vietnam quarterly KnOWleDGe repOrt Quarterly... · ©2016 Colliers International Research vietnam quarterly KnOWleDGe repOrt Page 6 Figure 4: GDP Growth Rate of HCMC and Hanoi Source:

Accelerating successwww.colliers.com/vietnam

vietnam quarterly KnOWleDGe repOrt q4 2015

table Of COntents

eCOnOmiC OvervieW...............................................................................................................

VIETNAM ....................................................................................................................................

HO CHI MINH CITY ......................................................................................................................

HA NOI ........................................................................................................................................

HO CHi minH City marKet OvervieW ........................................................................ OFFICE ........................................................................................................................................

RETAIL ........................................................................................................................................

CONDOMINIUM ............................................................................................................................

VILLA & TOWNHOUSE .................................................................................................................

SERVICED APARTMENT ..............................................................................................................

INDUSTRIAL ................................................................................................................................

Ha nOi marKet OvervieW ................................................................................................ OFFICE ........................................................................................................................................

RETAIL ........................................................................................................................................

CONDOMINIUM ............................................................................................................................

VILLA & TOWNHOUSE .................................................................................................................

SERVICED APARTMENT ..............................................................................................................

INDUSTRIAL ................................................................................................................................

Cover page: Saigon Skyline - View from Diamond Plaza’s Helipad.

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list Of fiGures Figure 1: Vietnam GDP .....................................................................................................................

Figure 2: Interest Rate and Exchange Rate of Vietnam ......................................................................

Figure 3: FDI Capital of HCMC and Hanoi ..........................................................................................

Figure 4: GDP Growth Rate of HCMC and Hanoi ................................................................................

HO CHi minH City marKet OvervieW Figure 5: Office, Average Asking Rent ................................................................................................

Figure 6: Office, Occupancy Rate .......................................................................................................

Figure 7: Retail, Occupancy Rate ........................................................................................................

Figure 8: Retail, Average Asking Rent ................................................................................................

Figure 9: Retail, Supply by District .....................................................................................................

Figure 10: Condominium, Net Absorption Rate by Segment ................................................................

Figure 11: Condominium, Sale Price in 2015 ......................................................................................

Figure 12: Condominium, Sold Units ..................................................................................................

Figure 13: Villa and Townhouse, Supply by Year .................................................................................

Figure 14: Villa and Townhouse, Current Supply by District ................................................................

Figure 15 Villa and Townhouse, Historical Performance ......................................................................

Figure 16: Serviced Apartment, Average Asking Rent by Grade ...........................................................

Figure 17: Serviced Apartment, Occupancy Rate by Grade ..................................................................

Figure 18: Industrial, Supply by District ..............................................................................................

Figure 19: Industrial, Market Performance ..........................................................................................

list Of tables Table 1: Macroeconomic Indicators of HCMC and Hanoi ......................................................................

Table 2: Office, Occupancy Rate .........................................................................................................

Table 3: Significant Office Projects ....................................................................................................

Table 4: Significant Retail Projects ....................................................................................................

Table 5: Condominium, Significant new launched in Q4 2015 .............................................................

Table 6: Villa and Townhouse Significant new launched in Q4 2015 ....................................................

Table 7: Serviced Apartment, Significant Future Project under construction .......................................

Table 8: Significant Serviced Apartment Projects ...............................................................................

Table 9: Industrial, Future Supply .......................................................................................................

Table 10: HCMC Industrial Market Overview .......................................................................................

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list Of fiGures

Figure 20: Office, Average Asking Rent...................................................................................................

Figure 21: Office, Occupancy Rate .........................................................................................................

Figure 22: Office, Current Stock ............................................................................................................

Figure 23: Retail, Market Performance ....................................................................................................

Figure 24: Retail, Occupancy Rate ..........................................................................................................

Figure 25: Retail, Total Supply ................................................................................................................

Figure 26: Condominium, Changes in Secondary price by Quarter ...........................................................

Figure 27: Condominium, Sale by Quarter and Segment ..........................................................................

Figure 28: Condominium, Launched Supply by Year.................................................................................

Figure 29: Villa and Townhouse, Secondary Price by District ..................................................................

Figure 30: Villa and Townhouse, Q-o-Q changes in Secondary Price ......................................................

Figure 31: Villa and Townhouse, Supply by Quarter...................................................................................

Figure 32: Serviced Apartment, Average Asking Rent by Grade ...............................................................

Figure 33: Serviced Apartment, Occupanvy Rate by Grade ......................................................................

Figure 34: Serviced Apartment, Supply by Segment ..............................................................................

Figure 35: Industrial, Market Performance ..............................................................................................

Figure 36: Industrial, Supply by District....................................................................................................

list Of tables Table 11: Significant Office Projects ........................................................................................................

Table 12: Significant Retail Projects ........................................................................................................

Table 13: Condominium, New Launched in Q4 2015 ................................................................................

Table 14: Villa and Townhouse, New Launched in Q4 2015 ......................................................................

Table 15: Significant Serviced Apartment Projects ..................................................................................

Table 16: Industrial, Future Supply ..........................................................................................................

Table 17: Hanoi Industrial Market Overview .............................................................................................

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Ha nOi marKet OvervieW

page

GDpVietnam’s GDP has grown 7.01% in Q4 -2015, a slight increase from 6.87% of the previous quarter. Overall, the nation’s GDP growth reached 6.68% y-o-y in 2015. This is the highest growth rate that the country has achieved since 2008. The three main compositions of the GDP which are agriculture –forestry- fishery, industry- construction, services have growth rates of 2.41%, 6,64%, 6,33% y-o-y respectively.

CpiVietnam has managed to improve macroeconomic stability as the Consumer Price Index (CPI) rose 0.2% in Q4 2015. In overall, the country has an inflation of 0.63% in 2015 y-o-y (the core inflation is at 2.05%). This is the lowest CPI in the past 14 years. The low CPI was partly contributed by a decrease in energy and commodity prices. A persistent downtrend of oil’s price and a stronger dollar which lowers commodity prices will continue to keep inflation low in 2016. CPI in 2016 is more likely to increase because the government is on track to increase prices of water, electricity, health care services as well as a legal minimum wage from 1/1/2016 onwards.

fDiThere are about 2013 new foreign investment projects in Vietnam with total Investment of both newly registered and supplementary capital reaching USD22.67 billion in 2015, an increase of 12.5% Y-o-Y. The capital disbursement also hit a record high of USD14.5 billion. Investments in real estate account for 10.5% total capital, which is equivalent to USD2.39 billion.

retail sales Viet Nam’s retail sales of goods and services rose 9.5% in 2015, reaching USD148 billion. This is the largest increase since 2011. Specifically, retail sales of goods, accounting for 76% of the total sales, reached USD112 billion, up 10.6% y-o-y. Retail sales of accommodation and catering services reached USD17 billion, accounting for 11.5% of the total sales, up 5.2%y-o-y. Retails sales of other services which account for 11.4% of total sales, estimated USD16.9 billion, 7% increase y-o-y.

internatiOnal arrivals Vietnam welcomed 7.94 million international visitors in 2015, a slight reduction of 0.2% y-o-y. This is the first time since 2009 the number of international visitors has gone down. The number of international arrivals in Vietnam is still modest when being compared with other neighbor nations. In 2014, Malaysia received 27.4 million arrivals while Thailand saw 24.8 million international visitors.

eXCHanGe rateIn Decision No 2730/QD-NHNN, dated December 31, 2015, the SBV announces that it would set a “central exchange rate” every day, instead of maintaining a fixed rate for a long period of time. The trading band of the new exchange rate continues to be plus / minus 3%. The USD/VND rate would be based on the exchange rate changes in the inter-bank foreign exchange market, as well as monetary developments in countries that are heavily involved with Viet Nam’s trade, investment. This new daily-adjusted rate mechanism is aimed to be harmony with macroeconomic balance and would be the basis for local credit institutions and foreign banks’ branches to provide their foreign exchange services.

q4 2015 | eCOnOmiC OvervieW

©2016 Colliers International Research

vietnam quarterly KnOWleDGe repOrt

Page 5

q1 2016 forecast

Figure 1: Vietnam GDP

Source: World Bank | Colliers International Research

Figure 2: Interest rate and Exchage rate of Vietnam

Source: Asian Development Bank (ADB) | Colliers International Research

vietnam

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Page 6

Figure 4: GDP Growth Rate of HCMC and Hanoi

Source: General Statistics Office I Colliers International Research


Table 1: Marcoeconomic Indicators of HCMC and Hanoi

HCmC Hanoi

Q4 2015 Q1 2016F Q4 2015 Q1 2016F

GDP (billion) 13.68 4.38

FDI (million) 447.5 781.7

Retail sales (billion) 8.2 5.14

Export (billion) 8.13 3.23

Import (billion) 9.36 6.94

HO CHi minH CityIn 2015, GDP of Ho Chi Minh City achieved USD43 billion. GDP growth rate rose 9.85% y-o-y which is a high and stable growth rate compared with previous years. GDP per capita of the city increased from USD5,131 in 2014 to USD5,538.

Over 12 months of 2015, CPI went down 0.2% y-o-y while it grew 1.65% y-o-y in 2014. Transportation sector had the biggest drop of 1.83% due to a fall of fuel and gasoline price.

Retail sales achieved VND678,085 billion, an increase 10.5% y-o-y. Credit growth in the city as of 1st December 2015 went up 11.5% compared with 9% the same period last year.

FDI inflow of both newly registered and supplementary capital to the city has improved substantially with a cumulative number of 5,820 projects worth USD39.1 billion as of 15 December 2015.

There are 566 new investment projects with capital reaching USD4.6 billion. Investments in Real estate account for USD1.497 billion.

Export values are USD 26.89 billion, up 11.3% y-o-y. Garments, agricultural products and computers & electronic devices are segments contributing the most to export values. Meanwhile, import values are USD33.75 billion, an increase of 9.4% y-o-y. Segments that top the import value table include garment material, plastics and iron & steel.

HanOiIn 2015, Hanoi’s GDP achieved USD27.6 billion with growth rate 9.24% y-o-y while GDP per capita reached USD3,600 billion.

Over 12 months of 2015, the capital city’s CPI increased 0.89% y-o-y. Out of 11 sectors in the CPI basket, foods& catering services and transportation witnessed a fall in price of 0.05% y-o-y and 1.45% y-o-y respectively.

Retail sales of Hanoi were up 11.5% y-o-y or up 10.7% if price changes are excluded). The capital welcomed 2.24 million international visitors, an increment of 9.6% y-o-y.

As of end of 2015, FDI inflows of both newly registered and supplementary capital reached USD1.4 billion, which is equal to the amount of 2014. Disbursed capital was USD1.1 billion, up 8% y-o-y.

In 2015, export values grew 2.5% y-o-y to reach USD11.35 billion while those of import went up 4.5% y-o-y.

Figure 3: FDI Capital of HCMC and Hanoi


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Figure 6: Office, Occupancy Rate

perfOrmanCeThe last quarter of 2015 saw improvement in rents across all grades, reaching USD28/sqm/mth. Average net asking rents of Grade A increased 1.5% q-o-q to US36/sqm/mth as landlords adjusted rentals to take advantage of limited prime office space and positive macro-economic outlook. Grade B did not experience significant rent growth, staying at USD20/sqm/mth.

The market remains tight with average occupancy rate of 95.7%, Grade A’s occupancy rate was up 1.3% q-o-q to 96.3% thanks to strong leasing activities at new office buildings. Grade B’s occupancy nominally went up to 95.2% as landlords tried to fill up vacant space before the year end.

supplyWhile CBD supply pipeline remained unchanged, non-CBD stock added 30,000 NLA from the opening of Pearl Plaza. The city currently has 11 Grade A and 57 Grade B office buildings, providing approximately 1,331,347 sqm GFA.

In 2016, Grade B will take the lead in new supply with nearly 77,000sqm NLA from 4 projects. No Grade A projects will come online until 2017 when Saigon Centre (phase 2) and Deutsches Haus are due for completion providing an additional 65,859 sqm NLA.

DemanDDemand for office space in Ho Chi Minh City will be strengthen by the economic recovery, controlled inflation and interest rates, rapidly improving infrastructure and a more supportive legal framework. In addition, recent free trade agreements such as the Trans-Pacific Partnership are anticipated to enlarge the number of multinational corporations and small and medium¬sized enterprises, which may in turn trigger a healthy rise in office demand.

In terms of tenant profile, finance, banking and service sectors are large space occupiers in most Grade A office buildings and is likely to expand more in the coming years.

OutlOOKBy 2017, approximately 167,000sqm NLA will be added to the supply pipeline. The city center remains the most sought-after location for office tenants. However, due to limited available space in the CBD, suburban area is attractive as an alternative options for those looking for large contiguous floor plates. Asking rents are forecasted to grow steadily as foreign direct investment will surge after the implementation of the Trans Pacific Partnership.

q4 2015 | HO CHi minH City | OffiCe



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Table 2: Office, Future Supply

Source: Colliers International Research



Figure 5: Office, Average Asking Rent

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Hai Quan Tower 1 B 30,000 2016

Royal Tower 7 B 21,852 2016

Saigon Giai Phong 3 B 16,392 2016

The Waterfront Saigon 1 B 8,822 2016

Saigon Center Phase 2 1 A 35,859 2017

Deutsches Haus 1 A 30,000 2017

Maple Tree Business Center 7 B 24,154 2017

q4 2015 | HO CHi minH City | OffiCe



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(*) US$/sqm/month (NLA)

Table 3: Significant Office Projects

No Name Address Completion Year

NLA (sqm)

Service Charges (*)

Occupancy rate

Average asking rent

(**)1 Saigon Centre 65 Le Loi 1996 11,650 6.5 99% 33.0

2 Saigon Tower 29 Le Duan 1997 13,950 6.0 99% 35.03 Sunwah Tower 115 Nguyen Hue 1997 20,800 8.0 96% 40.04 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 85% 33.05 Diamond Plaza 34 Le Duan 1999 15,936 8.0 98% 37.06 Kumho Asiana Plaza 39 Le Duan 2009 26,000 8.0 91% 43.0

7 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 97% 34.08 President Place 93 Nguyen Du 2012 8,330 6.0 100% 31.0

9 Times Square 22-36 Nguyen Hue 2012 12,704 7.0 88% 40.010 Le Meridien 3C Ton Duc Thang 2013 9,125 6.0 81% 29.011 Vietcombank Tower 5 Me Linh Square 2015 41,250 7.0 92% 35.0

Grade A 212,655 7.2 93.5% 36.1

1 VTP-OSIC 8 Nguyen Hue 1993 6,500 6.0 98% 25.02 Yo Co Building 41 Nguyen Thi Minh Khai 1995 5,000 3.0 100% 23.03 Somerset Chancellor Court 21-23 NguyenThi Minh Khai 1996 3,200 5.0 100% 22.0

4 Central Plaza 17 Le Duan 1997 6,094 5.0 100% 26.0

5 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 94% 20.06 Saigon Riverside Office 2A-4A Ton Duc Thang 1997 10,000 5.0 100% 28.07 Saigon Trade Center 37 Ton Duc Thang 1997 31,416 6.5 99% 22.0

8 MeLinh Point Tower 2 Ngo Duc Ke 1999 17,600 6.0 97% 27.09 Zen Plaza 54-56 Nguyen Trai 2001 11,037 5.0 89% 22.010 Bitexco Building 19-25 Nguyen Hue 2003 6,000 6.0 89% 27.011 The Landmark 5B Ton Duc Thang 2005 8,000 6.0 100% 20.012 Opera View 161-167 Dong Khoi 2006 3,100 7.0 100% 27.013 City Light 45 Vo Thi Sau 2007 10,000 5.0 100% 19.014 Petro Tower 1-5 Le Duan 2007 13,304 5.5 90% 27.015 The Lancaster 22 – 22 Bis Le Thanh Ton 2007 7,000 5.0 90% 25.016 CJ Building 5 Le Thanh Ton 2008 14,000 6.5 100% 24.017 Continential Tower 81-85 Ham Nghi 2008 15,000 6.0 99% 22.018 Havana Tower 132 Ham Nghi 2008 7,326 6.0 92% 22.0

19 Royal Center 235 Nguyen Van Cu 2008 14,320 6.0 100% 23.020 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 100% 26.0

21 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 24.022 A&B Tower 76 Le Lai 2010 17,120 6.0 98% 26.023 Bao Viet Tower 233 Dong Khoi 2010 10,650 5.0 100% 22.024 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 99% 24.025 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19,596 5.0 83% 22.026 Saigon Royal 91 Pasteur 2010 5,340 6.0 100% 27.027 Vincom Center 68 -70 -72 Le Thanh Ton 2010 56,600 5.0 93% 24.028 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 100% 30.029 Lim Tower 9-11 Ton Duc Thang 2013 22,000 6.0 100% 22.030 MB Sunny Tower 259 Tran Hung Dao, Co Giang 2013 13,200 5.0 95% 23.031 Lim Tower 2 Vo Van Tan 2015 8,400 6.0 95% 24.0

Grade B 405,851 5.6 92.2% 23.9

q4 2015 | HO CHi minH City | OffiCe q4 2015 | HO CHi minH City | OffiCe



Page 9

KumHO asiana plaZa39 le Duan, District 1

26,000/1,402$ 43.00$ 8.00

DiamOnD plaZa saiGOn34 le Duan, District 1

15,936/2,200$ 37.00$ 8.00

le meriDien HOtel3C ton Duc thang, District 1

9,125/na$ 29.00$ 6.00

saiGOn tOWer29 le Duan, District 1

13,950/na$ 35.00$ 6.00

DeutsCHes Haus3-5 le van Huu, District 1

tHe metrOpOlitan235 Dong Khoi, District 1

15,200/1,000$ 33.00$ 6.00

presiDent plaCe93 nguyen Du, District 1

8,330/1,000$ 31.00$ 6.00

biteXCO finanCial tOWer45 ngo Duc Ke, District 1

37,710/900-1,300$ 34.00$ 8.00

vietCOmbanK tOWer5 me linh square, District 1

41,250/na$ 35.0$ 7.00

times square saiGOn22-36 nguyen Hue, District 1

12,704/1,450$ 40.00$ 7.00

saiGOn Centre65 le loi, District 1

11,650/ 1,073$ 33.00$ 6.50

sunWaH tOWer115 nguyen Hue, District 1

20,800/ 1,166$ 40.00$ 8.00

saiGOn sKyline revieW- CbD HCmC GraDe a OffiCe builDinGs

q4 2015 | HO CHi minH City | retail



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Figure 9: Retail, Supply by District

perfOrmanCeAs of Q4 2015, the average net asking rent across all retail segments is stable at USD59/sqm/mth. Rents in non CBD area remained unchanged at USD36/sqm/mth at despite new stock entering the market.

Average occupancy rate maintained its high level at 92%, up 2ppts q-o-q. Most of retail developments in the city center have been fully occupied thanks to their prime location. Thao Dien Megamall and Pearl Plaza, two new shopping centers on the outskirts of Ho Chi Minh City also recorded impressive occupancy rate of 95% and 90% respectively due to their great efforts in securing pre-committed tenants.

supplyThree new shopping centers in suburban area have come online in the review quarter, adding a total of 105,000 GFA to the current stock.

Vincom Thao Dien Mega Mall in District 2 and Pearl Plaza in Binh Thanh District are developed to take advantage of the future metro line no.1. Being one-stop-shop destinations for customers, both of them are believed to achieve a good business performance. Meanwhile, the Korean retail chain Emart has been established to meet the growing population and fast rising retail demand in Go Vap Distict.

DemanDIt is forcasted that the middle and affluent class in Vietnam with income from USD714 and above a month will triple in size until 2020. This group is considered as key potential customers for both local and international retailers.

Locally, Ho Chi Minh City retail market is very promising with total retail sales in 2015 reaching more than USD30 billion, up 10.5% y-o-y. The growing number of international arrivals to the city also assists the local retail market, which in turn will trigger more space demand.

OutlOOKThe EU Vietnam Free Trade Agreement, the Trans Pacific Partnership (TPP) and AEC integration will all profoundly attract more foreign participation in Vietnam’s retail market. In addition, the introduction of metro lines is expected to improve the ability of the population to access retail activities. Hence, new retail developments at the extremities of the metro line are attracting huge interest. Retail supply will be ample through 2020 when over a million square meters of new retail supply will be added to the market.


Figure 8: Retail, Average Asking rent



Figure 7: Retail, Occupancy rate

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©2016 Colliers International Research Page 11

(*) ARR (Average Rental Rate): All rents are stated in net rents per sqm, inclusive service charge but exculding VAT

Table 4: Significant Retail Projects

No Name of Project/Building Address Location Completion Year

NLA (sq m) ARR (*) Occupancy

Rate

1 Saigon Center 77 - 89 Nam Ky Khoi Nghia District 1 1996 Renovation Renovation Renovation

2 Hotel Continental Sai Gon 132-134 Dong Khoi District 1 2000 200 90 100.0%3 Caravelle Hotel 19 Lam Son Square District 1 2000 150 220 100.0%4 New World Hotel 76 Le Lai District 1 2000 1,000 60 100.0%5 Zen Plaza 54-56 Nguyen Trai District 1 2001 6,817 50 94.0%6 Sheraton Saigon 88 Dong Khoi District 1 2002 750 200 100.0%7 Opera View Lam Son Square District 1 2006 1,260 200 100.0%8 The Manor 1 91 Nguyen Huu Canh Binh Thanh 2006 2,000 17 100.0%9 Saigon Pearl 92 Nguyen Huu Canh Binh Thanh 2009 5,000 25 85.0%10 Kumho Asiana Plaza 35 Le Duan District 1 2009 6,830 75 100.0%11 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100.0%

12 The Manor 2 91 Nguyen Huu Canh Binh Thanh 2010 2,500 21 98.0%

13 ICON 68 45 Ngo Duc Ke District 1 2011 8,000 50 99.0%14 The Vista Walk Hanoi Highway District 2 2012 10,000 18 75.0%

15 President Place 93 Nguyen Du District 1 2012 800 70 100.0%

16 Times Square 22-36 Nguyen Hue District 1 2012 9,000 90 100.0%17 Saigon Airport Plaza 1 Bach Dang Tan Binh 2013 7,623 90 100.0%

Retail Podium 63,930 61.8 94.0%

1 Parkson Saigontourist Plaza 35 Le Thanh Ton District 1 2002 17,000 90 99.0%2 Saigon Square 1 77-89 Nam Ky Khoi Nghia District 1 2006 1,300 167 100.0%3 Parkson Hung Vuong Plaza 126 Hung Vuong District 5 2007 24,000 60 100.0%4 Parkson Flemington 184 Le Dai Hanh District 11 2009 26,000 25 90.0%5 Parkson Paragon 3 Nguyen Luong Bang District 7 2011 7,500 40 90.0%6 Taka Plaza 102 Nam Ky Khoi Nghia District 1 2011 1,000 167 100.0%7 Parkson C.T Plaza 60A Truong Son Tan Binh 2012 12,235 55 95.0%8 Parkson Cantavil Premier Hanoi Highway District 2 2013 17,815 38 90%9 Lucky Plaza 38 Nguyen Hue District 1 2013 1,000 160 98.0%

Department Store 107,850 53.9 94.4%

1 Diamond Plaza 34 Le Duan District 1 1999 9,000 83 100.0%2 City Plaza 102 Nam Ky Khoi Nghia District 1 2000 5,250 25 100.0%3 Superbowl Vietnam TSN 38 Nguyen Hue Tan Binh 2002 5,500 20 100.0%4 An Dong Plaza 18 An Duong Vuong District 5 2004 18,000 40 100.0%5 Nowzone 235 Nguyen Van Cu District 1 2008 9,000 54 98%6 Lotte Mart Saigon South 469 Nguyen Huu Tho District 7 2008 24,000 50 100.0%7 Vincom Center B 72 Le Thanh Ton District 1 2010 45,000 75 95.0%8 Maximark 3/2 Extention 3/2 Street District 10 2010 25,000 35 90.0%9 Lotte Mart Phu Tho Le Dai Hanh District 11 2010 24,500 30 100.0%10 Crescent Mall Nguyen Van Linh District 7 2011 45,000 35 100.0%11 Satra Pham Hung Pham Hung District 8 2011 11,528 14 100.0%12 CMC Plaza 79B Ly Thuong Kiet Tan Binh 2011 18,000 17 100%13 Union Square Dong Khoi District 1 2012 38,000 55 60%

Shopping Centre 277,778 45.0 92.7%

Accelerating success

q4 2015 | HO CHi minH City | COnDOminium




Figure 12: Condominium, Sold Units

perfOrmanCeHigh absorption rates were reported in projects with strategic locations and developed by prestigious developers. More than 8,000 apartments were sold in Q4 2015, an increase 2 % q-o-q. The year 2015 has witnessed the recovery of the property market, supporting by marco¬economic stability, ongoing construction of metro lines and upgraded transport infrastructure.

There was a remarkable rise in the average sale price as the high-end segment took high proportion of the supply pipeline. While the primary price across all segments increased 4.4%y-o-y, that of high-end properties surged 8.3%, reaching USD2,030/sqm on average. Besides, sale price of new and under construction projects grow stronger than those of completed ones.

supply80 new projects were launched in 2015 providing approximately 41,000 units with the high-end segment dominating new supply. Notable projects in the review quarter are the Nassim in District 2, City Garden Phase 2-Promenade in Binh Thanh District and Charmington La Pointe in District 10.

Taking advantage the strategic position as a gateway to the city and southern provinces, the eastern area of Ho Chi Minh City has attracted huge interest from developers and homebuyers. Significant investment in infrastructure, housing, and commercial projects has been generated in the area, accounting for 47% of total new supply in this quarter.

DemanDDemand for housing in Ho Chi Minh City remains high. The city’s population is rapidly increasing through migrantion seeking work opportunities. As home loans with low interest rates can be accessible, young people with stable income can afford to buy a condominium.

Since the relaxation of regulations on foreign property ownership, there has been notable interest from overseas. However, to make more foreign transactions happen, the market needs clearer legal guidelines from the government.

OutlOOKIn anticipation of the future metro system, new clusters of residential projects have arisen along the lines. It is expected that condominium supply in District 2 and District 9 will surge by 58% and 200% in 2017 respectively. In addition, selling prices and transaction numbers are expected to surge once the metro line are come into operation.

Since the recovery of the market, developers have shifted their interest to high-end segment. The city has an abundant supply of high¬-end apartments but is in shortage of mid-end and affordable products. As medium¬ and low¬-income people have the largest housing demand, developers should focus more on this market segment.


Figure 10: Condominium, Net absorption rate by segment



Figure 11: Condominium, Sale price in 2015 (USD/sqm)

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1800-230032%

>230010%







* Excluding all kinds of tax, promotions and management feeThe information is updated as at the end of 2015

Table 5: Condominium, Significant new launched in Q4 2015

No Name of Project/Building Developer Location Completion Year

Number of units

Asking Price (US$/sqm) Sale Rate

1 Masteri Thao Dien Thao Dien Investment District 2 2016 3,021 1,300 97%2 Masteri Thao Dien T5 Thao Dien Investment District 2 2016 950 1300 50%3 The Art Block Picasso Gia Hoa Corp. District 9 2016 514 850 81%4 TDH Phuoc Long Thu Duc House District 9 2016 168 750 82%5 Depotmetro Phuc Loc Tho Corp. Thu Duc 2016 452 600 88%6 Park Riverside M.I.K Corp. District 9 2016 374 1,200 98%7 Sarimi Dai Quang Minh District 2 2016 414 1,800 90%8 Everich Infinity Phat Dat Corp. District 5 2016 439 2,000 51%9 Leman Luxury Apartments C.T Group District 3 2016 232 4,500 30%

10 Charmington La Pointe Sacomreal District 10 2017 508 1,400 80%

11 Saigonres Plaza Saigon Nam Bo Corp. Binh Thanh 2017 749 1,100 76%12 City Gate Tower Hung Thanh Corp. District 8 2017 1,092 800 98%13 Luxcity Dia Oc Xanh District 7 2017 426 1,160 77%14 Hung Phat Silver Star Hung Loc Phat District 7 2017 447 1,000 90%15 Gold View SGM & TRN Holdings Vietnam District 4 2017 1,905 1,500 63%16 Grand Riverside Hong Ha Corp. District 4 2017 240 1,500 27%17 Sarica Dai Quang Minh District 2 2017 175 2,000 87%18 Lavita Garden Hung Thing Corp. Thu Duc 2018 648 960 95%19 Promanade City (Phase 2) City Garden Apartments Binh Thanh 2018 318 2,200 70%

20 Nassim Son Kim Land, HongKong Land District 2 2018 238 2,500 98%

21 Sunrise Riverside NovaLand District 7 2018 2,000 1,400 32%22 Rich Star NovaLand Tan Phu 2018 2,000 1,100 80%23 Park Vista M.I.K Corp. District 7 2018 1,300 800 98.5%

New launches in Q4 2015 18,610 1,289 76.2%


q4 2015 | HO CHi minH City | villa & tOWnHOuse



perfOrmanCeThe villa and townhouse segment performed well in Q4 2015 thanks to improved buyer confidence. The transaction volume increased with a growth rate of 5% q-o-q. District 9, District 2 and Nha Be District had the strongest performance due to their large land bank.

Taking advantage of the economic recovery and rising market sentiment, new launched projects increased their primary average asking price to 2-3% q-o-q. As supply on the secondary market is limited, prices appreciated 5%-6% compared those on the primary market.

supplyFive new villa and townhouse projects entered the market in Q4 2015, providing approximately 1,105 dwellings to the primary market. The existing supply pipeline comprises approximately 8,300 villas and townhouses from 56 projects.

Decentralised districts, especially District 2 and District 9 took a large proportion of the market share thanks to their large land bank, completed infrastructure and improving connectivity to the city center.

DemanDAs personal wealth and living standard increase in recent years, Vietnamese people will save more and look to invest. Besides condominiums, landed property has become one of the favourite investment channels in 2015.

There have been an increasing number of investors attracting to this market segment due to its easy-to-resell feature and high capital gain. Buy-to-let is a popular trend, accounting for 50-70% of total transactions while end-users only took a small proportion in buyer profile.

OutlOOKMore landed property projects will enter the east and south area of the city. Price growth will continue on both primary and secondary markets as more investors will be interested in this segment.

Projects with completed internal facilities, strategic locations, affordable selling prices and developer reliability will be attractive to purchasers.

0

2000

4000

6000

8000

10000

12000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F

Existing supply New supplydwellings

Figure 13: Villa and Townhouse, Supply by Year


Figure 14: Villa and Townhouse, Current Supply by District

0

200

400

600

800

Dist. 9 Dist. 2 GoVap

NhaBe

Dist. 7 BinhThanh

ThuDuc

Dist.12

BinhTan

BinhChanh

dwel

lings

No. of townhouses No. of villas


Figure 15: Villa and Townhouse, Historical Performance

0

1000

2000

3000

4000

5000

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

2013 2014 2015

USD/

sq m

District 7 District 9 District 2 Others








Table 6: Villa and Townhouse, Significant new launched in Q4 2015


Number of units

Asking Price (US$/sqm) Sale Rate

1 Citibella Kien A Group District 2 2016 105 1,000 75%2 Park Riverside M.I.K Corp. District 4 2016 170 800 80%3 Melosa Garden Khang Dien District 9 2016 442 800 20%4 CityLand Garden Hills CityLand Go Vap 2017 98 1,600 60%5 Nine South Estate VinaCapital District 7 2017 381 1,200 61%

New launches in Q4 2015 1,196 1,010 50%


q4 2015 | HO CHi minH City | serviCeD apartment



perfOrmanCe

The average net asking rent was softened in Q4 2015 as Grade A and Grade B’s recorded a nominal drop of 1.2% and 3.8% q-o-q respectively. In the CBD, the average rental rate was US$3,052/ unit/mth for a typical 2-bedroom unit in a popular area with sizes ranging from 80 sqm to 140 sqm.

Occupancy improved on the back of short-term stays during Christmas and New Year holiday. Grade A Grade A and Grade B occupancy increased 10% and 3.6% q-o-q.

supply

In 2015, the market added 89 Grade A units from The Reverie Residence and 52 Grade B units from Diamond Island Luxury Residence.

Another Grade A project will enter the market in the second half of 2016. The Ascot Waterfront Saigon developed by Canh Hung Hai Thanh Corporation is coming to its final completion, proving 222 serviced apartments. Grade B stock will be ample in 2016 with expected completion from four projects which are Saigon Plaza, C.T Plaza, Viettel Tower and New Pearl.

DemanD

Demand for serviced apartments in Ho Chi Minh City will be boosted after the government promoted an effective environment for trade and investment relations.

The advent of the ASEAN Economic Community (AEC) on 31 Dec 2015 and the conclusions of Trans Pacific Partnership (TPP) and other trade agreements in 2015 are expected to bring in more FDI, foreign investors and business travelers to Ho Chi Minh City.

OutlOOK

In the next three years, the market will have 12 projects providing 2,200 units.

Due to limited new supply in the city core in the short term, rents and occupancy rates of existing projects will experience positive correction. Demand continues to be strong from expatriates and MNCs.

project name District Grade total units

expected Completion

Ascott Waterfront Saigon 1 A 222 2H 2016

Saigon Plaza 1 B 119 3Q 2016

Saigon South Place 7 A 480 4Q 2016

Saigon Center Phase 2 1 A 216 2017

Table 7: Serviced apartment, Significant future projects under construction


Figure 16: Serviced Apartment, Average asking rent by grade

0

10

20

30

40


2012 2013 2014 2015

USD/

sq m

/mon

th

Grade A Grade B


Figure 17: Serviced Apartment, Occupancy rate by grade


70

75

80

85

90

95

100


2012 2013 2014 2015

%

Grade A Grade B







Table 8: Significant Serviced Apartment Projects

No. Project Name Address Location Completion Year

Total Room

Average Occupancy

ARR(*) (**)

1 The Landmark 5B Ton Duc Thang District 1 1995 66 95.0% 262 Sedona Suites 65 Le Loi District 1 1996 89 89.0% 30

3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 96.0% 34

4 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 98.0% 305 The Lancaster 22-22 Bis Le Thanh Ton District 1 2007 55 73.0% 376 Intercontinental Asian Saigon 39 Le Duan District 1 2009 260 95.0% 36

Grade A 683 92.9% 33.5

1 Norfork Mansion 17-21 Ly Tu Trong District 1 1998 126 85.0% 262 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 85.0% 263 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 94.0% 264 Diamond Plaza 34 Le Duan District 1 1999 42 95.0% 295 Garden View Court 101 Nguyen Du District 1 2000 76 91.0% 316 Ben Thanh Luxury 172-174 Ky Con District 1 2010 88 91.0% 18

7 Lafayette De SaiGon 8 Phung Khac Khoan District 1 2010 18 89.0% 28

8 Vincom Center 45A Ly Tu Trong District 1 2010 60 34.0% 26

9 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 100.0% 30

10 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 84.0% 23

11 Spring Court 1Bis Phung Khac Khoan District 1 2011 14 76.0% 23

Grade B 814 85.7% 25.9

(*) US/sqm/month(**) ARR (Average Rental Rate): All rents are stated in gross rents per sqm, not including VAT and serviced charge



q4 2015 | HO CHi minH City | inDustrial



perfOrmanCeThe occupancy and rent rates are stable. Gross asking rent ranges from USD60- USD286/sqm./term with an average rate is at USD120/sq.m/term. The remaining Land Use Right year terms range from 26-43 years. Average occupancy rate is 67.2%.

Rental rate of “ready built factory” ranges from USDD400- USD800/month for a whole 300sqm-450sqm factories, or USD880- USD2500/month for 500sqm-1200sqm factories.

supplySouthern Economic Zone include HCM city and surrounding provinces such as Long An, Dong Nai, Ba Ria – Vung Tau, Binh Duong. Tay Ninh. The economic zone has 106 active IPs with total leasable areas of 33,500ha. Ho Chi Minh city and Hanoi are two cities which comprise the highest number of IPs in Vietnam.

Ho Chi Minh City has 3,920ha industrial area which are allocated in 18 IPs. No new supply was delivered during the last quarter of 2015. The leasable area is estimated to be about 67% of the total industrial land area, which is equivalent to 2,637ha. There is a shortage of ready- built factories which are bigger than 2000sqm.

DemanDFrom a real estate point of view, companies from non- TPP member nations - such as China, Korea, India…- would relocate their operations and factories to Vietnam in order to gain tax exemptions for their products.

Foreign investments, especially from the U.S and Japan, will also flow into Vietnam more heavily to take advantage of Vietnam’s labour force and domestic market. These factors positively contribute to the demand for industrial land, factory, warehouse and offices. Investors and developers aim to focus on clear lands and areas locating near traffic hubs like ports, airports, metro systems.

OutlOOKBy 2030, there will be 12 more industrial parks in HCMC which would increase the total number of IPs to 30. The total industrial area is projected to be 3,000ha. Prices and occupancy rate are expected to increase steadily. There is a shortage of skilled and English –capable workers in IPs in Ho Chi Minh city.



Figure 18: Industrial, Supply by District


Figure 19: Industrial, Market Performance



Table 9: Industrial, Future Supply

Dist. 922%

Cu Chi23%

Binh Chanh16%

Binh Tan10%

Dist. 78%

Nha Be8%

Others13%

industrial park name District launched year

Gfa (ha)

Phuoc Hiep Industrial Park Cu Chi 2015 200

Bau Dung Industrial Park Cu Chi 2015 122

Vinh Loc 3 Industrial Park Binh Chanh 2016 210

Le Minh Xuan 2 Industrial Park Binh Chanh 2017 338

Linh Trung 3 Export Processing Zone Binh Chanh 2017 250

Xuan Thoi Thuong Industrial Park Hoc Mon 2019 380

0%

20%

40%

60%

80%

100%

120%

0

50

100

150

200

250

300

Binh Tan Dist. 7 Binh Chanh Thu Duc Nha Be Dist. 2 Cu Chi Dist. 9 Dist. 12 Tan Binh

USD

/sq

m/m

onth

Average Asking Rent Occupancy Rate






Table 10: HCMC Industrial Market Overview

No Name of Industrial Park Location Distance to CBD (km)

Total Area(ha)

Asking Rent (US$/sqm) Occupancy LUR Term

1 Linh Trung 1 Export Processing Zone Thu Duc 18 62 60 92% 20522 Linh Trung 1 Export Processing Zone Thu Duc 17 61 60 94% 20523 Binh Chieu Industrial Park Thu Duc 16 30 120-180 98% 20656 Tay Bac Cu Chi Industrial Park Cu Chi 36.5 149 33 98% 20487 Tan Thoi Hiep Industrial Park District 12 16 28.4 30 95% 20628 Tan Phu Trung Industrial Park Cu Chi 37 359 75 74% 20549 Tan Thuan Export Processing Zone District 7 6.4 300 260 82% 204110 Hiep Phuoc Industrial Park Nha Be 21 311 95-115 95% 205711 Tan Tao Industrial Park Binh Tan 17 380 242-286 98% 205212 Tan Binh Industrial Park Tan Binh 11 178 220-150 100% 204713 Le Minh Xuan Industrial Park Binh Chanh 20 120 90-110 95% 204714 Vinh Loc Industrial Park Binh Chanh 15 259 270 95% 205215 Phong Phu Industrial Park Binh Chanh 14 90 105 100% 205116 Dong Nam Industrial Park Cu Chi 30 286 60-70 70% 205817 An Ha Industrial Park Binh Chanh 23 159 65-75 25% 205818 Cat Lai Industrial Park District 2 21 137 80-100 88% 206119 Automotive - Mechanical (Hoa Phu) Cu Chi 40 99 60-70 25% 2062

Total 3,008 83%


q4 2015 | Ha nOi | OffiCe



perfOrmanCeAverage occupancy across all grades improved to 88%. Grade A’s occupancy was 87%, up 6.0 ppts q-o-q while Grade B’s increased to 89%, up 1.1ppts q-o-q. Grade A average net asking rents recorded a growth rate of 1% q-o-q, reaching USD29.2/sqm/month. In contrast, due to abundant supply, Grade B’s dropped 0.7%, sitting at USD17.6/sqm/month. By location, Midtown had the most impressive performance with both rent and occupancy improved 1.5% and 7.9ppts respectively.

supplyThe supply pipeline remained unchanged in 2015. Currently there are 141 office buildings, providing approximately 1,378,644 sqm NLA. By location, 43% of total Grade A’s stock is located in the West with approximately 173,500sqm, followed by the CBD with 171,000sqm, at 42% share. Grade B dominated the market with medium scale projects in Dong Da district.

The market is expected 37,411 sqm NLA of TNR Tower to Grade A stock in early 2016. Located on Nguyen Chi Thanh road in Dong Da District, the 30-storey new Grade A standard office building will provide large floor plate of approximately 2,200sqm which is easy for fitting out and operation.

DemanDGiven advantages in geographical location, human resources and fast economic growth speed, Hanoi is considered as an ideal destination for foreign investment. In 2015, foreign investors have engaged in 352 projects in Hanoi, with the total capital of USD910.7 million. Due to the increase in disbursed FDI, demand for office space is growing steadily.

OutlOOKBy 2017, approximately 167,000sqm NLA will be added to the supply pipeline. The city center remains the most sought-after location for office tenants. However, due to limited available space in the CBD, suburban area is alternative options for those looking for large contiguous floor plates.

Asking rents are forecasted to grow steadily as foreign direct investment will surge after the implementation of the Trans Pacific Partnership.

Figure 20: Office, Average Asking Rent


0

5

10

15

20

25

30

35

40

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1F

2012 2013 2014 2015 2016

US

$/sq

m/m

onth

Grade A Grade B

Figure 21: Office, Occupancy Rate

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

100%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1F

2012 2013 2014 2015 2016

Grade A Grade B


Figure 22: Office, Current Stock

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Q1 Q2 Q3 Q4 Q1

2015 2016F.

sq m

Grade A Grade B Grade C


q4 2015 | Ha nOi | OffiCe



Page 21

(*) US$/sqm/month (NLA)


No Name Address Completion Year

NLA (sqm)

Service Charges

(*)

Occupancy rate

Average asking rent

(**)1 Central Building 31 Hai Ba Trung 1995 3,653 - 100% 47

2 International Centre 17 Ngo Quyen 1995 6,500 7 90% 253 Hanoi Tower 49 Hai Ba Trung 1997 9,000 7 96.7% 284 63 Ly Thai To Building 63 Ly Thai To 1998 6,753 - 100% 475 Sun Red River Building 23 Phan Chu Trinh 1999 13,459 - 90.9% 386 Vietcombank Tower 198 Tran Quang Khai 2000 19,563 - 100% 29

7 Opera Business Centre 60 Ly Thai To 2007 3,787 included 85.1% 258 Pacific Palace 83B Ly Thuong Kiet 2007 16,600 7 66.1% 20

9 Asia Tower 2 Nha Tho 2007 3,100 included 76.7% 3510 Sun City Building 13 Hai Ba Trung 2007 6,400 - 100% 45

11 BIDV Tower 194 Tran Quang Khai 2010 10,120 - 95% 39

12 Sentinel Place Hang Da 2010 8,000 - 76% 35

13 Corner Stone 16 Phan Chu Trinh 2013 26,500 7 70% 30

14 Hong Ha Center 25 Ly Thuong Kiet 2013 11,000 5 27.3% 19

Grade A 144,435 81% 31

1 Tungshing Square 2 Ngo Quyen 1996 8,306 - 89% 202 Melia Hotel 44B Ly Thuong Kiet 1997 8,500 - 90% 38

3 Prime Centre 53 Quang Trung 1998 7,600 - 95.8% 27

4 VIB Hai Ba Trung 59 Quang Trung 2006 3,000 - 68% 165 Capital Tower 109 Tran Hung Dao 2010 21,089 7 93.3% 216 Hanoi Tourist Building 18 Ly Thuong Kiet 2010 7,600 - 100% 24

7 Capital Building 72 Tran Hung Dao 2013 5,800 - 86.2% 258 Coalimex Building 33 Trang Thi 2013 5,071 5 79.3% 139 VID Building 115 Tran Hung Dao 2013 4,930 - 88.6% 2310 Artex Port 31-33 Ngo Quyen 2014 4,725 - 100% 23

Grade B 76,621 91% 23.5


q4 2015 | Ha nOi | retail



Table 3: Significant Office ProjectsperfOrmanCeThe average net asking rents slightly improved due to higher rents offered at the new shopping center. While CBD rents remained stable at USD80/sqm/mth, non-CBD increased 3.7% q-o-q to USD28/sqm/mth.

Overall occupancy rate increased 5ppts q-o-q, reaching 89.3% thanks to strong leasing activities in new retail developments.

supplyHanoi retail stock consists of 151 developments with more than 1 million sqm GFA.

In mid of November 2015, one new shopping center came online, adding an extra 55,400sqm GFA to the total stock. Located in Nguyen Chi Thanh street, a connection hub between Hanoi CBD with the new urban area in the West, Vincom Center Nguyen Chi Thanh provides ‘one stop shop’ for city residents with retail outlets, entertainment facilities and food court. This is the fifth retail center developed by Vin Group in Hanoi.

DemanDWith a population of more than 90 million people, young workforce, increasing GDP per capita and positive economic outlook, Vietnam retail market is appealing to foreign retailers. Recent M&A transactions on retail centers have shown positive signs that international retailers are hoping to quickly penetrate to the domestic market.

As the number of modern retail developments in Vietnam is smaller than that of neighbor countries, demand for retail space will be sustained, especially in large cities as Hanoi and Ho Chi Minh City.

OutlOOKIn 2016, the market will experience abundant supply from Vin Group retail projects such as Vincom Exchange City in Tu Liem District or Vincom Starbowl in Dong Da District.

On the consumer front, the opening of mega malls has transformed Hanoi retail landscape. This presents opportunities for food service and lifestyle brands to offer innovative products and services for increasingly sophisticated consumers.

Figure 23: Retail, Market Performance

Figure 25: Retail, Total Supply



Figure 24: Retail, Occupancy Rate

75

80

85

90

95

100

2011 2012 2013 2014 2015 2016F

%

CBD Non-CBD


0

10

20

30

40

50

60

70

80

75%

80%

85%

90%

95%

100%

2008 2009 2010 2011 2012 2013 2014 2015 Q12016F

US$

/sqm

/mon

th

Rental rate Occupancy

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2010 2011 2012 2013 2014 2015 Q1 2016 F

sq m

CBD Non-CBD



q4 2015 | Ha nOi | retail



(*) ARR (Average Rental Rate): All rents are stated in net rents per sqm, inclusive service charge but exculding VAT

Table 12: Significant Retail Projects

No Name of Project /Building Address Location Completion

YearNLA

(sq m) ARR (*) Occupancy Rate

1 Central Building 31 Hai Ba Trung Hoan Kiem 1995 550 85-100 100%2 Hanoi Tower 49 Hai Ba Trung Hoan Kiem 1997 2,056 43 73%3 63 Ly Thai To Building 63 Ly Thai To Hoan Kiem 1998 594 145-200 45%4 ICC Building 71 Nguyen Chi Thanh Dong Da 2006 2,900 40-50 100%5 Pacific Place 83b Ly Thuong Kiet Hoan Kiem 2007 2,000 45 90%6 Opera Business Center 6b Trang Tien Hoan Kiem 2007 1,070 90-150 100%7 Golden Westlake 151 Thuy Khue Tay Ho 2007 1,000 25-70 68%8 Sun City 13 Hai Ba Trung Hoan Kiem 2008 861 85-95 100%9 Asia Tower 6 Pho Nha Tho Hoan Kiem 2008 500 100-120 100%

10 Sentinel Place 41A Ly Thai To Hoan Kiem 2010 550 49-85 0%

11 Sky City Tower 88 Lang Ha Dong Da 2010 5,400 20-80 100%12 Han Viet Tower 203 Minh Khai Hai Ba Trung 2012 600 20-31 50%13 Rainbow Tower 19/5 KDT Van Quan Ha Dong 2012 900 8-24 56%14 Hapumedicenter 85 Vu Trong Phung Thanh Xuan 2012 18,500 10-21 81%15 The Lancaster Hanoi 20 Nui Truc Ba Dinh 2013 3,123 25-45 100%16 Madarin Garden Residential 1 Hoang Minh Giam Cau Giay 2013 11,000 20-40 55%

Retail Podium 51,604 78%

1 Vincom Center Ba Trieu - Tower A&B 191 Ba Trieu Hai Ba Trung 2004 17,000 55 98%2 Vincom Center Ba Trieu - Tower C 191 Ba Trieu Hai Ba Trung 2004 10,974 18-100 100%3 Ruby Plaza 44 Le Ngoc Han Hai Ba Trung 2007 5,200 29 100%4 Syrena 51B Xuan Dieu Tay Ho 2008 5,000 23 96%5 Trang Tien Plaza 24 Hai Ba Trung Hoan Kiem 2008 14,000 10 85%6 Savico MegaMall 7-9 Nguyen Van Linh Long Bien 2011 54,900 18 68%7 Keangnam Palace Landmark Lot E6, Pham Hung Tu Liem 2011 60,771 20-53 80%8 Vincom Center Long Bien KDT Vincom Long Bien 2012 45,000 19 46%9 Indochina Plaza Hanoi 241 Xuan Thuy Cau Giay 2012 19,929 18 70%10 SapoMart Ha Dong 8 Quang Trung Ha Dong 2012 12,000 12-30 60%11 Ocean Mall 5 Hoang Dao Thuy Cau Giay 2013 10,000 10-30 100%12 Vincom Mega Mall - Royal City 72A Nguyen Trai Thanh Xuan 2013 230,000 30 92%13 Vincom Mega Mall - Time City 458 Minh Khai Hai Ba Trung 2014 200,000 27 92%14 Aeon Mall Long Bien 2 Co Linh Long Bien 2015 72.000 45 98%15 Vincom Nguyen Chi Thanh 54A Nguyen Chi Thanh Dong Da 2015 34,500 40 96%

Shopping Centre 719,346 86%

1 Parkson (Viet Tower) 198 Tay Son Dong Da 2007 15,761 28 85%2 The Garden (Bitexco) Me Tri Tu Liem 2007 23,700 25 58%3 Ho Guom Plaza Ha Dong Ha Dong 2013 23,380 16 75%4 Lotte Department Store 54 Lieu Giai Ba Dinh 2014 38,709 43 91%

Department Store 101,550 30.3 79%


q4 2015 | Ha nOi | COnDOminium



perfOrmanCeThe market saw an upward trend in both sales and transactions as both developers and buyers regained the confidence. Approximately 21,000 transactions have been made in 2015, doubling the amount of the same period last year. High-end and luxury segment continued to dominate the market, accounting for 32% of the market share.

Price growth continued on moderate pace on both primary and secondary market. New projects have higher price of 3-5% y-o-y while high-end projects saw price rises of about 5% to 7% q-o-q. On the secondary market, price climbed 0.3% q-o-q and 1.1% y-o-y.

supplyThe review quarter recorded more than 28,000 units coming online, increasing the total stock to 70% y-o-y.

In term of supply by location, the South and CBD-fringe account for half of total new launches. With fast pace of urbanization and well-developed infrastructure, the West and South West, especially My Dinh area, has witnessed an increasing number of new residential projects, accounting for 46% of total launches.

DemanDDemand for accommodation keeps growing on the back of low interest rate for home loan, young population, high marriage rate and increasing household income. Buyers tend to put more weight on projects with good facilities and landscape.

In addition, the market is supported by revised Housing Law which allows property ownership for foreigners. Also, buy-to-let condominiums have become popular for property investors due to its attractive rental yield.

OutlOOKAs Lunar New Year is coming soon, developers are trying to speed up construction progress to hand over final products to their clients. The market sentiment is expected to be higher as buyers prefer to settle their transactions during the lunar year end.

Hanoi supply pipeline will welcome approximately 24,000 units in 2016. It is concerned that the authority should re-adjust the urban planning as high density of residential and commercial buildings in the city center have been putting high pressure on traffic. Public transportation should be utilised efficiently to reduce traffic jams in new residential urban area.

Figure 26: Condominium, Changes in secondary prices by Quarter


Figure 27: Condominium, Sales by Quarter and Segment



Figure 28: Condominium, Launched Supply by Year

0

1000

2000

3000

4000

5000

6000

7000


2015 2013 2014 2015

Luxury High-end Mid-end Affordable

-8

-6

-4

-2

0

2

4

6

8

2008 2009 2010 2011 2012 2013 2014 2015

%

0

5000

10000

15000

20000

25000

30000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F.

sq m






Table 3: Significant Office ProjectsTable 3: Significant Office Projects


Table 13: Condominium, New launched in Q4 2015


Number of units

Asking Price (US$/sqm)

1 HH2 ABC Xuan Mai Sparks Tower Vinacotex Xuan Mai Ha Dong 2016 864 7002 Helios Tower NHS, Lilama, Kim Khi Hanoi Hoang Mai 2016 744 1,0003 Times Tower - HACC1 Complex Building Xay Dung so 1 Hanoi Thanh Xuan 2017 264 1,4004 Dong Mo Handico 5 Hoang Mai 2017 630 6005 VP7 Linh Dam Muong Thanh Group Hoang Mai 2017 820 6006 Goldmark City 136 Ho Tung Mau Viet Han Corp. Tu Liem 2017 5,000 6507 Central Point Trung Kinh MB Land Cau Giay 2017 506 1,4008 MB Land Central Point My Dinh MB Land Nam Tu Liem 2017 400 1,3009 Ecolife Capitol Thudo Invest Tu Liem 2017 377 1,10010 The Garden Hill BID Vietnam Tu Liem 2017 300 1,30011 Gold Season Mua Dong Real Estate - VID Thanh Xuan 2018 1,500 1,30012 CT4 Vimeco Hanel Trung Hoa VIMECO Group Cau Giay 2018 412 1,400

13 The Golden An Khanh 32T Song Da Thang Long Hoai Duc 2018 832 650

New launches in Q4 2015 12,649 865


q4 2015 | Ha nOi | villa & tOWnHOuse



perfOrmanCeThe year-end sentiment helped to boost more successful transactions and leverage sale price. For completed projects with comprehensive infrastructure, primary price growth is from 5% to 10%.

The average secondary price was USD3,214/sqm, up 1.4% q-o-q. By location, Ha Dong District recorded the highest price growth of 10% y-o-y.

supplyThe supply pipeline this year has seen approximately 1,200 villas and townhouses introduced to the market. New projects are concentrated in Tay Ho, Ha Dong, Tu Liem, Thanh Xuan and Hai Bai Trung districts where having well-developed infrastructure and convenient accessibility to the city center.

Notable launches in 2015 included Park City, Gold Silk, Pandora Trieu Khuc and Gold Silk.

DemanDFor Vietnamese, buying a house during the year-end is to celebrate a prosperous working year and also to enjoy the Lunar new year in the new house. As year-end income normally increases, demand for housing at this time is highest in a year.

Due to ongoing demand for decent homes with good facilities and improving infrastructure, the villa and townhouse market will perform well in terms of sale transaction volumes.

OutlOOKPrice growth is expected to be steady in 2016 as there are good signs of market recovery. Landed properties with completed internal infrastructure and convenient accessibility will continue to attracted buyers.

Savvy developers will focus on building projects with great facilities and landscape to cater higher demand from owner-occupiers.

Figure 31: Villa and Townhouse, Supply by Quarter


Figure 30: Villa and Townhouse, Q-o-Q changes in secondary price



Figure 29: Villa and Townhouse, Secondary price by District

-15

-10

-5

0

5

10

15

20

0

1000

2000

3000

4000

5000

6000

7000

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

2011 2012 2013 2014 2015

%

US

D/s

qm

Market average price Q4 2015 Q-o-Q changes

27000

28000

29000

30000

31000

32000

33000

100

102

104

106

108

110

112

114

116

118

120

Q3 Q4 Q1 Q2 Q3 Q4

2014 2015

No. of Units No. of Projectsprojects units

0

20

40

60

80

100

120

140

160

180

200

ThanhXuan

CauGiay

Tay Ho Tu Liem HoangMai

HaDong

LongBien

ThanhTri

HoaiDuc

Gia LamMe Linh

USD/

sq m

Q3-2015 Average Q4-2015 Average Market average price Q4 2015







Table 3: Significant Office ProjectsTable 3: Significant Office ProjectsTable 3: Significant Office Projects


Table 14: Significant new launched in Q4 2015


Number of units

Asking Price (US$/sqm)

1 The Premier Ton That Thuyet Mien Nui Corp. Cau Giay 2016 55 5,5002 Gold Silk Complex HANOVID Ha Dong 2017 47 8003 Vinhomes Gardenia Cau Dien Hong Ngan Corp. Nam Tu Liem 2017 364 1,3004 Mon City Hai Dang Corp Tu Liem 2017 147 1,200

5 Green Pearl Deawoo E&C, Thuduc House, Phong Phu Corp, Vinatex Hai Ba Trung 2017 69 1,000

6 Pandora Hoa Binh VCM Thanh Xuan 2019 86 3,0007 Pandora Trieu Khuc Vietnam Motors Corp. Thanh Xuan 2019 104 3,300

8 Starlake Deawoo E&C Bac Tu Liem, Tay Ho, Cau Giay 2019 151 5,000

New launches in Q4 2015 1,023 2,360


q4 2015 | Ha nOi | serviCeD apartment



Table 3: Significant Office ProjectsperfOrmanCeIn Q4 2015, occupancy rate and average asking rate moved in opposite directions. Occupancy rate went up steadily 4% q-o-q to 86.4%, while average rental rate decreased slightly 1% q-o-q to USD31.8.

supplyThere are 3,239 units in Hanoi in which Grade A and B segments account for more than 90%.

More than 60% of serviced apartments are located in the CBD.

DemanDIn 2015, FDI inflows to the city reached USD1.4 billion which is equal to the amount of 2014. Disbursed capital is US$1.1 billion, up 8% y-o-y.

New big projects such as Samsung’s Bac Ninh and Samsung’s Thai Nguyen might increase significantly demand for serviced apartments in Hanoi.

Besides, Hanoi and HCMC are home of large Korean and Japanese communities which estimate to be more than 80,000 people.

OutlOOKAccording to Hanoi Real Estate Association (HREA) there will be more than 24,000 residential apartments to be on sales in 2016. A certain percentage of these apartments will be leased out for tenants. This will create a big substitution for serviced apartments.

In addition, the new Law on Housing and Law on Real Estate Business allow foreigners to own property in Vietnam. Somehow the new laws may provide foreigners who stay in Vietnam in long term an alternative for renting a serviced apartment. Middle-end and low-end can compete more freely and effectively with high-end units thanks to advancement of technology. Applications such as Airbnb allow owners of serviced apartments in middle segment to reach to potential customers more effectivelyMajority of units are located in districts Cau Giay, Ba Dinh and Hai Ba Trung.

Figure 34: Serviced Apartment, Supply by Segment


Figure 32: Serviced Apartment, Average asking rent by grade


Figure 33: Serviced Apartment, Occupancy rate by grade


Grade A53%

Grade B42%

Grade C5%

0

5

10

15

20

25

30

35

40


2012 2013 2014 2015

USD

/sq

m/m

onth

Grade A Grade B

60%

70%

80%

90%

100%


2012 2013 2014 2015

Grade A Grade B







Table 3: Significant Office ProjectsTable 15: Significant Serviced Apartment Projects

No Project Name Address Location Total Units

Average Occupancy (%)

ARR(*) (**)

1 Hanoi Daewoo 360 Kim Ma Ba Dinh 378 73 25.22 Fraser Suites Hanoi 51 Xuan Dieu Tay Ho 184 98 35.5

3 Hanoi Club 76 Yen Phu Tay Ho 62 92 29.7

4 Hanoi Somerset Grand 49 Hai Ba Trung Hoàn Kiem 185 87 36.65 Pacific Place 83B Ly Thuong Kiet Hoan Kiem 47 87 14.76 Sendona Suites 96 To Ngoc Van Tay Ho 191 97 337 Sofitel Plaza 1 Thanh Nien Ba Dinh 56 75 448 Somerset Hoa Binh 106 Hoang Quoc Viet Cau Giay 206 90 179 Somerset West Lake 254D Thuy Khue Tay Ho 90 80 42.310 Sun Red River 23 Phan Chu Trinh Hoan Kiem 46 98 24.311 Intercontinental Ha Noi 13 Nghi Tam Tay Ho 25 20 36.4

Grade a 1,470 85 29.6

1 Atlanta 49 Hang Chuoi Hai Ba Trung 51 94 19.12 Flower Village Hanoi 14 Thuy Khue Tay Ho 132 88 23.83 Elegant Suites 19B Ha Hoi Hoan Kiem 39 92 184 Elegant Suites Westlake 10C Dang Thai Mai Tay Ho 131 8 22.95 Hanoi Lake 11-13 Nam Trang Ba Dinh 10 90 15.7

6 Hoa Binh Green No. 14, Ally 376 Buoi Ba Dinh 54 86 20.8

7 Lakeside Garden 56 Xuan Dieu Tay Ho 7 100 21.5

8 May Fair 34B Tan Phu Ba Dinh 48 96 19.2

9 Oriential Palace 33 Tay Ho Tay Ho 57 84 21

10 Park View 9 Nguyen Binh Khiem Hai Ba Trung 6 100 13.8

11 Rainbow 7 Trieu Viet Vuong Hai Ba Trung 26 92 13.4

12 Rose Garden 170 Ngoc Khanh Ba Dinh 96 75 17.1

13 Swan Lake 3/61/31 Xuan Dieu Tay Ho 6 100 19.3

14 Skyline Tower 4 Dang Dung Ba Dinh 84 96 20.8

15 V-Tower 649 Kim Ma Ba Dinh 36 100 28.2

16 DC Building 144 Doi Can Ba Dinh 9 56 10.6

17 Hoa Binh Hotel 27 Ly Thuong Kiet Hoan Kiem 9 100 21.8

18 Palace de Thien Thai 2 Tho Nhuom Hoan Kiem 16 88 23

19 The City Residences 37 Phan Dinh Phung Ba Dinh 15 60 18.5

20 Candeo Hotel 287-301 Doi Can Ba Dinh 69 26 23.1

Grade b 901 71.8 20.9

q4 2015 | Ha nOi | inDustrial



perfOrmanCeIn general, rental rates in Hanoi are lower than those in Ho Chi Minh city. Gross asking rent in Hanoi’s IPs range from USD50- USD190/sqm/term and remaining lease term is from 30-45 years. Hoa Lac High- tech park has the lowest the city’s gross asking rent which is at USD50- 60/sqm./term. The 550ha high tech park has only a modest occupancy rate of 18%. Rent of ready- built factory- in Hanoi is about US$1.2/sqm/month which is 30% less than those in Ho Chi Minh city.

supplyThe Northern Economic Zone including Hanoi and provinces Hung Yen, Hai Duong, Hai Phong, Vinh Phuc, Quang Ninh, Bac Ninh comprise 46 active IPs with total leasable 12,100ha. Hanoi has 12 IPs and more than 3,200ha of total area.

DemanDChina, Japan and Hong Kong (SAR) are three most popular investors at Hanoi’s IPs. Popular investments are from industries such as intermediate goods, machinery, spare parts & accessories, electronics.Infrastructures are being developed to connect northern provinces with Hanoi which will significantly reduce time and costs of transportation and commercial traffic. Highways such as Ha Noi-Hai Phong , Ha Noi-Lao Cai, Ha Noi-Thai Nguyen will help enhance connectivity and increase the efficiency of the northern economic region. These will positively contribute to improve the occupancy rate and asking rate of IPs.

OutlOOKIn 2020, there will be 14 more IPs to begin operating which would provide 6,100 hectares more to the market. The capital is projected to be home of 33 IPs with total area of 8,000 hectares by 2030.Prices and occupancy rate are expected to increase steadily in the next 1-3 yearsIn general, average salary of workers in Northern economic region is lower than those in the South. Consequently, there is a southward movement of employees to work in Ho Chi Minh City and its surrounding provinces. This leads to a shortage of workers in Northern economic region’s IPs.


Figure 36: Industrial, Supply by District


Figure 35: Industrial, Market Performance



Table 16: Industrial, Future Supply

industrial park name District Gfa (ha)

Khu Chay Ung Hoa 1,180

Nam Phu Cat Quoc Oai 500

Phu Xuyen Phu Xuyen 488

Thanh Oai II Thanh Oai 480

Phu Nghia expansion Chuong My 460

North Thuong Tin Dong Anh 429

Soc Son VIP Soc Son 420

Dong Anh35%

Thanh That 23%

Chuong My12%

Me Linh12%

Tu Liem9%

Others9%

0

20

40

60

80

100

0

30

60

90

120

150

180

Tu Liem Dong Anh Chuong My Me Linh Soc Son Phu Xuyen Thanh That Long Bien

%

US

D/s

q m

/mon

th

Asking price Occupancy Rate







Table 3: Significant Office ProjectsTable 17: Hanoi Industrial Market Overview

No Name of Industrial Park Location Distance to CBD (km)

Total Area(ha)

Asking Rent (US$/sqm)

Occupancy (%) LUR Term

1 Nam Thang Long Tu Liem 15 260 120-190 99 20512 Noi Bai Soc Son 31 100 131-50 92 20463 Dai Tu Long Bien 12 40 130-150 100 20454 Quang Minh Me Linh 24 344 100-150 95 20525 Phu Nghia Chuong My 24 370 90-100 65 20606 Hanssip (phase 1) Phu Xuyen 44 72 100-140 80 20557 Dong Anh Dong Anh 19 470 90-110 95 20578 Bac Thang Long Dong Anh 16 295 90 100 20479 Sai Dong B (Phase I&II) Long Bien 11 97 90-110 100 205610 Thang Long Dong anh 16 302 90-100 100 205211 Hoa Lac Hi-Tech Thach That 39 550 50-60 18 204912 Thach That - Quoc Oai Thach That 26 150 90-110 100 2056

total 3,050 78.8

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