APRIL 2014 HCMC CENTRAL BUSINESS DISTRICT HO CHI MINH CITY CBD MARKET REPORT.

Transcription

1 APRIL 2014 HCMC CENTRAL BUSINESS DISTRICT HO CHI MINH CITY CBD MARKET REPORT

2 TABLE OF CONTENTS APRIL 2014 Market Highlights Page OFFICE MARKET Market Overview Outlook Table Map RETAIL MARKET Market Performance Outlook Map Table HOTEL MARKET Map Table Market Performance Outlook SERVICED APARTMENT Market Performance Outlook Table / Map CONTACTS

3 APRIL 2014 COMMERCIAL OFFICE MARKET Market Performance Current median rental for Grade A remained flat while the occupancy rate saw a steady gain m-o-m, staying at 90.7% in March. NORTHERN CBD Meanwhile, Grade B buildings within CBD areas showed CITY CENTRAL sign of upward tendency given ascending office expansion demand. However, they still get tough encounter to the supply from outer districts at competitive rentals including Blue Sky Office Tower at Saigon Airport Plaza in Tan Binh District; Petroland and IPC Tower in District 7. Under-construction buildings in District 1 covering Vietinbank Tower, Vietcombank Tower, Le Meridien and Times Square still actively exhibit in good progress, expected adding new prime office spaces in the next 6 months. Grade AAR Occupancy rate Supply A B B B B SOUTHERN CBD FINANCIAL HUB Outlook The combination of occupiers seeking consolidation and cost containment, with limited availability of large floor plate in CBD, lead to a growing demand for coming CBD developments and current supply in non-core CBD covering Financial Hub, Northern CBD also Southern CBD. In the near future, an incredible gain from inflow of indirect foreign capital (FDI) in the first quarter of 2014 (US$687.7 million) foresee a promising growth for commercial office market. GRADE A PERFORMANCE CBD AVERAGE ASKING RENT, APRIL 2014 P.2 Colliers International

4 APRIL 2014 COMMERCIAL OFFICE MARKET Office Market Overview No Name Address Completion Year NLA (sq m) Service Charges (*) Occupancy rate NFA asking rent (*) 1 Saigon Centre 65 Le Loi , % Saigon Tower 29 Le Duan , % Sunwah Tower 115 Nguyen Hue , % The Metropolitan 235 Dong Khoi , % Diamond Plaza 34 Le Duan , % Kumho Asiana Plaza 39 Le Duan , % Bitexco Financial Tower 45 Ngo Duc Ke , % President Place 93 Nguyen Du , % Times Square Nguyen Hue , % 50.0 Grade A 187, % OSIC 8 Nguyen Hue , % Yoco Building 41 Nguyen Thi Minh Khai , % Somerset Chancellor Court Nguyen Thi Minh Khai , % Central Plaza 17 Le Duan , % Saigon Riverside Office 2A-4A Ton Duc Thang , % Saigon Trade Center 37 Ton Duc Thang , % Harbour View Tower 35 Nguyen Hue , % MeLinh Point Tower 02 Ngo Duc Ke , % Zen Plaza Nguyen Trai , % Bitexco Office Building Nguyen Hue , % The Landmark 5B Ton Duc Thang , % Opera View Dong Khoi , % Indochina Park Tower 4Bis Nguyen Dinh Chieu , % Petro Tower 1-5 Le Duan , % City Light 45 Vo Thi Sau , % The Landcaster 22Bis Le Thanh Ton , % Gemadept Tower 5 Le Thanh Ton , % Fideco Tower Ham Nghi , % Havana Tower 132 Ham Nghi , % Sailing Tower 51 Nguyen Thi Minh Khai , % Royal Center 235 Nguyen Van Cu , % TMS 172 Hai Ba Trung , % Bao Viet Tower 233 Dong Khoi , % Green Power Tower 35 Ton Duc Thang , % Vincom Center Le Thanh Ton , % Saigon Royal 91 Pasteur , % A&B Tower 76 Le Lai , % Maritime Bank Tower 192 Nguyen Cong Tru % Empress Tower 138 Hai Ba Trung , % Lim Tower 9-11 Ton Duc Thang , % Sunny MB Tower 259 Tran Hung Dao , % 22.0 Grade B 377, % 23.0 * US$/ sq m/ month (on net area) P.3 Colliers International

5 APRIL 2014 CBD OFFICE MAP P.4 Colliers International

6 APRIL 2014 RETAIL MARKET Market Performance SALE OFF UNION SQUARE IN APRIL 2014 We saw unchanged average rental rate from all three segments including retail podium, department store and shopping mall during March. Only department store retained flat occupancy rate while other segments recorded an approximately fall of 2%, a drop for the second consecutive month in Last month saw another slump period of retail market in downtown areas. Besides low footfall, a moving-out trend negatively influenced current tenants in CBD shopping spaces. While trying to get more visits by recent promotional programs, the tenants expect proper reactions from landlords in this gloomy time. Outlook The General Statistics Office reported that Consumer Price Index (CPI) in HCMC decreased 0.46% in March, an expected periodical drop after holiday season. Local consumer demand shows no sign of recovery while operators of CBD retail places keen on holding high rentals. According to research of Colliers International, closure of store chains is a preferred choice in optimising business from retailers given depressing turnover. They will alternatively opt for brand consolidation and store relocation. As a result of that, we expect a significant lift in vacancy rate of shopping malls within city central in the following months. RETAIL PODIUM MARKET PERFORMANCE, APRIL 2014 SHOPPING CENTER MARKET PERFORMANCE, APRIL 2014 P.5 Colliers International

7 APRIL 2014 CBD RETAIL MAP P.6 Colliers International

8 KUMHO APRIL 2014 MONTHLY RETAIL MARKET MARKET REPORT No Name of Project / Building Address Location Completion Year NLA (sq m) Average Rental (US$/sq m/month) Occupancy Rate 1 Hotel Continental Saigon Dong Khoi District % 2 Caravelle Hotel 19 Lam Son Square District % 3 New World Hotel 79 Le Lai District , % 4 Sheraton Saigon 88 Dong Khoi District % 5 Opera View Lam Son Square District , % 6 Rex Arcade 141 Nguyen Hue District , % 7 ICON Ngo Duc Ke District , % 8 President Place 93 Nguyen Du District % 9 Times Square Nguyen Hue District , % Retail Podium 23, % 1 Diamond Plaza 34 Le Duan District , % 2 Zen Plaza Nguyen Trai District , % 3 Parkson Saigon Tourist 35 Le Thanh Ton District , % 4 Kumho Asiana Plaza 35 Le Duan District , % Department Store 39, % 1 Saigon Center 65 Le Loi District , % 2 City Plaza 230 Nguyen Trai District , % 3 Tax Center 135 Nguyen Hue District , % 4 Saigon Square Nam Ky Khoi Nghia District , % 5 Nowzone Nguyen Van Cu District , % 6 Saigon Square Ton Duc Thang District , % 7 Vincom Center B 72 Le Thanh Ton District , % 8 Taka Plaza 102 Nam Ky Khoi Nghia District , % 9 Union Square Dong Khoi District , % Shopping Centre 113, % APRIL 2014 HOTEL MARKET No Name of Hotel Address Location Completion Year Total Room Occupancy ARR(*) 1 Caravelle 19 Lam Son Square District % New World Saigon 76 Le Lai District % Sofitel Plaza Saigon 17 Le Duan District % Rex 141 Nguyen Hue District % Renaissance Riverside 8-15 Ton Duc Thang District % Lotte Legend Hotel 2A-4A Ton Duc Thang District % Sheraton 88 Dong Khoi District % Park Hyatt Saigon 02 Lam Son Square District % Majestic Saigon 1 Dong Khoi District % InterContinental Asiana 39 Le Duan District % Nikko Saigon 235 Nguyen Van Cu District % Pullman Hotel 146 Tran Hung Dao District % Star 3,633 77% Continental Saigon Dong Khoi District % 88 2 Norfolk Hotel Le Thanh Ton District % 85 3 Duxton 63 Nguyen Hue District % 82 4 Royal City 133 Nguyen Hue District % 65 5 Palace Saigon Nguyen Hue District % 62 6 Oscar 68A Nguyen Hue District % 41 7 Liberty Central 179 Le Thanh Ton District % 78 8 Grand 08 Dong Khoi District % 79 9 Liberty Central Riverside 17 Ton Duc Thang District % 79 4 Star 1,161 78% 76.9 P.7 Colliers International

9 APRIL 2014 CBD HOTEL MAP P.8 Colliers International

10 APRIL 2014 HOTEL MARKET Hotel Market Overview HCMC recorded a sharp increase in the number of international NUMBER OF INTERNATIONAL VISITORS TO HCMC, APRIL 2014 arrivals in the first quarter of 2014, gain as much as 19% y-o-y which mostly contributed by major markets including China (22% y-o-y), Malaysia (20% y-o-y) and followed by Russia, Australia and Japan. In 1Q14, foreign tourists spent more than VND22.5 billion, raised 8% over the same period last year. According to Vietnam National Administration fo Tourism, HCMC targets to achieve a number of 4.4 million international visitors in Approximately US$4.4 billion revenue, 15% gain y-o-y, is expected from the city tourism sector. Source: Statistical Office in HCMC, Colliers International NUMBER OF INTERNATIONAL VISITORS TO VN vs. HCMC Outlook There is no new supply of 4- and 5-star hotel developments within CBD area in the first quarter of We expect slight fall of occupancy rate from both top-graded hotel segments in HCMC during April before downward tendency as the beginning of rainy season. SHERATON HOTEL UNDER RENOVATION, APRIL 2014 Source: Statistical Office in HCMC, Colliers International HCMC VISITOR GROWTH RATE BY COUNTRY, APRIL 2014 Source: Collliers International Source: Statistical Office in HCMC, Colliers International P.9 Colliers International

11 APRIL 2014 HOTEL MARKET Market Performance HCMC HOTEL PERFORMANCE BY GRADE, APRIL 2014 Both top-graded hotel segments experienced an increase in occupancy rate during March 2014 given a jump in the number of international arrivals to HCMC recently. The average room rate of 5-star hotels made a gain of around 1% while that of 4-star segment declined 2% m-o-m last month. Source: Statistical Office in HCMC, Colliers International PERFORMANCE OF 5-STARS HOTEL PERFORMANCE OF 4-STARS HOTEL APRIL 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview CBD SERVICED APARTMENTS PERFORMANCE FUTURE SUPPLY BY YEAR, APRIL 2014 P.10 Colliers International

12 APRIL 2014 SERVICED APARTMENT MARKET Market Performance Grade A serviced apartments saw a gain in both monthly average rental rate and occupancy rate in March. A 1% increase in occupancy supported recover of asking rents of Grade A segment during last month. The occupancy rate of Grade B serviced apartment buildings remained unchanged while average offered rent dropped almost 2% last month. Outlook GRADE A SERVICED APARTMENT PERFORMANCE, APRIL 2014 Grade A serviced apartment segment showed positive indicators after several downturn months whereas Grade B retained sufficient occupancy rate with slight adjustment in rents. Given prospective forecast on Vietnam economy, especially FDI infl ow to hi-tech industry, we expect an increasing demand of foreign expatriates for That will lift accomodation needs in big cities like HCMC during this year, which stablising residential for lease sector. No Project Name Address Location Completion Year Total Room Average Occupancy ARR(*) 1 The Landmark 5B Ton Duc Thang District % 31 2 Somerset Chancellor Court Nguyen Thi Minh Khai District % 36 3 Sedona Suites 65 Le Loi District % 35 4 Nguyen Du Park Villas 111 Nguyen Du District % 30 5 The Landcaster 22 Bis Le Thanh Ton District % 37 6 InterContinental Asiana Saigon 39 Le Duan District % 36 Grade A % 35 1 Somerset HCM 8A Nguyen Binh Khiem District % 25 2 Saigon Sky Garden 20 Le Thanh Ton District % 26 3 Norfolk Mansion Ly Tu Trong District % 31 4 Diamond Plaza 34 Le Duan District % 29 5 Garden View Court 101 Nguyen Du % 31 6 Ben Thanh Luxury Ky Con District % 23 7 Vincom Center 72 Le Thanh Ton District % 26 8 Lafayette De Saigon 08 Phung Khac Khoan District % 30 9 Spring Court 1Bis Phung Khac Khoan District % Nikko Saigon 235 Nguyen Van Cu District % Saigon City Residence 8A/3D2 Thai Van Lung District % 30 * US$/sq m/month ** Not including VAT and service charge *** Buildings are sorted by Year of Completion P.11 Colliers International

13 APRIL 2014 CBD SERVICED APARTMENT MAP P.12 Colliers International

14 APRIL 2014 About Colliers International Colliers International is a leader in global real estate services, defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we integrate the resources of real estate specialists worldwide to accelerate the success of our partners. We connect through a shared set of values that shape a collaborative environment throughout our organization that is unsurpassed in the industry. With more than 100 professionals in 2 offices in Vietnam, the team is market driven and has proven and successful track record with both international and local experience. From Hanoi to Ho Chi Minh City, we provide a full range of real estate services Research > > Market research across all sectors > > Market analysis, advisory, and strategy Valuation & Advisory Services > > Valuation for land, existing property or development sites > > Feasibility studies to determine NPV, IRR and highest & best use Office Services > > Tenant Representation > > Landlord Representation Residential Sales & Leasing Retail Services Investment Services Real Estate Management Services Corporate Services Industrial Leasing The foundation of our services is the strength and depth of our experience. Please contact, If you would like to recieve our other research reports Publication Coverage Frequency Content Availability Investment Report Vietnam Quarterly Capital Markets Publicly available Research & Forecast Report Vietnam Cities Quarterly All market sectors Publicly available CBD Report HCMC CBD Monthly Office, Retail, Hotel and Serviced Apartment Asia Pacific Office Report Vietnam Property Market Report Development Recommendation Asia Pacific including Vietnam Publicly available Quarterly Office market Publicly available Vietnam cities Quarterly All market sectors On subscription Vietnam cities At request All market sectors On subscription 485 offices in 63 countries on 6 continents United States Canada Latin America Asia Pacific EMEA $2 billion in annual revenue 2.5 billion square feet under management : 140 : 42 : 20 : 195 : 85 COLLIERS INTERNATIONAL 15,700 professionals and staff HO CHI MINH CITY Bitexco Office Building, 7th Floor Nguyen Hue Street District 1, HCM City, Vietnam Tel: HANOI Capital Tower, 10th Floor 109 Tran Hung Dao Street, Hoan Kiem District, Hanoi, Vietnam Tel: QUANG NGUYEN Research Manager quang.nguyen@colliers.com YEN NGUYEN Research Analyst yen.nguyen@colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved. Accelerating success