Page 73 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 24

TRUSTEE-MANAGER’S REPORT

Market Overview

Shanghai’s office property market rebounded strongly in 2010, recording a year-end vacancy rate of 8.5%, representing a 26% improvement over 2009 which witnessed a market-wide vacancy rate of 11.5% at year-end. This has impacted average market rents, which increased 21% during the year to register a year-end average rent for the Shanghai office market of RMB7.51/sqm/day.

The retail property market has performed strongly throughout the global downturn of the past 3 years and as a consequence, registered a vacancy rate of less than 1% for the premium retail sector (generally defined as CBD located property) at year-end.

Shanghai Puxi Grade A Office Market

Shanghai Puxi Grade A Office Rent

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

-6%

-3%

0%

3%

6%

9%

12%

15%

New Supply Demand Vacancy Rate

sqm

2005 2007 2009 2008 2010 2006

-8

-6

-4

-2

0

2

4

6

8

10

-30%

-24%

-18%

-12%

-6%

0%

6%

12%

18%

24%

30%

36%

Rental Growth Rate

RMB/sqm/day

2005 2007 2009 2008 2010 2006

Source: Jones Lang LaSalle Source: Jones Lang LaSalle

Shanghai Retail Property Market

0

50,000

100,000

150,000

200,000

250,000

0%

1%

2%

3%

4%

5%

6%

New Supply Demand Vacancy Rate

sqm

2005 2007 2009 2008 2010 2006

Source: Jones Lang LaSalle