gÓc nhÌn quỐctẾ - cbre vietnam – commercial...

2 CBRE MARKET INSIGHTS | Q1 2017

VIỆT NAM DƯỚI GÓC NHÌN QUỐC TẾ


VIETNAM IN THE FOREIGN PRESS


FREE TRADE AGREEMENTS


85%

4%4%

7% Manufacturing

Real Estate

Retail, VehicleSales

Others

Stable flow of FDI into Real Estate

FDI

25%

75%

1. Samsung increased US$2.5billion of capital in Bac

Ninh Province.

2. Taiwan invested US$485.8million in a polyester

manufacturing company in Binh Duong Province.

3. Coca-Cola Vietnam had increased capital of

US$319.8million.

4. Singaporean investor invested US$285 million in

Vietnam-Singapore IP III in Binh Duong Province.

5. China invested US$220 million for manufacturing in

Tay Ninh Province.

2007

Source: Vietnamese General Statistics Office.

3M

2017

Vietnam Registered FDI in 3M 2017: USD7.7 billion, up 77.6% y-o-y

Top FDI Investors, USD million, 3M 2017 Major FDI projects in 3M 2017

3,748

911

824

644

452

South Korea

Singapore

China

Taiwan

Japan

FDI to Vietnam compared to selected

SEA countries 2016 (US$ billion)

0 10 20 30

Indonesia

Singapore

Thailand

Malaysia

VietnamVietnam

Source: Trading Economics, Rappler, MPI


INCREASING FDI FROM CHINA

FDI from China, as Percentage of Vietnam’s Total FDI

Source: Ministry of Planning and Investment

0%

2%

4%

6%

8%

10%

12%

2009 2010 2011 2012 2013 2014 2015 2016 3M2017

FDI from China (% of Total FDI) - 5,000 10,000 15,000

Singapore

Vietnam

Malaysia

Myanmar

Thailand

FDI from China, US$ million, 2015

Source: Ministry of Planning and Investment, Department of Statistics,

Bank of Thailand, Bank Negara Malaysia,


DASHBOARD – PRODUCED MONTHLY

(*) Current lending rate is the average lending rate surveyed at ten banks, and only applicable for home loan. However, the back-dated numbers were the average rate

announced publicly at that point of time, applied for all sectors and all banks. The average lending rate is for reference only.

(**) Deposit rate is the average deposit rate from a sample comprised of ten banks, in which the rates are announced publicly on their websites and can be tracked backwards.

ECONOMIC

INDICATORS2Y 1Y 6M 3M 1M Current

CPI (%) y-o-y 0.3 1.0 1.9 4.5 5.2 5.0

Trade balance

(US$, bil)(1.0) 0.1 0.2 (0.4) (0.1) (1.2)

Retail & services

Turnover (VND, tril)276.2 288.0 292.8 302.9 330.3 309.3

BANKING & FINANCE 2Y 1Y 6M 3M 1M Current

VN-Index 551.1 561.2 688.6 663.5 717.4 720.5

USD/VND (inter-bank) 21,458 22,300 21,949 22,232 22,232 22,252

Local gold (VND mil/tael) 35.1 33.2 36.1 36.1 36.8 36.8

Lending Rate (%)* 8.1% 7.6% 8.2% 7.7% 9.1% 8.5%

Deposit rate (%)**

(1-year term)6.4% 6.7% 6.7% 6.5% 6.7% 7.1%

REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current

Real Estate Holding &

Development Listed

Companies

46.40 46.47 46.12 45.63 51.20 51.08

Real Estate Services

Listed Companies56.9 34.07 23.37 26.98 45.8 45.76

Source: Stockbiz, Mar 2017

Source: GSO, Feb, 2017 Source: GSO, SBV, SJC & HSX, Mar, 2017

CONDO NEW LAUNCH 2Y 1Y 6M 3M 1M Current

HCMC New launches

(unit)70,705 35,780 16,285 8,316 3,199 2,890

HN New launches (unit) 51,851 30,760 19,223 11,526 5,814 2,814

Source: CBRE, Mar, 2017


BCI NUMBERS

All Future

Projects

(2017-2030)

HCMC HanoiDa

Nang

Can

Tho

Nha

Trang

Vung

Tau

Hai

Phong

Office 249 230 66 30 20 15 43

Retail 165 129 69 4 21 13 5

Hospitality

and SA44 26 63 1 49 15 4

Residential 384 187 45 12 41 25 7

Total 842 572 243 47 131 68 59

Projects

Under

Construction

HCMC HanoiDa

Nang

Can

Tho

Nha

Trang

Vung

Tau

Hai

Phong

Office 130 142 24 18 15 39 22

Retail 99 79 47 1 15 7 2

Hospitality

and SA19 10 41 1 30 6 2

Residential 265 103 21 7 27 14 5

Total 513 334 133 27 87 66 31

Source: www.bciasia.com; CBRE Vietnam, March 2017. Source: www.bciasia.com; CBRE Vietnam, March 2017.

Projects under construction, y-o-y change All future projects (2016 – 2030), y-o-y change

-100%

0%

100%

200%

300%

400%

HCMC Hanoi DaNang

CanTho

KhanhHoa

VungTau

HaiPhong

Perc

en

tag

e c

han

ge

2017 YTD vs 2016 2016 vs 2015

-100%

0%

100%

200%

300%

400%

HCMC Hanoi DaNang

CanTho

KhanhHoa

VungTau

HaiPhong

Perc

en

tag

e c

han

ge

2017 YTD vs 2016 2016 vs 2015

http://www.bciasia.com/

http://www.bciasia.com/


0

3

5

8

10

13

15

18

20

2011 2012 2013 2014 2015 2016 3M 2017

Inte

rest ra

te (

%)

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

INTEREST RATES

Interest rates start picking up

Source: Vietnamese General Statistics Office, Commercial banks, SBV.

Bank

Deposit Rate

as of 2016 (12

months)

Deposit Rate

as of

Mar.2017

VPBank 6.8% 7.5%-9.1% (*)

Sacombank 6.8% 8.48-8.88% (*)

Eximbank 6.5% 7-7.3%(*)

(*) depend on terms, payment terms, etc.


60

70

80

90

100

110

120

130

140

150

Ju

nJu

lA

ug

Sep

Oct

No

vD

ec

Ja

nF

eb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

No

vD

ec

Ja

nF

eb

Ma

rA

pr

Ma

yJu

nJu

lA

ug

Sep

Oct

No

vD

ec

Ja

nF

eb

Ma

rA

pr

Ma

yJu

ne

Ju

lyA

ug

Sep

Oct

No

vD

ec

Ja

nF

eb

Ma

r

2014 2015 2016 2017

Ind

ex

VN-Index Local Gold USD/VND

INVESTMENT CHANNELS

US$ 22,800

2% y-o-y

Source: Vietnamese General Statistics Office, FTP Securities, SJC.

720.5

27% y-o-y

VND 36.7 mil.

10% y-o-y

Return from Different Asset Classes


VIETNAM STOCK MARKETRegional view


WHERE THE MONEY GOES


WHAT SHAPES OUR LIVES

Population of 65+ as Percentage of Total Population, by Year

Source: United Nation.

0%

5%

10%

15%

20%

Thailand Vietnam Malaysia Philippines Cambodia

1995 2000 2005 2010 2015 2020 2025 2030


SIDEWALK CLEARINGFor Better or Worse?


HISTORIC LANDMARKS’ PRESERVATION

“Historical landmarks - those with special character, interest or

value - define destinations around the world.

Beyond a souvenir snapshot, they represent a tangible link to a

culture’s past - a precursor that’s a welcome partner to a city’s

newer buildings and skyscrapers.”

Museum of Fine Arts - HCMC


ENVIRONMENTAL ISSUES

Jill Baker – MAR 1, 2017

Vietnam’s electrical infrastructure choices are key to

keeping the country’s carbon emissions down and

lessening its contribution to global warming.

Hanoi People’s Committee Chairman Nguyen Duc Chung

admitted that the city’s air quality was at “red alert level”.

AQI 0-50: Good

AQI 51-100: Moderate

AQI 101-150: Unhealthy for sensitive groups

AQI 101-150: Unhealthy for all

Source: U.S. Environmental Protection Agency


INFRASTRUCTURE


CITY INFRASTRUCTUREElsewhere in the region

Jakarta, Indonesia

Manila, Philippines Bangkok, Thailand


CITY INFRASTRUCTUREHCMC: Flooding Continues to be a Challenge

2/2/2017 16/3/2017

Nguyen Huu Canh Street, Binh Thanh District Song Hanh Street, District 12

Ba Huyen Thanh Quan Street, District 3Vo Van Ngan Street, Thu Duc District


Hiep Phuoc Station

Bach Dang Station

Lo Gom Station

Water bus

Electric bus

66km embankment

New Projects To Solve Infrastructure Issues: Flooding And Traffic Congestion


SOLVING CONGESTION PROBLEMBridges, Underpasses, Overpasses – HCMC

Nguyen Van Cu Bridge – connection line – 2017 Overpass Truong Son – Tan Son Nhat airport - 2017

Overpass Nguyen Kiem – Nguyen Thai Son - 2017 Nguyen Tri Phuong Bridge – connection line - 2017


AND HANOI

Under-planning overpass

Completed overpass

Vinh Tuy – Co Linh Overpass

Opening: 9 Mar 2017


Infrastructure improvement quickens in the increasingly busy West

EXTEND AND UPGRADE

Hoang Quoc Viet

Xuan Thuy

Extended

Extended Hoang Quoc Viet

& Nguyen Co Thach Road

Dien Section 1

1

Ho Tung Mau – Le Duc Tho 2

2

Source: CBRE Vietnam, News.zing.vn

Residential project

Schools & Uni

Metro line No.3

Nhon – Hanoi Raiway

Extending

Upgrading


METRO LINE: FIRST LINE SET TO OPEN THIS YEAR

2

Noi Bai Airport

7

Me Linh

4

1 Yen Vien

Nhu Quynh

1

Duong Xa

Yen So

Ngoc HoiHa Dong

Son Dong

Trôi

Ba Vi

5

3

Me Linh

Lien Ha

Cát LinhGa Hà Nội

Under Planning

Under Construction –

About to be opened

Under Construction

Metro Line No.2A (Cat Linh – Ha Dong) –

90% completed - To be opened this year

Ga Hà Đông (Mới) – Tây Nam

Nhon

8

8

6

2A

Cat Linh - MIDTOWN

Van Khe

La Khe

Ha Dong

Ha Dong

Station

Thanh Xuan 3

Ring Road

No.3

Thuong Dinh

National University

Lang

Thai Ha

La Thanh

3

2A


1 2

3

1

3

2

INFRASTRUCTUREHCMC: Thu Thiem Updates


HCMC: Greater in both quantity and scale

TOWNSHIPS

2007 2017 2027

Phu My Hung – 750ha Phu My Hung – 750ha Dong Tang Long – 160ha

Cat Lai – 153 ha Harbor City – 50 ha

D.7 D.9

D.8D.2

Phu My Hung Dong Tang Long

Cat Lai

D.7

Harbor City

Saigon Sport City GS Metro City

VinCity Vinhomes Can Gio

Saigon New City Saigon Marina City

Saigon Peninsula

Nha Be – 349 ha

D.7 – 118 ha

D.2 – 64 ha

D.9 – 300 ha Can Gio – 1,121 ha

Can Gio – 1,430 haCu Chi – 15,000 haTownship Criteria

• Project scale: over 50ha

• Social infrastructure such as School, Hospital,…

• Clear master plan


Hanoi: Stronger focus on product offerings

TOWNSHIPS

2007 2017 2027

CIputra

Park City

Ecopark

Township Criteria• Project scale: over 50ha

• Social infrastructure such as School, Hospital,…

• Clear master plan

Ciputra – 332ha

Tay Ho

Ecopark – 499 ha

Ciputra – 332ha

Hung Yen

Park City – 77haVinhomes Riverside – 50 ha

Long Bien Ha Dong

Gamuda –500ha

Hoang Mai

Vinhomes Riverside

Gamuda

The Manor

Central Park

Starlake

Hoang Mai – 160ha Tay Ho – 183.5 ha

Vin City

Gia Lam – 300 ha Hung Yen – 500 ha

Linh Dam – 200ha

Hoang Mai

Linh Dam – 200haLinh Dam

Van Phu – 94ha

Ha Dong

Geleximco – 135ha

Ha Dong

Geleximco – 135ha Van Phu – 94haGeleximco Van Phu


6 Under Construction

HCMC 20 GOLDEN SITES

TAX PLAZATHE SPIRIT OF SAIGON

SJC

LAVENUE CROWN 3

16

7

2

1

9

20

5

17

4

6138

1819

1214

15

11

SAIGON MELINH TOWER

VINHOMES GOLDEN RIVER


Under construction and Under planning

HANOI CBD – CBRE GOLDEN SITES

Source: CBRE Vietnam.

PARK HYATT HANOI

HANOI APARTMENT CENTRE

ORIENTAL SUN TOWER

SUN GRAND CITY ANCORA

FOUR SEASONS HANOI

UNDER PLANNING

12

3

4

5

6

1 D’. San Raffles

2 22 Hai Ba Trung

3 Le Phung Hieu

4 TNR Tower

5 33 Hang Bai

6 52 Hang Bai

7

7 94 Lo Duc

13

9

10

11

12

8 Corner of Hang Bai and

Ly Thuong Kiet Str.

8

UNDER CONSTRUCTION

9 10 11 12 13


LEGAL UPDATES

Office-tels, which combine residential and commercial uses and have

been growing in popularity in Vietnam’s real estate market over the last

three years, remain unrecognized in the country’s legal system and

have difficulties in development as a result.

SUMMARY

• 3 categories: A, B, C

• Ranking authority: Department of

Construction of cities/provinces

• Upon request from developer /

management committee / 50% of

unit owners

• Effective 15 Feb 2017

• Applicable to completed projects

only


Development Sites – Commercial

INVESTMENT 2016-2017

CapitaLand Site at Vinhomes Golden River

Transaction date December 2016

Type Retail, Office

Land area 6,042 sm

GFA 106,853 sm

Plot ratio 17.7

Price psm (on land) TBC

Price psm (on GFA) TBC

Seller Vingroup

►►Buyer CapitaLand

CapitaLand will hold a 100 per cent stake in the 0.6-

hectare site with a gross floor area of 106,000 square

metres. Located in the heart of Ho Chi Minh City's

District 1, the site will be developed into a 240m office

tower with retail units at the ground and basement

levels.

Source: CBRE Vietnam, Q1 2017.

Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no

guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by

CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.


Development Sites – Commercial


23 Le Duan Site in Ha Dong Dis. Lotte/Ciputra Mall

City HCMC Hanoi Hanoi

Transaction date January 2017 January 2017 N/A

TypeCommercial development

site

Commercial

development site

Commercial

development site

Land area 3,025 sm 95,000 sm 73,000 sm

GFA 24,200 sm N/A ~200,000 sm

Plot ratio 8 N/A N/A

Price psm (on land) US$20,000-$21,000 N/A N/A

Price psm (on GFA)US$2,500 - $2,650

N/A N/A

SellerGovernment land

allocation via auctionBIM Group UDIC

►►Buyer Tan Hoang Minh Aeon Mall Lotte Group





(auction price)


Development Sites – Residential


CII Plots in Thu

ThiemD1mension G Home @ Thao Dien

City HCMC HCMC HCMC

Transaction date March 2017 September 2016 June 2016

TypeResidential

development site

Land with completed

concrete building for

residential, Serviced

Apartment

Residential development

site

Land area 7,000 sm 5,192 sm 9,640 sm

GFA 36,400 sm 30,373 sm 78,470 sm

Plot ratio 5.2 5.9 8.1

Price psm (on land) TBC TBC TBC

Price psm (on GFA) TBC TBC TBC

Seller CII Altus Holding An Duong Thao Dien

►►Buyer HongKong Land CapitaLandJV of Frasers CentrePoint &

An Duong Thao Dien



guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE

clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.


Income Producing Assets


Le Meridien (office

component)

Continental Tower –

formerly Fideco

Tower

Kumho Asiana

ComplexA&B Tower

City HCMC HCMC HCMC HCMC

Transaction date Q4 2016 Q4 2016 June 2016 Q1 2016

Type Office OfficeHotel, Serviced

Apt, Office, Retail

Office with retail

podium

Land area 3,235 sm 1,124 sm 13,632 sm 1,833 sm

GFA 12,802 sm 17,030 sm 106,000 sm 25,506 sm

Plot ratio 4 15 8 10

Price psm (on

land)TBC TBC TBC TBC

Price psm (on

GFA)TBC TBC TBC TBC

Seller Tien Phuoc Fideco Land Kumho AsianaA&B

Development

►►Buyer Mitsubishi Estates TBCMapletree

InvestmentFujita






Income Producing Assets


Sedona Suites

HanoiIRT Da Nang Capital Tower

International

Centre

City Hanoi Da Nang Hanoi Hanoi

Transaction date Q2 2016 Q2 2016 May 2016 January 2016

Type Serviced apartment Office/Retail Office Office

Land area 175 keys 3,500 sm 2,256 sm 1,450 sm

NLA 17,351 sm 15,096 sm 36,609 sm 9,064 sm

Plot ratio N/A 4.3 16.2 6.3

Price psm (on

land)TBC TBC TBC TBC

Price psm (on

GFA)TBC TBC TBC TBC

Seller/Developer Keppel Land CP/ Indochina Land

Thu Do Tourism

Trading and

Investment JSC

Keppel Land

►►Buyer BRG Group Kajima N/A Vina Capital

Source: CBRE Vietnam, Q1 2017



CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. .


INVESTMENTThe Real Estate Developers that Own Nguyen Hue

1

2

3

4

5

6

7

8

9

10

11

12

13

Union Square

Plot Le Loi-Nguyen Hue-

Dong Khoi-Nguyen Thiep

Palace Saigon

Times Square

Vinatex – Tai Nguyen

Majestic

Duxton

Sunwah Tower

BIDV Tower

Kim Do Hotel

Satra Tax Plaza

Rex Hotel

Plot Nguyen Hue-Ngo Duc Ke-Ho

Tung Mau-Huynh Thuc Khang

Van Thinh Phat

Saigontourist

Tai Nguyen

Sunwah Group

BIDV

Satra

12

3

45

6

7

891011

1213

Source: Zing.vn


Land Price

INVESTMENT

0

500

1,000

1,500

2,000

2,500

3,000

Dis

tric

t 1

Dis

tric

t 2

(lo

wrise

& m

ixe

du

se)

Dis

tric

t 3

Dis

tric

t 4

Dis

tric

t 5

Dis

tric

t 7

Dis

tric

t 8

Bin

h T

ha

nh

Dis

tric

t

Dis

tric

t 9

(P

huo

c L

on

g,

Ph

u H

uu)*

Price

pe

r sqm

GF

A (

US

$/s

mG

FA

)

Notes:

Lower points indicate minimum values, Higher points indicate maximum value

(*) 4 core districts include Hoan Kiem, Hai Ba Trung, Dong Da and Ba Dinh Districts. (**) Tu Liem district includes Nam Tu Liem and Bac Tu Liem Districts


The land price ranges included in this presentation have been included as a broad guide only. Land prices are subject to various positive and negative attributes,

including but not limited to, proposed/approved plot ratio, permitted uses, land size, location, clear legal status and other restrictions. CBRE does not accept any liability

under any cause of action including negligence for any loss arising from use of or reliance upon this information.

HCMCHanoi

2015 Q1 2017

0

500

1,000

1,500

2,000

2,500

3,000

4 c

ore

dis

tric

ts(*

)

Tha

nh

Xu

an

Ca

u G

iay

Tay H

o

Ha

Don

g

Ho

an

g M

ai

Lon

g B

ien

Tu L

iem

(**

)Price

pe

r sqm

GF

A (

US

$/s

mG

FA

)


Higher interest for Vietnam thanks to strong macro fundamentals and

higher initial yields

INVESTMENT

Source: CBRE Asia Pacific Investor Intentions Survey 2015, 2016 and 2017

(*) Cross border refers to respondents domiciled in the different country as the most attractive destination selected

Preferred Markets for Investment (cross-border* only)

0%

5%

10%

15%

20%

25%

30%

35%

PhilippinesSouthKorea

ChinaJapanIndonesiaHong KongIndiaSingaporeVietnamAustralia

2017 2016 2015

Lower InterestHigher Interest


Preferred Sectors for Investment

INVESTMENT

Preferred Sectors for Investment


0%

5%

10%

15%

20%

25%

30%

35%

40%

Office Logistics & Industrial Retail Multifamily / Leasedresidential

Hotels / Resorts

% o

f re

sp

on

de

nts

2015 2016 2017


INVESTMENT

Preferred Alternative Sectors for Investment


0% 5% 10% 15% 20% 25%

Self-storage

Healthcare

Retirement living / Seniorhousing

Automotive / Car parks

Data centre

Student living

Infrastructure

Leisure / Entertainment

Single family residential

Real estate debt Not invested, butactively looking forexposure

Already invested

Property Companies: 47% ; Funds: 27%

SWIPe: 13%

Funds: 33% ; Property Companies: 31%

SWIPe: 16%

Hig

h N

ew

Inte

rest


INVESTMENT

EMERGING TRENDS

Hotels are a major focus for many investors.

The tourist resort of Da Nang is seeing solid

demand for assets from domestic and

international groups.

Source: CBRE Research, Asia Pacific Investment Trends Q4 2016.


Record number of international visitors to Vietnam in the first 2 months of 2017

What’s happening

VIETNAM HOSPITALITY

FLC Faros Van Don, a unit of FLC Group, received

permission from the northern provincial government of

Quang Ninh to invest about $2 billion in a casino resort.


SECOND HOME MARKET

0

1,000

2,000

3,000

4,000

5,000

6,000

New launches Sale Volume New launches Sale Volume New launches Sale Volume

2015 2016 Q1 2017

Un

its

Da Nang Nha Trang Phu Quoc

Some newly launched projects in Q1 2017

• Cocobay Ocean Condotel Resort & Spa (Da Nang) – by The Empire: 520 units

• Ocean Gate (Nha Trang) – by MB Land: 206 units

• Premier Residence Phu Quoc Emerald Bay (Phu Quoc) – by Sun Group: 134 units

Sales and New Launches, Condotel



Fast Progress

DA NANG

Thailand

Singapore

Cambodia

China (12 cities)

South Korea

(2 cities)

Hong KongLaos

(2 cities)

Malaysia

Japan

DA NANG

International Flights to Da Nang

It expects the first flight on May 8, and there will be preparations to

welcome delegations to the APEC Economic Leaders’ Week in Nov.Since 2017, Da Nang will organize International

Fireworks Festival annually.


DA NANG

InterContinental

Sun Peninsula

Premier Village

Pullman

Furama

Fusion Maia

Olalani

Hyatt Regency

Pulchra

Naman Retreat

Oversupply concern in Da Nang’s hotel market?

Sheraton (under const.)

VS.

Master plan approved for developing Son Tra into a national-level tourism area

Five-star resorts in Da Nang

Nam Phat (under const.)

Vinpearl

Crown Plaza


SAPA – Boom in infrastructure and tourism development

HOSPITALITY

Hanoi – Lao Cai Highway – 245km

Opening: Sep 2014

Travelling time: 7h 3.5h

Fansipan Cable Car

Opening: Feb 2016

Travelling time: 48h 30 mins

BRT Hanoi – Lao Cai

Opening: Jan 2017

Travelling time: 3h45min

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2012 2013 2014 2015 2016 2017F 2020F 2030FTo

uri

st

arr

ivals

(th

ou

san

d p

eo

ple

)

International tourists Domestic tourists

Tourist arrivals to Sapa

Total estimated capital:

VND3,500 billion 2020 2030

No. of passengers/year 560,000 1,585,000

Tons of goods/year 600 2,880


SAPA – An emerging resort hub

HOSPITALITY

BEFORE 2016 FROM 2016 ONWARDS

Sapa Jade Hill Resort

Th

e m

os

t c

om

mo

n

acc

om

mo

da

tio

n

Homestay

5-star hotel - MGallery 5-star hotel of CTX

4-star hotel,

Sapa Indochina InternationalNO 5-star Hotel

2-3 star hotels

Motels


Market Snapshot Q1 2017

OFFICE

No new supply

US$37.0 psm pm

6.4% vacancy

+3.6% y-o-y

HCMC HANOI

+1.2% q-o-q

• Market performance is stable with low vacancy rate and increasing rent

• Never before has Grade B rent seen a double digit positive growth

5,404 sm NLA new supply

US$22.0 psm pm

2.6% vacancy

+1.9 ppts y-o-y

+11.5% y-o-y +4.8% q-o-q

-1.7ppts y-o-y +0.2ppt q-o-q

Grade A

No new supply

US$29.4 psm pm

13.2% vacancy

+4 .6% y-o-y +3.3% q-o-q

8,385 sm NLA new supply

US$17.8 psm pm

16.4% vacancy

-8.8ppts y-o-y -2.6ppts q-o-q

+0.7% y-o-y +0.2% q-o-q

+7.3 ppts y-o-y +0.2ppt q-o-q

Grade B

• Grade A performed well with increase rents and lower vacancy

• Higher vacancy rate of Grade B since new supply continue to enter market.

-1.7ppts y-o-y


Rents and Vacancy

OFFICE

HCMC HANOI


0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5

10

15

20

25

30

35

40

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Va

ca

ncy (

%)

Askin

g R

en

ts (

US

$/s

m/m

otn

h)

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5

10

15

20

25

30

35

40

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Va

ca

ncy (

%)

Askin

g R

en

ts (

US

$/s

m/m

on

th)


Net Absorption

OFFICE

HANOI


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

NLA

(sm

)

Grade A Grade B

HCMC

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

NLA

(sm

)

Grade A Grade B


Grade A Case Study (*): Rental Rates through 10 years

OFFICE

Hanoi

HCMC

56.00

34.20

0

20

40

60

80

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Re

nts

(U

S$

psm

p

m)

(*) Selected Rents of a Building in CBD recorded at Q1 of each year, Rents include Serviced Charge, exclude VAT

65.00

42.00

0

20

40

60

80

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Re

nt (U

S$

psm

p

m)



Demand Largely From Relocation And Expansion

OFFICE

Q1 20172016

HA

NO

I

New-to-market letting

Relocation &

Expansion

9%

91%

HC

MC

Source: based on CBRE’s enquiries, 2017 y-t-d

New-to-market letting

Relocation &

Expansion

16%

84%

18%

82%

HANOIDemand remains strong

in traditional sectors

HCMC

The surge of IT and

Logistics

Finance and

Banking

12% - 7%

Manufacturing

27%

IT/Technology

15% - 12%

Logistics

12%

25%

75%


Higher Demand for Large Floor Plate

OFFICE

Hanoi

Source: based on CBRE’s enquiries, 2017 y-t-d

HCMC

25%

21%

47%

34%

16%

21%

5%

14%

7%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2016

Q12017

<100sm 100sm - 299sm 300sm - 699sm 700sm - 1,000 sm >1,000 sm

21%

5%

45%

45%

18%

17%

10%

14%

7%

19%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2016

Q12017

<100sm 100sm - 299sm 300sm - 699sm 700sm - 1,000 sm >1,000 sm


Future Supply

HCMC OFFICE

2018 - 2019

1. Spirit of Saigon, D1 – GFA: 15,000 sm

2. Saigon M&C, D1 – GFA: 49,000 sm

3. VietCapital Center, D1 – GFA: 38,621 sm

4. The Khai, D7 – GFA: 15,000 sm

5. The Prince, D7 – GFA: 15,000 sm 1 24

5

3

1. Viettel Complex, D10 – GFA: 65,971 sm

2. Deustches Haus, D1 – GFA: 38,621 sm

3. Saigon Centre Phase 2, D1 – GFA: 40,000 sm

4. Etown Central, Tan Binh – GFA: 67,760 sm

2017

1

2 3

4


Future Supply

HANOI OFFICE

Source: CBRE Vietnam , Q1 2017

2017

1. HUD Tower, Cau Giay – GFA: 70,000 sm

2. Discovery Complex, Cau Giay – GFA: 49,000 sm

3. DSD Building, Dong Da – GFA: 20,000 sm

4. Truong Thinh Office Building, Cau Giay – GFA: 5,400 sm

4

2018 - 20191

1. Vietinbank Tower, Tay Ho – GFA: 100,000 sm

2. FLC Twin Tower, Cau Giay - GFA: 35,960

3. Oriental Sun Tower, Hoan Kiem – GFA: 23,300 sm

4. Eurowindows, Dong Da – GFA: 16,592 sm

5. Office building at Metropolis, Ba Dinh

12

3

2

4

5

3


Dreamplex to open second co-

working space

Supply Trend: Co-Working Space Still Expanding in Vietnam

OFFICE

Dreamplex 2 Grand Opening on 2nd March, 2017 Toong at the Oxygen

Opening on 25th March, 2017



…. And also APAC

OFFICE


Market Cycle

OFFICE


BoomSlow

Down

Falling

marketRecovery

Lack of Confidence

High Confidence

Rent Reduce

Over-Supply

More Sellers

than Buyers

More Buyers

than Sellers

Hanoi

Singapore

Bangkok

Tenant’s

Market

Rent IncreaseLandlord’s

Market

Jakarta

HongKong

HCMC

Improving

Fundamentals

http://en.wikipedia.org/wiki/File:Flag_of_Vietnam.svg




RETAIL

17,500 sm new supply

US$55.8 psm pm

8.0% vacancy

+0.6% y-o-y

HCMC HANOI

+10.2% q-o-q

• Supply scatter to the decentralized areas while CBD will not have new supply in three years.

• Flat rental rate, expecting intense competition between existing and future landlords.

• Placemaking to play an important role

+1.1ppts

y-o-y

-2.6ppts

q-o-q

No new supply

US$33.0 psm pm

10.6% vacancy

+0.1% y-o-y -9.2% q-o-q

+5.4ppts

y-o-y

-2.2ppts

q-o-q

• Quiet quarter with no new supply.• Rental rate remained stable since the

previous quarter.• Non-CBD continues to be future trend for

coming projects.


Slight increase in supply

RETAIL2

00

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

Sense Market 23/91,500 sm NLA retail

District 1

4,000 sm of Snow Town@CBD

Premium Home

District 2

CBD Premium Home

HANOIHCMC


0

50,000

100,000

150,000

200,000

250,000

300,000

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

NLA

, sm

- No New SupplyQ1

Q2Q3

Q4

2017’s pipeline >125,000 sm

YT

D

YT

D


Vacancy Rate Increases while Rental stays flat

RETAIL

0%

15%

30%

45%

60%

0

40

80

120

160

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

2014 2015 2016 2017

Va

ca

ncy R

ate

(%

)

Askin

g R

en

ts (

US

$/s

m/m

on

th)

HANOIHCMC


0%

15%

30%

45%

60%

0

40

80

120

160

Q1Q2Q3 Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1

2014 2015 2016 2017

Va

ca

ncy R

ate

(%

)

Askin

g R

en

ts (

US

$/s

m/m

on

th)


1. RomeA, D3 –19,000 sm

(opened in March)

1. Golden Plaza, D5 – 15,000 sm

2. The Garden Mall, D5 – 19,000 sm

3. Viettel Project, D10 – 15,000 sm

HCMC Future Supply

RETAIL

Source: CBRE Vietnam, REIC.

2017

2018 – 2020

1. Spirit of Saigon, D1 – 48,000 sm

2. Crescent Mall Phase 2, D7 - 18,000 sm

3. Sala Shopping Centre, D2 - 60,000 sm

4. OneHub Saigon, D9 - 70,000 sm

5. Saigon Tax Trade Centre, D1 - 25,000 sm

6. Vincom Central, Binh Thanh District – 60,000 sm

3

1

2

4

3

4

12

65


1. Artemis Shopping Center, Thanh Xuan – 27,000 sm

2. Hanoi Center Point, Thanh Xuan –18,900 sm

3. Vinhomes Metropolis, Ba Dinh – 41,000 sm

4. Truong Dinh Plaza, Hai Ba Trung – 15,000 sm

5. Machinco, Thanh Xuan – 24,000 sm

Hanoi Future Supply

RETAIL


2017

2018 – 2020

1. Lotte Mall, Tay Ho – 130,000 sm

2. Vinhomes D’Capital, Nam Tu Liem -180,000 sm

3. Aeon Mall Ha Dong - 95,000 sm

4. Vietinbank Tower, Tay Ho – 10,000 sm

5. Vinhomes Gallery Giang Vo, Ba Dinh – N/A

12

34

5

3

4

1

2

6

5


To Make an Attractive Sidewalk

RETAIL

Sidewalks being

cleared in both cities

Source: Project for Public Spaces

More pedestrians streets under

planning

And the creative solution….

Bui Vien 2nd walking street

Thu Thiem Square


New Retail Areas

RETAIL

The underground is now a thing

Sense Market 23/9,

HCMCLy Tu Trong Str., HCMC

New comers

Interest in Affordable Products

4 stores 3 stores 7 stores (2 in HN) 6 stores (1 in HN)

The Oxygen

(renovated)

8,000 sm in District 2

Number of stores nationwide

Royal City, Hanoi Times City, Hanoi Vincom Plaza , Hanoi


CBRE ASIA PACIFIC

Asia Pacific Millennials: Shaping the

future of real estate

Vietnamese millennials: Shaping trends

DEMAND

CGV

Lotte Cinema

Platinum

Galaxy

BHD

Others

Source: CBRE Asia Pacific.

Cinemas – the rising star

F&B – the relentless battle

Source: KDB Daewoo


Market Cycle

RETAIL


BoomSlow

Down

Falling

marketRecovery

Lack of Confidence

High Confidence

Rent Reduce

Over-Supply

More Sellers

than Buyers

Improving

Fundamentals

More Buyers

than Sellers

HCMC

Singapore

Bangkok

Tenant’s

Market

Rent IncreaseLandlord’s

Market

Jakarta

HongKong

Hanoi





SERVICED APARTMENT

No new supply

US$36.0 psm

5.0% vacancy

+8.8% y-o-y

HCMC HANOI

+0.8% q-o-q

• Current performance is still healthy as the market is temporarily taking advantage of limited supply.

• There will be increasing pressure from future branded supplies and buy-to-let market (non-serviced apartment).

No new supply

US$29.7 psm

9.1% vacancy

-2.0 ppts y-o-y -0.5ppt q-o-q

+8.9% y-o-y 0% q-o-q

0.8 ppt y-o-y -1.9 ppts q-o-q

Grade A

No new supply

US$31.8 psm

9% vacancy

+1 % y-o-y +1.3% q-o-q

No new supply

US$21.19 psm

17% vacancy

-3.1 ppts y-o-y -7.4 ppts q-o-q

-0.2% y-o-y -4.3% q-o-q

-2.3 ppts y-o-y +0.4 ppt q-o-q

Grade B

• Positive sign across all grades as occupancy improved.

• Rental rate remains relatively stable


SERVICED APARTMENT


No. of Project

% of total supply (units)

Occupancy

3

5%

89%

6

19%

85%

3

17%

92%

1

2%

94%

14

42%

95%

6

14%

92%

-

1,000

2,000

3,000

4,000

HCMC Hanoi Da Nang

Un

its

Q1 2017 2011

HCMC – CBD still in the Limelight

Implication for districts only, not exact project location

2

4%

92%

2

9%

81%

9

27%

88%

3

19%

86%

11

32%

88%

4

9%

88%

HANOI – Midtown & North are the hubs

No. of Project

% of total supply (units)

Occupancy


Increasing Competition from Buy-to-Let

SERVICED APARTMENT

HCMC – RENTAL RATE PER SQUARE METRE HANOI – RENTAL RATE PER SQUARE METRE

* Survey on buy-to-let rent of high-end condominium


District 1

District 2

District 7

Binh Thanh

$19

$13

$26

$13

$15

$34

$22

$32

$33

$20

BUY-TO-LET

RENT

SERVICED APARTMENT

RENT

District 3

$27

$28

$25

$34

$24

BUY-TO-LET

RENTSERVICED APARTMENT

RENT

$11

$9

$11

$11

$8

Ba Dinh

Tay Ho

HoanKiem

CauGiay

Tu Liem


Short Term Leases Increase

SERVICED APARTMENT

Source: Agoda, retrieved on 16/3/2017.


SERVICED APARTMENT

HCMC HANOI

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5

10

15

20

25

30

35

40

Q1 Q2Q3 Q4Q1 Q2Q3 Q4Q1 Q2Q3Q4Q1

2014 2015 2016 2017

Va

ca

ncy R

ate

(%

)

Askin

g R

en

t (U

S$

/sm

/mo

nth

)


0%

5%

10%

15%

20%

25%

30%

35%

40%

0

5

10

15

20

25

30

35

40

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

2014 2015 2016 2017

Va

ca

ncy r

ate

Askin

g r

en

t (U

S$

/sm

/mo

nth

)


HCMC Future Supply

SERVICED APARTMENT

2017

2018 – 2020

1. Ascott Waterfront, D1 – 222 units

2. Saigon Centre Phase 2, D1 – 200 units

3. Saigon Plaza, D1 – 121 units

4. The Berkley Residence, D2 – 85 units

5. New Pearl, D3 – 161 units

6. Mai House, D3 – 43 units

1. Lavenue Crown, D1 – 186 units

2. Citadines Regency Saigon, D3 – 200 units

3. Sherwood Suites Saigon, D3 – 157 units

4. The Spirit of Saigon, D1 – 200 units

5. Saigon South Phase 2, D1 – 243 units

4

5

6

1

2

5

3

4

1 2


3


Hanoi Future Supply

SERVICED APARTMENT

2017

2018 – 2020

1. Somerset West Point, Tay Ho – 247 units

2. Trang An Complex, Cau Giay – 40 units

1. Vietinbank Tower, Tay Ho

2. Vinata Tower, Cau Giay

3. Somerset West Central Hanoi, Cau Giay

4. Lotte Serviced Residences West Lake,

Tay Ho

5. Hilton Hanoi West Lake, Tay Ho

1

2

3

41 2

5




CONDOMINIUM

5,083 newly launched units

6,501 sold units

US$1,595 psm

-29% y-o-y

HCMC HANOI

-47% q-o-q

• Moving to Mid-end market: mid-end products accounted for 52% of total launch and 67% of total sales in Q1 2017.

• Average primary marketing pricing up by 13% y-o-y mostly due to more expensive projects launched

+13% y-o-y

• Affordable segment: 19% of new launch in Q1 2017 up from 7% in Q4 2016

• Average primary marketing pricing up by 13% y-o-y mostly due to more expensive projects launched

-49% y-o-y

-44% q-o-q9,398 newly launched units

6,143 sold units

US$1,263 psm

+57% y-o-y -7% q-o-q

+13% y-o-y -4% q-o-q

+36% y-o-y

+3% q-o-q

+6% q-o-q


New launch: Divergent paths

CONDOMINIUM

Q1 2017Average

last 4 quarters

35 projects 24 projects

0

5,000

10,000

15,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Un

its

AND HANOI TO INCREASE

HCMC – DECREASE IN NUMBER OF PROJECTS AND UNITS LAUNCHED

Q1 2017Average

last 4 quarters

21 projects 24 projects


0

5,000

10,000

15,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Un

its


Lower-end segments: Continue their expansion

CONDOMINIUM

-150%

-100%

-50%

0%

HANOIHCMC

-150%

-100%

-50%

0%

50%

100%

150%

200%

250%

Percentage changes of new launch by segment (q-o-q)



Sold units - Mid-end dominated Q1 2017

CONDOMINIUM


HANOIHCMC

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

No. o

f S

old

Units

Luxury High-end Mid-end Affordable

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

No. o

f S

old

Units



Primary pricing

CONDOMINIUM


HCMC

HANOI

$ 0

$1 000

$2 000

$3 000

$4 000

$5 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Prim

ary

price

(U

S$

psm

)


$0

$1,000

$2,000

$3,000

$4,000

$5,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Prim

ary

price

(U

S$

psm

)


HCMC Notable Future Supply

CONDOMINIUM

2017

2018 – 2020

1. RichLane Residences, D7 – 259 units

2. Viet Capital Centre, D1 – 36 units

3. Sunwah Pearl, Binh Thanh – 1,200 units

4. Sensation Capitaland, D2– 300 units

5. Waterina, D2 – 86 units

6. Glenwood Maison, D2 – 300 units

7. Vincity, D9 – 10,000 units

1. Lavenue Crown, D1 – 200 units

2. Springlight City, D1 – 892 units

3. The Spirit of Saigon, D1 – 495 units

4. NEXUS, D1 – 300 units

6

1

2

4

3

4

1 2

7

5

3



1. Kosmo Tay Ho, Bac Tu Liem

2. Aquabay Center Lake, Hung Yen

3. Minh Khai Plaza, Hai Ba Trung

4. Imperia Sky Garden, Ha Dong

5. Vinhomes Gallery Giang Vo, Ba Dinh

6. Petrowaco Lang Ha, Dong Da

7. Sunshine Center, Nam Tu Liem

8. Vincity, Tu Liem

Hanoi Notable Future Supply

CONDOMINIUM


2017

2018 – 2020

1

1. Vinhomes Smart City, Thanh Xuan

2. Aquabay Grand Park, Hung Yen

3. Avenue Park, Long Bien

4. Park City, Ha Dong

5. D'.El Dorado, Tay Ho

6. D'. Jardin Royal, Hai Ba Trung

7. Sunshine Boulevard, Thanh Xuan

32

5 6

15 7

4

4


Disruptive Tech - Added-value Experience For Buyers

CONDOMINIUM

A New Dimension in Home

Buying: Virtual Reality

3D walk-through website

Virtual reality: revolutionising property sales?

Virtual Reality (VR) is growing in popularity as a way of marketing property – and

in the prime London market, whose investors often rather inconveniently live

thousands of miles away from the properties they want to view, it can be a handy

tool indeed. The use of VR in property is already a $1bn industry globally, and

Goldman Sachs estimate that is set to treble by 2020.

Halstead says it will introduce three-dimensional displays and virtual-reality headsets to its offices this year, and the brokerage isn’t alone. Greenland Forest City Partners and Douglas Elliman Real Estate are also hoping to add virtual-reality technology in the coming months, as are individual brokers looking for a competitive edge. Digital design firms charge tens of thousands of dollars to create virtual customizable spaces for high-end buyers.


Challenges remain after handover

Lower-end segments: Wait for a positive change

CONDOMINIUM

Big developers to join –

Better quality to come?

Source: Images retrieved from the internet


East and West Saigon River

CONDOMINIUM

Vinhomes Central ParkVinGroup

11,189 units | US$2,010/sm

Sold rate: 91%

GS Thu ThiemGS E&C

N/A units | US$ N/A

Thu Thiem Lake ViewCII

N/A units | US$ N/A

Marina BayCII

N/A units | US$ N/A

Vinhomes Golden RiverVinGroup

5,050 units | US$4,480/sm

Sold rate: 78%

The ManorBitexco

1,047 units | US$1,630/sm

Sold rate: 100%

Saigon PearlSSG

1,507 units | US$1,540/sm

Sold rate: 100%

Sunwah PearlSunwah Group

1,200 units | US$2,550/sm

Sold rate: N/A

Opal PearlSSG

180 units | US$1,869/sm

Sold rate: 75%

Saigon Blue MoonH.P.C.I.

5,000 units | US$ N/A

Sold rate: N/A

Launched project

Future project


Hanoi: Thanh Xuan and Cau Giay Districts – a busy construction site

CONDOMINIUM

Royal City

4,460 units

$1,833 psm

Golden Land

692 units

$1,313 psm

Hapulico

Complex

800 units

$1,353 psm

The Legend

460 units

$1,293 psm

Gold Season

760 units

$1,257 psm

Thong Nhat

Complex

552 units

$1,213 psm

Vinhomes Smart CitySunshine

Boulevard

Thanh Xuan Complex

378 units

$1,357 psm

Imperia Garden

2,158 units

$1,482 psm

Completed Project

Under Construction

Future Supply

D’ Capitale

2,500 units

$2,114 psm

Handiresco

336 units

$1,313 psm

Secondary price psm (excluding VAT)


CBRE Sales: Bigger in unit sizes

CONDOMINIUM

* The analysis above is based on CBRE Vietnam’s residential closed deals and should not be used as a marketwise benchmark.Source: CBRE Vietnam, Q1 2017.

By Purpose

By Product

By Unit Size

By Location

0% 20% 40% 60% 80% 100%

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

1BR 2BR 3BR 4BR

0% 20% 40% 60% 80% 100%

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Buy-to-let Buy-to-gain Owner Occupied

0% 20% 40% 60% 80% 100%

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

District 1 District 2 District 3District 4 District 7 Binh Thanh District

0% 20% 40% 60% 80% 100%

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

50-100 100-150 150-200

100-200 sm

District 2

More end-user


Market Cycle

CONDOMINIUM


BoomSlow

Down

Falling

market

Recovery

Lack of Confidence

High Confidence

Price Reduce

Over-Supply

More Sellers

than Buyers

Improving

Fundamentals

More Buyers

than Sellers

Hanoi & HCMC

Phnom Penh

Singapore

Bangkok

Buyer’s

Market

Price IncreaseSeller’s

Market



HCMC LANDED PROPERTY

0

500

1,000

1,500Q

1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Ne

w S

up

ply

(un

its)

2014 2015 2016 2017 Source: CBRE Vietnam, Q1 2017.

HCMC: New launches of the East dominated in Q1 2017

• The East dominated new supply (80%). Most new supply was in well-known areas.

• Expecting larger scale projects in all areas of the city.


553 893Q1 2017

Launches Sales

-57%y-o-y

18%q-o-q

0%q-o-q

82%y-o-y


District 2

District 9

Thu Duc

New Launches


Valencia Riverside

Scale: 400 units

Primary selling price:

1,650 USD/m2

Merita Khang Dien

Scale: 131 units


2,050 USD/m2

Valora Kikyo

Scale: 110 units


2,200 USD/m2

River Park

Scale: 176 units


1,700 USD/m2

Thang Long Home

Scale: 215 units


1,500 USD/m2


Stable Selling Price in most areas


1,000

1,500

2,000

2,500

3,000

3,500

4,000Q

1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2014 2015 2016 2017

Ave

rag

e a

skin

g p

rice

(US

$/s

m, o

n la

nd

are

a)

District 2 District 9 District 7 Others

4-6%1 - 5 %

District 2 District 9 District 7 Others

Ready-built Villa/Townhouse

(q-o-q)4.7%

16-40(*)%Land plots

(q-o-q)

Flat

*:some projects in Binh

Trung Dong, Thanh My Loi

4-15% Flat 3-25%

*:most increase is in Nha Be,Thu

Duc, Binh Chanh, District 12

HCMC: Stable Selling Price in most areas



1. Park Riverside Phase 2, District 9

2. LaVila Phase 2, Nha Be District

3. Valora Mizuki, Binh Chanh District

4. Harbour City, District 8

Future Supply Offer Wide Choice Of Sizes and Locations



2017

2018 – further

1. VinCity, District 9

2. Sala Dai Quang Minh, District 2

3. GS Metro City, Nha Be District

4. Peninsula, District 7 3

1

2

4

3

4

1 2


0

100

200

300

400

500

600

700

800

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

2014 2015 2016 2017

Units

Villa Terraced Shophouse

Vibrant launching activities

HANOI LANDED PROPERTY

Hanoi: New Supply, 2014 – Q1 2017

1,238

units

3,357

units


1,238 units Q1 2017

Launches

78%y-o-y

628%q-o-q

• The East dominated new supply (47%). • Most new supply are highly reputable projects

and located in convenient areas. • 58% of newly-launched housing types are

villas


Busy launches


Vinhomes Riverside

Phase 2 The Harmony

1st launch: 556 units

Primary price: $3,000 psm

Ciputra – Zone K

Units launched: 161 units


Vinhomes Green Bay



Ecopark – Marina Arc



Tu Liem District

Hung Yen

Long Bien District

Eurowindow River Park



Dreamland



Tay Ho District


Secondary pricing up in almost all core urban districts


Hanoi: Secondary Price of completed units, 2014 – Q1 2017

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

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

2014 2015 2016 2017

US

$ p

sm

Cau Giay Tu Liem Tay Ho Hoang Mai Ha Dong Long Bien

4.6%1.4%

Cau Giay Tu Liem Tay Ho Ha Dong

Q-o-Q

9.2%Y-o-Y 10.5% 8.6%

Completed Villa/Townhouse Long Bien

3.0%

7.1%

9.2%

3.5% 2.2%



Future Supply


Starlake

Expected next launch:150 units

Ecopark CBD

Expected launch: N/A

Lacasta Daewoo

Expected launch: 359 units

Q2 2017 Q3 2017 Q4 2017

Splendora Phase 2

Expected launch: 878 units

The Manor Central Park

Expected launch: ~600 units


High-end projects

will add quality

features in order

to support and

raise prices. Sales

momentum

remains positive in

all segments.

Affordable

segment to

expand fastest.

Vietnam’s economy in

general and the real

estate market in

particular are expected

to maintain stable,

positive growth.

Continues to be a favorite for

investment, with selling price

expected to increase further.

Existing and future large scale

projects attract the most interest

from buyers.

Hanoi: Grade A will perform well

since no new supply in 2017.

Continuous new supply of Grade B

causes vacancy to increase.

HCMC: Quality new supply will

come online in both grades.

Tenants profile will see the IT sector

becoming more dominant along

with Banking and Financials.

The market awaits larger scale

projects. “Placemaking” and

experiential retail remain a

challenge for existing and future

landlords. Intense competition is

expected.

Hotels which can

differentiate will

continue to perform

well.

Optimistic outlook is

expected with an

increase in tourist

arrivals.

Small scale projects with

limited facilities cannot

survive.

Branded projects in District 1

(HCMC) and Ba Dinh, Tay Ho

Districts (Hanoi) will maintain

their position.


VIETNAM - THE GREATEST COMEBACK IN REAL ESTATE HISTORY


THE WAY AHEAD


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VIEWPOINT & SPECIAL REPORT

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All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information containedherein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubtits accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessingthe 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 subscribefor 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 bealtered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorisedpublication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arisingby 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 & ConsultingT +84 8 3824 6125

F +84 8 3823 8418

Email: [email protected]

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