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1 CBRE MARKET INSIGHTS | Q3 2016
2 CBRE MARKET INSIGHTS | Q3 2016
LIMITS TO GROWTHFrom Formosa to West Lake
More than 200 tons of died fish collected in Westlake, Hanoi
5-Oct-16: Hanoi’s air pollution reaches hazardous level – rank 2nd in the world
3 CBRE MARKET INSIGHTS | Q3 2016
MEANWHILE IN HCMC…
Thu Thiem Tunnel
On the Street Inside building
For Pokemon hunters, not a problem.
IT NEVER RAINS BUT IT POURS
4 CBRE MARKET INSIGHTS | Q3 2016
In first-4 day after opening, Hanoi attracted
207,236 visitors
USD23 mil tourism revenue
WALKING DOWN THE STREET AND CATCH A POKÉMON
… And free Wi-Fi for Pokémon Players
New walking streets for Hanoian and Tourists
IN HANOI
Source: CBRE Vietnam.
Source: Hanoi Tourism Department
5 CBRE MARKET INSIGHTS | Q3 2016
VIETNAM IN THE FOREIGN PRESS
Sep 7th, 2016
6 CBRE MARKET INSIGHTS | Q3 2016
THE GOOD NEWS
7 CBRE MARKET INSIGHTS | Q3 2016
Remittances to VietnamAND… MORE GOOD NEWS
“in the first seven months of 2016, an increase of 4.16 percent compared to the same period last year”“the southern hub is expected to receive
$5.7 billion in overseas remittances this year, climbing 5.6 percent compared to 2015”
“21.6 percent of remittances in 2015 have been spent on real estate projects, equaling a 0.8 percent increase year-on-year.
With the $5.5 billion forecast, we expect to see at least $1.2 billion of overseas money flowing into the property sector”
“Remittances to Vietnam are estimated to have increased by
some 10 percent in 2015, benefiting from improvements in overseas
remittance services and a change in law in 2015 that permits Vietnamese overseas to buy houses in Vietnam”
8 CBRE MARKET INSIGHTS | Q3 2016
AND THE NOT SO GOOD
Sep 6th 2016
Sep 1st 2016
FDI into Textile Slows Down
Sep 27th 2016
9 CBRE MARKET INSIGHTS | Q3 2016
0
20
40
60
80
100
120
140
160
May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May July Sep
2014 2015 2016
Ind
ex
Government Bond VN-Index Local Gold USD/VND Crude Oil
VIETNAM ECONOMYMajor Asset Classes
Source: HNC, Gold.org, SJC, SBV
2016
10 CBRE MARKET INSIGHTS | Q3 2016
Agriculture, forestry and fishing grew at a 6-year lowGDP
Vietnam GDP growth (%)
Source: General Statistics Office
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
GDP Industry andConstruction
Service Agriculture,forestry and
fishing
9M 2015 9M 2016
Vietnam GDP growth by sector 9M 2016 vs 9M 2015
9M 20145.6%
9M 20156.5%
9M 20165.9%
H1 20165.52%
11 CBRE MARKET INSIGHTS | Q3 2016
Real Estate FDI Remains ModerateFDI
Vietnam Registered FDI in 9M 2016: USD16.4 billion
25%
75%
Real estate
Others2007
6%
74%
20%
Real estate
Manufacturing
Others
9M 2016
Top FDI Investors, USD million, 9M2016
5,587
1,705
1,849
1,228
1,110
0 1000 2000 3000 4000 5000 6000
South Korea
Japan
Singapore
Taiwan
Hongkong 1. LG Display Co., Ltd invested US$1.5 billion for a OLED project in Hai Phong
2. Long Thanh Amata City in Dong Nai received ~US$309 million from Thai Investor to build a service township
3. Samsung investing US$300 million in a 21-storey building in Hanoi.
4. TNR Holdings and a Russian partner signed the memo regarding implement a US$300 million project in Hanoi.
Major Real Estate Deals, 9M 2016
12 CBRE MARKET INSIGHTS | Q3 2016
Strong growth in new companies and registered capital in REREGISTERED COMPANIES
99% increase in Number of newly registered companies
242.5% increase in registered capital
REAL ESTATE
Newly registered companies
81,451 companies9M 2016
68,347 companies9M 2015
Source: General Statistics Office
19% up
Total registered capital of new company
VND 629.1 trillion9M 2016
VND 420.9 trillion9M 2015
49.5% up
13 CBRE MARKET INSIGHTS | Q3 2016
DASHBOARD – PRODUCED MONTHLY
(*) Current lending rate is the average lending rate surveyed at ten banks, and only applicable for home loan. However, the back-dated numbers were the average rate announced publicly at that point of time, applied for all sectors and all banks. The average lending rate is for reference only.(**) Deposit rate is the average deposit rate from a sample comprised of ten banks, in which the rates are announced publicly on their websites and can be tracked backwards.
ECONOMICINDICATORS
2Y 1Y 6M 3M 1M Current
CPI (%) y-o-y 4.6 0.7 1.3 1.7 1.9 1.9
Trade balance (US$, bil)
(0.6) (0.2) (0.1) (0.1) 0.2 (0.1)
Retail & services Turnover (VND, tril)
244.5 270.6 275.4 295.8 292.8 294.4
BANKING & FINANCE 2Y 1Y 6M 3M 1M Current
VN-Index 598.8 562.6 561.2 620.8 669.2 688.6
USD/VND (inter-bank) 21,246 21,890 22,300 21,914 21,914 21,949
Local gold (VND mil/tael) 35.8 33.8 33.2 35.1 36.1 36.1
Lending Rate (%)* 13.1% 8.4% 7.6% 7.1% 7.4% 8.2%
Deposit rate (%)**(1-year term)
6.8% 6.3% 6.7% 6.6% 6.7% 6.7%
REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current
Real Estate Holding & Development Listed Companies
53.32 44.20 46.47 49.67 48.44 46.12
Real Estate Services Listed Companies
53.97 40.3 34.07 28.12 26.82 23.37
Source: Stockbiz October 2016
Source: GSO Sept ember 2016 Source: GSO, SBV, SJC & HSX September 2016
NEW LAUNCHES 2Y 1Y 6M 3M 1M Current
HCMC New launches (unit)
66,068 36,395 22,276 11,943 3,521 2,781
HN New launches (unit) 42,039 22,757 12,946 8,460 3,739 1,409
Source: CBRE October 2016
14 CBRE MARKET INSIGHTS | Q3 2016
FORTUNE GLOBAL 500Fortune Companies in Vietnam
0
5
10
15
20
25
30
35
40
45
Foo
d &
Dru
g S
tore
s
Tel
ecom
mun
icat
ions
App
arel
Tra
nspo
rtat
ion
Ch
emic
al
Tec
hnol
ogy
Ene
rgy
Eng
inee
ring
& C
onst
ruct
ion
Hou
seho
ld p
rodu
cts
Bus
ines
s S
ervi
ce
Mot
or V
ehic
les
& P
arts
Re
taili
ng
Who
lesa
lers
Fin
ance
He
alth
Car
e
Indu
stria
ls
Foo
d, B
ever
ages
& T
obac
co
Ho
tels
, Res
taur
ant
s &
…
Aeo
rosp
aces
& D
efen
se
Mat
eria
ls
Med
ia
No.
of c
ompa
nies 2015
2016
218 companies in 2015 230 companies in 2016
Source: CBRE Vietnam
15 CBRE MARKET INSIGHTS | Q3 2016
BCI NUMBERS
All Future Projects
(2015-2030) HCMC Hanoi
Da Nang
Can Tho
Nha Trang
Vung Tau
Hai Phong
Office 250 244 54 29 16 29 39
Retail 80 106 43 5 12 12 7
Hospitality and SA
37 23 43 3 33 16 3
Residential 380 164 29 11 25 18 9
Total 747 537 169 48 86 75 58
Projects Under
ConstructionHCMC Hanoi
Da Nang
Can Tho
Nha Trang
Vung Tau
Hai Phong
Office 147 152 26 15 9 22 23
Retail 90 62 29 3 6 8 3
Hospitality and SA
21 15 34 3 18 9 2
Residential 282 100 16 5 14 11 7
Total 540 329 105 26 47 50 35
Source: www.bciasia.com; CBRE Vietnam September 2016Source: www.bciasia.com; CBRE Vietnam September 2016
Projects under construction, y-o-y change All future projects (2016 – 2030), y-o-y change
-100%
0%
100%
200%
300%
HCMC Hanoi DaNang
CanTho
NhaTrang
(KhanhHoa)
VungTau
HaiPhong
Per
cen
tag
e ch
ang
e
2016 YTD vs 2015 2015 vs 2014
-100%
0%
100%
200%
300%
HCMC Hanoi DaNang
CanTho
NhaTrang
(KhanhHoa)
VungTau
HaiPhong
Per
cen
tag
e ch
ang
e
2016 YTD vs 2015 2015 vs 2014
16 CBRE MARKET INSIGHTS | Q3 2016
WALKABOUT IN HCMC Busy Construction Activities in District 1
15 Cleared Sites 5 Public Projects
7 Hotel Projects 6 Residential Projects 2 Retail Projects 33 Office Projects
95 projects found on 132 streets in District 1
17 CBRE MARKET INSIGHTS | Q3 2016
WALKABOUT IN HANOI The West and South West: Big construction sites
CBD14 projects
East5 projects
South22 projects
South West37 Projects
West47 Projects
North13 Projects
Midtown30 projects
CBD Fringe10 projects
179 projects found in 12 DistrictsCBD: 24 projects, New-CBD: 47 projects
133residential & mixed-used projects
HD Mon City, Tu Liem
Vincom Starbowl, Dong Da
137commercial & mixed-used projects
18 CBRE MARKET INSIGHTS | Q3 2016
INFRASTRUCTURE
19 CBRE MARKET INSIGHTS | Q3 2016
Airport – TSN seeking for solutions HCMC INFRASTRUCTURE
Source: tuoitre.vn
21 ha Military land for new hangar
7.6 ha hangar Under construction International Terminal
ExpansionUnder construction
Domestic Terminal ExpansionUnder Planning Parallel road project to
Truong ChinhUnder Planning
Tan Son Nhat Airport Terminal 3
GFA: 45,000 sqmUnder planning
Flooding, traffic jam, overloaded capacity
20 CBRE MARKET INSIGHTS | Q3 2016
Metro Line No. 1HCMC INFRASTRUCTURE
Saigon Bridge Section3
3
6
4
An Phu Section46 Suoi Tien Station
Source: Retrieve on internet
5 Thu Duc Station
5
22
Van Thanh Station
1
1 Ba Son Station
21 CBRE MARKET INSIGHTS | Q3 2016
Thu Thiem - Four major roads are taking shapeHCMC INFRASTRUCTURE
Thu Thiem OLD DAYS
Thu Thiem New Area TODAY
Land cleared, brushes and old houses removed
Thu Thiem TODAY (as of Oct 2016)
22 CBRE MARKET INSIGHTS | Q3 2016
HCMC INFRASTRUCTURE
Connecting Vietnam, Laos, Thailand3 routes
1. Bangkok – Nakhon Phanom (Thailand) – Thakhek(Laos) – National Highway (NH) No. 12A – Ho Chi Minh Highway – NH No.15 – Ha Tinh Province (Vietnam).
2. Bangkok – Nakhon Phanom (Thailand) – Thakhek(Laos) – NH No.13 – NH No.18 – NH No.1 – Ha Tinh Province (Vietnam).
3. Mukdahan (Thailand) – Savannakhet (Laos) – NH No.9 – Dong Ha – NH No.1 – Hue – Da Nang (Vietnam).
23 CBRE MARKET INSIGHTS | Q3 2016
Metro lines: step by step progressHANOI INFRASTRUCTURE
Source: Retrieve on internet, CBRE Vietnam
Line No. 3 – Nhon - Hanoi Railway station: 45% completed. Expected operation: 2020
Cau Giay Road Cau Giay – Pham Hung Intersection Depot on Cau Dien Road
Line No. 2A - Ha Dong- Cat Linh: 80% completed (Q2/16: 74%). Expected operation: Q3/2017
Depot on La Khe (Ha Dong) Depot on Thanh Xuan 3 Depot on Cat Linh
24 CBRE MARKET INSIGHTS | Q3 2016
Metro Line No. 2A (Cat Linh – Ha Dong) – Q3/2016HANOI INFRASTRUCTURE
Source: Retrieve on internet, CBRE Vietnam.
Khuat Duy Tien – Nguyen Xien3
5
4
6
La Khe Station 6
1 Cat Linh Station
2 Hoang Cau Station
7
2
Yen Nghia Station
1
5 Van Khe Station
7
3
4 Nguyen Trai Section
Under-construction
25 CBRE MARKET INSIGHTS | Q3 2016
Metro Line No. 3 (Nhon - Hanoi Railway station) – Q3/2016HANOI INFRASTRUCTURE
Source: Retrieve on internet, CBRE Vietnam.
Cau Giay – Voi Phuc6Ho Tung Mau-Le Duc Tho4 5 Cau Giay Section
3 Cau Dien Station
1
1 Nhon Station
3
4
2 2 Cau Dien Section
5
6
Under-construction
Under planning
26 CBRE MARKET INSIGHTS | Q3 2016
CONDOMINIUM
27 CBRE MARKET INSIGHTS | Q3 2016
CONDOMINIUMNew launches: Decrease in HCMC, but Increase in Hanoi
CBD
East3%
South12%South West
19%
West36%
North
Midtown19%
CBD Fringe6%
Source: CBRE Vietnam Q3 2016.
14% q-o-q -38% y-o-y
Hanoi
6,842 unitsfrom 16 projects
North6%
East24%
West21%
Central5%
HCMC
8,016 unitsfrom 23 projects
-17% q-o-q -27% y-o-y
South44%
28 CBRE MARKET INSIGHTS | Q3 2016
CONDOMINIUM
Luxury: >US$3,500 per smHigh-end: US$1,500 to US$3,500 per sm
Mid-end: US$800 to $1,500 per smAffordable: US$800 per sm
Source: CBRE Vietnam, Q3 2016
Affordable
HCMC
Q-o-Q increase in launches from high-end and luxury segments
New Launches: Mid-end Segment Dominated
Mid-end Apartments continue to dominate new launches
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
Uni
ts
Luxury High-end Mid-end Low-end
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
Uni
ts
Luxury High-end Mid-end Affordable Affordable
Hanoi
29 CBRE MARKET INSIGHTS | Q3 2016
New entryHCMC CONDOMINIUM
Well-known as Metro line no. 1 constructor
Developing their first Residential project in District 2 with Thien Duc Co.
30 CBRE MARKET INSIGHTS | Q3 2016
HANOI: RETURN OF ONCE ABANDONED PROJECTS… and reviving of some redevelopment projects
16 Pham HungSunshine TowerExpected Completion: 2018
Giang Vo Exhibition Center Hanoi giving ground to a redevelopment
31 CBRE MARKET INSIGHTS | Q3 2016
CONDOMINIUMSales momentum remains upbeat
Sales in Q3 surged to the highest level since the start of 2016
5,279 units sold
9% q-o-q
52% in mid-end segment
HanoiHCMC
0
2,000
4,000
6,000
8,000
10,000
12,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
No.
of S
old
Uni
ts
Affordable Mid-end High-end Luxury
0
2,000
4,000
6,000
8,000
10,000
12,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
No.
of S
old
Uni
ts
Luxury High-end Mid-end Affordable
7,811 units sold
32% q-o-q
50% in mid-end segment
Increase in Sold Units Given the Drop in New Launches
Source: CBRE Vietnam, Q3 2016.
32 CBRE MARKET INSIGHTS | Q3 2016
Primary pricingHCMC CONDOMINIUM
Source: CBRE Vietnam Q3 2016
Asking Selling Price on Primary Market
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
Prim
ary
pric
e (U
S$
psm
)
Luxury High-end Mid-end Affordable
Improvement in Mid-end market
7% q-o-q
33 CBRE MARKET INSIGHTS | Q3 2016
HANOI CONDOMINIUM Primary Pricing
$0$500
$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
Prim
ary
pric
e (U
S$
per
sqm
)
Luxury High-end Mid-end Low-endSource: CBRE Vietnam Q3 2016
• Average primary price increased q-o-q : • +6% in Mid-end • +8% High-end
Affordable
Asking Selling Price on Primary Market
34 CBRE MARKET INSIGHTS | Q3 2016
Secondary Market Active in Well-Located and High-End Projects HCMC CONDOMINIUM
GATEWAY THAO DIEN• Launched price: US$1,800 (fully fitted)• Secondary price Q3/16: US$2,006• Unit size: 45 – 136 sqm• Total unit: 439
MASTERI• Launched price: US$1,412 (basic fitted)• Secondary price Q3/16: US$1,543• Unit size: 45 – 87 sqm• Total unit: 3,025
VINHOMES CENTRAL PARK• Launched price: US$1,890 (fully fitted)• Secondary price Q3/16: US$1,910• Unit size: 50 – 108 sqm• Total unit: 9,742
CITY GARDEN • Launched price: US$2,120 (fully fitted)• Secondary price Q3/16: US$2,293• Unit size: 59 – 139 sqm• Total unit: 478
NASSIM THAO DIEN• Launched price: US$2,500 (fully fitted)• Secondary price Q3/16: US$2,645• Unit size: 108-142 sqm• Total unit: 238
35 CBRE MARKET INSIGHTS | Q3 2016
Active projects in secondary marketHANOI CONDOMINIUM
PARK HILL TIMES CITY (PHASE 2)• Launched price: US$1,627/sqm• Secondary price Q3/16: US$1,709/sqm• Total units launched: 3,868
HOA BINH GREEN CITY (TOWER A)• Launched price: US$1,180/sqm• Secondary price Q3/16: US$1,302/qsm• Total units launched: 546
ECO GREEN CITY • Launched price: US$997/sqm• Secondary price Q3/16:
US$1,058/sqm• Total units launched: 1,200
FLC COMPLEX TOWER• Launched price: US$1,139/qsm• Secondary price Q3/16: US$1,221/sqm• Total units launched: 483
ARTEMIS• Launched price: US$1,912/sqm (fully
furnished)• Secondary price Q3/16: US$1,953/sqm• Total units launched: 336
36 CBRE MARKET INSIGHTS | Q3 2016
Notable New Supply in Q4 2016HCMC CONDOMINIUM
by Keppel Land, 816 units
by Phu My Hung, 1,840 units by CapitaLand, 960 units
by JV Keppel Land, Gaw Capital, Tran Thai and Tien Phuoc,~3,000 units
by Sunwah Group, ~500 units
Empire City
Saigon South Residence
Palm Heights
Feliz en Vista
Sunwah Pearl
37 CBRE MARKET INSIGHTS | Q3 2016
HANOI CONDOMINIUMUpcoming launches scattered over different areas
Aqua Bay Sky Residences
Sky Park Residences
Green Pearl
Petrowaco
Skyline Hoang Cau
Xuan Mai Riverside
38 CBRE MARKET INSIGHTS | Q3 2016
Foreign developers expand beyond their core areaHCMC CONDOMINIUM
Saigon South Residence
PMH
39 CBRE MARKET INSIGHTS | Q3 2016
Stronger TogetherHANOI CONDOMINIUM
Tan Hoang Minh Group, Vingroup and Techcombankcooperate to promote ‘D. Capitale
40 CBRE MARKET INSIGHTS | Q3 2016
More Large-Scale/Township ProjectsHCMC CONDOMINIUM
Vingroup43.9 ha
Under construction
Dai Quang Minh257 ha
Under construction
Vingroup25.29 ha
Under construction
Keppel Land + Tran Thai + Tien Phuoc
30.2 haUnder construction
Van Thinh Phat117.8 ha
Under construction
Vingroup1,080 haPlanning
Vinhomes Central Park Sala Thu Thiem VHGR
South Can GioSaigon PeninsulaPalm City
41 CBRE MARKET INSIGHTS | Q3 2016
33%
60%
North-based
9%
43%
49%
7%
9M 2016
South-based
Offshore Buyers
9M 2015
CBRE Sales: More Foreign Buyers, for Investment Purpose in HCMCCONDOMINIUM
* The analysis above is based on CBRE Vietnam’s residential closed deals and should not be used as a marketwise benchmark.Source: CBRE Vietnam Q3 2016
Buyers by Origin
Buyers by Age
Under 30 30 - 40 41-50 Above 50
2%16% 45%22%
43%
22%17%20%
Owner-occupier
Buy-to-let Investors
Buy-to-gain Investors
29%
38%
21%60%
18%
3%
42 CBRE MARKET INSIGHTS | Q3 2016
LANDED PROPERTY
43 CBRE MARKET INSIGHTS | Q3 2016
New SupplyLANDED PROPERTY
Palm Residence Senturia Vuon Lai Valora Fuji The Victoria
• District 2• 136 units• 30.2 ha• US$2,800- 3,000/sm
• District 9• 84 units• 5.4 ha• US$1,500- 1,700 /sm
• District 1• 63 Villas• 25.3 ha• US$20,000++ /sm
• District 12• 194 units• 9.8 ha• ~ US$900 -1,000/sm
HCMC
HANOI
Imperia Garden An Phu Shop Villa
• Thanh Xuan District• 42 villas• Scale: 4.2 ha• US$8,200 – 8,500 /sm
• Ha Dong District• 246 shop houses• Scale: 47.3 ha• ~ US$1,900- 2,400/sm
• Hoang Mai District• 133 terraced units• Scale: 500 ha• US$1,800 – 3,400/sm
Gamuda ST4 La Casa Villa
• Dong Da• 16 villas and 9 shop houses• Scale: 7019 sm• ~ US$8,437/sm
44 CBRE MARKET INSIGHTS | Q3 2016
HCMC Selling PriceLANDED PROPERTY
HCMC Villa and Townhouse, Selling Price by Quarter
Source: CBRE Vietnam Q3 2016
0
1,000
2,000
3,000
4,000
5,000
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2014 2015 2016
US
$/sq
m,
on la
nd a
rea)
District 2 District 9 District 7 Others
District 7: Stable secondary market
District 2: 2016 hot spot
District 9: >10% y-o-y
45 CBRE MARKET INSIGHTS | Q3 2016
HanoiLANDED PROPERTY
Hanoi Villa and Townhouse, Selling Price by Quarter
Source: CBRE Vietnam Q3 2016
+1.3%y-o-y
-1.9%q-o-q
$0
$2,000
$4,000
$6,000
$8,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
US
$/sq
m,
on la
nd a
rea
Cau Giay Hoang Mai Long Bien Tu Liem Others
Cau Giay: highest average price of active projects, increase 1.39% q-o-q
Long Bien, Tu Liem and others: on the rise
46 CBRE MARKET INSIGHTS | Q3 2016
HCMC Sales RateLANDED PROPERTY
0
1,000
2,000
3,000
4,000
District 2 District 9 District 7 Others
Num
ber
of u
nits
Sold Units Unsold units
Sold Rate by District
Palm ResidenceKeppel Land, Tien Phuoc, Tran Thai
Lakeview CityNovaland, D2
Cityland Park HillsCityland, Go Vap
2016 2016 2016
Sold >500 units Sold 136 units of phase 1 Sold >150 units
Mega VillageKhang Dien, D9
Melosa GardenKhang Dien, D9
Sold out Sold >250 units
2015 2015
Good Sales Rate Recorded for Townships with sufficient amenities/facilities.
47 CBRE MARKET INSIGHTS | Q3 2016
Hanoi Sales RateLANDED PROPERTY
Sold out (92 units) Sold out (143 units) Sold out (53 units)
Sold 79% (246 units) Sold out (61 units)Sold ~85% (147 units)
FLC Garden CityTu Liem District
Park Hill ShophouseHai Ba Trung District
Five Star My Dinh
Tu Liem DistrictQ2/2016 Q1/2016 Q1/2016
Gamuda Phase 2Hoang Mai District
Green PearlHai Ba Trung DistrictQ3/2015 Q4/2015
Mon CityTu Liem DistrictQ4/2015
48 CBRE MARKET INSIGHTS | Q3 2016
OFFICE
49 CBRE MARKET INSIGHTS | Q3 2016
HCMC OFFICE
Total Supply by Year, HCMC Office
Source: CBRE Vietnam, Q3 2016.
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2013 2014 2015 2016
NLA
(sq
m)
Grade A Grade B
No New Supply in Q3/2016
50 CBRE MARKET INSIGHTS | Q3 2016
HANOI OFFICE
Total Supply, Hanoi Office (NLA, sqm)
Hanoi Office supply64% Grade B44% from the West
Source: CBRE Vietnam Q3 2016
New supply came on stream
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2012 2013 2014 2015 Q3/16
Grade A Grade B
VP Bank Tower
Q3 2016MidtownGFA: 44,000 sqm
NEW SUPPLY IN Q3/2016
51 CBRE MARKET INSIGHTS | Q3 2016
HCMC OFFICE
Net Absorption, Office
Source: CBRE Vietnam Q3 2016
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2013 2014 2015 2016
NLA
(sm
)
Grade A Grade B
Negative net absorption in Grade A buildings
52 CBRE MARKET INSIGHTS | Q3 2016
HANOI OFFICEAbsorption improves q-o-q; still lags behind 2015
Net Absorption, Hanoi Office (sqm)
-10 000
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2013 2014 2015 2016
NL
A (
sqm
)
Grade A Grade B
Source: CBRE Vietnam Q3 2016
53 CBRE MARKET INSIGHTS | Q3 2016
Rents (*): Slight increase in HCMC – Drop in Hanoi OFFICE
HANOIHCMC
0 5 10 15 20 25 30 35 40 45051015202530354045
2016
Q3
Q2
Q1
2015
Q4
Q3
Q2
Q1
2014
Q4
Q3
Q2
Q1
2013Q4
Q3
05101520253035 0 5 10 15 20 25 30 35
Source: CBRE Vietnam Q3 2016
(*) Average asking rents (US$/sm/month)
Grade A Grade B
54 CBRE MARKET INSIGHTS | Q3 2016
Vacancy rate: Slight increase with Grade A, while Grade B decrease slightly
OFFICE
HANOIHCMC
2016
Q3
Q2
Q1
2015
Q4
Q3
Q2
Q1
2014
Q4
Q3
Q2
Q1
2013Q4
Q3
Source: CBRE Vietnam Q3 2016
Grade A Grade B
0%20%40% 0% 20% 40%0% 5% 10% 15%0%5%10%15%
55 CBRE MARKET INSIGHTS | Q3 2016
Tenants DemandOFFICE
New letting
Relocation & Expansion
16%
84%
Q3 20161H 2016
HC
MC 46%
53%
BankingPharmaceutical/ManufacturingIT/Software
Source: CBRE 2016 y-t-d
42%
58%
New letting
Relocation & Expansion
HA
NO
I
EducationIT/SoftwareInsurance/banking
39%
61%
Q3 20161H 2016Source: CBRE 2016 y-t-d
56 CBRE MARKET INSIGHTS | Q3 2016
Tenants’ Enquiries by SizeOFFICE
20%
39%
16%
10%
16%
HCMC HANOI
Source: CBRE enquiries 2016 y-t-d
27%
45%
18%
2%8%
57 CBRE MARKET INSIGHTS | Q3 2016
Landlord OfferingOFFICE
Key terms
Signage
Rent free
Rent review / escalation
Parking / Wet pantry / Server room
Caps and Collars
Expansion / Right of first refusal
Renewal
Termination / Break
Contraction
CPI/Forex adjustment
Sublet / Assignment / Surrender
Reinstatement
Holdover
Security deposit
HCMC HanoiFlexibleInflexible
2016
2015
FlexibleInflexible
58 CBRE MARKET INSIGHTS | Q3 2016
OCCUPIERS DASHBOARDOffice Real Estate Index – HCMC and Hanoi
HCMC INDEX
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
Total supply (ths. sm)
2,188 2,193 2,225 2,229 2,317 2,327 2,377 2,377 2,377
Rental Grade A(US$/sm/mth)
34.9 35.6 35.4 34.2 34.8 34.8 35.9 35.7 35.7
Rental Grade B(US$/sm/mth)
19.1 19.1 19.0 19.1 19.2 19.7 19.7 19.7 19.8
HANOI INDEX
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
Total supply(ths sm)
1,079 1,121 1,131 1,097 1,097 1,097 1,096 1,150 1,161
Rent-Grade A (US$/sm/mth)
31.0 30.7 30.3 29.9 29.0 29.1 29.3 28.0 28.2
Rent-Grade B(US$/sm/mth)
18.4 18.3 18.1 18.0 17.9 17.8 17.7 17.7 18.1
MAJOR DEALS -HANOI
Q3 2016
Building Sector Size smRent +SC(USD/sm)
Gelex Construction 300 $24.5
IPH Education 683 $16.4
PVOil Manufacturing 276 $13.64
MAJOR DEALS -
HCMC Q3 2016
Building SectorSizesm
Rent(US$ psm)
Service Charge
(US$ psm)Metropolitan
(D1)Pharma 300 $30 $6
Diamond Plaza (D1)
Insurance 2,200 $37 $8
LIM II (D3) Technology 700 $28 $6
Central Park (D1)
Transportation 380 $16 $4
Habour View (D1)
Design 499 $19 $5
Metropolitan (Q1)
Sourcing 795 $30 $6
Pearl Plaza (Q.Bình Thạnh)
Sports Clothing
1,200 $18 $6
Vincom Center(Q1)
Logistics 1,800 $21 $5.5
59 CBRE MARKET INSIGHTS | Q3 2016
HCMC OFFICE
Central Park Transportation 380 sqm
Centre Point NGO500 sqm
Diamond Plaza Life Insurance
2,200 sqm
Harbour View F&B499 sqm
Lim IITechnology700 sqm
Metropolitan Pharma/Mobile
300/189 sqm
Source: CBRE Vietnam enquiries only Q3 2016
Major Office Leasing Deals
60 CBRE MARKET INSIGHTS | Q3 2016
Hanoi Major Lease TransactionsHANOI OFFICE
Source: CBRE 2016 y-t-d
Indochina Plaza HanoiEducation683 sqm
TNR TowerFinance~1,400 sqm
Lotte Center Hanoi Technology950 sqm
61 CBRE MARKET INSIGHTS | Q3 2016
HCMC OFFICE HCMC - Accelerating supply
SAIGON CENTRE (P2)Q2 2017Dist. 1 GFA: 40,000 sqm
Grade A
DEUTSCHES HAUSAug 2017Dist. 1GFA: 38,621 sqm
MAPLETREE BUSINESS CENTRE Q4 2016Dist. 7GFA: 30,000 sqm
Decentralized Grade A
Q4 2016 2017
Grade B
ETOWN CENTREQ3 2017Dist. 4GFA: 67,760 sqm
Grade A
HA DO BUILDING Q4 2016Tan Binh Dist. GFA: 32,000 sqm
HQC ROYAL TOWER Q4 2016Dist. 7GFA: 26,726 sqm
Grade B Grade B
Construction status (as of Sep 2016)
VIETTEL OFFICEQ1 2017Dist. 10GFA: 33,000 sqm
Grade B
62 CBRE MARKET INSIGHTS | Q3 2016
Supply to increase in Midtown and WestHANOI OFFICE
Q4 2016
HORIZON TOWER 2017Midtown GFA: 32,000 sqm
Grade BGrade B
2017
Construction status (as of Sep 2016)
EUROWINDOW2017Midtown GFA: 16,592 sqm
DSD BUILDING2017Midtown GFA: 20,000 sqm
MD COMPLEXQ4 2016WestGFA: 24,682 sqm
TRUONG THINH 2017West GFA: 5,400 sqm
63 CBRE MARKET INSIGHTS | Q3 2016
CO WORKING SPACE Regional Trend CWS Expansion Plan - APAC
Source: Co Working Space, CBRE Research 2016
64 CBRE MARKET INSIGHTS | Q3 2016
CO WORKING SPACE Vietnam VS. APAC
Blueprint – Hong Kong
USD 258/ monthly pass
Dreamplex – HCMC
USD 27 - 90/ monthly pass
USD 300 - 450/ monthly pass
Toong – Hanoi
USD 60/ monthly pass
Naked Hub– Shanghai
65 CBRE MARKET INSIGHTS | Q3 2016
APAC OFFICE MARKETHCMC becoming more LANDLORD - Driven
HCM City
BangkokManila
Hanoi
Source: CBRE Research, July 2016.
Jakarta
Singapore
Kuala Lumpur
Source: CBRE, Landlord and Occupier Symposium 2016
66 CBRE MARKET INSIGHTS | Q3 2016
APAC OFFICE MARKETNew Supply: tight in core areas but high in decentralized areas
0 5 10 15 20 25 30
ShanghaiMumbai
ShenzhenNew Delhi
JakartaBangalore
TokyoGuangzhou
BeijingHong Kong
Kuala LumpurSeoul
ManilaSingaporeMelbourne
HanoiTaipei
BangkokBrisbane
PerthHo Chi Minh City
AucklandSydney 2016F 2017F 2018F
Million sq. ft. (NFA)Source: CBRE Research, July 2016
Note: Grade A new supply
Source: CBRE, Landlord and Occupier Symposium 2016
67 CBRE MARKET INSIGHTS | Q3 2016
APAC OFFICE MARKETCurrent vacancies largely near 10-year averages
0
5
10
15
20
25
30
35
40
Manila CBD Ho Chi MinhCity
Singapore Bangkok Jakarta Hanoi Kuala Lumpur
Gra
de A
Vac
ancy
(%)
10-year Average 2016 Q2 2016F
Source: CBRE, Landlord and Occupier Symposium 2016
68 CBRE MARKET INSIGHTS | Q3 2016
RETAIL
69 CBRE MARKET INSIGHTS | Q3 2016
HCMC New SupplyRETAIL
Saigon Centre Phase 2(Takashimaya)
Location: District 1 NLA: 40,000 sqm Occupancy Rate: 100%
Aeon Mall Binh Tan
Location: Binh Tan District NLA: 60,000 sqm Occupancy Rate: 100%
-
6
12
18
24
30
36
42
48
54
60
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2012 2013 2014 2015 2016
No.
of p
rope
rtie
s
NLA
, sm
Total supply (NLA, sm) Total supply (properties)
Total Supply by Year - HCMC
Source: CBRE Vietnam Q3 2016
100,000 visitors in the first weekend opening
YTD
70 CBRE MARKET INSIGHTS | Q3 2016
Hanoi New supplyRETAIL
Total Supply by Year - Hanoi
Source: CBRE Vietnam Q3 2016
+18%y-o-y
+2.3%q-o-q
Mipec Riverside Long Bien
Location: Long Bien District NLA: 24,000 sqm Occupancy Rate: 98%
0
5
10
15
20
25
30
35
40
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2012 2013 2014 2015 2016
No
. of
pro
ject
s
NL
A, s
qm
Total Supply No. of projectsYTD
71 CBRE MARKET INSIGHTS | Q3 2016
HCMC Vacancy RateRETAIL
0
4
8
12
16
20
24
-20,000
0
20,000
40,000
60,000
80,000
100,000
120,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2014 2015 2016
Vac
ancy
Rat
e (
%)
Net
Abs
orpt
ion
(sqm
)
Net absorption Vacancy rate
Source: CBRE Vietnam Q3 2016
Vacancy Rate of HCMC Shopping Centres
ZARA FASHION STORE
• in Vincom Dong Khoi• NLA: 2,400 m2
72 CBRE MARKET INSIGHTS | Q3 2016
Hanoi Vacancy RateRETAIL
Source: CBRE Vietnam, Q3 2016
Vacancy Rate of Hanoi Shopping Centres
• Increase in vacancy in certain shopping centers in Mid-town and West locations
0%
5%
10%
15%
20%
25%
-20,000
20,000
60,000
100,000
140,000
180,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2013 2014 2015 2016
Vac
ancy
rat
e (%
)
Net
Abs
orpt
ion
(sqm
)
Net absorption Vacancy rate
73 CBRE MARKET INSIGHTS | Q3 2016
$0$50
Average rent stable across citiesRETAIL
CBDNon-CBD
Source: CBRE Vietnam, Q3 2016.
2016Q3Q2Q1
2015
Q4Q3Q2Q1
2014
Q4Q3Q2Q1
2013
Q4Q3Q2Q1
Average Rent of Hanoi Shopping Centres
$0 $50 $100 $150
Average Rent of HCMC Shopping Centres
$0 $50 $100 $150$0$50$100
2016Q3
Q2
2015
Q1
Q4
Q3
2014
Q2
Q1
Q4
Q3
Q2
Q1
2013 Q4
Q3
CBDNon-CBD
CBD: 0.52% q-o-q
Non-CBD: 0.96% q-o-q
CBD: 5.1% q-o-q
Non-CBD: 0.52% q-o-q
74 CBRE MARKET INSIGHTS | Q3 2016
HCMC Future supplyRETAIL
Union Square (upgrade)• District 1• 39,454 sqm
Crescent Mall (Phase 2)• District 7• 18,000 sqm
Vincom Center Mall• Binh Thanh District• 59,000 sqm
The Spirit of Saigon• District 1• 48,000 sqm
Berjaya Financial Center• District 10• 156,000 sqm
Peninsula• District 7• 240,000 sqm
Golden Plaza• District 5• 15,000 sqm
2016 - 2017
2018 onward
75 CBRE MARKET INSIGHTS | Q3 2016
Hanoi Future SupplyRETAIL
Vincom Exchange City• Tu Liem Dist.• 23,140 sqm GFA Le Parc by Gamuda
• Hoang Mai Dist., 20,809 sqm GFA
Ciputra Hanoi Mall• Tay Ho Dist.• 130,000 sqm GFA
Vincom Starbowl• Dong Da Dist.• 51,234 sqm GFA
Artemis• Thanh Xuan Dist.• 37,000 sqm GFA
76 CBRE MARKET INSIGHTS | Q3 2016
HCMC and HanoiRETAILERS EXPANSION
2 stores opened in HCMC and Hanoi6-8 more stores to open this year200 stores to open in next 5 years
1st store to open in 201752 stores by 2020
HCMC3 Auchan’s stores
4 Galaxy cinemas
77 CBRE MARKET INSIGHTS | Q3 2016
RETAILERS EXPANSION… AND CONTRACTION
Only one store in Hanoi
Saigon Co.op mart closed down store at Nam Do Complex, Hanoi in Q3/2016, leaving only one left.
December 2008
September 2016
November 2014
September 2016
33 stores in HCMC, 49 stores in other cities/provinces
78 CBRE MARKET INSIGHTS | Q3 2016
YOUNGSTERS DEMAND
“a source as reporting that the revenue of the shop on the opening day was VND5.5 billion”
Vietnam Fast Fashion Battle Brews
“After stunning debut for Zara Vietnam…Arch rival H&M plan to open three stores in 2017Japan’s Uniqlo and US-based Forever 21 almost certain to follow
79 CBRE MARKET INSIGHTS | Q3 2016
INDUSTRIAL & LOGISTICS
80 CBRE MARKET INSIGHTS | Q3 2016
Hai Phong hot spotINDUSTRIAL
81 CBRE MARKET INSIGHTS | Q3 2016
Stable supplyINDUSTRIAL
Total Supply by Year, Industrial land – Southern Industrial Zones, ha
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2010 2011 2012 2013 2014 2015 Q3 2016
Indu
stri
al la
nd (
ha)
HCMC Binh Duong Dong Nai Long An
Source: CBRE Vietnam Q3 2016
82 CBRE MARKET INSIGHTS | Q3 2016
HCMC & Binh Duong – Most attractive INDUSTRIAL
Source: CBRE Vietnam Q3 2016
Occupancy rate – Southern Industrial Zones (%)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1,500
3,000
4,500
6,000
7,500
9,000
10,500
12,000
13,500
15,000
HCMC Binh Duong Dong Nai Long An
Indu
stria
l lan
d (h
a)
Supply Occupancy rate
83 CBRE MARKET INSIGHTS | Q3 2016
HCMC & Binh Duong – Highest rent INDUSTRIAL
Source: CBRE Vietnam Q3 2016
Average industrial land rents (US$/sm/term 50 years)
HCMC Binh Duong Dong Nai Long AnLowest $52 $38 $35 $45Average $111 $74 $65 $69Highest $270 $160 $150 $120
$0
$50
$100
$150
$200
$250
$300
84 CBRE MARKET INSIGHTS | Q3 2016
SERVICED APARMENT
85 CBRE MARKET INSIGHTS | Q3 2016
HCMC – One new SA came on Stream; Hanoi – No new supplySERVICED APARTMENTS
SILA URBAN LIVING
• District 3• 217 units• Grade B• Rental rate:
• US$1,450 – 2,500/room/month• US$37-41/sqm
Studio (33 – 37 sqm) 1 Bedroom unit (48 – 60 sqm) 2 Bedroom unit (67 sqm)
86 CBRE MARKET INSIGHTS | Q3 2016
SERVICED APARTMENTS2017 will be a busy year
Total Supply (units), Serviced Apartment
Source: CBRE Vietnam Q3 2016 Grade A Grade B
Trang An Complex
VietinbankTower
1 000
2 000
3 000
4 000
5 000
6 000
2014 2015 2016F 2017F 2018F
Hanoi
1 000
2 000
3 000
4 000
5 000
6 000
2014 2015 2016F 2017F 2018F
HCMC
87 CBRE MARKET INSIGHTS | Q3 2016
SERVICED APARTMENTSFuture Supply in HCMC
Source: CBRE Vietnam Q3 2016
SAIGON PLAZA
District 1121 units
OAKWOOD RESIDENCE
District 368 units
SAIGONCENTER P2
District 1200 units
LAVENUECROWN
District 1186 units
THEBERKLEYRESIDENCE
District 285 units
VIETTELCOMPLEX
District 10180 units
SAIGONPLAZA
District 3221 units
SAIGONSOUTHCOMPLEX
District 7450 units
2016
CITADINES REGENCYSAIGON
District 185 units
ASCOTTWATERFRONT
District 1222 units
SOMERSET
District 1200 units
2017-2018
THE SPIRITOF SAIGON
District 1
88 CBRE MARKET INSIGHTS | Q3 2016
SERVICED APARTMENTSFuture Supply in Hanoi
DREAM APARTMENT
Dong Da District 61 units
SOMERSET WEST POINT
Tay Ho District247 units
TRANG AN COMPLEX
Cau Giay District40 units
VIETINBANK TOWER
Tay Ho District
VINATA TOWER
Cau Giay District
SOMERSET WEST CENTRAL HANOI
Cau Giay District252 units
2016
2017-2018
Source: CBRE Vietnam Q3 2016
89 CBRE MARKET INSIGHTS | Q3 2016
Grade A remains strongHCMC SERVICED APARTMENTS
Source: CBRE Vietnam Q3 2016
AVERAGE ASKING RENT (US$/sqm/month)
VACANCY RATE(%)
2016
Q3
Q2
Q1
2015
Q4
Q3
Q2
Q1
2014
Q4
Q3
Q2
Q1
2013Q4
Q3
GRADE B GRADE A GRADE B GRADE A
2016
Q3
Q2
Q1
2015
Q4
Q3
Q2
Q1
2014
Q4
Q3
Q2
Q1
2013Q4
Q3$0 $10 $20 $30 $40$0$10$20$30$40 0% 5% 10% 15% 20% 25%0%5%10%15%20%25%
90 CBRE MARKET INSIGHTS | Q3 2016
Grade A remains strongHANOI SERVICED APARTMENTS
Source: CBRE Vietnam Q3 2016
AVERAGE ASKING RENT (US$/sqm/month)
VACANCY RATE(%)
2016
Q3
Q2
Q1
2015
Q4
Q3
Q2
Q1
2014
Q4
Q3
Q2
Q1
2013Q4
Q3
GRADE B GRADE A GRADE B GRADE A
2016
Q3
Q2
Q1
2015
Q4
Q3
Q2
Q1
2014
Q4
Q3
Q2
Q1
2013Q4
Q3
91 CBRE MARKET INSIGHTS | Q3 2016
HOSPITALITY
92 CBRE MARKET INSIGHTS | Q3 2016
Hoa Binh Greenby Hoa Binh Ltd.,984 units $1,365/sqm
Da Nang Condo-tel (*): Increasing SupplySECOND HOME MARKET
Coco Skyline Resortby The Empire637 units @ $1450/sqm
Central Coastby Minh Dong Ltd.,~720 units @ ~$1,000/sqm
Ariyana Beach Resort & Suite _NorthTowerDeveloper: Sovico420 units @ $2,500/sqm
2,817 units launched in Q3 2016 up 96% q-o-q & 787% y-o-y
(*) Condo-tel is a condominium project that is operated as a hotel with a registration desk, cleaning service and more. The units are individually owned. Unit owners also have the option to place their unit in the hotels rental program where it is rented out like any other hotel room.
Source: CBRE Vietnam.
93 CBRE MARKET INSIGHTS | Q3 2016
Da Nang Condo-tel: New launches cause the down trend of the average price
SECOND HOME MARKET
500
1,000
1,500
2,000
2,500
3,000
3,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012 2013 2014 2015 2016
High-end Mid-end Market-wide Price
Ave
rage
ask
ing
pric
e (U
S$/
sqm
)
Average Asking Price by Grade
94 CBRE MARKET INSIGHTS | Q3 2016
Booming condo-tel also in Nha Trang SECOND HOME MARKET
Da Nang Nha Trang
Source: CBRE Vietnam Source: CBRE Vietnam
0
2,000
4,000
6,000
8,000
2013 2014 2015 9M2016
Supply Sold units
0
2,000
4,000
6,000
8,000
2013 2014 2015 9M2016
Supply Sold units
~ 5,000 units launched in 9M2016
~ 2,800 units soldin 9M2016
~ 2,900 units launched in 9M2016
~ 3,200 units soldin 9M2016
Condo-tel, Accumulated Supply Condo-tel, Accumulated Supply
95 CBRE MARKET INSIGHTS | Q3 2016
90% of Condo-tel projects; Premier Village Danang Resort;
Vinpearl Resort & Villas
3-10 years Guaranteed yield at 8% - 12% per year (VND)
PHU QUOC – Rental Pool Villas
Guaranteed yield – still a main S&M strategy SECOND HOME MARKET
Phu Quoc Emerald Bay, Phu Quoc Premier Village, Vinpearl Paradise Villas
Guaranteed yield 9% - 10% per year Or 85% of revenue after tax in 10 years
DA NANG – Condo-tel/ Villas
NHA TRANG – Condo-tel/ Villas
90% of projects applied guaranteed yield with
8% - 10% per year in 3 - 10 years
Source: Retrieved from the internet September 2016
96 CBRE MARKET INSIGHTS | Q3 2016
2018~3,000 units
2017~ 900 units
SECOND HOME MARKETExpected Condotel Completion
NOVALAND CONDOTELHai Chau DistrictUnder-planning
2019> 1,000 units
ANVIE RESORTNgu Hanh Son DistrictUnder-planning
INFINITY FIELDNgu Hanh Son DistrictUnder-planning
TOURANCE CONDOTELNgu Hanh Son Dist.Under-planning
WYNDHAM SOLEILSon Tra DistrictUnder-construction
PREMIER CONDOTEL HERITAGENgu Hanh Son DistrictUnder-planning
ARIYANA (ELITE TOWER)Ngu Hanh Son DistrictUnder-planning
HYATT PLACE Ngu Hanh Son DistrictUnder-planning
D-CITYHai Chau DistrictUnder-planning
LE MERIDIEN RESORTNgu Hanh Son DistrictUnder-planning
OCEAN SUITES (BLOCK C)Ngu Hanh Son DistrictUnder-planning
(*) The number of completion is subject to change due to developer’s plans
97 CBRE MARKET INSIGHTS | Q3 2016
Da Nang Second Home Villa - Price DiscoverySECOND HOME MARKET
*Asking prices are quoted in USD, exclusive of VAT and maintenance fee.Source: CBRE Vietnam Q3 2016
Premier VillageAverage price:$2,800/sqmUnit size (GFA): 335-510 sqmTotal units: 118
Nam An ResidenceAverage price: $1,338/sqmUnit size (GFA):245 - 335m2Total units: 18 (1st launch)
Ocean EstateAverage price: $1,673/sqmUnit size (GBA): 570-740 sqmTotal units: 33
Hyatt RegencyAverage price: $4,931/sqmUnit size (GFA): 307 sqmTotal units: 27
Vinpearl PremiumAverage price: $4,851/sqmUnit size (GFA): 348 – 526 sqmTotal units: 39
Furama Pool VillasAverage price: $1,867/sqmUnit size (GFA): 322 – 386 sqmTotal units: 134
Vinpearl Da Nang 2Average price: $2,860/sqmUnit size (GFA): 180 - 330 sqmTotal units: 122 units
Ocean Villas Average price: $1,453/sqmUnit size (GFA): 271 – 373 sqmTotal units: 110
Mercure Son TraAverage price: $2,146 sqmUnit size (GFA): 374 - 543 sqmTotal units: 22
DuneAverage price: $1,236/sqmUnit size (GFA): 377 sqmTotal units: 15
The PointAverage price: $923/sqmUnit size (GFA):257 - 289 sqmTotal units: 40
Olalani Condotel & ResortAverage price: $5,600/sqmUnit size (GFA): 340– 470 sqmTotal units:3The Song
Average price: N/A Unit size (GFA): N/ATotal units: 48
98 CBRE MARKET INSIGHTS | Q3 2016
Villa sale shows moderate improvementSECOND HOME MARKET
103 units
2014
481 units
2015
Nha Trang
9M 2016
396 units
Phu Quoc
2014 2015 9M 2016
0 unit
850 units
140 units
7 units
2014
180 units
2015 9M 2016
Da Nang
52 units
Source: CBRE Vietnam Source: CBRE Vietnam Source: CBRE Vietnam
99 CBRE MARKET INSIGHTS | Q3 2016
CITY HOTELSHanoi and HCMC pipeline: Up-scale hotel projects in CBD
100 CBRE MARKET INSIGHTS | Q3 2016
NEW CABLE CARS ACROSS THE COUNTRYSAPA - The world’s LONGEST triple–wire cable car system
QUANG NINH: World’s BIGGEST REVERSIBLE aerial tramway
Completed year: 2016 Total length: 6,292.5 m No. of cabins: 35 Capacity: 35 persons/cabin
Completed year: 2016 Total length: 2,222 m No. of cabins: 66 Capacity: 230 persons/cabin
DA NANG - The world’s LONGEST one–wire cable car system
PHU QUOC - The world’s LONGEST cable car system when completed
NHA TRANG – ONLY sea-crossing cable car in Vietnam Completed year: 2007 Total length: 3,320 m No. of cabins: 65 Capacity: 8 persons/cabin
Completed year: 2009 Total length: 5,043 m No. of cabins: 94 Capacity: 10 persons/cabin
Expected completed year: 2017 Total length: ~ 8,000 m No. of cabins: 70 Capacity: 30 persons/cabin
101 CBRE MARKET INSIGHTS | Q3 2016
INVESTMENT
102 CBRE MARKET INSIGHTS | Q3 2016
MAJOR INVESTMENT DEALS IN Q3 2016
International Centre
Source: DealstreetAsia, RCA and other websites September 2016.
Cau Kho SiteRiver View Company Ltd.
►► Capitaland Vietnam
@ US$ 51.9 mil.
Mixed-use property
The Manor Central ParkBitexco Group
►► Mitsubishi
@ Undisclosed.
Mixed-use property
Keppel Land Ltd.
►►VinaCapital
@ US$ 13.8 mil.
Office
Indochina Riverside TowersIndochina Capital
►► Kajima
@ US$ 17.5 mil.
Retail + Office
HCMCHanoi
HanoiDa Nang
Hotel and development sites play key role
103 CBRE MARKET INSIGHTS | Q3 2016
No. of transactions up during 2012 - 2016INVESTMENT
0
5
10
15
20
25
30
$0
$400
$800
$1,200
$1,600
$2,000
2011 2012 2013 2014 2015 2016
Mill
ions
Transaction Value No. of transactions
Investment Transactions by Year
Source: RCA
YTD
104 CBRE MARKET INSIGHTS | Q3 2016
Domestic players dominate the marketINVESTMENT
Seller Nationality Buyer Nationality
Source: RCA; transactions tracked between 2007 and Q3 2016
105 CBRE MARKET INSIGHTS | Q3 2016
DEMANDOCC./SALE RATERENT/PRICESUPPLY
OFFICENew buildings
Mature buildings
RETAILCBD
Non-CBD
CONDOMINIUM
High-end
Mid-end
Affordable
HOTEL 5-Star
SERVICED APARTMENT Grade A
Grade B
INDUSTRIALLand
Factory/ warehouse
DEVELOPMENT SITE FOR SALE
HCMC MARKET OUTLOOK
106 CBRE MARKET INSIGHTS | Q3 2016
DEMANDOCC./SALE RATERENT/PRICESUPPLY
OFFICENew buildings
Mature buildings
RETAILCBD
Non-CBD
CONDOMINIUM
High-end
Mid-end
Affordable
HOTEL 5-Star
SERVICED APARTMENT Grade A
Grade B
HANOI MARKET OUTLOOK
107 CBRE MARKET INSIGHTS | Q3 2016
5/10/2016
Football: Townsend replaces Sterling (in England Squad)
108 CBRE MARKET INSIGHTS | Q3 2016
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For more information regarding this presentation please contact:CBRE Vietnam Co., Ltd. – Research & ConsultingT +84 8 3824 6125 F +84 8 3823 8418Email: [email protected]