2 CBRE MARKET INSIGHTS | Q1 2017
VIỆT NAM DƯỚI GÓC NHÌN QUỐC TẾ
3 CBRE MARKET INSIGHTS | Q1 2017
VIETNAM IN THE FOREIGN PRESS
4 CBRE MARKET INSIGHTS | Q1 2017
FREE TRADE AGREEMENTS
5 CBRE MARKET INSIGHTS | Q1 2017
85%
4%4%
7% Manufacturing
Real Estate
Retail, VehicleSales
Others
Stable flow of FDI into Real Estate
FDI
25%
75%
1. Samsung increased US$2.5billion of capital in Bac
Ninh Province.
2. Taiwan invested US$485.8million in a polyester
manufacturing company in Binh Duong Province.
3. Coca-Cola Vietnam had increased capital of
US$319.8million.
4. Singaporean investor invested US$285 million in
Vietnam-Singapore IP III in Binh Duong Province.
5. China invested US$220 million for manufacturing in
Tay Ninh Province.
2007
Source: Vietnamese General Statistics Office.
3M
2017
Vietnam Registered FDI in 3M 2017: USD7.7 billion, up 77.6% y-o-y
Top FDI Investors, USD million, 3M 2017 Major FDI projects in 3M 2017
3,748
911
824
644
452
South Korea
Singapore
China
Taiwan
Japan
FDI to Vietnam compared to selected
SEA countries 2016 (US$ billion)
0 10 20 30
Indonesia
Singapore
Thailand
Malaysia
VietnamVietnam
Source: Trading Economics, Rappler, MPI
6 CBRE MARKET INSIGHTS | Q1 2017
INCREASING FDI FROM CHINA
FDI from China, as Percentage of Vietnam’s Total FDI
Source: Ministry of Planning and Investment
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011 2012 2013 2014 2015 2016 3M2017
FDI from China (% of Total FDI) - 5,000 10,000 15,000
Singapore
Vietnam
Malaysia
Myanmar
Thailand
FDI from China, US$ million, 2015
Source: Ministry of Planning and Investment, Department of Statistics,
Bank of Thailand, Bank Negara Malaysia,
7 CBRE MARKET INSIGHTS | Q1 2017
DASHBOARD – PRODUCED MONTHLY
(*) Current lending rate is the average lending rate surveyed at ten banks, and only applicable for home loan. However, the back-dated numbers were the average rate
announced publicly at that point of time, applied for all sectors and all banks. The average lending rate is for reference only.
(**) Deposit rate is the average deposit rate from a sample comprised of ten banks, in which the rates are announced publicly on their websites and can be tracked backwards.
ECONOMIC
INDICATORS2Y 1Y 6M 3M 1M Current
CPI (%) y-o-y 0.3 1.0 1.9 4.5 5.2 5.0
Trade balance
(US$, bil)(1.0) 0.1 0.2 (0.4) (0.1) (1.2)
Retail & services
Turnover (VND, tril)276.2 288.0 292.8 302.9 330.3 309.3
BANKING & FINANCE 2Y 1Y 6M 3M 1M Current
VN-Index 551.1 561.2 688.6 663.5 717.4 720.5
USD/VND (inter-bank) 21,458 22,300 21,949 22,232 22,232 22,252
Local gold (VND mil/tael) 35.1 33.2 36.1 36.1 36.8 36.8
Lending Rate (%)* 8.1% 7.6% 8.2% 7.7% 9.1% 8.5%
Deposit rate (%)**
(1-year term)6.4% 6.7% 6.7% 6.5% 6.7% 7.1%
REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current
Real Estate Holding &
Development Listed
Companies
46.40 46.47 46.12 45.63 51.20 51.08
Real Estate Services
Listed Companies56.9 34.07 23.37 26.98 45.8 45.76
Source: Stockbiz, Mar 2017
Source: GSO, Feb, 2017 Source: GSO, SBV, SJC & HSX, Mar, 2017
CONDO NEW LAUNCH 2Y 1Y 6M 3M 1M Current
HCMC New launches
(unit)70,705 35,780 16,285 8,316 3,199 2,890
HN New launches (unit) 51,851 30,760 19,223 11,526 5,814 2,814
Source: CBRE, Mar, 2017
8 CBRE MARKET INSIGHTS | Q1 2017
BCI NUMBERS
All Future
Projects
(2017-2030)
HCMC HanoiDa
Nang
Can
Tho
Nha
Trang
Vung
Tau
Hai
Phong
Office 249 230 66 30 20 15 43
Retail 165 129 69 4 21 13 5
Hospitality
and SA44 26 63 1 49 15 4
Residential 384 187 45 12 41 25 7
Total 842 572 243 47 131 68 59
Projects
Under
Construction
HCMC HanoiDa
Nang
Can
Tho
Nha
Trang
Vung
Tau
Hai
Phong
Office 130 142 24 18 15 39 22
Retail 99 79 47 1 15 7 2
Hospitality
and SA19 10 41 1 30 6 2
Residential 265 103 21 7 27 14 5
Total 513 334 133 27 87 66 31
Source: www.bciasia.com; CBRE Vietnam, March 2017. Source: www.bciasia.com; CBRE Vietnam, March 2017.
Projects under construction, y-o-y change All future projects (2016 – 2030), y-o-y change
-100%
0%
100%
200%
300%
400%
HCMC Hanoi DaNang
CanTho
KhanhHoa
VungTau
HaiPhong
Perc
en
tag
e c
han
ge
2017 YTD vs 2016 2016 vs 2015
-100%
0%
100%
200%
300%
400%
HCMC Hanoi DaNang
CanTho
KhanhHoa
VungTau
HaiPhong
Perc
en
tag
e c
han
ge
2017 YTD vs 2016 2016 vs 2015
9 CBRE MARKET INSIGHTS | Q1 2017
0
3
5
8
10
13
15
18
20
2011 2012 2013 2014 2015 2016 3M 2017
Inte
rest ra
te (
%)
Average CPI (y-o-y) Lending rate Deposit rate
INTEREST RATES
Interest rates start picking up
Source: Vietnamese General Statistics Office, Commercial banks, SBV.
Bank
Deposit Rate
as of 2016 (12
months)
Deposit Rate
as of
Mar.2017
VPBank 6.8% 7.5%-9.1% (*)
Sacombank 6.8% 8.48-8.88% (*)
Eximbank 6.5% 7-7.3%(*)
(*) depend on terms, payment terms, etc.
10 CBRE MARKET INSIGHTS | Q1 2017
60
70
80
90
100
110
120
130
140
150
Ju
nJu
lA
ug
Sep
Oct
No
vD
ec
Ja
nF
eb
Ma
rA
pr
Ma
yJu
nJu
lA
ug
Sep
Oct
No
vD
ec
Ja
nF
eb
Ma
rA
pr
Ma
yJu
nJu
lA
ug
Sep
Oct
No
vD
ec
Ja
nF
eb
Ma
rA
pr
Ma
yJu
ne
Ju
lyA
ug
Sep
Oct
No
vD
ec
Ja
nF
eb
Ma
r
2014 2015 2016 2017
Ind
ex
VN-Index Local Gold USD/VND
INVESTMENT CHANNELS
US$ 22,800
2% y-o-y
Source: Vietnamese General Statistics Office, FTP Securities, SJC.
720.5
27% y-o-y
VND 36.7 mil.
10% y-o-y
Return from Different Asset Classes
11 CBRE MARKET INSIGHTS | Q1 2017
VIETNAM STOCK MARKETRegional view
12 CBRE MARKET INSIGHTS | Q1 2017
WHERE THE MONEY GOES
13 CBRE MARKET INSIGHTS | Q1 2017
WHAT SHAPES OUR LIVES
Population of 65+ as Percentage of Total Population, by Year
Source: United Nation.
0%
5%
10%
15%
20%
Thailand Vietnam Malaysia Philippines Cambodia
1995 2000 2005 2010 2015 2020 2025 2030
14 CBRE MARKET INSIGHTS | Q1 2017
SIDEWALK CLEARINGFor Better or Worse?
15 CBRE MARKET INSIGHTS | Q1 2017
HISTORIC LANDMARKS’ PRESERVATION
“Historical landmarks - those with special character, interest or
value - define destinations around the world.
Beyond a souvenir snapshot, they represent a tangible link to a
culture’s past - a precursor that’s a welcome partner to a city’s
newer buildings and skyscrapers.”
Museum of Fine Arts - HCMC
16 CBRE MARKET INSIGHTS | Q1 2017
ENVIRONMENTAL ISSUES
Jill Baker – MAR 1, 2017
Vietnam’s electrical infrastructure choices are key to
keeping the country’s carbon emissions down and
lessening its contribution to global warming.
Hanoi People’s Committee Chairman Nguyen Duc Chung
admitted that the city’s air quality was at “red alert level”.
AQI 0-50: Good
AQI 51-100: Moderate
AQI 101-150: Unhealthy for sensitive groups
AQI 101-150: Unhealthy for all
Source: U.S. Environmental Protection Agency
17 CBRE MARKET INSIGHTS | Q1 2017
18 CBRE MARKET INSIGHTS | Q1 2017
INFRASTRUCTURE
19 CBRE MARKET INSIGHTS | Q1 2017
CITY INFRASTRUCTUREElsewhere in the region
Jakarta, Indonesia
Manila, Philippines Bangkok, Thailand
20 CBRE MARKET INSIGHTS | Q1 2017
CITY INFRASTRUCTUREHCMC: Flooding Continues to be a Challenge
2/2/2017 16/3/2017
Nguyen Huu Canh Street, Binh Thanh District Song Hanh Street, District 12
Ba Huyen Thanh Quan Street, District 3Vo Van Ngan Street, Thu Duc District
21 CBRE MARKET INSIGHTS | Q1 2017
Hiep Phuoc Station
Bach Dang Station
Lo Gom Station
Water bus
Electric bus
66km embankment
New Projects To Solve Infrastructure Issues: Flooding And Traffic Congestion
22 CBRE MARKET INSIGHTS | Q1 2017
SOLVING CONGESTION PROBLEMBridges, Underpasses, Overpasses – HCMC
Nguyen Van Cu Bridge – connection line – 2017 Overpass Truong Son – Tan Son Nhat airport - 2017
Overpass Nguyen Kiem – Nguyen Thai Son - 2017 Nguyen Tri Phuong Bridge – connection line - 2017
23 CBRE MARKET INSIGHTS | Q1 2017
AND HANOI
Under-planning overpass
Completed overpass
Vinh Tuy – Co Linh Overpass
Opening: 9 Mar 2017
24 CBRE MARKET INSIGHTS | Q1 2017
Infrastructure improvement quickens in the increasingly busy West
EXTEND AND UPGRADE
Hoang Quoc Viet
Xuan Thuy
Extended
Extended Hoang Quoc Viet
& Nguyen Co Thach Road
Dien Section 1
1
Ho Tung Mau – Le Duc Tho 2
2
Source: CBRE Vietnam, News.zing.vn
Residential project
Schools & Uni
Metro line No.3
Nhon – Hanoi Raiway
Extending
Upgrading
25 CBRE MARKET INSIGHTS | Q1 2017
METRO LINE: FIRST LINE SET TO OPEN THIS YEAR
2
Noi Bai Airport
7
Me Linh
4
1 Yen Vien
Nhu Quynh
1
Duong Xa
Yen So
Ngoc HoiHa Dong
Son Dong
Trôi
Ba Vi
5
3
Me Linh
Lien Ha
Cát LinhGa Hà Nội
Under Planning
Under Construction –
About to be opened
Under Construction
Metro Line No.2A (Cat Linh – Ha Dong) –
90% completed - To be opened this year
Ga Hà Đông (Mới) – Tây Nam
Nhon
8
8
6
2A
Cat Linh - MIDTOWN
Van Khe
La Khe
Ha Dong
Ha Dong
Station
Thanh Xuan 3
Ring Road
No.3
Thuong Dinh
National University
Lang
Thai Ha
La Thanh
3
2A
26 CBRE MARKET INSIGHTS | Q1 2017
1 2
3
1
3
2
INFRASTRUCTUREHCMC: Thu Thiem Updates
27 CBRE MARKET INSIGHTS | Q1 2017
HCMC: Greater in both quantity and scale
TOWNSHIPS
2007 2017 2027
Phu My Hung – 750ha Phu My Hung – 750ha Dong Tang Long – 160ha
Cat Lai – 153 ha Harbor City – 50 ha
D.7 D.9
D.8D.2
Phu My Hung Dong Tang Long
Cat Lai
D.7
Harbor City
Saigon Sport City GS Metro City
VinCity Vinhomes Can Gio
Saigon New City Saigon Marina City
Saigon Peninsula
Nha Be – 349 ha
D.7 – 118 ha
D.2 – 64 ha
D.9 – 300 ha Can Gio – 1,121 ha
Can Gio – 1,430 haCu Chi – 15,000 haTownship Criteria
• Project scale: over 50ha
• Social infrastructure such as School, Hospital,…
• Clear master plan
28 CBRE MARKET INSIGHTS | Q1 2017
Hanoi: Stronger focus on product offerings
TOWNSHIPS
2007 2017 2027
CIputra
Park City
Ecopark
Township Criteria• Project scale: over 50ha
• Social infrastructure such as School, Hospital,…
• Clear master plan
Ciputra – 332ha
Tay Ho
Ecopark – 499 ha
Ciputra – 332ha
Hung Yen
Park City – 77haVinhomes Riverside – 50 ha
Long Bien Ha Dong
Gamuda –500ha
Hoang Mai
Vinhomes Riverside
Gamuda
The Manor
Central Park
Starlake
Hoang Mai – 160ha Tay Ho – 183.5 ha
Vin City
Gia Lam – 300 ha Hung Yen – 500 ha
Linh Dam – 200ha
Hoang Mai
Linh Dam – 200haLinh Dam
Van Phu – 94ha
Ha Dong
Geleximco – 135ha
Ha Dong
Geleximco – 135ha Van Phu – 94haGeleximco Van Phu
29 CBRE MARKET INSIGHTS | Q1 2017
6 Under Construction
HCMC 20 GOLDEN SITES
TAX PLAZATHE SPIRIT OF SAIGON
SJC
LAVENUE CROWN 3
16
7
2
1
9
20
5
17
4
6138
1819
1214
15
11
SAIGON MELINH TOWER
VINHOMES GOLDEN RIVER
30 CBRE MARKET INSIGHTS | Q1 2017
Under construction and Under planning
HANOI CBD – CBRE GOLDEN SITES
Source: CBRE Vietnam.
PARK HYATT HANOI
HANOI APARTMENT CENTRE
ORIENTAL SUN TOWER
SUN GRAND CITY ANCORA
FOUR SEASONS HANOI
UNDER PLANNING
12
3
4
5
6
1 D’. San Raffles
2 22 Hai Ba Trung
3 Le Phung Hieu
4 TNR Tower
5 33 Hang Bai
6 52 Hang Bai
7
7 94 Lo Duc
13
9
10
11
12
8 Corner of Hang Bai and
Ly Thuong Kiet Str.
8
UNDER CONSTRUCTION
9 10 11 12 13
31 CBRE MARKET INSIGHTS | Q1 2017
LEGAL UPDATES
Office-tels, which combine residential and commercial uses and have
been growing in popularity in Vietnam’s real estate market over the last
three years, remain unrecognized in the country’s legal system and
have difficulties in development as a result.
SUMMARY
• 3 categories: A, B, C
• Ranking authority: Department of
Construction of cities/provinces
• Upon request from developer /
management committee / 50% of
unit owners
• Effective 15 Feb 2017
• Applicable to completed projects
only
32 CBRE MARKET INSIGHTS | Q1 2017
33 CBRE MARKET INSIGHTS | Q1 2017
34 CBRE MARKET INSIGHTS | Q1 2017
Development Sites – Commercial
INVESTMENT 2016-2017
CapitaLand Site at Vinhomes Golden River
Transaction date December 2016
Type Retail, Office
Land area 6,042 sm
GFA 106,853 sm
Plot ratio 17.7
Price psm (on land) TBC
Price psm (on GFA) TBC
Seller Vingroup
►►Buyer CapitaLand
CapitaLand will hold a 100 per cent stake in the 0.6-
hectare site with a gross floor area of 106,000 square
metres. Located in the heart of Ho Chi Minh City's
District 1, the site will be developed into a 240m office
tower with retail units at the ground and basement
levels.
Source: CBRE Vietnam, Q1 2017.
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no
guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by
CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
35 CBRE MARKET INSIGHTS | Q1 2017
Development Sites – Commercial
INVESTMENT 2016-2017
23 Le Duan Site in Ha Dong Dis. Lotte/Ciputra Mall
City HCMC Hanoi Hanoi
Transaction date January 2017 January 2017 N/A
TypeCommercial development
site
Commercial
development site
Commercial
development site
Land area 3,025 sm 95,000 sm 73,000 sm
GFA 24,200 sm N/A ~200,000 sm
Plot ratio 8 N/A N/A
Price psm (on land) US$20,000-$21,000 N/A N/A
Price psm (on GFA)US$2,500 - $2,650
N/A N/A
SellerGovernment land
allocation via auctionBIM Group UDIC
►►Buyer Tan Hoang Minh Aeon Mall Lotte Group
Source: CBRE Vietnam, Q1 2017.
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no
guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by
CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
(auction price)
36 CBRE MARKET INSIGHTS | Q1 2017
Development Sites – Residential
INVESTMENT 2016-2017
CII Plots in Thu
ThiemD1mension G Home @ Thao Dien
City HCMC HCMC HCMC
Transaction date March 2017 September 2016 June 2016
TypeResidential
development site
Land with completed
concrete building for
residential, Serviced
Apartment
Residential development
site
Land area 7,000 sm 5,192 sm 9,640 sm
GFA 36,400 sm 30,373 sm 78,470 sm
Plot ratio 5.2 5.9 8.1
Price psm (on land) TBC TBC TBC
Price psm (on GFA) TBC TBC TBC
Seller CII Altus Holding An Duong Thao Dien
►►Buyer HongKong Land CapitaLandJV of Frasers CentrePoint &
An Duong Thao Dien
Source: CBRE Vietnam, Q1 2017.
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no
guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE
clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
37 CBRE MARKET INSIGHTS | Q1 2017
Income Producing Assets
INVESTMENT 2016-2017
Le Meridien (office
component)
Continental Tower –
formerly Fideco
Tower
Kumho Asiana
ComplexA&B Tower
City HCMC HCMC HCMC HCMC
Transaction date Q4 2016 Q4 2016 June 2016 Q1 2016
Type Office OfficeHotel, Serviced
Apt, Office, Retail
Office with retail
podium
Land area 3,235 sm 1,124 sm 13,632 sm 1,833 sm
GFA 12,802 sm 17,030 sm 106,000 sm 25,506 sm
Plot ratio 4 15 8 10
Price psm (on
land)TBC TBC TBC TBC
Price psm (on
GFA)TBC TBC TBC TBC
Seller Tien Phuoc Fideco Land Kumho AsianaA&B
Development
►►Buyer Mitsubishi Estates TBCMapletree
InvestmentFujita
Source: CBRE Vietnam, Q1 2017.
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no
guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by
CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
38 CBRE MARKET INSIGHTS | Q1 2017
Income Producing Assets
INVESTMENT 2016-2017
Sedona Suites
HanoiIRT Da Nang Capital Tower
International
Centre
City Hanoi Da Nang Hanoi Hanoi
Transaction date Q2 2016 Q2 2016 May 2016 January 2016
Type Serviced apartment Office/Retail Office Office
Land area 175 keys 3,500 sm 2,256 sm 1,450 sm
NLA 17,351 sm 15,096 sm 36,609 sm 9,064 sm
Plot ratio N/A 4.3 16.2 6.3
Price psm (on
land)TBC TBC TBC TBC
Price psm (on
GFA)TBC TBC TBC TBC
Seller/Developer Keppel Land CP/ Indochina Land
Thu Do Tourism
Trading and
Investment JSC
Keppel Land
►►Buyer BRG Group Kajima N/A Vina Capital
Source: CBRE Vietnam, Q1 2017
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no
guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by
CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. .
39 CBRE MARKET INSIGHTS | Q1 2017
INVESTMENTThe Real Estate Developers that Own Nguyen Hue
1
2
3
4
5
6
7
8
9
10
11
12
13
Union Square
Plot Le Loi-Nguyen Hue-
Dong Khoi-Nguyen Thiep
Palace Saigon
Times Square
Vinatex – Tai Nguyen
Majestic
Duxton
Sunwah Tower
BIDV Tower
Kim Do Hotel
Satra Tax Plaza
Rex Hotel
Plot Nguyen Hue-Ngo Duc Ke-Ho
Tung Mau-Huynh Thuc Khang
Van Thinh Phat
Saigontourist
Tai Nguyen
Sunwah Group
BIDV
Satra
12
3
45
6
7
891011
1213
Source: Zing.vn
40 CBRE MARKET INSIGHTS | Q1 2017
Land Price
INVESTMENT
0
500
1,000
1,500
2,000
2,500
3,000
Dis
tric
t 1
Dis
tric
t 2
(lo
wrise
& m
ixe
du
se)
Dis
tric
t 3
Dis
tric
t 4
Dis
tric
t 5
Dis
tric
t 7
Dis
tric
t 8
Bin
h T
ha
nh
Dis
tric
t
Dis
tric
t 9
(P
huo
c L
on
g,
Ph
u H
uu)*
Price
pe
r sqm
GF
A (
US
$/s
mG
FA
)
Notes:
Lower points indicate minimum values, Higher points indicate maximum value
(*) 4 core districts include Hoan Kiem, Hai Ba Trung, Dong Da and Ba Dinh Districts. (**) Tu Liem district includes Nam Tu Liem and Bac Tu Liem Districts
Source: CBRE Vietnam.
The land price ranges included in this presentation have been included as a broad guide only. Land prices are subject to various positive and negative attributes,
including but not limited to, proposed/approved plot ratio, permitted uses, land size, location, clear legal status and other restrictions. CBRE does not accept any liability
under any cause of action including negligence for any loss arising from use of or reliance upon this information.
HCMCHanoi
2015 Q1 2017
0
500
1,000
1,500
2,000
2,500
3,000
4 c
ore
dis
tric
ts(*
)
Tha
nh
Xu
an
Ca
u G
iay
Tay H
o
Ha
Don
g
Ho
an
g M
ai
Lon
g B
ien
Tu L
iem
(**
)Price
pe
r sqm
GF
A (
US
$/s
mG
FA
)
41 CBRE MARKET INSIGHTS | Q1 2017
Higher interest for Vietnam thanks to strong macro fundamentals and
higher initial yields
INVESTMENT
Source: CBRE Asia Pacific Investor Intentions Survey 2015, 2016 and 2017
(*) Cross border refers to respondents domiciled in the different country as the most attractive destination selected
Preferred Markets for Investment (cross-border* only)
0%
5%
10%
15%
20%
25%
30%
35%
PhilippinesSouthKorea
ChinaJapanIndonesiaHong KongIndiaSingaporeVietnamAustralia
2017 2016 2015
Lower InterestHigher Interest
42 CBRE MARKET INSIGHTS | Q1 2017
Preferred Sectors for Investment
INVESTMENT
Preferred Sectors for Investment
Source: CBRE Asia Pacific Investor Intentions Survey 2015, 2016 and 2017
0%
5%
10%
15%
20%
25%
30%
35%
40%
Office Logistics & Industrial Retail Multifamily / Leasedresidential
Hotels / Resorts
% o
f re
sp
on
de
nts
2015 2016 2017
43 CBRE MARKET INSIGHTS | Q1 2017
INVESTMENT
Preferred Alternative Sectors for Investment
Source: CBRE Asia Pacific Investor Intentions Survey 2015, 2016 and 2017
0% 5% 10% 15% 20% 25%
Self-storage
Healthcare
Retirement living / Seniorhousing
Automotive / Car parks
Data centre
Student living
Infrastructure
Leisure / Entertainment
Single family residential
Real estate debt Not invested, butactively looking forexposure
Already invested
Property Companies: 47% ; Funds: 27%
SWIPe: 13%
Funds: 33% ; Property Companies: 31%
SWIPe: 16%
Hig
h N
ew
Inte
rest
44 CBRE MARKET INSIGHTS | Q1 2017
INVESTMENT
EMERGING TRENDS
Hotels are a major focus for many investors.
The tourist resort of Da Nang is seeing solid
demand for assets from domestic and
international groups.
Source: CBRE Research, Asia Pacific Investment Trends Q4 2016.
45 CBRE MARKET INSIGHTS | Q1 2017
46 CBRE MARKET INSIGHTS | Q1 2017
Record number of international visitors to Vietnam in the first 2 months of 2017
What’s happening
VIETNAM HOSPITALITY
FLC Faros Van Don, a unit of FLC Group, received
permission from the northern provincial government of
Quang Ninh to invest about $2 billion in a casino resort.
47 CBRE MARKET INSIGHTS | Q1 2017
SECOND HOME MARKET
0
1,000
2,000
3,000
4,000
5,000
6,000
New launches Sale Volume New launches Sale Volume New launches Sale Volume
2015 2016 Q1 2017
Un
its
Da Nang Nha Trang Phu Quoc
Some newly launched projects in Q1 2017
• Cocobay Ocean Condotel Resort & Spa (Da Nang) – by The Empire: 520 units
• Ocean Gate (Nha Trang) – by MB Land: 206 units
• Premier Residence Phu Quoc Emerald Bay (Phu Quoc) – by Sun Group: 134 units
Sales and New Launches, Condotel
Source: CBRE Vietnam, Q1 2017.
48 CBRE MARKET INSIGHTS | Q1 2017
Fast Progress
DA NANG
Thailand
Singapore
Cambodia
China (12 cities)
South Korea
(2 cities)
Hong KongLaos
(2 cities)
Malaysia
Japan
DA NANG
International Flights to Da Nang
It expects the first flight on May 8, and there will be preparations to
welcome delegations to the APEC Economic Leaders’ Week in Nov.Since 2017, Da Nang will organize International
Fireworks Festival annually.
49 CBRE MARKET INSIGHTS | Q1 2017
DA NANG
InterContinental
Sun Peninsula
Premier Village
Pullman
Furama
Fusion Maia
Olalani
Hyatt Regency
Pulchra
Naman Retreat
Oversupply concern in Da Nang’s hotel market?
Sheraton (under const.)
VS.
Master plan approved for developing Son Tra into a national-level tourism area
Five-star resorts in Da Nang
Nam Phat (under const.)
Vinpearl
Crown Plaza
50 CBRE MARKET INSIGHTS | Q1 2017
SAPA – Boom in infrastructure and tourism development
HOSPITALITY
Hanoi – Lao Cai Highway – 245km
Opening: Sep 2014
Travelling time: 7h 3.5h
Fansipan Cable Car
Opening: Feb 2016
Travelling time: 48h 30 mins
BRT Hanoi – Lao Cai
Opening: Jan 2017
Travelling time: 3h45min
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014 2015 2016 2017F 2020F 2030FTo
uri
st
arr
ivals
(th
ou
san
d p
eo
ple
)
International tourists Domestic tourists
Tourist arrivals to Sapa
Total estimated capital:
VND3,500 billion 2020 2030
No. of passengers/year 560,000 1,585,000
Tons of goods/year 600 2,880
51 CBRE MARKET INSIGHTS | Q1 2017
SAPA – An emerging resort hub
HOSPITALITY
BEFORE 2016 FROM 2016 ONWARDS
Sapa Jade Hill Resort
Th
e m
os
t c
om
mo
n
acc
om
mo
da
tio
n
Homestay
5-star hotel - MGallery 5-star hotel of CTX
4-star hotel,
Sapa Indochina InternationalNO 5-star Hotel
2-3 star hotels
Motels
52 CBRE MARKET INSIGHTS | Q1 2017
53 CBRE MARKET INSIGHTS | Q1 2017
Market Snapshot Q1 2017
OFFICE
No new supply
US$37.0 psm pm
6.4% vacancy
+3.6% y-o-y
HCMC HANOI
+1.2% q-o-q
• Market performance is stable with low vacancy rate and increasing rent
• Never before has Grade B rent seen a double digit positive growth
5,404 sm NLA new supply
US$22.0 psm pm
2.6% vacancy
+1.9 ppts y-o-y
+11.5% y-o-y +4.8% q-o-q
-1.7ppts y-o-y +0.2ppt q-o-q
Grade A
No new supply
US$29.4 psm pm
13.2% vacancy
+4 .6% y-o-y +3.3% q-o-q
8,385 sm NLA new supply
US$17.8 psm pm
16.4% vacancy
-8.8ppts y-o-y -2.6ppts q-o-q
+0.7% y-o-y +0.2% q-o-q
+7.3 ppts y-o-y +0.2ppt q-o-q
Grade B
• Grade A performed well with increase rents and lower vacancy
• Higher vacancy rate of Grade B since new supply continue to enter market.
-1.7ppts y-o-y
54 CBRE MARKET INSIGHTS | Q1 2017
Rents and Vacancy
OFFICE
HCMC HANOI
Source: CBRE Vietnam, Q1 2017.
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
Va
ca
ncy (
%)
Askin
g R
en
ts (
US
$/s
m/m
otn
h)
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
Va
ca
ncy (
%)
Askin
g R
en
ts (
US
$/s
m/m
on
th)
55 CBRE MARKET INSIGHTS | Q1 2017
Net Absorption
OFFICE
HANOI
Source: CBRE Vietnam, Q1 2017.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
NLA
(sm
)
Grade A Grade B
HCMC
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
NLA
(sm
)
Grade A Grade B
56 CBRE MARKET INSIGHTS | Q1 2017
Grade A Case Study (*): Rental Rates through 10 years
OFFICE
Hanoi
HCMC
56.00
34.20
0
20
40
60
80
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Re
nts
(U
S$
psm
p
m)
(*) Selected Rents of a Building in CBD recorded at Q1 of each year, Rents include Serviced Charge, exclude VAT
65.00
42.00
0
20
40
60
80
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Re
nt (U
S$
psm
p
m)
Source: CBRE Vietnam, Q1 2017.
57 CBRE MARKET INSIGHTS | Q1 2017
Demand Largely From Relocation And Expansion
OFFICE
Q1 20172016
HA
NO
I
New-to-market letting
Relocation &
Expansion
9%
91%
HC
MC
Source: based on CBRE’s enquiries, 2017 y-t-d
New-to-market letting
Relocation &
Expansion
16%
84%
18%
82%
HANOIDemand remains strong
in traditional sectors
HCMC
The surge of IT and
Logistics
Finance and
Banking
12% - 7%
Manufacturing
27%
IT/Technology
15% - 12%
Logistics
12%
25%
75%
58 CBRE MARKET INSIGHTS | Q1 2017
Higher Demand for Large Floor Plate
OFFICE
Hanoi
Source: based on CBRE’s enquiries, 2017 y-t-d
HCMC
25%
21%
47%
34%
16%
21%
5%
14%
7%
10%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2016
Q12017
<100sm 100sm - 299sm 300sm - 699sm 700sm - 1,000 sm >1,000 sm
21%
5%
45%
45%
18%
17%
10%
14%
7%
19%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2016
Q12017
<100sm 100sm - 299sm 300sm - 699sm 700sm - 1,000 sm >1,000 sm
59 CBRE MARKET INSIGHTS | Q1 2017
Future Supply
HCMC OFFICE
2018 - 2019
1. Spirit of Saigon, D1 – GFA: 15,000 sm
2. Saigon M&C, D1 – GFA: 49,000 sm
3. VietCapital Center, D1 – GFA: 38,621 sm
4. The Khai, D7 – GFA: 15,000 sm
5. The Prince, D7 – GFA: 15,000 sm 1 24
5
3
1. Viettel Complex, D10 – GFA: 65,971 sm
2. Deustches Haus, D1 – GFA: 38,621 sm
3. Saigon Centre Phase 2, D1 – GFA: 40,000 sm
4. Etown Central, Tan Binh – GFA: 67,760 sm
2017
1
2 3
4
60 CBRE MARKET INSIGHTS | Q1 2017
Future Supply
HANOI OFFICE
Source: CBRE Vietnam , Q1 2017
2017
1. HUD Tower, Cau Giay – GFA: 70,000 sm
2. Discovery Complex, Cau Giay – GFA: 49,000 sm
3. DSD Building, Dong Da – GFA: 20,000 sm
4. Truong Thinh Office Building, Cau Giay – GFA: 5,400 sm
4
2018 - 20191
1. Vietinbank Tower, Tay Ho – GFA: 100,000 sm
2. FLC Twin Tower, Cau Giay - GFA: 35,960
3. Oriental Sun Tower, Hoan Kiem – GFA: 23,300 sm
4. Eurowindows, Dong Da – GFA: 16,592 sm
5. Office building at Metropolis, Ba Dinh
12
3
2
4
5
3
61 CBRE MARKET INSIGHTS | Q1 2017
Dreamplex to open second co-
working space
Supply Trend: Co-Working Space Still Expanding in Vietnam
OFFICE
Dreamplex 2 Grand Opening on 2nd March, 2017 Toong at the Oxygen
Opening on 25th March, 2017
Source: CBRE Vietnam, Q1 2017.
62 CBRE MARKET INSIGHTS | Q1 2017
…. And also APAC
OFFICE
63 CBRE MARKET INSIGHTS | Q1 2017
Market Cycle
OFFICE
Source: CBRE Vietnam, Q1 2017.
BoomSlow
Down
Falling
marketRecovery
Lack of Confidence
High Confidence
Rent Reduce
Over-Supply
More Sellers
than Buyers
More Buyers
than Sellers
Hanoi
Singapore
Bangkok
Tenant’s
Market
Rent IncreaseLandlord’s
Market
Jakarta
HongKong
HCMC
Improving
Fundamentals
64 CBRE MARKET INSIGHTS | Q1 2017
65 CBRE MARKET INSIGHTS | Q1 2017
Market Snapshot Q1 2017
RETAIL
17,500 sm new supply
US$55.8 psm pm
8.0% vacancy
+0.6% y-o-y
HCMC HANOI
+10.2% q-o-q
• Supply scatter to the decentralized areas while CBD will not have new supply in three years.
• Flat rental rate, expecting intense competition between existing and future landlords.
• Placemaking to play an important role
+1.1ppts
y-o-y
-2.6ppts
q-o-q
No new supply
US$33.0 psm pm
10.6% vacancy
+0.1% y-o-y -9.2% q-o-q
+5.4ppts
y-o-y
-2.2ppts
q-o-q
• Quiet quarter with no new supply.• Rental rate remained stable since the
previous quarter.• Non-CBD continues to be future trend for
coming projects.
66 CBRE MARKET INSIGHTS | Q1 2017
Slight increase in supply
RETAIL2
00
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
Sense Market 23/91,500 sm NLA retail
District 1
4,000 sm of Snow Town@CBD
Premium Home
District 2
CBD Premium Home
HANOIHCMC
Source: CBRE Vietnam, Q1 2017.
0
50,000
100,000
150,000
200,000
250,000
300,000
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
NLA
, sm
- No New SupplyQ1
Q2Q3
Q4
2017’s pipeline >125,000 sm
YT
D
YT
D
67 CBRE MARKET INSIGHTS | Q1 2017
Vacancy Rate Increases while Rental stays flat
RETAIL
0%
15%
30%
45%
60%
0
40
80
120
160
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1
2014 2015 2016 2017
Va
ca
ncy R
ate
(%
)
Askin
g R
en
ts (
US
$/s
m/m
on
th)
HANOIHCMC
Source: CBRE Vietnam, Q1 2017.
0%
15%
30%
45%
60%
0
40
80
120
160
Q1Q2Q3 Q4Q1Q2Q3Q4Q1 Q2Q3Q4Q1
2014 2015 2016 2017
Va
ca
ncy R
ate
(%
)
Askin
g R
en
ts (
US
$/s
m/m
on
th)
68 CBRE MARKET INSIGHTS | Q1 2017
1. RomeA, D3 –19,000 sm
(opened in March)
1. Golden Plaza, D5 – 15,000 sm
2. The Garden Mall, D5 – 19,000 sm
3. Viettel Project, D10 – 15,000 sm
HCMC Future Supply
RETAIL
Source: CBRE Vietnam, REIC.
2017
2018 – 2020
1. Spirit of Saigon, D1 – 48,000 sm
2. Crescent Mall Phase 2, D7 - 18,000 sm
3. Sala Shopping Centre, D2 - 60,000 sm
4. OneHub Saigon, D9 - 70,000 sm
5. Saigon Tax Trade Centre, D1 - 25,000 sm
6. Vincom Central, Binh Thanh District – 60,000 sm
3
1
2
4
3
4
12
65
69 CBRE MARKET INSIGHTS | Q1 2017
1. Artemis Shopping Center, Thanh Xuan – 27,000 sm
2. Hanoi Center Point, Thanh Xuan –18,900 sm
3. Vinhomes Metropolis, Ba Dinh – 41,000 sm
4. Truong Dinh Plaza, Hai Ba Trung – 15,000 sm
5. Machinco, Thanh Xuan – 24,000 sm
Hanoi Future Supply
RETAIL
Source: CBRE Vietnam, REIC.
2017
2018 – 2020
1. Lotte Mall, Tay Ho – 130,000 sm
2. Vinhomes D’Capital, Nam Tu Liem -180,000 sm
3. Aeon Mall Ha Dong - 95,000 sm
4. Vietinbank Tower, Tay Ho – 10,000 sm
5. Vinhomes Gallery Giang Vo, Ba Dinh – N/A
12
34
5
3
4
1
2
6
5
70 CBRE MARKET INSIGHTS | Q1 2017
To Make an Attractive Sidewalk
RETAIL
Sidewalks being
cleared in both cities
Source: Project for Public Spaces
More pedestrians streets under
planning
And the creative solution….
Bui Vien 2nd walking street
Thu Thiem Square
71 CBRE MARKET INSIGHTS | Q1 2017
New Retail Areas
RETAIL
The underground is now a thing
Sense Market 23/9,
HCMCLy Tu Trong Str., HCMC
New comers
Interest in Affordable Products
4 stores 3 stores 7 stores (2 in HN) 6 stores (1 in HN)
The Oxygen
(renovated)
8,000 sm in District 2
Number of stores nationwide
Royal City, Hanoi Times City, Hanoi Vincom Plaza , Hanoi
72 CBRE MARKET INSIGHTS | Q1 2017
CBRE ASIA PACIFIC
Asia Pacific Millennials: Shaping the
future of real estate
Vietnamese millennials: Shaping trends
DEMAND
CGV
Lotte Cinema
Platinum
Galaxy
BHD
Others
Source: CBRE Asia Pacific.
Cinemas – the rising star
F&B – the relentless battle
Source: KDB Daewoo
73 CBRE MARKET INSIGHTS | Q1 2017
Market Cycle
RETAIL
Source: CBRE Vietnam, Q1 2017.
BoomSlow
Down
Falling
marketRecovery
Lack of Confidence
High Confidence
Rent Reduce
Over-Supply
More Sellers
than Buyers
Improving
Fundamentals
More Buyers
than Sellers
HCMC
Singapore
Bangkok
Tenant’s
Market
Rent IncreaseLandlord’s
Market
Jakarta
HongKong
Hanoi
74 CBRE MARKET INSIGHTS | Q1 2017
75 CBRE MARKET INSIGHTS | Q1 2017
Market Snapshot Q1 2017
SERVICED APARTMENT
No new supply
US$36.0 psm
5.0% vacancy
+8.8% y-o-y
HCMC HANOI
+0.8% q-o-q
• Current performance is still healthy as the market is temporarily taking advantage of limited supply.
• There will be increasing pressure from future branded supplies and buy-to-let market (non-serviced apartment).
No new supply
US$29.7 psm
9.1% vacancy
-2.0 ppts y-o-y -0.5ppt q-o-q
+8.9% y-o-y 0% q-o-q
0.8 ppt y-o-y -1.9 ppts q-o-q
Grade A
No new supply
US$31.8 psm
9% vacancy
+1 % y-o-y +1.3% q-o-q
No new supply
US$21.19 psm
17% vacancy
-3.1 ppts y-o-y -7.4 ppts q-o-q
-0.2% y-o-y -4.3% q-o-q
-2.3 ppts y-o-y +0.4 ppt q-o-q
Grade B
• Positive sign across all grades as occupancy improved.
• Rental rate remains relatively stable
76 CBRE MARKET INSIGHTS | Q1 2017
SERVICED APARTMENT
Source: CBRE Vietnam, Q1 2017.
No. of Project
% of total supply (units)
Occupancy
3
5%
89%
6
19%
85%
3
17%
92%
1
2%
94%
14
42%
95%
6
14%
92%
-
1,000
2,000
3,000
4,000
HCMC Hanoi Da Nang
Un
its
Q1 2017 2011
HCMC – CBD still in the Limelight
Implication for districts only, not exact project location
2
4%
92%
2
9%
81%
9
27%
88%
3
19%
86%
11
32%
88%
4
9%
88%
HANOI – Midtown & North are the hubs
No. of Project
% of total supply (units)
Occupancy
77 CBRE MARKET INSIGHTS | Q1 2017
Increasing Competition from Buy-to-Let
SERVICED APARTMENT
HCMC – RENTAL RATE PER SQUARE METRE HANOI – RENTAL RATE PER SQUARE METRE
* Survey on buy-to-let rent of high-end condominium
Source: CBRE Vietnam, Q1 2017.
District 1
District 2
District 7
Binh Thanh
$19
$13
$26
$13
$15
$34
$22
$32
$33
$20
BUY-TO-LET
RENT
SERVICED APARTMENT
RENT
District 3
$27
$28
$25
$34
$24
BUY-TO-LET
RENTSERVICED APARTMENT
RENT
$11
$9
$11
$11
$8
Ba Dinh
Tay Ho
HoanKiem
CauGiay
Tu Liem
78 CBRE MARKET INSIGHTS | Q1 2017
Short Term Leases Increase
SERVICED APARTMENT
Source: Agoda, retrieved on 16/3/2017.
79 CBRE MARKET INSIGHTS | Q1 2017
SERVICED APARTMENT
HCMC HANOI
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
35
40
Q1 Q2Q3 Q4Q1 Q2Q3 Q4Q1 Q2Q3Q4Q1
2014 2015 2016 2017
Va
ca
ncy R
ate
(%
)
Askin
g R
en
t (U
S$
/sm
/mo
nth
)
Source: CBRE Vietnam, Q1 2017.
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016 2017
Va
ca
ncy r
ate
Askin
g r
en
t (U
S$
/sm
/mo
nth
)
80 CBRE MARKET INSIGHTS | Q1 2017
HCMC Future Supply
SERVICED APARTMENT
2017
2018 – 2020
1. Ascott Waterfront, D1 – 222 units
2. Saigon Centre Phase 2, D1 – 200 units
3. Saigon Plaza, D1 – 121 units
4. The Berkley Residence, D2 – 85 units
5. New Pearl, D3 – 161 units
6. Mai House, D3 – 43 units
1. Lavenue Crown, D1 – 186 units
2. Citadines Regency Saigon, D3 – 200 units
3. Sherwood Suites Saigon, D3 – 157 units
4. The Spirit of Saigon, D1 – 200 units
5. Saigon South Phase 2, D1 – 243 units
4
5
6
1
2
5
3
4
1 2
Source: CBRE Vietnam, Q1 2017.
3
81 CBRE MARKET INSIGHTS | Q1 2017
Hanoi Future Supply
SERVICED APARTMENT
2017
2018 – 2020
1. Somerset West Point, Tay Ho – 247 units
2. Trang An Complex, Cau Giay – 40 units
1. Vietinbank Tower, Tay Ho
2. Vinata Tower, Cau Giay
3. Somerset West Central Hanoi, Cau Giay
4. Lotte Serviced Residences West Lake,
Tay Ho
5. Hilton Hanoi West Lake, Tay Ho
1
2
3
41 2
5
Source: CBRE Vietnam, Q1 2017.
82 CBRE MARKET INSIGHTS | Q1 2017
83 CBRE MARKET INSIGHTS | Q1 2017
84 CBRE MARKET INSIGHTS | Q1 2017
Market Snapshot Q1 2017
CONDOMINIUM
5,083 newly launched units
6,501 sold units
US$1,595 psm
-29% y-o-y
HCMC HANOI
-47% q-o-q
• Moving to Mid-end market: mid-end products accounted for 52% of total launch and 67% of total sales in Q1 2017.
• Average primary marketing pricing up by 13% y-o-y mostly due to more expensive projects launched
+13% y-o-y
• Affordable segment: 19% of new launch in Q1 2017 up from 7% in Q4 2016
• Average primary marketing pricing up by 13% y-o-y mostly due to more expensive projects launched
-49% y-o-y
-44% q-o-q9,398 newly launched units
6,143 sold units
US$1,263 psm
+57% y-o-y -7% q-o-q
+13% y-o-y -4% q-o-q
+36% y-o-y
+3% q-o-q
+6% q-o-q
85 CBRE MARKET INSIGHTS | Q1 2017
New launch: Divergent paths
CONDOMINIUM
Q1 2017Average
last 4 quarters
35 projects 24 projects
0
5,000
10,000
15,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
Un
its
AND HANOI TO INCREASE
HCMC – DECREASE IN NUMBER OF PROJECTS AND UNITS LAUNCHED
Q1 2017Average
last 4 quarters
21 projects 24 projects
Source: CBRE Vietnam, Q1 2017.
0
5,000
10,000
15,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
Un
its
86 CBRE MARKET INSIGHTS | Q1 2017
Lower-end segments: Continue their expansion
CONDOMINIUM
-150%
-100%
-50%
0%
HANOIHCMC
-150%
-100%
-50%
0%
50%
100%
150%
200%
250%
Percentage changes of new launch by segment (q-o-q)
Source: CBRE Vietnam, Q1 2017.
87 CBRE MARKET INSIGHTS | Q1 2017
Sold units - Mid-end dominated Q1 2017
CONDOMINIUM
Source: CBRE Vietnam, Q1 2017.
HANOIHCMC
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
No. o
f S
old
Units
Luxury High-end Mid-end Affordable
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
No. o
f S
old
Units
Luxury High-end Mid-end Affordable
88 CBRE MARKET INSIGHTS | Q1 2017
Primary pricing
CONDOMINIUM
Source: CBRE Vietnam, Q1 2017.
HCMC
HANOI
$ 0
$1 000
$2 000
$3 000
$4 000
$5 000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
Prim
ary
price
(U
S$
psm
)
Luxury High-end Mid-end Affordable
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
Prim
ary
price
(U
S$
psm
)
89 CBRE MARKET INSIGHTS | Q1 2017
HCMC Notable Future Supply
CONDOMINIUM
2017
2018 – 2020
1. RichLane Residences, D7 – 259 units
2. Viet Capital Centre, D1 – 36 units
3. Sunwah Pearl, Binh Thanh – 1,200 units
4. Sensation Capitaland, D2– 300 units
5. Waterina, D2 – 86 units
6. Glenwood Maison, D2 – 300 units
7. Vincity, D9 – 10,000 units
1. Lavenue Crown, D1 – 200 units
2. Springlight City, D1 – 892 units
3. The Spirit of Saigon, D1 – 495 units
4. NEXUS, D1 – 300 units
6
1
2
4
3
4
1 2
7
5
3
Source: CBRE Vietnam, Q1 2017.
90 CBRE MARKET INSIGHTS | Q1 2017
1. Kosmo Tay Ho, Bac Tu Liem
2. Aquabay Center Lake, Hung Yen
3. Minh Khai Plaza, Hai Ba Trung
4. Imperia Sky Garden, Ha Dong
5. Vinhomes Gallery Giang Vo, Ba Dinh
6. Petrowaco Lang Ha, Dong Da
7. Sunshine Center, Nam Tu Liem
8. Vincity, Tu Liem
Hanoi Notable Future Supply
CONDOMINIUM
Source: CBRE Vietnam.
2017
2018 – 2020
1
1. Vinhomes Smart City, Thanh Xuan
2. Aquabay Grand Park, Hung Yen
3. Avenue Park, Long Bien
4. Park City, Ha Dong
5. D'.El Dorado, Tay Ho
6. D'. Jardin Royal, Hai Ba Trung
7. Sunshine Boulevard, Thanh Xuan
32
5 6
15 7
4
4
91 CBRE MARKET INSIGHTS | Q1 2017
Disruptive Tech - Added-value Experience For Buyers
CONDOMINIUM
A New Dimension in Home
Buying: Virtual Reality
3D walk-through website
Virtual reality: revolutionising property sales?
Virtual Reality (VR) is growing in popularity as a way of marketing property – and
in the prime London market, whose investors often rather inconveniently live
thousands of miles away from the properties they want to view, it can be a handy
tool indeed. The use of VR in property is already a $1bn industry globally, and
Goldman Sachs estimate that is set to treble by 2020.
Halstead says it will introduce three-dimensional displays and virtual-reality headsets to its offices this year, and the brokerage isn’t alone. Greenland Forest City Partners and Douglas Elliman Real Estate are also hoping to add virtual-reality technology in the coming months, as are individual brokers looking for a competitive edge. Digital design firms charge tens of thousands of dollars to create virtual customizable spaces for high-end buyers.
92 CBRE MARKET INSIGHTS | Q1 2017
Challenges remain after handover
Lower-end segments: Wait for a positive change
CONDOMINIUM
Big developers to join –
Better quality to come?
Source: Images retrieved from the internet
93 CBRE MARKET INSIGHTS | Q1 2017
East and West Saigon River
CONDOMINIUM
Vinhomes Central ParkVinGroup
11,189 units | US$2,010/sm
Sold rate: 91%
GS Thu ThiemGS E&C
N/A units | US$ N/A
Thu Thiem Lake ViewCII
N/A units | US$ N/A
Marina BayCII
N/A units | US$ N/A
Vinhomes Golden RiverVinGroup
5,050 units | US$4,480/sm
Sold rate: 78%
The ManorBitexco
1,047 units | US$1,630/sm
Sold rate: 100%
Saigon PearlSSG
1,507 units | US$1,540/sm
Sold rate: 100%
Sunwah PearlSunwah Group
1,200 units | US$2,550/sm
Sold rate: N/A
Opal PearlSSG
180 units | US$1,869/sm
Sold rate: 75%
Saigon Blue MoonH.P.C.I.
5,000 units | US$ N/A
Sold rate: N/A
Launched project
Future project
94 CBRE MARKET INSIGHTS | Q1 2017
Hanoi: Thanh Xuan and Cau Giay Districts – a busy construction site
CONDOMINIUM
Royal City
4,460 units
$1,833 psm
Golden Land
692 units
$1,313 psm
Hapulico
Complex
800 units
$1,353 psm
The Legend
460 units
$1,293 psm
Gold Season
760 units
$1,257 psm
Thong Nhat
Complex
552 units
$1,213 psm
Vinhomes Smart CitySunshine
Boulevard
Thanh Xuan Complex
378 units
$1,357 psm
Imperia Garden
2,158 units
$1,482 psm
Completed Project
Under Construction
Future Supply
D’ Capitale
2,500 units
$2,114 psm
Handiresco
336 units
$1,313 psm
Secondary price psm (excluding VAT)
95 CBRE MARKET INSIGHTS | Q1 2017
CBRE Sales: Bigger in unit sizes
CONDOMINIUM
* The analysis above is based on CBRE Vietnam’s residential closed deals and should not be used as a marketwise benchmark.Source: CBRE Vietnam, Q1 2017.
By Purpose
By Product
By Unit Size
By Location
0% 20% 40% 60% 80% 100%
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
1BR 2BR 3BR 4BR
0% 20% 40% 60% 80% 100%
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Buy-to-let Buy-to-gain Owner Occupied
0% 20% 40% 60% 80% 100%
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
District 1 District 2 District 3District 4 District 7 Binh Thanh District
0% 20% 40% 60% 80% 100%
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
50-100 100-150 150-200
100-200 sm
District 2
More end-user
96 CBRE MARKET INSIGHTS | Q1 2017
Market Cycle
CONDOMINIUM
Source: CBRE Vietnam, Q1 2017.
BoomSlow
Down
Falling
market
Recovery
Lack of Confidence
High Confidence
Price Reduce
Over-Supply
More Sellers
than Buyers
Improving
Fundamentals
More Buyers
than Sellers
Hanoi & HCMC
Phnom Penh
Singapore
Bangkok
Buyer’s
Market
Price IncreaseSeller’s
Market
97 CBRE MARKET INSIGHTS | Q1 2017
98 CBRE MARKET INSIGHTS | Q1 2017
HCMC LANDED PROPERTY
0
500
1,000
1,500Q
1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Ne
w S
up
ply
(un
its)
2014 2015 2016 2017 Source: CBRE Vietnam, Q1 2017.
HCMC: New launches of the East dominated in Q1 2017
• The East dominated new supply (80%). Most new supply was in well-known areas.
• Expecting larger scale projects in all areas of the city.
Source: CBRE Vietnam, Q1 2017.
553 893Q1 2017
Launches Sales
-57%y-o-y
18%q-o-q
0%q-o-q
82%y-o-y
99 CBRE MARKET INSIGHTS | Q1 2017
District 2
District 9
Thu Duc
New Launches
HCMC LANDED PROPERTY
Valencia Riverside
Scale: 400 units
Primary selling price:
1,650 USD/m2
Merita Khang Dien
Scale: 131 units
Primary selling price:
2,050 USD/m2
Valora Kikyo
Scale: 110 units
Primary selling price:
2,200 USD/m2
River Park
Scale: 176 units
Primary selling price:
1,700 USD/m2
Thang Long Home
Scale: 215 units
Primary selling price:
1,500 USD/m2
100 CBRE MARKET INSIGHTS | Q1 2017
Stable Selling Price in most areas
HCMC LANDED PROPERTY
1,000
1,500
2,000
2,500
3,000
3,500
4,000Q
1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2014 2015 2016 2017
Ave
rag
e a
skin
g p
rice
(US
$/s
m, o
n la
nd
are
a)
District 2 District 9 District 7 Others
4-6%1 - 5 %
District 2 District 9 District 7 Others
Ready-built Villa/Townhouse
(q-o-q)4.7%
16-40(*)%Land plots
(q-o-q)
Flat
*:some projects in Binh
Trung Dong, Thanh My Loi
4-15% Flat 3-25%
*:most increase is in Nha Be,Thu
Duc, Binh Chanh, District 12
HCMC: Stable Selling Price in most areas
Source: CBRE Vietnam, Q1 2017.
101 CBRE MARKET INSIGHTS | Q1 2017
1. Park Riverside Phase 2, District 9
2. LaVila Phase 2, Nha Be District
3. Valora Mizuki, Binh Chanh District
4. Harbour City, District 8
Future Supply Offer Wide Choice Of Sizes and Locations
HCMC LANDED PROPERTY
Source: CBRE Vietnam, REIC.
2017
2018 – further
1. VinCity, District 9
2. Sala Dai Quang Minh, District 2
3. GS Metro City, Nha Be District
4. Peninsula, District 7 3
1
2
4
3
4
1 2
102 CBRE MARKET INSIGHTS | Q1 2017
0
100
200
300
400
500
600
700
800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016 2017
Units
Villa Terraced Shophouse
Vibrant launching activities
HANOI LANDED PROPERTY
Hanoi: New Supply, 2014 – Q1 2017
1,238
units
3,357
units
Source: CBRE Vietnam, Q1 2017.
1,238 units Q1 2017
Launches
78%y-o-y
628%q-o-q
• The East dominated new supply (47%). • Most new supply are highly reputable projects
and located in convenient areas. • 58% of newly-launched housing types are
villas
103 CBRE MARKET INSIGHTS | Q1 2017
Busy launches
HANOI LANDED PROPERTY
Vinhomes Riverside
Phase 2 The Harmony
1st launch: 556 units
Primary price: $3,000 psm
Ciputra – Zone K
Units launched: 161 units
Primary price: $5,000 psm
Vinhomes Green Bay
Units launched: 390 units
Primary price: $5,700 psm
Ecopark – Marina Arc
Units launched: 20 units
Primary price: $4,800 psm
Tu Liem District
Hung Yen
Long Bien District
Eurowindow River Park
Units launched: 65 units
Primary price: $1,532 psm
Dreamland
Units launched: 46 units
Primary price: $5,900 psm
Tay Ho District
104 CBRE MARKET INSIGHTS | Q1 2017
Secondary pricing up in almost all core urban districts
HANOI LANDED PROPERTY
Hanoi: Secondary Price of completed units, 2014 – Q1 2017
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016 2017
US
$ p
sm
Cau Giay Tu Liem Tay Ho Hoang Mai Ha Dong Long Bien
4.6%1.4%
Cau Giay Tu Liem Tay Ho Ha Dong
Q-o-Q
9.2%Y-o-Y 10.5% 8.6%
Completed Villa/Townhouse Long Bien
3.0%
7.1%
9.2%
3.5% 2.2%
Source: CBRE Vietnam, Q1 2017.
105 CBRE MARKET INSIGHTS | Q1 2017
Future Supply
HANOI LANDED PROPERTY
Starlake
Expected next launch:150 units
Ecopark CBD
Expected launch: N/A
Lacasta Daewoo
Expected launch: 359 units
Q2 2017 Q3 2017 Q4 2017
Splendora Phase 2
Expected launch: 878 units
The Manor Central Park
Expected launch: ~600 units
106 CBRE MARKET INSIGHTS | Q1 2017
High-end projects
will add quality
features in order
to support and
raise prices. Sales
momentum
remains positive in
all segments.
Affordable
segment to
expand fastest.
Vietnam’s economy in
general and the real
estate market in
particular are expected
to maintain stable,
positive growth.
Continues to be a favorite for
investment, with selling price
expected to increase further.
Existing and future large scale
projects attract the most interest
from buyers.
Hanoi: Grade A will perform well
since no new supply in 2017.
Continuous new supply of Grade B
causes vacancy to increase.
HCMC: Quality new supply will
come online in both grades.
Tenants profile will see the IT sector
becoming more dominant along
with Banking and Financials.
The market awaits larger scale
projects. “Placemaking” and
experiential retail remain a
challenge for existing and future
landlords. Intense competition is
expected.
Hotels which can
differentiate will
continue to perform
well.
Optimistic outlook is
expected with an
increase in tourist
arrivals.
Small scale projects with
limited facilities cannot
survive.
Branded projects in District 1
(HCMC) and Ba Dinh, Tay Ho
Districts (Hanoi) will maintain
their position.
107 CBRE MARKET INSIGHTS | Q1 2017
VIETNAM - THE GREATEST COMEBACK IN REAL ESTATE HISTORY
108 CBRE MARKET INSIGHTS | Q1 2017
THE WAY AHEAD
109 CBRE MARKET INSIGHTS | Q1 2017
THE WAY AHEAD
110 CBRE MARKET INSIGHTS | Q1 2017
AT CBRE, WE LIVE AND BREATHE THE BUSINESS OF REAL ESTATEEvery quarter
QUARTERLY REPORT
Ad-hoc
VIEWPOINT & SPECIAL REPORT
Every week
NEWS UPDATE
Every month
DASHBOARD
Every quarter
MARKETVIEW
To subscribe to CBRE mailing list and receive frequent market updates, please email [email protected]
All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information containedherein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubtits accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessingthe relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only,exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribefor securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may bealtered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorisedpublication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arisingby reason of any person using or relying on information in this publication.
For more information regarding this presentation please contact:CBRE Vietnam Co., Ltd. – Research & ConsultingT +84 8 3824 6125
F +84 8 3823 8418
Email: [email protected]
Thank You