Serviced Apartment Overview

Transcription

1 Serviced Apartment Overview Presented by Mr. MARC TOWNSEND Managing Director CB Richard Ellis (Vietnam) Co., Ltd. 10 August, 2010 FUNDAMENTALS FOR GROWTH NOMINAL GDP AND REAL GDP GROWTH RATE OF HCMC Nominal GDP (VND Billions) 350, , , , , ,000 50,000 14% 12% 10% 8% 6% 4% 2% Real Growth Rate (%) HCMC GDP growth back to 2008 levels, Q2: 11% y-o-y 1H 2010: 11% y-o-y 0 0% H 2010 Nominal GDP Real GDP Growth Rate FDI (US$ Billions) TOTAL COMMITTED FDI IN HCMC H 2010 Tentative improvement in FDI in Q2: 14.5% q-o-q, yet 1H 2010: -5.9% y-o-y Increased Capital in Existing Projects Source: HCMC Statistics Office New Investment Capital CB Richard Ellis Page 2

2 INTERNATIONAL ARRIVALS TO VIETNAM AND HCMC FUNDAMENTALS FOR GROWTH International Arrivals (Millions) Number of Work Permits ,000 3,000 2,000 1,000 NUMBER OF WORK PERMITS ISSUED TO FOREIGNERS IN HCMC (2008-1H 2010) Vietnam HCMC H 2010 Signs of tourism recovery continued: 1H 2010 international arrivals: +11.9% y-o-y to 1.5 million Expat work permits: H almost equal to 2009 New wave of expats coming back to the city ASIAN majority: Indian, Philipino, Malaysian, Singapore, Japanese Sector: Finance, Banking, IT and Schools Source: CB Richard Ellis Vietnam Q1 Q2 Q3 Q4 CB Richard Ellis Page 3 HCMC Serviced Apartments MARKET FLASH Demand derived from 3 sources: Professional expatriates main source Returned overseas Vietnamese Wealthy Vietnamese new and growing trend New stylish boutique players enter the market: Lafayette De Saigon, LTT Court, IWA Square in District 1; Glenwood in District 2 Serviced apartment projects begin to appear in decentralised areas with improved access to outlying IPs: Green Hills in Quang Trung Software Park, Phu Nhuan Tower and the Crescent Residence in Phu My Hung CB Richard Ellis Page 4

3 HCMC Serviced Apartments SUPPLY vs. DEMAND TOTAL SUPPLY AND OCCUPANCY RATE OF SERVICED APARTMENTS IN HCMC (July 2010) Units 3,500 3,000 2,500 2,000 1,500 1, Jul % 90% 80% 70% 60% 50% 40% Total Supply (Units) Occupancy Rate (%) MARKET SNAPSHOT, July 2010 GRADE A GRADE B GRADE C TOTAL Total supply (units) 979 1, (LTT Court opened) 770 3,246 Vacancy rate (%) 14% 22% 15% 17.9% % change (y-o-y) 0 pt 12 pts 2 pts 20.1 pts Average asking rents (US$/sm/month) $30.70 $25.56 $18.62 $25.46 % change (q-o-q) 5.5% 0.2% 0.6% 3.0% % change (y-o-y) -5.1% -3.2% -5.0% -1.5% Source: CB Richard Ellis Vietnam CB Richard Ellis Page 5 HCMC Serviced Apartments KEY PLAYERS TOTAL STOCK AND OCCUPANCY RATE OF MAJOR SERVICED APARTMENTS (10 AUGUST 2010) % 90% % 70% 60% 50% 0 40% InterContinental Asiana Saigon Diamond Plaza Sedona Suites Norfolk Mansion Saigon Sky Garden Indochine Park Tower Nguyen Du Park Villas Sherwood Residence Somerset HCMC Somerset Chancellor Court Garden View Court Saigon Court Existing Stock (units) Occupancy Rate (%) New player InterContinental Asiana Saigon: leased 70% after 11 months of operation Garden View Court and Saigon Court (comparable to LTT Court): nearly 90% occupied Source: CB Richard Ellis Vietnam CB Richard Ellis Page 6

4 HCMC Serviced Apartments FUTURE STOCK FUTURE GRADE A & B SERVICED APARTMENT IN HCMC (2H ) VFC (2014) 288 Tan Phong Shopping Complex (2013) 480 EVN Tower (2013) 120 Him Lam-TSN (2013) 1000 Royal Centre (2012) 624 Savico Ho Tung Mau (2012) 120 Savico Tan Binh (2011) 420 Fraser Place (Beautiful Saigon 4) (2011) The Vista (2011) Crescent Residence 2 (2010) No. of units Source: CB Richard Ellis Vietnam Total Future Stock: 2H 2010F: 395 units 2011F: 809 units CB Richard Ellis Page 7 Serviced Apartments REGIONAL COMPARISON Shanghai Monthly Rents (US$/sm) in the CBD, including Service Charge and VAT if applicable CB Richard Ellis Page 8 Existing Supply 11,003 Studio 1 bedroom $60.5 $ bedrooms $ bedrooms Bangkok 15,803 $35.7 $31.6 $29.1 $28.5 Beijing 8,048 $57.0 $41.2 $37.7 $39.8 Da Nang 2,200 N/A $13.5 $13.0 $10.0 Hanoi 1,890 $36-$55 $30-$44 $25-$41 $24-$35 HCMC 3,246 $48.8 $36.4 $32.6 $31.3 Hongkong Over $31.0 $49.0 $50.0 N/A 14,000 Kuala Lumpur 4,950 $43-$55 $33-$47 $28-$47 $27-$46 Taipei 1,020 (premium) Source: CB Richard Ellis Vietnam $46.6 $44-$58 $42-$56 $41-$53 $20-$57

5 HCMC Serviced Apartments CHANGING FACES EXPAT TENANT PROFILE BEFORE Family Long-term Western senior executives 5 % $4,000up NOW Single (70:30) Project-based Asian senior executives Expat coming back, but NOT housing budgets $4,000up 5 % $2,100-$4,000 43% $2,100-$4,000 35% $800-$2,000 52% $800-$2,000 60% Change in Residential Leasing enquiries budget, unit size, location, standard of accommodations CB Richard Ellis Page Expat budget falling by up to 20% 2010 HCMC Serviced Apartments CHANGING FACES Severe competition from alternatives: BUY-TO-LET APT. and semi-serviced apt. (for mid-level budget) and VILLA (for deep-pocket tenants) Notable buy-to-let projects 1,400 units in total: Avalon, Saigon Pearl, The Manor, Sailing Tower, Cantavil Hoan Cau and International Plaza, etc. Tighter housing allowances driving tenants away from the CBD to neighbouring districts: District 2 and District 7 Landlords have become more flexible: To offer weekly or daily rates To compete based on age of property, décor (style), promotional programmes, facilities and SERVICES CB Richard Ellis Page 10

6 Serviced Apartments LONG-TERM ADVANTAGES SUITABLE LOCATION : within 15 drive from CBD or in welldeveloped districts near International schools, bars, restaurants, office buildings, etc. SECURITY OF TENURE: FLEXIBILE LEASE TERM CLEAN PAYMENT & BILLING PROFESSIONAL SERVICES & SECURITY COMFORT WITH A VARIETY OF FACILITIES FOREIGN LAYOUT : Open kitchen for Westerners and enclosed kitchen for Asian; direction particularly important for Chinese STYLISH DESIGN, FITTING OUT, FURNITURE: Western style for Westerners and Asian flavour for Asian (carpets, furniture) VALUE ADDED: shuttle bus, library, mini cinema, discount services, etc. IMMEDIATE CHECK-IN/CHECK-OUT SELF-IMAGE CB Richard Ellis Page 11 (NOT BE TERMINATED IF LANDLORD DECIDED TO SELL THE APARTMENT) Serviced Apartments LONG-TERM ADVANTAGES One RED receipt instead of 10+ covering: Home rental Electricity Water Phone Cable ADSL Cleaning Security Parking Meals (optional) Laundry (optional) Gardening Pest Control Pool Maintenance CB Richard Ellis Page 12

7 New Opportunity BOUTIQUE STYLISH SERVICED APT. Ovolo Hongkong: Shama Hongkong: M Place Bangkok: Accessed in Aug 2010 CB Richard Ellis Page 13 New Opportunity HOW BOUTIQUE SA OPERATES? Location: in the heart of a city s prime commercial and/or residential district Room standard of 5-star hotel - Luxury At the price of budget hotel - Well-priced Boutique (small scale of below 30 units) but Stylish (East-meets-West, contemporary, ultra-chic etc.) Offering personalised services - Home comfort CB Richard Ellis Page 14

8 New Opportunity HOW BOUTIQUE SA OPERATES? Online marketing Effective websites: eye-catching, full details (room layout, photo gallery, map, updated rates, services provided, and online booking, etc.) Value-added services: Through LIFESTYLE PROGRAMME: Personal concierge service Access to the city s leading members-only clubs and fitness centres A constantly updated selection of trendiest retail (fashion, beauty & health) and dining privileges 2 benefits of this outsourcing: Live like a local for tenants Overcome the shortage of in-house facilities due to small-scale building Ovolo boasts a lifestyle focused programme indulge 'no boundaries' is Shama's exclusive lifestyle programme CB Richard Ellis Page 15 LTT COURT OPENED IN AUGUST!! Address: 10 Ly Tu Trong, D.1 Boutique serviced apartment: 12 floors 36 fully-furnished units Quiet living environment Roof-top swimming pool Ample car parking 3 types of luxury room: 1 bedroom Studio: 48 sm 2 bedrooms: 95 sm 3 bedrooms: 115 sm + Penthouse: 150 sm Well-priced at US$2,700 $3,300/month Daily rates are available Professionally managed by CBRE CB Richard Ellis Page 16

9 LTT COURT READY TO MOVE IN!! Ideal location: In the heart of HCMC Convenient transport links Walking distance to Japanese streets; cultural, night-life and entertainment venues Proximity to essential amenities, such as shopping centres and major office buildings, etc. CB Richard Ellis Page 17 LTT COURT - Options 115 sm 3 bedrooms River view 115 sm 3 bedrooms River view 95 sm 2 bedrooms River & City view CB Richard Ellis Page 18

10 LTT COURT Indulgent Living Experience! CB Richard Ellis Page 19 CBRE Next Event CB Richard Ellis Page 20

11 CBRE Global Office Locations THANK YOU! 2010 CB Richard Ellis, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. CB Richard Ellis RESEARCH & CONSULTANCY Page 21