China Industrial Property Market

Transcription

1 China Industrial Property Market AmCham 2007 Real Estate Market Forecast By Philip Pearce Managing Director China 18 April

2 Contents Section 1 China Engines of Growth Section 2 Section 3 Section 4 Major Ports in China China Industrial Market The Year Ahead 2

3 China Engines of Growth Some Facts & Figures to Set the Scene Same land area as US with 4.4 times the population (1.3 billion) Robust and healthy economic growth with GDP averaged more than 9% per year over the past decade and projections point to sustained growth of 8-10% per year until 2011 Fastest growing export market for the world Foreign trade growth has averaged 26% in the past three years and expected to continue the momentum by reaching an average of 17-18% in the period of Domestic demand increasing due to higher incomes and continuing entrance of foreign companies Average household income up more than 50% in last five years Increasing importance on domestic market Three of the top ten ports in the world are located in China ( The largest Port in US is Los Angeles ranked No. 10) 3

4 Major Ports in China (Source: Various) The World s top 15 ports Ranking Ranking Port Singapore HongKong Shanghai Shenzhen Busan Kaoshiung Rotterdam Hamburg Port Shanghai Shenzhen Qingdao Ningbo Guangzhou Tianjin Xiamen Dalian Lianyungang Zhongshan Ranking China Top Ten Container Ports Volume ( m TEU) Port Dubai Los Angeles Long Beach Antwerp Qingdao Port Klang Ningbo Y-O-Y Increase 20.1% 14% 22.1% 36% 41% 23.93% % 9.06% 4

5 China Industrial Market Market is highly fragmented and lacks transparency Characterized by buildings with low specifications which lead to inefficient operations Growing demand for international-grade, large, modern facilities Supply of this type of stock is limited Rents have grown strongly Investment Last two years has seen new players enter into the market Strong demand from investors for quality product 5

6 China Industrial Market A series of positive factors benefiting the industrial market in China the bullish outlook for exports the entrenchment of globalisation the strengthening of domestic demand the 2008 Olympics and the 2010 Asian Games Enormous growth potential for global 3PLs the continuous liberalisation of the logistics sector in China Outsourcing of logistics is not commonplace the country s relatively high logistics cost mean there are still plenty of opportunities for global 3PLs to explore 6

7 The Year Ahead Major influence on the market will be land allocation as a result of recent government s promulgation of new policy to tighten the control of land administration Set the minimum price of industrial land use rights All industrial land use rights will only be granted through an auction and bidding process We envisage that the land prices will continue to increase which should push rents up further Average Land Price per sqm RMB 3,500 3,000 2,500 2,000 1,500 1, $450 $400 $350 $300 $250 $200 $150 $100 $50 $- Jinqiao Kangqiao Baoshan Average land Price per sqm USD Jiading Minhang Jinshan Songjiang Nanhui Fengxian Qingpu Land Prices Around Shanghai Source: Jones Lang LaSalle Research Starting Bid Probable Outcome 7

8 Thank you You Disclaimer This presentation for the half year ended 31 December 2006 has been prepared by Macquarie Goodman Group (Macquarie Goodman Management Limited ABN and its controlled entities including Macquarie Goodman Funds Management Limited ABN , AFSL Number and Macquarie Goodman Industrial Trust ARSN l and its controlled entities; collectively Macquarie Goodman Group or the Group ). The information in this presentation is general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making any decision relating to your investment or financial needs. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. Past performance is no indication of future performance. All values are expressed in Australian currency unless otherwise stated. February