da nang market insights q1 2015 - commercial real estate ... · da nang market insights – q1 2015...

DA NANG MARKET INSIGHTS – Q1 2015 Presented by: Dung Duong, Associate Director

Tuesday, 31th March, 2015

2 CBRE | DA NANG MARKET INSIGHTS | Q1 2015

7.8%

8.4% 8.2% 8.5%

6.3%

5.3%

6.8%

5.9%

5.0% 5.4%

6.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

VIETNAM ECONOMIC OVERVIEW

Source: Vietnamese General Statistical Office.

Vietnam GDP Growth Rate

Quarterly

“ ANZ has revised its GDP

growth forecast for

Vietnam in 2015 and 2016

upwards, to 6.5% for both

years from the previous

6.2% and 6.4%,

respectively.

”

5.0% 5.3% 6.1%

7.0% 6.0%

Q1 14 Q2 14 Q3 14 Q4 14 Q1 15


Vietnam among Top Fastest Growing Economies

POSITIVE OUTLOOK FOR VIETNAM ECONOMY

Breakdown of components of average annual real GDP growth (2014 – 2050)

Source: PwC Analysis.


Vietnam Retail Sales

0%

6%

12%

18%

24%

30%

36%

42%

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2008 2009 2010 2011 2012 2013 2014 2M2015

Gro

wth

ra

te (

%)

Reta

il &

se

rvic

es t

urn

ove

r (V

ND

bill

ion

)

Retail and services turnover (VND billion) Growth rate (%)

Vietnam Car Sales

-30%

20%

70%

120%

170%

-

40,000

80,000

120,000

160,000

2008 2009 2010 2011 2012 2013 2014 2M2015

Gro

wth

rate

(%

)

No. o

f ca

r

No. of cars selling % change YoY

Registration fee reduced from 10% -

20% to 10% - 15% in April.

Import duty on cars from ASEAN countries

will decrease from 50% to 0% by 2018.

Target credit growth

2M: 0.68%

2015: 13-15%

2014: 14%


FALLING OIL PRICE TRIGGERS TRADE DEFICIT?

Dollar, Gold and Oil Chart - Last Ten Years

Compares the movement in the dollar index (major trading partners) with gold and oil prices over the last ten

years. The three series are compared using standard deviation.

Source: Macrotrends.

+20% y-o-y vs. EUR

and Yen

US$1,172/oz

-27% y-o-y

US$45.33/barrel

-50% y-o-y

Dec-1

0

Ma

r-11

Jun

-11

Se

p-1

1

Dec-1

1

Ma

r-12

Jun

-12

Se

p-1

2

Dec-1

2

Ma

r-13

Jun

-13

Se

p-1

3

Dec-1

3

Ma

r-14

Jun

-14

Se

p-1

4

Dec-1

4

Ma

r-15

18,932

20,703 21,036

21,246 21,458

20,803

Vietnam Interbank Exchange Rate

Vietnam Trade Balance

-200

-150

-100

-50

0

50

100

150

200

2010 2011 2012 2013 2014 2M2015

US

$ b

illio

n

Export

Import


VND AMONG TOP STRONGEST CURRENCY IN APAC

Exchange Rate

Source: CBRE Research, Q1 2015.

80

90

100

110

120

130

140

150

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2011 2012 2013 2014 2015

Lo

ca

l cu

rre

ncy p

er

US

D

JPY

INR

AUD

MYR

THB

SGD-TWD

PHP

VND

KRW-HKD

NZD

CNY

Vietnam Government Bond Yield Movement


BANK CUT RATES ON THE BACK OF LOW INFLATION

• Lending rate: Average lending rate for enterprises.

Source: Vietnamese General Statistical Office, State Bank of Vietnam.

Vietnam Interest Rates and Inflation

HSBC Bank has predicted that the central bank would mull another cut of

the open market operations (OMO) rate to beef up domestic demand and

growth thanks to low inflation this year.

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013 2014 2015

Inte

rest ra

te (

%)

Average CPI (y-o-y) Lending rate Deposit rate

Mortgage rate for the first 12 months:

Jan. 15 Mar. 15

• Techcombank 9.49% 7.99%

• Vietcombank 7.99% 7.5%

• ACB 8.90% 7.5%


REAL ESTATE FIRMS ON SHARP RISE

Source: Vietnamese General Statistical Office.

* All the above articles were retrieved in March 2015.

Restructuring banking system:

• Some large banks will have to merge

with smaller banks, while the central

bank will directly handle other

lenders.

1. Newly registered Real Estate companies +49% y-o-y;

2. Newly registered Art, Entertainment and Recreation

companies +49% y-o-y.

Novaland to go public end of 2015

19,000 newly registered 4% y-o-y

2,055 firms were resolved 9% y-o-y

16,175 suspended operation 14% y-o-y

4,376 resumed operation 20% y-o-y


DA NANG FOREIGN DIRECT INVESTMENT Slight decreased FDI to real estate

Accumulative FDI structure as of 2014

“ Real estate accounted for more

than 53.76% of the total new

capital in Da Nang in 2014, a

0.7% down y-o-y.

“ Ipc.danang.gov.com 56% 34%

5% 3% 2%

Vacation Real Estate

Manufacturing

Education

Construction

Accomodationservices, F&B

Nation No. of project Capital ($US) %

Korea 6 29,541,700 92.8%

Japan 3 2,146,816 6.7%

Italy 1 84,309 0.3%

UK 1 47,259 0.1%

Singapore 1 10,000 0.0%

USA 1 10,000 0.0%

New FDI Projects in 2015 (23/3/2015) 92.8% of the total FDI capital

invested in 2015 from Korea

Tri Dragon Ltd – Transportation

Lotte Viet Nam - Retail

Sun Kim Ltd – Real Estate


New Specialized Streets For Downtown Da Nang

DA NANG INFRASTRUCTURE

Breakfast Street – Huynh Thuc

Khang

Fashion Street – Le Duan

Seafood Street – Pham Van

Dong

Souvenirs and GiftsStreet –

Bach Dang +Nhu Nguyet Tourists Street – Bach Dang Fashion Street – Phan Chau

Trinh

Crafts Street – TS HS Non

Nuoc

Food Street – Pham Hong Thai


DA NANG INFRASTRUCTURE

2015 2018

The North-West Traffic axis No 1

The Hue T- Junction Flyover

Open for Rehearsal on March 24, 2015

Project New International Terminal at

Da Nang Airport

Highway Da Nang – Quang Ngai

Planned opening to traffic in 2016

Da Nang Port Phase 2

Estimated launch in 2018

The infrastructure development

of the city’s Hi-tech Park


Q1 2015 Snapshot

OFFICE

OFFICE GRADE A GRADE B GRADE C TOTAL

Total supply (properties) 1 7 17 25

Total supply (NLA, sm) 6,314 50,273 35,844 92,431

New supply (properties) 0 0 0 0

New supply (GFA, sm) - - - -

Net absorption (NLA, sm) 0 1,096 640 1,736

Q-o-q change (%) 0.0% 2.7% 2.7% 2.5%

Y-o-y change (%) 6.4% 57.6% 4.1% 29.9%

Vacancy rate (%) 3.7% 16.5% 32.4 21.8%

Q-o-q change (pp) 0.0 -2.2 -1.8 -1.9

Y-o-y change (pp) -5.8 -9.1 -2.7 -6.9

Average asking rents (US$ psm per month) 17.0 10.9 8.4 10.4

Q-o-q change (%) 0.0% 0.0% 0.0% 0.0%

Y-o-y change (%) -5.6% -7.1% -3.5% -4.5%

All rents are the average rent quoted on the NLA basis, exclusive of VAT and service charge

Source: CBRE Vietnam, Q1 2015.


New Grade A and B Completions

OFFICE

New Supply by Year, Da Nang

VNPT BUILDING


THANH LAN BUILDING POST OFFICE BUILDING

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2012 2013 2014 Q1 2015

Grade A Grade B Grade C

NL

A (

sm

)

Grade C

GFA: 1,800 sm

Grade C

GFA: 600 sm

Grade B

GFA: 14,450 sm


Vacancy Rate/Asking Rent

OFFICE

Source: CBRE Vietnam, Q1 2015

AVERAGE ASKING RENT

(US$/sm/month)

VACANCY RATE

(%)

Most buildings kept the same rent rate, the average asking rent in the reviewed quarter remained unchanged at

US$10.39 per sm, a decrease of 4.5% y-o-y.

The market-wide average vacancy rate decreased slightly in the review quarter, presenting a 6.9 percentage point y-

o-y decrease . While vacancy rate at Grade A stayed unchanged, both Grade B and Grade C continued to show

better absorption.

0

5

10

15

20

25

30

35

40

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015


$5

$7

$9

$11

$13

$15

$17

$19

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015



0

20,000

40,000

60,000

80,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015

Grade C Grade B Grade A

NLA

(sm

)

Very Restricted New Supply -> Limited Leasing Options

OFFICE

Net absorption per

quarter 4-year average

Net Absorption, Q1 2015

The main sources of demand in the market still come from the software, technology, construction

and tourism industries. .

• The average office space in Da Nang is around 100sm to 150sm except for software and IT

companies which often acquire 500sm to 1,000sm.


Future Supply

OFFICE

VIETTINBANK

Hai Chau District

GFA: 27,611 sm

Owner occupied: 18%

Estimated

completion: Q3/2015

SCB BANK TOWER

Hai Chau District

GFA: 30,207 sm

Estimated completion:

2017

BẠCH ĐẰNG HOTEL

COMPLEX Hai Chau District

GFA: 32,500 sm

Estimated completion: 2017

(office building)

JAN 2015 DEC 2017


Outlook

OFFICE

The market average rent is expected to remain

stable until the new project comes online

Limited new supply as most projects are either

delayed or have stopped construction.

These projects developed partly for owner-

occupation

Vacancy rate will decrease slowly until new

project comes online.

Expansion and new entrants are anticipated to

drive office market in 2015.

Active sectors : IT/Technology, financial and

banking, tourist services


Q1 2015 Snapshot

RETAIL

(*) Stand-alone department store, excluding Robins department store, which is the anchor tenant of Crescent Mall.

(**) A subcategory of Shopping/Retail Centre, normally retail space in the podium of office, hotel or residential towers

All rents are asking rents of the ground and first floor (US$/sm/month), exclusive of VAT and service charge.


RETAIL SHOPPING CENTER RETAIL PODIUM TOTAL

Total supply (properties) 6 1 7

Total supply (NLA, sm) 35,901 6,257 42,158

New supply (properties) 1 0 1

New supply (GFA, sm) 10,000 - 10,000

Average asking rent (US$ psm per month) $20.30 $13.00

Q-o-q change (%) 0.0% 0.0%

Y-o-y change (%) 4.6% -0.0%

Average vacancy rate (%) 17.8 60.7%

Q-o-q change (pp) 7.2 ppt 0.0 ppt

Y-o-y change (pp) -11 ppt 0.0 ppt


New Supply

RETAIL


Parkson Shopping center

Location: 255-257 Hung Vuong street

GFA: 10,000 sm


Performance

RETAIL


AVERAGE ASKING RENT

(US$/sm/month)

VACANCY RATE

(%)

$0

$5

$10

$15

$20

$25

$30

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015

Shopping Centre Retail lobby/ podium

0

10

20

30

40

50

60

70

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015

Shopping Centre Retail lobby/ podium

The average asking rent of shopping centre was unchanged q-o-q and increase 4.6% y-o-y.

It is notable that the vacancy rate at most of the shopping centers went up considerably in this quarter. The

average vacancy rate in this quarter showed a 7.2 pps up q-o-q versus 11 pps down y-o-y .


Future Supply – under construction

RETAIL


Vincom Ngo Quyen shopping center

• Hai Chau District

• GFA: 30,000 sm

• Under construction


Future Supply

RETAIL

Bach Dang Hotel Complex


• GFA: 5,000 sm

• Construction resumed

• Expected completion: 2016 (hotel

tower)

D'Evelyn Tower


• GFA: 4,000 sm

• Under planning

Golden Square


• GFA: 18,500 sm

• Pending construction

Thien Thanh Plaza


• GFA: 21,914 sm

• Under planning


Bach Dang Hotel Complex


• GFA: 3,500 sm


Blooming Tower


• GFA: 11,479sm


Diamond Tower


• GFA: 4,842 sm

• Under planning


And Foreign Retailers Too!

RETAIL

Expanded to Dong Nai and Da Nang

Opened Lotte Mart Binh Duong and Phan Thiet

• Bought Pico

• Opened Lotte Department Store in Hanoi

2008

2012

2013

2014 2020

To open

60 super-

markets

in

Vietnam

Ministop Trung Nguyen (25% share)

Aeon Mall HCMC

Aeon Mall Binh Duong

Aeon Mall Hanoi

20 hypermarkets

2011

1/ 2014

11/ 2014

2015

2020

Already successfully partnered with Fivimart

and Citimart

Opened first store in HCMC


100% Foreign Invested Retailers Permitted from 2015

RETAIL

Joint venture, foreign investors

to own up to 50% of charter

capital

Enterprises with 100% foreign capital in 110/155 sub-sectors: Wholesale, Retail,

Commission agent, Multi-Level Marketing, Franchising

But the Economic Needs Test (ENT) is still a technical barrier to trade: it requires foreign retailers to pass the test if they

want to establish more than one retail outlet in Vietnam, unless some of the requirements are met

Impact

Not a significant change in short-term since foreign retailer have already joined the

market for a while:

Domestic retailers are still protected thanks to the “final barrier” – ENT, but NOT

applied for small size convenience store chains (<500sqm)

After Jan 11, 2015 Jan 11, 2010 – Jan 11,

2015


Outlook

RETAIL

Average asking rents at most projects are

expected to stay unchanged.

Excepted for Vincom Ngo Quyen, most of future

projects show slow or delay construction activity

The market will welcome more both local and

international when Vincom Ngo Quyen comes

online.

the new international passenger terminal at Da

Nang International Airport in the future which will

be the advantage for the city in order to welcome

more tourists.


Market Snapshot

HOTEL


5-STAR 4-STAR 3-STAR 3-5 STAR

Total supply (hotels) 12 11 56 79

Total supply (room) 2,595 1,856 3,816 8,267

New launch (hotel) 0 0 5 5

New launch (room) 10 0 313 323

Average daily rate (US/room/night) $154.78 $55.95

Q-o-q change (%) 1.6% 3.6%

Y-o-y change (%) 2.5% -0.9%

Average occupancy rate (%) 59.1% 47.7%

Q-o-q change (ppt) 8.3 3.8%

Y-o-y change (ppt) 11.0% -8.0%

RevPar (US$/room/night) $99.27 25.52

Q-o-q change (ppt) 20.8% 10.2%

Y-o-y change (ppt) 12.4% 11.3%



Limited New Openings

HOTEL


0

2,500

5,000

7,500

10,000

2010 2011 2012 2013 2014 Q120155 star 4 star 3 star

Total supply by Grade & Year (rooms)

Total Supply by Grade & Location (rooms)

323 new rooms mostly from 3-star hotels.

32% of total supply are 5-star properties, of

which most hotels located on the beach.

New developments spreads forwards the

seaside make beach-front hotel supply is

equal city one.

25%

7%

5% 17%

20%

26%

5 star-beachfront 5 star-city hotel



0

2,500

5,000

7,500

10,000

2010 2011 2012 2013 2014 Q12015

Beachfront City Hotel

Total supply by Year & Location (rooms)


New Supply

HOTEL

White House - 3-star

52 rooms

Nhu Minh 2 - 3-star

56 rooms Academy - 3-star

50 rooms

Samdi- 3-star

100 rooms

Tay Bac - 3-star

55 rooms


Performance

HOTEL


$0

$40

$80

$120

$160

$200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2011 2012 2013 2014 2015

5 star - Beachfront 5 star - City Hotel 4 star - Beachfront 4 star - City Hotel

US

$/r

oo

m/n

igh

t

Average Room Rate (US$/night/room)


Performance

HOTEL


Average Occupancy rate (%)

0%

20%

40%

60%

80%

100%


2011 2012 2013 2014 2015



Performance

HOTEL


$0

$30

$60

$90

$120


2011 2012 2013 2014 2015


US

$/r

oo

m/n

igh

Average Revenue per Available Room – RevPar (US$/room/night)

Improvements in ADR and OCC partly due to long Tet holiday made the RevPar up by 10.2 %

and 11.3 % for 5 and 4-star segment, respectively.

Noticeable y-o-y increase in the RevPar of 5-star city properties (66%) and 4-star beachfront

hotels (28%) caused by high ADR at Novotel Premier Han River and at Ala Carte.


Future Supply

HOTEL


20

12

20

13

20

14

8,267 rooms

10,423

rooms

11,390

rooms

13,404

rooms

YTD

2015

2015

2016

2017

0 500 1,000 1,500 2,000 2,500

2015f

2016f

2017f

5 star

4 star

3 star

Future Supply by Grade & Year

0 200 400 600 800 1,000 1,200 1,400 1,600

Beachfront

City hotel

3 star

4 star

5 star

Total Future Supply 2015 -2017 (under-construction)

About 1,300 rooms to open in Q2 to

capture guests on DIFC event, of which

90% are 3 & 4-star

Market is expected to have totally 13,404

keys till 2017.

Future supply is dominated by beach-front

developments.


HOTEL


0

150,000

300,000

450,000

600,000

Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015

Domestic arrivals International arrivals

No Nationality 2014 Compared

to 2013

1 Chinese 152,359 +44%

2 Korean 107,008 +93%

3 Japan 52,671 +28%

4 American 21,440 +29%

5 Australian 17.471 +39%

Da Nang Q1 2015

Y-o-y change:

↑ 17% in total arrivals

↑ 19% in International sector

↑ 15% in domestic sector

Q2 is expected a dramatically increase in

domestic arrivals thanks to DIFC event and

summer holidays

TOP FIVE GUEST NATIONALITY

North Asian Visitors strongly improved

Chinese visitors continued leading

the top 5 guest nationality.

Significant improvement in Korean tourists

in 2014, n up by 93% compared to

those of 2013. Nguồn cung tương lai theo phân khúc & năm

(phòng)


More flights, more new routes

HOTEL


20 out of 29 international routes are from China.

8 more charter routes from China opened in Q1

Incheon – Da Nang routes operated by Vietnam Airlines and Asiana Airlines increased to 6 and 4

flights per week, respectively.

New routes to open:

Hong Kong – Da Nang operated by Hong Kong Express

Bussan – Da Nang served by Bussan Air

0

20

40

60

80

100

Asi

ana A

ir

Chin

a E

ast

ern

Chin

a S

outh

ern

Kore

an A

ir

Silk A

ir

Vie

tnam

Airline

Dra

gon A

ir

Maca

u A

ir

Shangdong A

ir

Asi

ana A

ir

Chin

a E

ast

ern

Chin

a S

outh

ern

Kore

an A

ir

Silk A

ir

Vie

tnam

Airline

Dra

gon A

ir

Maca

u A

ir

Shangdong A

ir

Asi

ana A

ir

Chin

a E

ast

ern

Chin

a S

outh

ern

Kore

an A

ir

Silk A

ir

Vie

tnam

Airline

Dra

gon A

ir

Maca

u A

ir

Shangdong A

ir

1-25/3/2014 Q4 2014 1- 25/3/2015

472 flights 485 flights 546 flights


Outlook

HOTEL

A large number of new supply to launch in Q2

would take effect on hotel performance.

64% of future projects show good construction

progress, promising 3,300 new keys to open till

2017.

In Q2, increasing promotions for domestic

arrivals and new openings would reduce room

rate slightly.

Fusion Suites, 4-star condotel managed by Fusion, to come

in Q2

Accor will expand their market share with Ibis and Mercury

brand at French Village (BaNa Hills mountain resort).


Q1 2015 Snapshot

CONDOMINIUMS FOR SALE

CONDOMINIUMS FOR SALE LUXURY HIGH-END MID-END AFFORDABLE TOTAL

Total launched supply (projects) 3 6 5 4 18

Total launched supply (units) 317 1,277 1,382 500 3,476

New launch (projects)* 0 0 0 1 2

New launch (units)* 0 0 0 64 64

Average Primary Prices (US$ psm) $2,949 $1,696 $798 $716

Q-o-q change (%) 0.0% 2.2% 9.3%% 3.2%

Y-o-y change (%) -2.6% 3.7% 9.3% 2.4%

Sold rate (%) 92.1% 53% 59.6% 51.2%

Q-o-q change (ppt) 0.9 0.9 2.6 -5.9

Y-o-y change (ppt) 7.3 3.5 9.4 0.7

All prices are quoted exclusive of VAT and service charges.



Limitted New launches


0%

20%

40%

60%

80%

100%

2010 2011 2012 2013 2014 YTD2015

Luxury High-end Mid-end Affordable

New launches increased gradually since 2H2012 across

segments showed reserved attitude of developers on the

market.

Mid-end Segment account the largest proportion (40%).

Affordable supply down due to reposition of F-home.

0

800

1,600

2,400

3,200

2010 2011 2012 2013 2014 YTD2015

Accumulated Supply New Supply

Nu

mb

er

of u

nits

New launch

in quarter


The Monarchy

• Developed by DHI

• Location: Son Tra

District

• 64 units

F-home

• Developed by Dana

Food JSC

• Location: Hai Chau

District

• 280 units


Asking price down and promotions increased


Average Asking price


The average asking price of luxury segment showed no change while others represented q-o-q

improvements caused by price adjustments at few projects and new supply.

Mid-end segment showed the highest increase (9.3% q-o-q). Followed by affordable properties

(3.2% q-o-q) and high-end developments (2.2% q-o-q)

Developers reduced asking prices along with increased discount and promotion to boost sale.

500

1,000

1,500

2,000

2,500

3,000

3,500


2011 2012 2013 2014 2015


US

$/m

2



Mid-end developments dominated sales

Sale Volume by Year and Segment


Sale volume almost doubled compared to Q1 2014.

Affordable units dominated the total sold units 58% due to :

Great location in the CBD

Reasonable selling price .

22% of transactions were from Azura and Fusion Suites which had most active sale strategy

(discount, the guaranteed rental yield, etc)

0

60

120

180

240

300

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015


Units


Projects recorded successful transactions


12 View

Harmony Tower

• 124 units

• Price:

• Sold rate: 28%

Da Nang Lakeside

• 486 units

• Price: ~US$590/m2

• Sold rate:82%

Lapaz Tower

• 106units

• Price: ~US$670/m2

• Sold rate: 70%

Azura

• 225 units

• Price: ~ US$1,500/m2

• Sold rate: 67% Fusion Suites

• 129 units

• Price: ~US$2,100/m2

• Sold rate: 50%

Hyatt Regency

• 183 units

• Price: ~ US$3,400 /m2

• Sold rate: 95%

The Monarchy

• 64 units

• Price:

• Sold rate: 3%


Outlook


Deverlopers actively adjused selling price and

improved promotions to encourage sale.

Well-planed housing projects, which are partly

converted to commercial, priced between

USD20,000 – USD30,000 draw young local buyers

attentions

Sales volumes are expected to improve as the

market has seen the return of not only Vietnamese

buyers but also overseas Vietnameses and foreigner

investors.

Local developers started research the market for their

future developments


Market Snapshot

SECOND HOME VILLAS

MARKET

Total launched supply (projects) 13

Total launched supply (units) 713

New launch (projects)* 0

Average Sold rate (%) 48.2%

Q-o-q change (ppt) 0.3 ppt

Y-o-y change (ppt) 2.8 ppt



Launched supply

SECOND HOME VILLAS

-50

0

50

100

150

200

250

300

2009 2010 2011 2012 2013 2014 2015

Q1 Q2 Q3 Q4 Launched unit

N

um

be

r o

f u

nits

New projects to

be launched in Q2



To be launched in next quarter

SECOND HOME VILLAS

Vinpearl Villas Ngu Hanh Son THE POINTS – PHASE 2

Ngu Hanh Son District

VinaCapital

20 units

Land area: 260-300 sm/unit

Price: USD280,000 – USD330,000 per unit


Ngu Hanh Son District

VinGroup

134 units

Land area: 300-700 sm/unit

Price: USD600,000 – USD700,000 per unit


JAN 2015 DEC 2016


Performance – transactions occurred at specific projects

SECOND HOME VILLAS

Average Sold Rate by Quarter (%)

20.0

30.0

40.0

50.0

60.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015

A

ve

rage

so

ld r

ate

(%

)

Sales volume by Quarter (units)

0

4

8

12

16

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015

N

o o

f so

ld u

nits




SECOND HOME VILLAS

“ No price adjustments have seen in quarter.

Transactions appeared at Hyatt Regency and The Point while others witnessed quietness in

sale activity, except for sold-out projects.

The Point – phase 2, will be launched in April but already recorded sold rate of 25% in Q1 ”


Price psm Project

0.0%

40.0%

80.0%

120.0%

1,000

3,000

5,000

Ola

lan

i

Hyatt

Rege

ncy

Ocea

n V

illas

Fura

ma

Poo

l V

illa

s

Vin

pe

arl

Luxu

ry V

illa

s

Sun

vill

as

The D

un

e

Norm

an

Esta

te

Mo

ngo

me

rie

links

Me

cu

re S

on

Tra

Price Q1 2015 Sold rate Q1 2015



Outlook

SECOND HOME VILLAS

Average prices remain unchanged and offering

incentives is the main strategy

Limited new supply priced between US$300,000 –

US$700,000 per unit to launch in Q2.

New regulations is expected to take effect on

market sentiments that help to improve

transaction gradually in 2H2015.

The market would see the return of overseas

Vietnamese and foreign investors.

All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only, exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorised publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

For more information regarding this presentation please contact: CBRE Vietnam Co., Ltd. – Research & Consulting T +84 8 3824 6125

F +84 8 3823 8418

Email: [email protected]

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