People‘sRepublicofChinawww.cbre.com.cnSecondQuarter2010PRCPropertyMarketHighlightsNORTHCHINASouthCHINADuringthesecondquarterof2010,propertymarketsPrimeofficerentalskeptrecoveringinGuangzhouandinNorthChinadiffered.Intermsoftheofficemarket,Shenzhenthisquarter,particularlyinGuangzhou,rentalsinBeijing,Dalian,QingdaoandShenyangwherelandlordsheldupbeatoutlooksgivenanincreased,whereasthoseinTianjinslightlydecreasedactiveleasingsectoroverthefirsthalfoftheyear.TableofContentsduetomarketpressurebroughtbycompletionofnewOverall,rentalgrowthacceleratedwithaquarterly2 PrimeOfficeRents/Pricesprojects.Intermsoftheluxuryresidentialmarket,paceof3.8%inGuangzhou.Withmacrocontrols2 LuxuryApartmentRents/Pricesalthoughmarkettransactionvolumedecreasedtoaandimplementationmeasuresbeinglaunched3 PrimeRetailRentscertainextentduetotheinfluenceofmacrocontrolsuccessively,salesofhigh-endresidentialslowedin3 LogisticsRentspolicies,averagepricesofluxuryresidentialpropertiestheprimarymarket.Yet,noobviouspricecorrectionwereontheincreaseinfourcities,exceptTianjin,hasbeenobserved.Salespriceofluxuryapartments4 Beijingandrentalsalsoincreasedduringthesameperiod.remainedbroadlystableandevensawaslight5 ShanghaiIntermsoftheprimeretailpropertymarket,rentalsquarterlyrise.RentsforprimeretailspacewentupinBeijing,DalianandTianjinwereontheincreaseinGuangzhouduetoanongoingsupplylag,while6 GuangzhouasinfluencedbygrowingdemandwhereasrentalsShenzhensawaveragerentscamedownduetonew7 ShenzheninQingdaoandShenyangwereonthedecrease.completions.LeasingoflogisticsfacilitiesturnedInrespecttologisticsfacilities,rentalsincreasedinactiveamidtherecuperationsofmanufacturingandNorthChinaBeijing,QingdaoandTianjin,andremainedthetradingsectorswithrentsrisinginbothmarkets.8 DaliansameinDalian.9 QingdaoWEST&CENTRALCHINA10 TianjinEASTCHINADespitenewregulationsannouncedinApril,luxury11 ShenyangDuringthesecondquarterof2010,primeofficerentsresidentialpricescontinuedtoriseunanimouslyinallinShanghai,NanjingandNingboallsawmoderatefourcitiesinwestandcentralChina,buttransactionEastChinaupswingtrendswhilethoseinHangzhourecordedvolumesdeclineddramatically.Bothleasingactivities12 Hangzhounegativegrowthduetothereleaseofseveralprojectsandrentswereontherise.Theprimeofficemarkets13 NanjinglocatinginQianjiangNewCitywithrelativelylowerwitnessedpricegrowthinallfourcities.New14 Ningborentalquotations.PrimeretailmarketsexhibitedsupplyinChengduandChongqingcausedahikeindifferentperformancesfromcitytocitywithrentalvacanciesanddeclineofaveragerents,whileinXi’anWestChinaincreaseseeninShanghaiandNingbowhiledeclinesandWuhanrentsroseslightlyinpacewithadipin15 ChengduwererecordedinNanjingandHangzhou.Influencedvacancies.Theprimeretailmarketsvariedbutthere16 Chongqingbymacrocontrolpolicies,transactionvolumeonwasnosignificantchange;someminorfluctuations17 Xi‘anluxuryresidentialmarketssawabroaddecreaseinofrentsandvacancieswerelargelytheresultofnewmonitoredcitieswithinEastChina.However,salessupply.ThelogisticfacilitymarketscontinuedtheCentralChinapricecontinuedtotrendnorthacrossthecities.steadysentimentfromthepreviousquarter.18 WuhanLogisticssectionwasrelativelystableinthesecitieswithaslightfluctuationseeninrentalquotationsforthefourcities.?2010,CBRichardEllis,Inc.PrimeOfficeRents/Prices35035,000People’sRepublicofChina30030,00025025,00020020,00015015,000Prices(RMBpsm)Prices(RMBpsm)Rents(RMBpsm/month)Rents(RMBpsm/month)10010,000505,00000BeijingDalianQingdaoTianjinShenyangShanghaiHangzhouNanjingNingboGuangzhouShenzhenChengduChongqingXi‘anWuhanBeijingDalianQingdaoTianjinShenyangShanghaiHangzhouNanjingNingboGuangzhouShenzhenChengduChongqingXi‘anWuhanQ-O-Qchange(%)Rents*4.1% 0.6% 0.5% -0.1% 1.6% 1.1% -2.1% 1.9% 1.2% 3.8% 2.0% -0.7% -2.1% 4.4% 4.3%PriceS**1.0% 3.3% 12.7% 1.6% 3.0% 2.0% 1.1% 1.6% 1.2% 0.5% 0.9% 8.1% 11.7% 5.9% 4.1%northEastSouthWestCentralLuxuryApartmentRents/Prices20050,00018045,00016040,00014035,00012030,00010025,0008020,0006015,0004010,000205,00000Q-O-Qchange(%)Rents*1.5% 2.6% 2.8% -2.1% 0.1% 1.9% 1.4% 0.5% 0.8% 2.0% 3.2