDP Growth (%.

Growth Opportunities  Outsourcing expansion  Retail .China and India  Organic expansion of capital markets and agency leasing  Residential project marketing  Strategic and in-fill M&A  Global collaboration and talent transfer CBRE | Page 9 .

Sign up to vote on this title
UsefulNot useful