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Colliers Vietnam Quarterly Knowledge Report Q3 2016

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VIETNAM QUARTERLY KNOWLEDGE REPORT Q3 2016
Transcript

Accelerating successwww.colliers.com/vietnam

vietnam quarterly KnOWleDGe repOrt q3 2016

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: Vietcombank Tower

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list Of fiGures Figure 1: Vietnam Exports - Imports in 3Q 2016..................................................................................

Figure 2: International Arrivals to Vietnam in 3Q 2016 ......................................................................

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, Market Performance ................................................................................................

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

Figure 7: Retail, Market Performance...................................................................................................

Figure 8: Retail, Total Supply .............................................................................................................

Figure 9: Condominium, Primary Asking Price ...................................................................................

Figure 10: Condominium, New Launches by Segment and Quarter.......................................................

Figure 11: Condominium, Sold Units by Segment and Quarter..............................................................

Figure 12: Villa and Townhouse, Selling Prices by Quarter..................................................................

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

Figure 14: Villa and Townhouse, Primary Stock by District .................................................................

Figure 15: Serviced Apartment, Current Grade A&B Supply ...............................................................

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

Figure 17: Industrial, Market Performance by District .........................................................................

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

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

Table 2: Office, Future Supply ............................................................................................................

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

Table 4: Retail, Significant Future Projects under Construction ..........................................................

Table 5: Significant Retail Projects ....................................................................................................

Table 6: Condominium, Significant new Projects launched in Q3 2016 ................................................

Table 7: Villa and Townhouse, Significant new Projects launched in Q3 2016 ......................................

Table 8: Serviced Apartment, Significant Future Projects under construction .....................................

Table 9: Significant Serviced Apartment Projects ...............................................................................

Table 10: Industrial, Future Supply .....................................................................................................

Table 11: Industrial, Market Overview ................................................................................................

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list Of fiGures

Figure 19: Office, Average Asking Rent...................................................................................................

Figure 20: Office, Occupancy Rate .........................................................................................................

Figure 21: Retail, Market Performance ...................................................................................................

Figure 22: Retail, Total Supply ...............................................................................................................

Figure 23: Condominium, Primary Sales Price .......................................................................................

Figure 24: Condominium, New Launches by Quarter and Segment ..........................................................

Figure 25: Condominium, Sold Units by Quarter and Segment .................................................................

Figure 26: Villa and Townhouse, Supply by Quarter ................................................................................

Figure 27: Villa and Townhouse, Supply by District .................................................................................

Figure 28: Villa and Townhouse, Q-o-Q changes in Secondary Price .......................................................

Figure 29: Serviced Apartment, Average Asking Rent by Grade ...............................................................

Figure 30: Serviced Apartment, Occupancy Rate ....................................................................................

Figure 31: Industrial, Market Performance by Distrtict .............................................................................

Figure 35: Industrial, Supply by District ..................................................................................................

list Of tables Table 12: Office, Future Supply.................................................................................................................

Table 13: Significant CBD Office Projects ................................................................................................

Table 14: Retail, Future Supply ................................................................................................................

Table 15: Significant Retail Projects ........................................................................................................

Table 16: Condominium, New Projects Launched in Q3 2016 ...................................................................

Table 17: Villa and Townhouse, New Projects Launched in Q3 2016 .........................................................

Table 18: Serviced Apartment, Supply Supply ..........................................................................................

Table 19: Significant Serviced Apartment Projects ..................................................................................

Table 20: Industrial, Future Supply .........................................................................................................

Table 21: Hanoi Industrial Market Overview .............................................................................................

list Of abbreviatiOns ARR: Average Rental Rate GRDP: Gross Regional Domestic Product

CBD: Central Business District IP: Industrial Park

CPI: Consumer Price Index NLA: Net Lettable Area

FTA: Free Trade Agreements TPP: Trans-Pacific Partnership GDP: Gross Domestic Product Q-o-Q: Quarter on Quarter

GFA: Gross Floor Area Y-o-Y: Year on Year

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Ha nOi marKet OvervieW

page

GDpVietnam’s real GDP growth in Q3 2016 came in at 6.4% y-o-y. Although the growth rate was higher than those of previous quarters of 2016, it was still below the 6.53% of the same period last year. The service sector grew by 6.66% while the industrial and construction industry increased by 7.6%. The agriculture- forestry-fishery recorded a modest growth rate of 0.7% y-o-y due to adverse weather conditions, notably the worst drought and saltwater intrusion in almost a century as well as the massive fish death disaster occurring in four coastal central provinces. The recovery after the deceleration in GDP during 1H 2016 was a positive sign, suggesting that the economic activities will perform well in the rest of the year, on the back of strong FDI inflows and export resilience.

CpiDuring the first nine months of 2016, average CPI climbed by 2.07% y-o-y, staying at a low level compared to the government’s inflation target of 5%. An upturn was seen in ten out of eleven major goods and service groups, with the largest increase in education at 7.19%, followed by the transport services at 0.55%. Only the telecommunications group witnessed a drop of 0.07%. Till the end of 2016, there are many factors that would drive up inflation, including the prices of health services, gas, oil and year-end expenditure. Moreover, unforeseen factors like natural disasters, harvest loss and hike in basic salary would also put pressure on CPI.

fDiIn the first three quarters of 2016, the total FDI capital reached USD16.43 billion, down 4.2% y-o-y. However, disbursement from FDI projects climbed to USD11.02 billion, an increase of 12.4% y-o-y. The whole country granted investment licenses to 1,820 new projects with a total registered capital of USD11.16 billion, up 27.1% in the number of projects and 1.1% in capital compared to the same period last year. Of total, 851 already-operating projects raised their capital by more than USD5.2 million. The FDI capital went mainly into the manufacturing and processing sector, accounting for 70.8% of total inflows from newly licensed projects. Real estate industry took 8.8% of the newly registered capital with USD 979.4 million. South Korea is the leading country in the amount of capital invested Vietnam, followed by Singapore and Hong Kong.

retail sales Vietnam’s retail sales of goods and services in the first nine month of 2016 achieved USD116.8 billion, an increase of 9.5% y-o-y. In particular, the retail sales of goods achieved USD88.18 billion, accounting for 76.2% of the total sales, up 9.7% y-o-y. Retail sales of accommodation and catering services reached USD13.3 billion, accounting for 11.5% of the total sales, representing an increase of 8.3% y-o-y. Retail sales of tourism services, comprising 0.9% of the total sales, reached USD 1.07 billion, up 7.5% y-o-y. Retail sales of other services which accounted for 11.4% of the total sales, were estimated at USD13.2 billion, equivalent to 9.3% increase y-o-y.

internatiOnal arrivals In the first three quarters of 2016, the whole country welcomed more than 7.2 million foreign visitors, up 25.7% y-o-y. Chinese visitors took the lead with more than 1.9 million arrivals, up 57.7% y-o-y, followed by South Korea with more than 1.1 million visitors, up 39.9% compared to the same period last year. The international visitors to Vietnam are forecasted to remarkably grow on the back of visa-exempt policy applied for the five European countries until mid-2017.

eXCHanGe rateAs of Q3 2016, the whole country registered a USD2.8 billion trade surplus. Export volume reached USD128.2 billion in the first nine months of 2016, up 6.7% compared to the same period last year. Of total, the domestic economic sector achieved USD37 billion and the FDI sector (including crude oil) gained USD 58.5 billion, up 5% and 6.9% y-o-y respectively. The top export destinations of Vietnam were the United States (USD28.3 billion), Europe (USD24.6 billion) and China (USD14.8 billion). Import turnovers reached USD 125.4 billion, up 1.3% over the same period last year. While the domestic economic sector in import turnovers gained USD51.4 billion, the FDI sector achieved USD51.4 billion, up 1.3% and 0.9% y-o-y respectively. China remained as Vietnam’s largest import market with USD36 billion, down 1.8% y-o-y.

q3 2016 | eCOnOmiC OvervieW

©2016 Colliers International Research

vietnam quarterly KnOWleDGe repOrt

Page 5

q4 2016 forecast

Figure 1: Exports - Imports in Vietnam 3Q 2016

Source: General Statistics Office | Colliers International Research

Figure 2: International arrivals to Vietnam in 3Q 2016

Source: General Statistics Office | Colliers International Research

vietnam

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q3 2016 | eCOnOmiC OvervieW

©2016 Colliers International Research

vietnam quarterly KnOWleDGe repOrt

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Figure 4: GDP Growth Rate of HCMC and Hanoi

Source: General Statistics Office | Colliers International Research

Source: General Statistics Office | Colliers International Research

Table 1: Marcoeconomic Indicators of HCMC and Hanoi

HCmC Hanoi

Q3 2016 Q4 2016F Q3 2016 Q4 2016F

GDP (billion) 32.6 15.4

FDI (million) 49.8 2,351

Retail sales (billion) 23.1 69.4

Export (billion) 22.7 7.9

Import (billion) 27.5 17.9

HO CHi minH City

The GRDP in the first nine months of 2016 achieved USD32.6 million, an increase of 7.76% compared to the same period last year. More specifically, the service sector remained the highest growth rate of 7.78%, staying at USD17.1 billion, followed by the industrial and construction sector with a growth rate of 7.77%, equivalent to USD9.72 billion. The agriculture-forestry-fishery sector saw an increase of 5.65% y-o-y, reaching USD245.78 million.In the review period, total newly registered and supplementary FDI achieved USD747.2 million, up 45.84% in the number of projects and equivalent to 31.62% in capital y-o-y. Of the total, there are 123 supplementary projects worth of USD373 million. Japan was recorded as the biggest foreign investor in the city, with USD116.2 million in registered capital, accounting for 15.5%, followed by Singapore (USD98.4 million) and British Virgin Islands.Retail sales of HCMC were up 10.19% y-o-y if price increase was excluded, reaching USD23.1 billion in the first three quarters of 2016. The retail sector had the highest growth rate with an increase of 11.34% y-o-y, reaching USD18.4 billion; while the tourism industry recorded the slowest growth rate of 1.79% y-o-y. The average price index in the first nine months of this year grew 1.38% on an annual basis. An increase was seen in seven out of eleven major goods and service groups, with the largest increase in education, at 4.06%. Export volume reached USD20,842 million, equivalent to an increase of 7.45% y-o-y. The United States remained as the largest export market in the first nine months of 2016 with USD3,977.1 million, accounting for 18,7% of the total export turnover. The largest contribution to export values was observed in garments, agricultural products and computers & electronic devices. Import values were USD27,541 million, up 13% y-o-y. Milk and dairy products, fuel, garment material plastics and iron & steel contributed the most to import values.

HanOi

The GRDP of Hanoi in the review period achieved 15.38USD billion, equivalent to a rise of 7.73% y-o-y. The industrial- construction sector and the service sector had the highest growth rate, up 8.36% and 7.83% y-o-y respectively. On the contrary, the agricul-ture-forestry-fishery sector saw a modest growth rate of 2.16% y-o-y.As of September of this year, FDI inflows of both newly registered and supplementary capital reached USD1.98 billion, up 0.4% compared to the same period last year. The CPI in September climbed to 0.77% m-o-m and 2.07% y-o-y. The education sector had the highest index due to the rise in tuition fees across schools in Hanoi.In the first nine months of 2016, Hanoi’s retail sales of good and services reached USD16.4 billion, up 9.4% compared to the same period last year. In the review period, Hanoi achieved USD7.89 billion in export revenue and USD17.94 billion in import revenue, equivalent a decline of 0.4% and 4.8%, respectively. The whole city recorded a trade deficit of USD9.95 billion in the first three quarters of 2016.Foreign arrivals to the capital city continued to play out well with 2.111 million visitors in the review period, a significant increment of 28.6% y-o-y.

Figure 3: FDI Capital of HCMC and Hanoi

Source: General Statistics Office | Colliers International Research

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q3 2016 | eCOnOmiC OvervieW

Figure 6: Office, Occupancy Rate

perfOrmanCeIn Q3 2016, the office market witnessed an improvement in rents across both grades, reaching USD26.2/sqm/month. Average net asking rent of Grade A reached a high rate of USD40.4/sqm/month, up 7.1ppts q-o-q while Grade B experienced a significant rent growth of 7 ppts q-o-q, staying at USD22.5/sqm/month. The rise in rents was mostly due to the stable supply in conjunction with solid demand for office space. The City’s office market continued to enjoy strong performance as steady absorption rates and limited availability of premium properties resulted in a rise in the occupancy rate. Average occupancy of Grade A saw an increase of 1% q-o-q, reaching 96%. Grade B performed better with higher occupancy rate, staying at 96.7%, unchanged from the previous quarter.

supplyThe third quarter of 2016 recorded the withdrawal of 6,000sqm NLA of one Grade B tower while there was no new supply entering the market. HCMC currently has a total of 11 Grade A buildings and 61 Grade B buildings, providing approximately 212,651sqm and 862,784 sqm of net leaseable space to the market respectively.Being well-known as the city’s office hub, District 1 accounted for more than half of the city’s stock, comprising all Grade A supply and nearly 50% of Grade B supply. It is forecasted that premium properties in prime locations will rise significantly as the CBD continues to contribute most of the future supply in coming years. Some notable future projects are under good construction progress and expected to approach completion by 2017, such as Saigon Center (Phase 2) and Deutsches Haus.

DemanDThanks to favorable macroeconomic conditions, HCMC will remain as a strategic destination for foreign corporations, leading to higher employment levels and boosting demand for office space in coming years. The tertiary service sector is a key driver for office demand as these companies need to show their presence in nicely modern office buildings. As high quality office buildings in prime locations are limited, the demand for premium properties from international service providers is more likely to expand in the future.

OutlOOKIt is expected that there will be nearly 62,300 sqm of new Grade A and over 102,840 sqm of new Grade B office space coming to the market by the end of 2017. Asking rent for grade A is forecasted to gradually increase owning to continued strong demand and limited supply while those of grade B’s asking rent will keep stable due to more pressure from the new supply in decentralized districts.

q3 2016 | HO CHi minH City | OffiCe

©2016 Colliers International Research

vietnam quarterly KnOWleDGe repOrt

Page 7

Table 2: Office, Future Supply

Source: Colliers International Research

Source: Colliers International Research

Source: Colliers International Research

Figure 5: Office, Market Performance

project name Grade nla (sqm) expected Completion

HQC Royal Tower B 17,800 Q4 2016

Mapletree Business Center B+ 23,000 Q4 2016

Ha Do Building B 10,840 Q4 2016

SGGP Building B 16,940 Q1 2017

E.Town Central B 35,000 Q3 2017

Saigon Center (phase 2) A 40,000 Q3 2017

Deutsches Haus A 22,300 Q3 2017

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q3 2016 | HO CHi minH City | OffiCe

©2016 Colliers International Research

vietnam quarterly KnOWleDGe repOrt

Page 8

(*) 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 7.6 99% 42.0

2 Saigon Tower 29 Le Duan 1997 13,950 7.5 100% 43.83 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 99% 42.04 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 89% 43.85 Diamond Plaza 34 Le Duan 1999 15,936 8.0 95% 41.06 Kumho Asiana Plaza 39 Le Duan 2009 26,000 8.0 89% 44.0

7 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 98% 39.08 President Place 93 Nguyen Du 2012 8,330 7.0 97% 39.0

9 Times Square 22-36 Nguyen Hue 2012 12,704 7.0 98% 40.010 Le Meridien 3C Ton Duc Thang 2013 9,125 6.0 88% 35.011 Vietcombank Tower 5 Me Linh Square 2015 41,250 7.0 99% 37.0

Grade A 212,655 7.2 96% 40.4

1 VTP-OSIC 8 Nguyen Hue 1993 6,500 6.0 100% 25.02 Yo Co Building 41 Nguyen Thi Minh Khai 1995 5,000 3.0 98% 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 7,405 6.5 92% 24.0

5 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 99% 28.06 Saigon Riverside Office 2A-4A Ton Duc Thang 1997 10,000 8.1 99% 27.67 Saigon Trade Center 37 Ton Duc Thang 1997 31,416 5.0 93% 20.0

8 MeLinh Point Tower 2 Ngo Duc Ke 1999 17,600 6.0 99% 42.09 Zen Plaza 54-56 Nguyen Trai 2001 11,037 5.0 94% 25.310 The Landmark 5B Ton Duc Thang 2005 8,000 6.0 96% 28.911 Opera View 161-167 Dong Khoi 2006 3,100 7.0 100% 27.012 City Light 45 Vo Thi Sau 2007 10,000 6.5 97% 25.013 Petro Tower 1-5 Le Duan 2007 13,304 6.5 100% 26.014 The Lancaster 22 – 22 Bis Le Thanh Ton 2007 7,000 5.0 100% 25.015 CJ Building 5 Le Thanh Ton 2008 14,000 6.5 100% 25.016 Continential Tower 81-85 Ham Nghi 2008 15,000 6.0 97% 22.017 Havana Tower 132 Ham Nghi 2008 7,326 6.0 95% 29.3

18 Royal Center 235 Nguyen Van Cu 2008 14,320 6.0 100% 23.019 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 99% 27.0

20 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 24.021 A&B Tower 76 Le Lai 2010 17,120 6.0 97% 32.022 Bao Viet Tower 233 Dong Khoi 2010 10,650 5.0 100% 22.023 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 100% 25.024 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19,596 5.0 85% 21.025 Saigon Royal 91 Pasteur 2010 5,340 6.0 100% 23.026 Vincom Center 68 -70 -72 Le Thanh Ton 2010 56,600 5.0 88% 30.727 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 100% 30.028 Lim Tower 9-11 Ton Duc Thang 2013 22,000 6.0 99% 28.029 MB Sunny Tower 259 Tran Hung Dao, Co Giang 2013 13,200 6.0 100% 23.030 Lim Tower 2 Vo Van Tan 2015 8,400 5.5 100% 24.0

Grade B 401,162 5.7 96.0% 26.6

q3 2016 | HO CHi minH City | OffiCe q3 2016 | HO CHi minH City | OffiCe

©2016 Colliers International Research

vietnam quarterly KnOWleDGe repOrt

Page 9

saiGOn sKyline revieW- CbD HCmC GraDe a OffiCe builDinGs

KumHO asiana plaZa39 le Duan, District 1

26,000/2,989$ 44.00$ 8.00

DiamOnD plaZa saiGOn34 le Duan, District 1

15,936/824$ 41.00$ 8.00

le meriDien 3C ton Duc thang, District 1

9,125/1,111$ 35.00$ 6.00

saiGOn tOWer29 le Duan, District 1

13,950/na$ 44.00$ 7.50

DeutsCHes Haus3-5 le van Huu, District 1

tHe metrOpOlitan235 Dong Khoi, District 1

15,200/1,655$ 44.00$ 6.00

presiDent plaCe93 nguyen Du, District 1

8,330/288$ 39.00$ 7.00

biteXCO finanCial tOWer45 ngo Duc Ke, District 1

37,710/567$ 39.00$ 8.00

vietCOmbanK tOWer5 me linh square, District 1

41,250/424$ 37.00$ 7.00

times square saiGOn22-36 nguyen Hue, District 1

12,704/300$ 40.00$ 7.00

saiGOn Centre65 le loi, District 1

11,650/ 101$ 42.00$ 7.50

sunWaH tOWer115 nguyen Hue, District 1

20,800/ 113$ 42.00$ 6.00

q3 2016 | HO CHi minH City | retail

©2016 Colliers International Research

vietnam quarterly KnOWleDGe repOrt

Page 10

Table 4: Retail, Significant Future Projects Under Construction

perfOrmanCeThe third quarter of 2016 recorded stable average asking rents across CBD and non-CBD, staying at USD46/sqm/month. Due to the opening of one remarkable shopping mall, the CBD reported a minor rise in rent, maintaining its high average asking rate of USD126/sqm/month while the non-CBD sub-market saw a nominal decline to USD36/sqm/month.Effective pre-leasing activities at new retail centers and the commitment of one key tenant in an existing CBD shopping mall pushed the overall occupancy rate up by 1 ppt q-o-q, reaching 93%.

supplyIn Q3 2016, two new shopping centers, Saigon Centre (phase 2) in District 1 and Aeon Mall Binh Tan in Binh Tan District entered the market, providing 40,000 sqm NLA and 60,000 sqm NLA to the current stock respectively. Being well-known as one of the major shopping malls in District 1 with the first phase’s completion in 1996, Saigon Centre has recently completed its second phase and 100% of the retail space has been occupied by 400 domestic and foreign brands, including Takashimaya, the anchor tenant from Japan. Another Japanese retailer, AEON, opened its second shopping mall at the International Hi-Tech Healthcare Park in Binh Tri Dong B Ward, Binh Tan District. The mall is home for a large supermarket, restaurants, fashion shops, cinema and a variety of retail stores. The future supply is limited as no new major shopping centers will enter the market in the rest of the year.

DemanDThe increase in household earning and credit availability in conjunction with the city’s rapidly expanding young population, especially the emerging middle class will fuel retail market growth. With an increasing propensity to consume, these customers are seeking more convenient and modern retail environments, resulting in the growth in demand for Western-style retail experiences. In addition, with the liberalization of retail sector under the conditions of Vietnam’s WTO membership and the recent participation in the Trans-Pacific Partnership, the city is expected to see a significant amount of FDI from international retailers.

OutlOOKBesides the strong growth of large-scale retail centers, more and more convenience chains are burgeoning in Ho Chi Minh City, aiming to change the shopping behavior of Vietnamese, especially those who are in need of groceries at any given time of the day or night. The most popular chains and convenience stores in Vietnam are Shop & Go, Circle K, Mini Stop and Family Mart. Of total, the number of Family Mart and Mini Stop stores is approximately 130 and this figure is forecasted to increase sharply in the coming time, with Mini Stop’s targeting 800 shops. The convenient store segment is anticipated to become highly competitive with 7-Eleven planning to be inaugurated in Ho Chi Minh City in 2017 and eyeing 1,000 stores within 10 years.

Figure 8: Retail, Total Supply

Source: Colliers International Research

Source: Colliers International Research

Figure 7: Retail, Market Performance

Source: Colliers International Research

project name District nla (sqm) expected Completion

Golden Plaza 6 15,000 Q4 2016

Union Square 1 39,454 Q2 2017

Vincom Center Mall Binh Thanh 59,000 Q1 2018

Su Van Hanh Mall 10 96,152 2018 onward

The Spirit of Saigon 1 35,000 2018 onward

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q3 2016 | HO CHi minH City | retail

vietnam quarterly KnOWleDGe repOrt

q3 2016 | HO CHi minH City | retail

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©2016 Colliers International Research Page 11

Table 3: Significant Office Projects

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

Table 5: Significant Retail Projects

No Name of Project/Building Address Location Completion Year

NLA (sq m) ARR (*) Occupancy

Rate1 Hotel Continental Sai Gon 132-134 Dong Khoi District 1 2000 200 90 100%2 Caravelle Hotel 19 Lam Son Square District 1 2000 150 220 100%3 New World Hotel 76 Le Lai District 1 2000 1,000 60 100%4 Sheraton Saigon 88 Dong Khoi District 1 2002 750 200 100%5 Opera View Lam Son Square District 1 2006 1,260 200 100%6 The Manor 1 91 Nguyen Huu Canh Binh Thanh 2006 2,000 10-30 100%7 Saigon Pearl 92 Nguyen Huu Canh Binh Thanh 2009 5,000 22 97%8 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100%

9 The Manor 2 91 Nguyen Huu Canh Binh Thanh 2010 2,500 10-30 100%

10 Bitexco Financial Tower 45 Ngo Duc Ke District 1 2011 8,000 50 98%11 The Vista Walk Hanoi Highway District 2 2012 10,000 20 97%

12 President Place 93 Nguyen Du District 1 2012 800 42 98%

13 Times Square 22-36 Nguyen Hue District 1 2012 9,000 300 100%

14 Saigon Airport Plaza 1 Bach Dang Tan Binh 2013 7,623 15 100%

Retail Podium 50,283 87.5 99%

1 Zen Plaza 54-56 Nguyen Trai District 1 2001 6,817 55-60 100%2 Parkson Saigontourist Plaza 35 Le Thanh Ton District 1 2002 17,000 100-150 98%3 Parkson Hung Vuong Plaza 126 Hung Vuong District 5 2007 24,000 80-120 100%4 Kumho Asiana Plaza 35 Le Duan District 1 2009 6,830 60 100%5 Parkson Flemington 184 Le Dai Hanh District 11 2009 26,000 20 99%6 Parkson C.T Plaza 60A Truong Son Tan Binh 2012 12,235 21 100%7 Taka Plaza 102 Nam Ky Khoi Nghia District 1 2011 1,000 70 100%8 Parkson Cantavil Premier Hanoi Highway District 2 2013 17,815 25-30 98%

Department Store 111,697 59.7 99%

1 Diamond Plaza 34 Le Duan District 1 1999 9,000 90 100%2 Saigon Center 35 Nam Ky Khoi Nghia District 1 1996 47,000 55-100 100%3 Superbowl Vietnam TSN 38 Nguyen Hue Tan Binh 2002 5,500 22 96%4 An Dong Plaza 18 An Duong Vuong District 5 2004 18,000 61 95%5 Saigon Square 1 77-89 Nam Ky Khoi Nghia District 1 2006 1,300 167 100%6 Nowzone 235 Nguyen Van Cu District 1 2008 9,000 60 99%7 Lotte Mart Saigon South 469 Nguyen Huu Tho District 7 2008 24,000 50 100%8 Vincom Center B 72 Le Thanh Ton District 1 2010 45,000 150 100%9 Maximark 3/2 Extention 3/2 Street District 10 2010 25,000 35 90%10 Lotte Mart Phu Tho Le Dai Hanh District 11 2010 24,500 13 99%11 Crescent Mall Nguyen Van Linh District 7 2011 45,000 25 100%12 Satra Pham Hung Pham Hung District 8 2011 11,528 14 100%13 Union Square Dong Khoi District 1 2012 38,000 90-97 New opening

Shopping Centre 302,828 67.4 99%

Accelerating success

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Table 3: Significant Office ProjectsperfOrmanCeIn Q3 2016, sales momentum continued to be positive with nearly 7,700 successful transactions, an increase of 33% compared to the previous quarter. Mid-end segment dominated transactions with nearly 4,300 sold units, followed by the high-end with 2,300 sold units, accounting for 55.8% and 29.8% of total sales volume, respectively. The affordable segment and luxury recorded modestly with 900 and 200 sold units, a drop of 50% and 66% on quarterly basis. The price on primary market remained relatively static across all segments, with the exception of the mid-end, registering the most considerable growth of 6% q-o-q. The improvement in mid-end price was mainly due to a surge in demand for this segment in the review quarter.

supplyIn Q3 2016, the city’s condominium market welcomed more than 7,400 units coming on stream, making a drop of approximately 15.6% q-o-q. Mid-end segment continued to dominate new launches with more than 5,800 units, followed by the high-end with 1,600 units, constituting 77% and 23% of the total newly launched supply. No new supply in affordable and luxury segment entered the market in the review period. It is expected that more than 7,000 units across all segments will be launched in Q4 2016. Strong sales momentum in conjunction with improved market sentiment will continue to support future supply.

DemanDBeing the economic center of the South of Vietnam, Ho Chi Minh City is the destination not only for workers and students from various regions of the country but also for foreigners from all over the world. The city‘s current population is more than 8 million people which is equivalent to 8.1% of the whole country’s population, making it the most densely populated area in Vietnam. It is forcasted that this figure will reach 10 million by 2020 and approximately 8% of these will seek to buy houses. According to a recent report by Ho Chi Minh City Institution for Development Studies, the demand for affordable properties will reach 80,000 households in the next five years, indicating that the demand for this segment will outstrip future supply. Moreover, stronger economic fundamentals as well as regulatory changes will stimulate demand and construction activities for all segments in the coming years.

OutlOOKRecently, many developers have chosen the river view to be an additional value and unique feature of their projects to attract more potential buyers, especially affluent people. With the construction of Ben Thanh - Suoi Tien metro route and modern bridges in the Eastern part, the landscape of the city is changing with various apartment projects along the river.The easing of foreign ownership has lured more potential foreign home buyers, especially in the high-end segment. It is expected that the number of foreign sales will be rising in the medium and long term when the government releases further guidelines to resolve foreign buyers’ concerns on the complexity of foreign ownership, the transfer of money in and out of the country or financing issues, etc.

Figure 9: Condominium, Primary Asking Price

Source: Colliers International Research

Figure 11: Condominium, Sold Units by Segment and Quarter

Source: Colliers International Research

Figure 10: Condominium, New launches by Segment and Quarter

Source: Colliers International Research

0

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

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/sqm

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q3 2016 | HO CHi minH City | COnDOminium

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Table 6: Condominium, Significant new projects launched in Q3 2016

No Name of Project/Building Developer Location Completion Year

Number of units

Asking Price (US$/sqm)

1 Waterina Maeda District 4 2017 86 2,500 2 Dragon Hill 2 Phuc Long Corp. District 7 2017 450 1,000 3 Diamond Lotus Riverside Phuc Khang District 8 2017 30 950 4 The Pegasuite Phuong Viet District 8 2018 1,049 900 5 Millennium Thao Dien Investment District 4 2018 260 2,600 6 Elite Park Geleximco Binh Thanh 2018 208 1,400 7 Parkview Vinhomes Central Park VinGroup Binh Thanh 2018 546 2,000 8 Moonlight Garden Hung Thinh Thu Duc 2019 689 1,000 9 Richmond City Hung Thinh Binh Thanh 2019 880 1,100

10 Aqua Luxury Sabeco HP District 4 2019 1,440 1,150

11 Feliz En Vista CapitaLand District 2 2019 960 1,200 12 Carillion 5 Sacomreal Tan Phu 2017 221 940 13 Ha Do Centrosa Ha Do Group District 10 2019 748 1,700

New launches in Q3 2016 7,481

* Excluding all kinds of tax, promotions and management feeThe information is updated as at the end of Q3 2016

Accelerating success

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perfOrmanCeIn the review quarter, sales momentum remained strong with a high average sold rate of 78% on the back of well-established infrastructure and improved economic climate of the city. District 7 led successful transactions thanks to its large land availability and peaceful atmosphere away from the noise and chaos of the city center. By type of property, townhouses dominated sales activities, accounting for 70% of total transactions. Primary asking price maintained the upward trend, indicating continued improvements in the market sentiment. District 2 witnessed strongest price acceleration, up approximately 2% q-o-q due to its effective newly-launched projects. By contrast, asking price remained stable on the secondary market.

supplyThe third quarter welcomed six new projects across various districts in the city, adding approximately 561 dwellings to the primary market, equivalent to a rise of 26% q-o-q. It is observed that infrastructure has significant impacts on new launches as well as decisions of homebuyers and investors. District 7 dominated newly launched supply with two notable projects, including Lavila and Jamona Golden Silk, providing 238 and 119 luxury units, respectively. , These two projects are both located within an eco-friendly environment and well-connected to the CBD via Thu Thiem bridge. . The Eastern part of the city has been capturing much attention of developers thanks to its improved infrastructure and a long-term vision of urban planning.

DemanDIt is clear that buyers of the landed property market tend to choose projects with convenient transport network. The city’s infrastructure has been well-developed in order to attract people to new urban areas. With a variety of recently completed infrastructure projects such as Saigon River Tunnel, Vo Van Kiet highway, Pham Van Dong highway, Long Thanh – Dau Giay highway and under-construction projects such as Metro Line 1 and Ring Road No.3, the travel time between the CBD and new urban areas is shorten, thereby spurring demand for this market segment. In addition, it is forcasted that the mortgage market will prosper in coming years, growing by approximately USD3 billion per year and the majority of total lending is for real estate loans. With a favorable lending rate,, it is anticipated that the demand for landed property will keep growing.

OutlOOKIt is expected that the sale transactions in rest of the year will maintain upward trend on the back of improved confidence from both developers and buyers. Sale price is forecasted to increase moderately as more infrastructure projects are being completed. Developers have focused on developing supporting facilities and amenities as well as adopting effective marketing strategies in the hope of attracting more buyers.

Figure 12: Villa and Townhouse, Selling Prices by Quarter

Source: Colliers International Research

Figure 14: Villa and Townhouse, Primary Stock by District

Source: Colliers International Research

Figure 13: Villa&Townhouse, Supply by Year

Source: Colliers International Research

0

1000

2000

3000

4000

5000

Q12013

Q2 Q3 Q4 Q12014

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USD/

sq m

District 7 District 9 District 2 Others

0

1,000

2,000

3,000

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7,000

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

units

Existing supply New supply

District 237%

District 9 21%

Nha Be8%

District 126%

District 76%

Thu Duc5%

Binh Chanh4%

Binh Tan4%

Go Vap3%

Others6%

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Table 7: Villa and Townhouse, Significant new projects launched in Q3 2016

No Name of Project/Building Developer Location Completion Year

Number of units

Asking Price (US$/sqm)

1 Senturia Vuon Lai Tien Phuoc Group District 12 2017 30 1,400 2 The Victoria Vinhomes Golden River VinGroup District 1 2017 12 20,000 3 Lavila Kien A District 7 2018 238 1,000 4 The Pegasuite PVinvest District 8 2018 69 1,000 5 Palm Residence Keppel Land District 9 2019 135 1,500 6 Jamona Golden Silk Sacomreal District 7 2019 119 2,500

New launches in Q3 2016 561

Accelerating success

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perfOrmanCeThe third quarter of 2016 saw a slight rise in asking rents across both grades, reaching 33 USD/sqm/month, equivalent to an increase of 2.6% on quarterly basis. Grade A’s average asking rent was up by 4.6% q-o-q, achieving USD38.7/sqm/month; while Grade B’ rent remained stable compared to the previous quarter, staying at 27.5USD/sqm/month.The city’s serviced apartment market remained its strong performance with relatively high occupancy rate, at 92% due to limited new supply in HCMC in recent years. More specifically, Grade A’s average occupancy rate climbed by 0.2 ppts, achieving 93.2%; while Grade B also recorded an improved performance with an increase of 2 ppts in occupancy rate, staying at 90.2%.

supplyThe current stock provides total nearly 3,500 units with 1,000 units in Grade A and nearly 2,500 units in Grade B. The review quarter recorded no new supply, resulting in high rental prices and occupancy rates. Accounting for more than half of the city’s stock with the majority of Grade A, the CBD is the prime location for serviced apartments thanks to convenient transportation connection and close proximity to office clusters. . The stock is expected to sharply grow by 2018 with some notable projects such as Oakwood Residence, Ascott Warterfront, Saigon Center (phase 2), Saigon South Complex, providing nearly 1,300 new serviced apartments.

DemanDServiced apartments are now increasingly becoming a preferred accommodation option as they provide a home-like environment for business and leisure visitors. On the back of improved economic growth and expected benefits from Trans-Pacific Partnership agreement, there will be an increasing mobile workforce, resulting in growing demand for this sector of hospitality industry. In addition, leisure travelers, especially those with children, tend to prefer serviced apartments to conventional hotels due to their spacious accommodation and provided amenities. Those guests create growing needs for serviced apartments in coming years.

OutlOOKActive operators in the market vary from international hospitality brands such as Ascott, Sedona, IHG, to private landlords who are looking to offer competitive rates for tenants. Rents for serviced apartments are expected to be softened as the supply is increasing and operators are focusing more on cost-effective accommodation options to develop competitive strength. To meet occupiers’ demands, it is suggested that serviced apartments should be positioned in prime locations, close to transport links and business and shopping districts.

project name District total units

expected Completion

Oakwood Residence 3 68 Q4 2016

Ascott Waterfront 1 222 Q4 2016

Saigon South Complex 7 480 Q4 2017

Saigon Center (phase 2) 1 200 Q3 2017

Berkley Serviced Residence 2 85 Q4 2017

Citadines Regency Saigon 1 85 Q4 2017

Lavenue Crown 1 186 Q4 2018

Table 8: Serviced apartment, Significant Future Projects under construction

Source: Colliers International Research

Figure 15: Serviced Apartment, Current Grade A&B Supply

Source: Colliers International Research

Figure 16: Serviced Apartment, Average Asking Rent by Grade

Source: Colliers International Research

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Table 9: 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% 26.02 Sedona Suites 65 Le Loi District 1 1996 89 98.0% 34.0

3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 90.0% 32.0

4 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 95.0% 17.05 The Lancaster 22-22 Bis Le Thanh Ton District 1 2007 55 73.0% 37.06 Intercontinental Asian Saigon 39 Le Duan District 1 2009 260 90.0% 36.0

Grade A 683 90.5% 32.7

1 Norfork Mansion 17-21 Ly Tu Trong District 1 1998 126 85.0% 34.02 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 85.0% 26.03 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 94.0% 26.04 Diamond Plaza 34 Le Duan District 1 1999 42 88.0% 25.05 Garden View Court 101 Nguyen Du District 1 2000 76 95.0% 23.06 Ben Thanh Luxury 172-174 Ky Con District 1 2010 88 91.0% 18.0

7 Lafayette De SaiGon 8 Phung Khac Khoan District 1 2010 18 89.0% 28.0

8 Vincom Center 45A Ly Tu Trong District 1 2010 60 34.0% 26.0

9 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 100.0% 34.0

10 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 84.0% 23.0

11 Spring Court 1Bis Phung Khac Khoan District 1 2011 14 86.0% 17.0

Grade B 814 85.9% 26.4

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

©2016 Colliers International Research

Accelerating success

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©2016 Colliers International Research Page 18

perfOrmanCeWith the average remaining Land Use Right term of 35.8 years, the asking rent soared to USD138/sqm/term, up 15% q-o-q and two times higher than that of neighbouring provinces, including Long An, Binh Duong, Dong Nai. Rent growth was mainly due to increasing demand from the manufacturing sector. District 7 remained its highest asking rent of USD10/sqm/year, whilst Cu Chi District was reported to have the lowest rent t of only 2USD/sqm/year. Overall market performance was slightly better, with the estimated average vacancy rate of 30%, down 2 ppts compared to the previous quarter. Le Minh Xuan is the seventh IP that was fully occupied. For a minimum leasable area from 1,000-5,000sqm, ready-built factories charge USD2.5-USD4.0/sqm/month (excluding VAT and service charge).

supplyCurrently, there are 19 IPs operating in Ho Chi Minh City, covering a total land area of over 3,900 ha. The leasable area is nearly 2,800 ha, accounting for approximately 71% of the total land area. With a new IP launched recently, Binh Chanh District is the largest supplier, accounting for 26% of the market share. The industrial area is forecasted to have an additional 2,600 ha by 2030, coming from 10 new IPs, up approximately 66% compared to the existing supply. However, the majority of these new projects is still in the stage of clearance and compensation which therefore will prolong the process of launching new IPs. Some IPs are under construction and expected to coming on the market in the near future, such as Le Minh Xuan (phase 2 and 3), Vinh Loc I (phase 2 and 3), Vinh Loc III, Phong Phu in Binh Chanh, Tay Bac Cu Chi (phase 2) in Cu Chi, Hiep Phuoc (phase 2) in Nha Be.

DemanDThe recently approved free trade agreements (FTAs) and the ratification of Trans-Pacific Partnership (TPP) would provide a major boost to industrial properties. Foreign investors would increase investment and move their manufacturing activities to Vietnam to benefit from the advantages in production and business initiated from FTAs and TPP commitments. Furthermore, manufacturers will also consider switching from non-TPP nations to Vietnam to enjoy extra low-tariffs. As a result, the demand for industrial space is expected to rise in the near future. Higher demand and limited supply will drive up rents for industrial land in coming years.

OutlOOKThere is a fact that the development of previous industrial zones in Ho Chi Minh City did not take into consideration the high speed of urbanization, and thus contributing to the bad traffic situation of the City. Demand for transportation facilities between factories/enterprises in the IPs and ports/airports is forecasted to increase in conjunction with the rise in demand for IPs. Therefore, the City government is now planning a number of new transportation projects to improve the city’s infrastructure, making Ho Chi Minh City’s industrial market more attractive to international firms.

vietnam quarterly KnOWleDGe repOrt

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Figure 17: Industrial, Market Performance by District

Source: Colliers International Research

Figure 18: Industrial, Supply by District

Source: Colliers International Research

Source: Colliers International Research

Table 10: Industrial, Future Supply

industrial park name District Gfa (ha)

Le Minh Xuan Industrial Park - phase 2 Binh Chanh 338

Le Minh Xuan Industrial Park - phase 3 Binh Chanh 242

Vinh Loc I - phase 2 Binh Chanh 56

Vinh Loc I - phase 3 Binh Chanh 200

Vinh Loc Industrial Park III Binh Chanh 210.3

Phong Phu Industrial Park Binh Chanh 148.4

Tay Bac Cu Chi Industrial Park - phase 2 Cu Chi 173

Hiep Phuoc Industrial Park - phase 2 Nha Be 597

0%

10%

20%

30%

40%

50%

60%

0

50

100

150

200

250

300

District 9 District12

Cu Chi BinhChanh

Nha Be District 7 Tan Phu District 2 Thu Duc

USD

/sqm

/ter

m

Average asking rent Vacancy rate

Binh Chanh26%

Thu Duc16%

Nha Be11%

Cu Chi21%

Others26%

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Table 3: Significant Office ProjectsTable 11: HCMC Industrial Market Overview

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

Total Area(ha)

Total leasable area (ha)

Asking Rent (US$/sqm/

term)Occupancy LUR Term

1 Tan Thuan Export Processing Zone District 7 6.4 300 204 260 81% 20412 Tan Binh Industrial Park(P1+2) Tan Phu 11 129 100 235 100% 20473 Saigon Hi-tech Park P1 District 9 15 300 300 180 100% 20524 Vinh Loc Industrial Park Binh Chanh 15 203 131 250 98% 20475 Binh Chieu Industrial Park Thu Duc 16 27 27 150 100% 20466 Tan Thoi Hiep District 12 16 28 20 100 100% 20497 Linh Trung 2 Export Processing Zone Thu Duc 17 62 44 60 100% 20508 Tan Tao Industrial Park 1 Binh Chanh 17 161 97 240 97% 20479 Tan Tao Industrial Park 2 Binh Chanh 17 183 116 240 78% 205010 Linh Trung 1 Export Processing Zone Thu Duc 18 62 46 60 100% 204211 Le Minh Xuan Industrial Park Binh Chanh 20 100 66 120 100% 204712 Hiep Phuoc Industrial Park 1 Nha Be 21 311 224 125 93% 204813 Cat Lai Industrial Park (Cluster II) District 2 21 137 87 90 100% 206114 Hiep Phuoc Industrial Park 2 Nha Be 22 597 345 125 10% 205815 An Ha Industrial Park Binh Chanh 23 124 124 69 23% 205816 Dong Nam Industrial Park Cu Chi 30 343 287 63 69% 205817 Tay Bac Cu Chi Industrial Park Cu Chi 36.5 208 150 90 99% 204718 Tan Phu Trung Industrial Park Cu Chi 37 543 359 80 30% 2054

19 Automotive-Mechanical (Hoa Phu) Industrial park Cu Chi 40 99 67 56 83% 2057

Total 3,916 2,794 138 70%

Accelerating success

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perfOrmanCeIn Q3 2016, Hanoi office market experienced a decline in asking rents across all grades, with average asking rents dropping by 0.3ppts q-o-q, to USD22.9/sqm/month. Specifically, Grade A’s asking rent decreased by 0.8ppts q-o-q, achieving USD28/sqm/month whilst Grade B recorded a slight increase of 0.5 ppts q-o-q to 17.8 USD/sqm/month.

The City’s office market showed improvements in leasing activities, with the overall occupancy rate of 83.2%, up 1.09ppts compared to the last quarter. Grade A and Grade B’s average occupancy rate reached 82.8% and 83.6%, up 0.6ppts and 0.42ppts q-o-q respectively.

supplyBy Q3 2016, Hanoi has approximately 410,000sqm NLA of Grade A and 770,000 sqm NLA of Grade B office buildings. The review quarter marked the opening of one Grade B building in Midtown, adding 5,000sqm NLA to the existing stock. With convenient transport connection to other regions and affordable rents, Dong Da District and Ba Dinh District are becoming more attractive for tenants.

A steady supply is expected to enter the market throughout 2017, putting pressure on rents in the coming year. Most of these projects are concentrated in Mid-town and the West due to large land bank in these areas.

DemanDOn the back of stable macroeconomic fundamentals and strong FDI inflows into Hanoi, demand for office space in Hanoi is expected to sustain in the coming years. Finance, banking and insurance companies are key drivers of the leasing market. Besides, technology, electronic, logistic and marketing industries are becoming more active tenants.

The growth of domestic private companies and start-ups in Vietnam would also support the current oversupply of Hanoi office market. For multinational corporations, demand for prime office space remains high, with tenants’ requirements of environmental friendly premises.

OutlOOKThe supply pipeline in 2017 will be ample with more than 300,000sqm of office space expected coming online. Thanks to operation expansion of both multinational corporations and local enterprises, demand is expected to improve. To attract tenants, landlords need to offer competitive rents and upgrade the quality of their buildings as well as implementing appropriate marketing strategies.

Figure 19: Office, Average Asking Rent

Source: Colliers International Research

Figure 20: Office, Occupancy Rate

Source: Colliers International Research

Table 12: Office, Future Supply

Source: Colliers International Research

project name Grade nla (sqm)

expected completion

Truong Thinh Building B 5,400 Q4 2016

Discovery Complex B 93,320 Q1 2017

Comatce Tower B 43,100 Q2 2017

Eurowindow Building B 16,592 Q3 2017

Vinacomin Tower B 103,100 Q4 2017

DSD Building B 6,860 Q4 2017

Handi Resco Tower B 24,190 Q4 2017

FLC Twin Tower B 35,960 Q4 2017

Vietin Bank Tower B 100,000 2018

0

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$/sq

m/m

onth

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

Table 13: Significant CBD Office Projects

No Name Address Completion Year

NLA (sqm)

Service Charges

(*)

Occupancy rate

Average asking rent

(**)1 Central Building 31 Hai Ba Trung 1995 3,653 9.0 100% 33.0

2 International Centre 17 Ngo Quyen 1995 6,500 7.0 90% 24.03 Hanoi Tower 49 Hai Ba Trung 1997 9,000 7.0 100% 27.04 63 Ly Thai To Building 63 Ly Thai To 1998 6,753 - 100% 47.05 Sun Red River Building 23 Phan Chu Trinh 1999 13,459 7.0 75% 28.06 Vietcombank Tower 198 Tran Quang Khai 2000 19,563 - 100% 29.0

7 Opera Business Centre 60 Ly Thai To 2007 3,787 included 85% 24.08 Pacific Palace 83B Ly Thuong Kiet 2007 16,600 7.0 91% 25.0

9 Asia Tower 2 Nha Tho 2007 3,100 included 77% 35.010 Sun City Building 13 Hai Ba Trung 2007 6,400 - 100% 45.0

11 BIDV Tower 194 Tran Quang Khai 2010 10,120 7.0 95% 30.0

12 Sentinel Place Hang Da 2010 8,000 8.5 95% 45.0

13 Corner Stone 16 Phan Chu Trinh 2013 26,500 7.0 70% 30.0

14 Hong Ha Center 25 Ly Thuong Kiet 2013 11,000 5.0 27.0% 19.0

Grade A 144,435 7.0 84% 30.0

1 Tungshing Square 2 Ngo Quyen 1996 8,306 7.0 89% 21.02 Melia Hotel 44B Ly Thuong Kiet 1997 8,500 - 90% 38.0

3 Prime Centre 53 Quang Trung 1998 7,600 - 100% 27.0

4 VIB Hai Ba Trung 59 Quang Trung 2006 3,000 - 68% 16.05 Capital Tower 109 Tran Hung Dao 2010 21,089 7.0 87% 20.06 Hanoi Tourist Building 18 Ly Thuong Kiet 2010 7,600 - 100% 24.0

7 Capital Building 72 Tran Hung Dao 2013 5,800 - 100% 25.08 Coalimex Building 33 Trang Thi 2013 5,071 5.0 79% 18.09 VID Building 115 Tran Hung Dao 2013 4,930 - 89% 23.010 Artex Port 31-33 Ngo Quyen 2014 4,725 - 100% 23

Grade B 76,621 6.0 91% 23.5

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Table 3: Significant Office ProjectsperfOrmanCeThe third quarter of 2016 witnessed a slight fall of nearly 1 ppt q-o-q in the overall occupancy rate, staying at 87% on average. While the average occupancy rate in the CBD remained stable, that of non-CBD sub markets declined due to poor business performance of some retail centers.Average net asking rents continued to trend downward in the non-CBD area, at USD28.02/sqm/month, equivalent to a drop of 0.96% on quarterly basis. In contrast, the CBD recorded a marginal rise by 0.52% in the rents, reaching USD81.9/sqm/month.

supplyIn Q3 2016, Mipec Long Bien, a new shopping center in Long Bien district entered the retail market, adding 24,000 sqm to the total stock, equivalent to an increase of 2.3% q-o-q. Emphasizing on green design with a prime location and the inauguration of Auchan, a French supermarket chain, Mipec Long Bien is expected to increase shopping opportunities for customers in the capital city.The future retail pipeline will be abundant with 262,000sqm GFA being expected to enter the market in the next few years. According to the city’s development plan, seven large-scale shopping center projects are forecasted to come online with the total capital of USD420 billion by 2020.

DemanDThere is a recent trend that the emerging middle class makes consumption decision based on what they want rather than what they need. Being the fastest growing middle class in South East Asia and projected to grow to 33 million people by 2020, this class is considered as a powerful driver of Vietnam’s retail market, resulting in expanding demand for retail space. Furthermore, the young middle-class tends to consider brand names and foreign products as having high quality, creating great opportunity for international retailers.

OutlOOKOn the back of recently approved free trade agreements, especially the Trans-Pacific Partnership, foreign retailers are expanding their networks and attempting to take over domestic retail chains through merger and acquisition process. It is concerned that domestic retailers may lose their market share and lag behind the race. Therefore, the local players should apply more efficient marketing strategies, implement attractive promotion programs as well as upgrade their facilities in order to fight the fierce competition.

Figure 21: Retail, Market Performance

Table 14: Retail, Future Supply

Source: Colliers International Research

Source: Colliers International Research

Figure 22: Retail, Total Supply

Source: Colliers International Research

project name District Gfa (sqm) expected completion

Vincom Pham Ngoc Thach Dong Da 18,900 Q4 2016

Vincom Green Star Tu Liem 50,000 Q4 2016

Discovery Complex Cau Giay 38,144 Q1 2017

Artemis Thanh Xuan 25,000 Q3 2017

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vietnam quarterly KnOWleDGe repOrt

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q3 2016 | Ha nOi | retail

vietnam quarterly KnOWleDGe repOrt

©2016 Colliers International Research Page 23

Table 15: 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 90-100 100%2 Hanoi Tower 49 Hai Ba Trung Hoan Kiem 1997 2,056 50-60 73%3 63 Ly Thai To Building 63 Ly Thai To Hoan Kiem 1998 594 150 100%4 ICC Building 71 Nguyen Chi Thanh Dong Da 2006 2,900 16 50%5 Pacific Place 83b Ly Thuong Kiet Hoan Kiem 2007 2,000 70 88%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 75%8 Sun City 13 Hai Ba Trung Hoan Kiem 2008 861 90-95 100%

9 Asia Tower 6 Pho Nha Tho Hoan Kiem 2008 500 100 100%

10 Sentinel Place 41A Ly Thai To Hoan Kiem 2010 550 45 57%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 16-17 59%13 Rainbow Tower 19/5 KDT Van Quan Ha Dong 2012 900 20 100%14 Hapumedicenter 85 Vu Trong Phung Thanh Xuan 2012 18,500 20 100%15 The Lancaster Hanoi 20 Nui Truc Ba Dinh 2013 3,123 33 45%16 Madarin Garden Residential 1 Hoang Minh Giam Cau Giay 2013 11,000 25-30 100%

Retail Podium 51,604 91%

1 Vincom Center Ba Trieu - Tower A&B 191 Ba Trieu Hai Ba Trung 2004 17,000 90-100 99%2 Vincom Center Ba Trieu - Tower C 191 Ba Trieu Hai Ba Trung 2004 10,974 80 100%3 Ruby Plaza 44 Le Ngoc Han Hai Ba Trung 2007 5,200 28 96%4 Syrena 51B Xuan Dieu Tay Ho 2008 5,000 30 100%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 20-25 99%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 20 70%9 Indochina Plaza Hanoi 241 Xuan Thuy Cau Giay 2012 19,929 22 97%10 Vincom Mega Mall - Royal City 72A Nguyen Trai Thanh Xuan 2013 230,000 70 99%11 Vincom Mega Mall - Time City 458 Minh Khai Hai Ba Trung 2014 200,000 50 100%12 Aeon Mall Long Bien 2 Co Linh Long Bien 2015 72.000 45 100%13 Vincom Nguyen Chi Thanh 54A Nguyen Chi Thanh Dong Da 2015 34,500 70-80 99%

Shopping Centre 719,346 96%

1 Parkson (Viet Tower) 198 Tay Son Dong Da 2007 15,761 15 97%2 The Garden (Bitexco) Me Tri Tu Liem 2007 23,700 28-35 99%3 Ho Guom Plaza Ha Dong Ha Dong 2013 23,380 16 94%4 Lotte Department Store 54 Lieu Giai Ba Dinh 2014 38,709 43 97%

Department Store 101,550 97%

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

Accelerating success

q3 2016 | Ha nOi | COnDOminium

vietnam quarterly KnOWleDGe repOrt

©2016 Colliers International Research Page 24

perfOrmanCeThe third quarter of 2016 recorded 5,450 successful transactions across all segments, an increase of 10.1% compared to the previous quarter. Mid to high-end segments dominated transactions with nearly 2,800 and 2,000 sold units, accounting for 51.4% and 36.7% of total sales volume, respectively. No luxury transaction was recorded in the review quarter while the affordable segment remained moderate with 650 sold units. Projects in the West still achieved the highest liquidity among other areas of the capital city. On the primary market, price growth of 1-2% q-o-q was recorded across all segments. Mid and high-end segments registered the most significant growth of 6% and 8%, respectively. Affordable and luxury segment remained stable in price on quarterly basis.

supplyIn Q2, the condominium market saw a continued strong increase in newly launched supply, adding up 7,657 units, making an increase of 17.8% q-o-q. By segment, this quarter reported the highest number of new launches in the mid-end segment with 48.9% of total new supply. Noticeably, the high-end emerged as the fastest growing segment with nearly 2,300 units, showing an 11.5 fold increase compared to the previous quarter and accounting for 29.5% of new launches. By location, the West continued to dominate total new supply with approximately 34% of new launches thanks to its infrastructure improvement.

DemanDFor the time being, real estate is possibly the most profitable investment channel besides gold and securities. With current low interest rates, investors are feeling more confident as the use of leverage is less risky, leading an increasing demand for properties, especially for condominiums. Real demand for own-er-occupation would be in the affordable and mid-end segment.

OutlOOKIt is anticipated that the supply pipeline would remain strong in the rest of the year, spreading over various areas of the city. Sales price is expected to maintain upward trend on the back of solid demand. Although the real estate market is appeared to be the most effective channel for investors, they should be aware of hidden risks from high non-performing loan ratios of domestic banks in coming years.

Figure 23: Condominium, Primary Sale Price

Source: Colliers International Research

Figure 24: Condominium, New Launches by Quarter and Segment

Source: Colliers International Research

Source: Colliers International Research

Figure 25: Condominium, Sold Units by Quarter and Segment

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q3 2016 | Ha nOi | COnDOminium

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q3 2016 | Ha nOi | COnDOminium

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©2016 Colliers International Research Page 25

Table 3: Significant Office ProjectsTable 3: Significant Office Projects

* Excluding all kinds of tax, promotions and management feeThe information is updated as at the end of Q3 2016

Table 16: Condominium, New projects launched in Q3 2016

No Name of Project/Building Developer Location Completion Year

Number of units

Asking Price (US$/sqm)

1 Thang Long Victory Phuc Ha Corp. Hoai Duc 2016 30 500 2 Five Star Garden Five Star Corp. Thanh Xuan 2017 1,000 1,000 3 The Legend Tower Dai Viet Tri Tue Thanh Xuan 2017 460 1,500 4 Rivera Park Long Giang Land Thanh Xuan 2017 666 1,500 5 Imperial Plaza Thang Long Corp. Thanh Xuan 2017 220 1,000 6 Ecolife Tay Ho Thu Do Invest Tay Ho 2017 70 1,200 7 Season Avenue CapitaLand - Hoang Thanh Ha Dong 2017 395 1,200

8 V3-Prime The Vesta Hai Phat Corp. Ha Dong 2017 272 600

9 The Golden Palm Hanoi Sunrise Thanh Xuan 2018 400 1,600

10 Hpc Landmark 105 Hai Phat Thu Do Ha Dong 2018 752 1,100

11 Tu Hiep Plaza Vinh Hanh Corp. Thanh Tri 2018 648 700

12 Sunshine Center Sunshine Corp. Tu Liem 2018 434 1,500

13 Thanh Xuan Complex - 24T3 Thanh Xuan Corp. Thanh Xuan 2018 300 1,600

14 Royal Park Thanh An Corp & Handico Thanh Xuan 2018 810 1,250

15 Vinhomes D’ Capitale Tan Hoang Minh Cau Giay 2018 700 2,000

16 An Binh City Geleximco Bac Tu Liem 2017 500 1,300

New launches in Q3 2016 7,657

Accelerating success

q3 2016 | Ha nOi | villa & tOWnHOuse

vietnam quarterly KnOWleDGe repOrt

©2016 Colliers International Research Page 26

perfOrmanCeSales transactions were softened with approximately 276 successful deals, down 11% compared to the previous quarter. Thanks to large land bank and modern community facilities, decentralised districts such as Hoang Mai, Ha Dong, Tu Liem recorded strongest sales momentum, accounting for 62% of sold dwellings. The primary price remained stable while the secondary price saw a decrease of 2.3% q-o-q, averaging at USD3,321/sqm for completed properties. Among active projects, Cau Giay achieved the highest sale price while Tu Liem and Long Bien had the strongest price growth on the secondary market.

supplyAfter having a substantial new supply in the previous quarter, the pipeline moderately increased in Q3 2016 with four launches, providing 436 dwellings. Shop houses are becoming more popular in the landed property market. Ha Dong continued to be the top supplier, adding 246 dwellings to its existing stock. Dong Da welcomed its first high-end project, having the highest sale price of USD9,000/sqm.

DemanDDemand for landed properties is expected to be solid as this market segment enjoys the same favorable demand-driving factors for condominium market, including improvedeconomic climate, increasing average income, fast urbanization rate and high population growth rate. There has always been a traditional perception of Vietnamese that it is safer for individuals to own their own piece of land. In addition, it is observed that the price ratio between a villa and a high-end apartment is getting smaller, falling from three times to about 1.8 times recently in new urban areas. The consistent desire for landed property, coupled with smaller price differences between a landed property and a high-end condo will fuel demand for this segment in near term.

OutlOOKThe last quarter of 2016 is expected to welcome approximately 700 landed dwellings. Due to limited land availability, developers will face challenges in acquiring large vacant sites in desirable locations. Indeed, it would be easier for them to develop high-rise apartment projects rather than landed properties in the inner-city neighborhoods. As a result, it is anticipated that the supply of this segment in prime locations will be highly-sought after, leading to stronger price growth in coming years.

Figure 26: Villa and Townhouse, Supply by quarter

Source: Colliers International Research

Figure 27: Villa and Townhouse, Supply by District

Source: Colliers International Research

Source: Colliers International Research

Figure 28: Villa and Townhouse, Q-o-Q changes in secondary price

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Dong Da3%

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Ha Dong 56%

q3 2016 | Ha nOi | villa & tOWnHOuse

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q3 2016 | Ha nOi | villa & tOWnHOuse

vietnam quarterly KnOWleDGe repOrt

©2016 Colliers International Research Page 27

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

* Excluding all kinds of tax, promotions and management feeThe information is updated as at the end of Q3 2016

Table 17: Significant new projects launched in Q3 2016

No Name of Project/Building Developer Location Completion Year

Number of units

Asking Price (US$/sqm)

1 La Casa Villa RITM – MEKONG Dong Da 2016 15 9,000 2 Imperia Garden villas HBI Thanh Xuan 2017 42 7,000 3 Camellia (ST4) Gamuda Land Hoang Mai 2018 133 2,000 4 An Phu Shop villa Nam Cuong Ha Dong 246 1,700

New launches in Q3 2016 436

Accelerating success

q3 2016 | Ha nOi | serviCeD apartment

vietnam quarterly KnOWleDGe repOrt

©2016 Colliers International Research Page 28

Table 3: Significant Office ProjectsperfOrmanCeAsking rents remained stable across both Grades on quarterly basis, staying at approximately USD32/sqm/month and USD21.3/sqm/month for Grade A and Grade B, respectively. By location, Tay Ho, Cau Giay and Ba Dinh recorded the highest average asking rents in both two grades. While Grade B saw an improvement in leasing activities, with average occupancy up by almost 2.2 ppts q-o-q, to 82.5%, Grade A’s occupancy rate was down by almost 1 ppt, staying at 85%.

supplyThere was no new serviced apartment coming on stream in Q3 2016. The current stock provides more than 3,200 units with approximately 2,360 units of Grade A and 930 units of Grade B. By location, most of existing serviced apartments are concentrated in Tay Ho and Ba Dinh districts. Some notable projects such as Dream Apartment, Somerset WestPoint, Trang An Complex and Somerset West Central Hanoi will enter the market by 2018.

DemanDThe serviced apartment market is greatly influenced by foreign investment activities. With significant growth of FDI inflows into the city, the demand for this real estate sector is expected to keep growing rapidly in coming years. Moreover, FDI projects in surrounding areas such as Thai Nguyen, Bac Ninh also have a positive impact on the city’s market as these provinces are in shortage of high quality serviced apartments that meet expatriates’ demand.

OutlOOKThe city’s serviced apartment market is expected to welcome more than 600 units in the next two years, focusing on Tay Ho and Cau Giay districts. In spite of limited supply in conjunction with growing demand, rents and occupancy rates in the city’s market have remained stable over years. This is due to the fact that growing number of buy-to-let apartments and private houses have raised concerns about losing market share of existing serviced apartment projects.

Table 18: Serviced Apartment, Future Supply

Source: Colliers International Research

Figure 29: Serviced Apartment, Average Asking Rent by Grade

Source: Colliers International Research

Figure 30: Serviced Apartment, Occupancy Rate

Source: Colliers International Research

project name District expected units

expected completion

Dream Apartment Dong Da 61 Q4 2016

Trang An Complex Cau Giay 42 Q1 2017

Somerset West Central Hanoi Cau Giay 252 Q1 2017

Somerset West Point Tay Ho 247 2017

60%

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q3 2016 | Ha nOi | serviCeD apartment

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Table 3: Significant Office ProjectsTable 19: Significant Serviced Apartment Projects

No. Project Name Address Location Total Units

Average Occupancy

ARR(*) (**)

1 Hanoi Daewoo 360 Kim Ma Ba Dinh 194 85% 28.02 Hanoi Somerset Grand 49 Hai Ba Trung Hoan Kiem 185 85% 31.5

3 Sedona Suites 96 To Ngoc Van Tay Ho 181 90% 34.3

4 Somerset West Lake 254D Thuy Khue Tay Ho 90 82% 30.05 Sofitel Plaza 1 Thanh Nien Ba Dinh 56 100% 38.06 Sun Red River 23 Phan Chu Trinh Hoan Kiem 46 96% 23.07 Hanoi Lake View 28 Thanh Nien Tay Ho 26 90% 25.08 Pacific Place 83B Ly Thuong Kiet Hoan Kiem 35 83% 20.09 Intercontinental Ha Noi 13 Nghi Tam Tay Ho 25 88% 35.010 Somerset Hoa Binh 106 Hoang Quoc Viet Cau Giay 206 87% 31.011 Fraser Suites Hanoi 51 Xuan Dieu Tay Ho 184 95% 40.512 Crown Plaza 36 Le Duc Tho Tu Liem 136 97% 34.513 Calidas E6, Pham Hung Tu Liem 378 97% 32.014 Lotte Center Dao Tan, Cong Vi Ba Dinh 258 87% 35.015 Hanoi Club 76 Yen Phu Tay Ho 54 96% 29.0

Grade a 2,054 91% 32.5

1 Oriental Palace 33 Tay Ho Tay Ho 59 88% 262 Pan Horizon 157 Xuan Thuy Cau Giay 86 80% 223 Rose Garden 170 Ngoc Khanh Ba Dinh 96 91% 224 Jana Garden Terrace 6 Kim Dong Hoang Mai 72 83% 205 V-Tower 649 Kim Ma Ba Dinh 36 100% 286 DMC Lake View 535 Kim Ma Ba Dinh 66 82% 167 Atlanta 49 Hang Chuoi Hai Ba Trung 50 92% 188 Elegant Suites Hahoi 19B Ha Hoi Hoan Kiem 39 92% 23

9 Hoa Binh Green No. 14, Ally 376 Buoi Ba Dinh 40 92% 22

10 Times City 485 Minh Khai Hai Ba Trung 150 85% 1911 Royal City 72 Nguyen Trai Thanh Xuan 100 70% 15

12 My Way 4, Alley 86, Duy Tan Cau Giay 39 93% 25

13 Rainbow 7 Trieu Viet Vuong Hai Ba Trung 26 88% 1414 Dolphin 28 Tran Binh Tu Liem 70 93% 1215 Lancaster Hanoi 20 Nui Truc Ba Dinh 31 90% 2416 Elegant Suites Westlake 10C Dang Thai Mai Tay Ho 131 94% 2717 May Fair 34B Tran Phu Ba Dinh 48 95% 17

18 Hanoi Lakes Residences 11-13 Nam Trang Ba Dinh 10 100% 11

19 Skyline Tower 4 Dang Dung Ba Dinh 79 95% 21

20 Candle Hotel 287-301 Doi Can Ba Dinh 69 74% 29

21 Park View 9 Nguyen Binh Khiem Hai Ba Trung 6 83% 15

22 Flower Village Hanoi 14 Thuy Khue Tay Ho 131 90% 23

23 Palace de Thien Thai 2 Tho Nhuom Hoan Kiem 16 98% 20

24 The City Residences 37 Phan Dinh Phung Ba Dinh 15 67% 15

25 Swan Lake 3/61/31 Xuan Dieu Tay Ho 6 83% 16

26 Lakeside Garden 56 Xuan Dieu Tay Ho 8 62% 14

Grade b 1,479 87% 21.0

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

q3 2016 | Ha nOi | inDustrial

vietnam quarterly KnOWleDGe repOrt

©2016 Colliers International Research Page 30

perfOrmanCeDue to the conversion of Dai Tu IP, the average gross asking rent nominally dropped 0.3% to USD82.8/sqm/term and the remaining Land Use Right was 34.9 years. Noi Bai IP had the highest asking rent of USD5/sqm/year. Ready- built factories offered rents ranged from USD1.5 – USD2.5/sqm/month while their management fees were at USD0.43/sqm/month on average.

The average occupancy rate increased by 0.4ppts, reaching 61.9%. Noi Bai, Phu Nghia, Sai Dong B, Thach That and Thang Long have been leased out.

supplyIn April 2016, the Government accepted a proposal to convert Dai Tu IP into an urban residential area. This was due to its low occupancy rate of 30%-35% and inefficient operation which negatively affected the surrounding environment. Hence, the total existing supply went down by 1% q-o-q, with 10 IPs and 3,800ha of total land area.

DemanDIn recent years, due to rising operation cost in China, foreign manufacturers have chosen Vietnam as their alternative production bases. The country’s northern centres- notably Hanoi, Haiphong and Bac Ninh province – have been attractive location on the back of their close proximity to China, lower labour costs than in the south and a variety of tax incentives. A surge in for-eign-invested manufacturing activities in the region has fuelled strong demand for industrial properties.

OutlOOKThe supply pipeline by 2020 is expected to have 10 new IPs with a total land area of 2,650ha. Under the socioeconomic development plan by 2020 with visions until 2050, Hanoi will be home of 33 industrial and hi tech parks. As the fast growth of industrial parks has outpaced infrastructural development, it is suggested that the government should have a comprehensive planning to establish efficient logistics network.

vietnam quarterly KnOWleDGe repOrt

Figure 31: Industrial, Market Performance by District

Source: Colliers International Research

Figure 32: Industrial, Supply by District

Source: Colliers International Research

Table 20: Industrial, Future Supply

Source: Colliers International Research

industrial park name District Gfa (ha)

Quang Minh II Industrial park Me Linh 266

Phuc Tho Industrial park Phuc Tho 74

Phu Xuyen Industrial park Phu Xuyen 488

Thanh My - Xuan Son Industrial park Son Tay 108

Soc Son Industrial park Soc Son 340

Soc Son II Industrial park Soc Son 204

Soc Son III Industrial park Soc Son 180

Soc Son IV Industrial park Soc Son 216

Thanh Oai II Industrial park Thanh Oai 480

Habeco Industrial park Thuong Tin 300

Ha Noi Hi-BioTech Park Tu Liem 200

0%

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50%

60%

70%

80%

0

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40

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120

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160

180

Tu Liem Soc Son ChuongMy

Me Linh Long Bien ThachThat

Dong Anh PhuXuyen

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qm/t

erm

Average asking rent Vacancy rate

Chuong My18%

Thach That18%

Dong Anh18%

Others46%

q3 2016 | Ha nOi | inDustrial q3 2016 | Ha nOi | inDustrial

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©2016 Colliers International Research Page 31

Table 3: Significant Office ProjectsTable 21: 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 15 261 155 100% 20482 Noi Bai Soc Son 31 116 135 99% 20443 Phu Nghia 1 Chuong My 24 170 95 100% 20584 Phu Nghia 2 Chuong My 24 238 95 65% 20585 Quang Minh Me Linh 24 344 130 95% 20536 Sai Dong B (Phase I&II) Long Bien 11 97 95 100% 20467 Thach That Thach That 24 150 100 100% 20568 Thang Long Dong anh 16 302 95 100% 20479 Hanssip (phase 1) Phu Xuyen 44 72 120 25% 206010 Hoa Lac Hi-Tech Thach That 39 549 50 20% 204811 Dong Anh Dong Anh 19 470 100 95% 2057

total 2,770 99.5 77.7%

COLLIERS INTERNATIONAL | VIETNAM

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