VIETNAM REAL ESTATE MARKET

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2 2Q 212 RESEARCH & FORECAST REPORT VIETNAM REAL ESTATE MARKET Property Sector Overview MARKET INDICATORS ECONOMY OFFICE RETAIL APARTMENT The Vietnamese economy has shown signs of recovery over the second quarter. The first recorded negative CPI growth rate in two years for Ho Chi Minh City and ten years for Hanoi. The Vietnamese property market has seen negligible movement despite introduction of positive supporting monetary and fiscal policies. Real estate developers are still facing challenges in accessing funds to advance their projects. New grade A office buildings in Hanoi and Ho Chi Minh City have achieved better lease performance, especially office buildings in non-cbd area of Hanoi. The majority of residential developers are now targeting the Mid-tier and Low-end apartment market. Sale prices of apartments on the secondary market have continued to decline. Vietnam retail market is still seen by a number of international retailers as an attractive one in terms of market size, demographic and consumption potential. However infrastructure constraints, legislative restrictions and ENT barriers serve to limit rate of growth. 1

3 . HO VIETNAM CHI MINH 2Q CITY 212 1Q ECONOMIC 212 ECONOMIC UPDATE UPDATE VIETNAM S GDP GROWTH RATE 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.%.% 1Q 28 2Q 28 3Q 28 4Q 28 1Q 29 2Q 29 3Q 29 4Q 29 1Q 21 2Q 21 3Q 21 4Q 21 1Q 211 2Q 211 3Q 211 4Q 211 1Q 212 2Q 212 VIETNAM S CPI MONTH-ON-MONTH 4% 3% 3% 2% 2% 1% 1% % -1% FDI CAPITAL IN VIETNAM EXPORT & IMPORT TURNOVER Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec US$ billion 1Q 21 2Q 21 US$ billion 1Q 21 2Q 21 3Q Q 21 1Q 211 Registered capital 3Q 21 Export turnover Trade balance 4Q 21 1Q 211 Growth rate of import turnover 2Q 211 2Q 211 3Q 211 Disbursed capital 3Q 211 4Q 211 Import turnover Source: General Statistics Office of Vietnam 4Q 211 1Q 212 1Q 212 2Q 211 Growth rate of export turnover 2Q 211 4% 35% 3% 25% 2% 15% 1% 5% % -5% INCREASED GDP GROWTH RATE IN 2Q 212 Vietnam GDP growth rate has reached 4.66% in 2Q 212 ie..7 percentage points higher than last quarter. According to the World Bank s forecast, Vietnam s GDP growth could achieve 5.7% within 212, 6.3% and 6.5% in the following years. Vietnam was ranked 22nd among the 29 fastest growing economies in the world. Principle exports remain textiles, crude oil, rice and machinery products. DEFLATION IN JUNE 212 CPI growth rate began to slow down from mid 211 and has dropped dramatically in the recent months. Remarkably, CPI in June dropped.26% month-on-month after 38 months of consecutive increases. This indicator only increased slightly by 2.52% compared with December 211 and 6.9% y-o-y. The minor increases in CPI and reduction of interest rate are expected to support businesses and stimulate consumer expenditure. CUTTING DEPOSIT INTEREST RATE The State Bank of Vietnam (SBV) has reduced deposit interest rate in three occasions within 1H 212 from 14% pa to 9% pa, according to the circular of 19/212/TT-NHNN. The annual lending interest rate for VND is at 13% pa in some prioritized economic areas, comprising agricultural and rural development, export, supporting industry and small and medium-sized enterprises. All commercial banks followed SBV s interest rate deduction by lowering their interest rates by 2% to 4% pa for personal and real estate loans. US$1.57bn POURED INTO REAL ESTATE Vietnam s total FDI capital recorded at US$6.38 billion in 1H 212, equivalent to 72.3% of the previous year period. Total figure for newly registered capital and additional capital across 575 projects is recorded at US$6.38 billion. Real estate sector attracted US$1.57 billion FDI capital for the existing projects and 4 new projects, this equivalent to 24.7% of the total registered capital in Vietnam. The high risks in current real estate industry have already been recognized by foreign investors; however potential profits are foreseen for the long term. NOTABLE POLICIES The recent release of Resolution 13/NQ-CP outlines a series of measures to ease difficulties against businesses and support the market in the wake of economic slowdown which resulted in a 3% cut of corporate and personal income taxes in 212. The Government has considered and is expected to unlock approximately VND29 trillion support package for small and medium businesses. Pg 2 2

4 . HO HO CHI MINH CITY & 1Q HANOI 212 2Q ECONOMIC 212 ECONOMIC UPDATE UPDATE GDP GROWTH RATE 12% 1% 8% 6% 4% 2% % 1Q 211 2Q 211 3Q 211 4Q 211 1Q 212 2Q 212 HCMC CPI MONTH-ON-MONTH 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.%.5% 1.% Hanoi Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun HO CHI MINH CITY ECONOMIC UPDATE Hanoi and Ho Chi Minh City are amongst the 14 most competitive cities in the world, according to the Global City Competitiveness Report by The Economist Intelligence Unit. In 2Q 212, total GDP of HCMC increased 8.1% y-o-y to VND trillion. Trades and services industry was the major GDP contributor and accounted for 54.9% of the total. HCMC granted 178 new FDI projects with a total registered capital of US$248.1 million in 1H 212, including US$29.1 million in 2Q 212, rising dramatically in comparison with US$39 million of the previous quarter. Currently there are 4,243 FDI projects in HCMC with a total invested capital of US$3.92 billion. Real estate industry accounted for 38% of total investment and reported as the highest portion of FDI within the five main sectors. CPI for HCMC in June 212 fell by.43% month-on-month, the first reduction in 21 months. In 1H 212, retail sales of goods and services achieved VND26.94 trillion (+21.3% y-o-y). Discounting the price inflation factor, the underlying growth rate was 8.9% y-o-y. HCMC Hanoi RETAIL SALES GROWTH RATE 3% 25% 2% 15% HANOI ECONOMIC UPDATE In 1H 212, Hanoi s GDP growth reached 7.6% y-o-y with agriculture and fishery sectors decreased by 2.9% whereas industrial and construction increased by 8.1%, and services up by 8.5%. 1% 5% % 1Q 211 2Q 211 3Q 211 4Q 211 1Q 212 2Q 212 Tp Hồ Chí Minh Hà Nội Hanoi s CPI in June 212 dropped by.17% month-on-month, dragged down by the decrease in prices of housing and construction materials, traffic and food & restaurant services. This is the first negative month-on-month CPI in the last 1 years, as business activities slowed down, high inventory accumulated, and credit growth rate fell. FOREIGN INVESTMENT CAPITAL US$ million 3, 2,5 2, Hanoi granted a total of 15 FDI projects, including both new projects and supplement capital of existing projects, a total registered capital of US$45 million in 2Q 212. The number of projects and total registered capital decreased by 7.4% and 49.5% y-o-y, respectively. 1,5 1, 5 1Q 211 2Q 211 3Q 211 4Q 211 1Q 212 2Q 212 HCMC Hanoi In 1H 212, retail sales of goods & services increased 2.7% y- o-y, particularly retail revenue rose by 2.3%. If the fluctuated price factors were excluded, the underlying growth rate was 8% y-o-y. Source: General Statistics Office of Vietnam Pg 2 3

5 HO CHI MINH CITY & HANOI 2Q 212 INFRASTRUCTURE RACH CHIEC BRIDGE HO CHI MINH CITY Highway project for HCMC - Dau Giay intersection: Compulsory acquisition of land and site clearance for highway expansion along District 2 are currently in progress. Rach Chiec Bridge project: Rach Chiec Bridge officially opened on 11th July 212. This new 735- meter bridge improves the connection between the eastern districts and central business districts. TAN SON NHAT - BINH LOI RING ROAD Metro Line No.1 Ben Thanh - Suoi Tien and Hanoi Highway Widening projects: The construction schedule is pending on the process for compulsory land acquisition and compensation for some property owners in District 9 and Thu Duc District. Tan Son Nhat to Binh Loi Ring Road project: Slow construction progress as a result of the ongoing site clearance. The road network will be put into operation in phases. It is expected that section Nguyen Thai Son-Le Lai (Go Vap District) will be opened in September 212. The section from Phan Van Tri (Binh Thanh District) to Rach Lang Bridge (Thu Duc District) is considered a critical route, providing direct link from Binh Duong and Dong Nai to Tan Son Nhat Airport, and is scheduled for opening in June 213. CAU GIE - NINH BINH HIGHWAY HANOI Cau Gie - Ninh Binh Highway: A four lane highway permitting vehicle speeds of 1km/h - 12km/h, connecting Hanoi and Ninh Binh province and was officially opened in June 212. Hanoi Ring Road No.3 - Phase 2 project: North section of Linh Dam-Thanh Xuan road of 3.3 km was completed in June 212. This link road is designed to relieve traffic congestion from South to West of Hanoi. It starts from the North of Linh Dam lake to Mai Dich through Hoang Mai District, Thanh Xuan District and Cau Giay District. Metro Line No.2A Cat Linh-Ha Dong project: HANOI RING ROAD NO.3 (PHASE 2) The Cat Linh-Ha Dong line is one of eight urban rail projects proposed in Hanoi s transport development plan. This is a 13km railway with 12 stations, starting from Cat Linh in Dong Da District to Yen Nghia in Ha Dong District. The depot area is located in Phu Luong ward in Ha Dong District. The project is scheduled for completion in

6 HO CHI MINH CITY 2Q 212 OFFICE SUPPLY BY GRADE, 2Q 212 9% 42% 49% MARKET OVERVIEW The total office supply in HCMC was approximately 1.3 million sq m NFA from 164 office buildings. The downward trend in rental rate is continuing to create more pressure for the developers. Most office buildings in the CBD and non-cbd offered promotions, free rent for the first two or three months of new leasing contracts, flexible leasing term, concessions on parking, signage provisions and services in order to attract tenants. MARKET OPERATION AVERAGE OCCUPANCY AND RENTS PERFORMANCE BY GRADE, 2Q ESTIMATED FUTURE SUPPLY 7, 6, 5, 4, 3, 2, 1, US$/ sq m/ month Q 212 2Q 212 USD/ sq m/ month Average asking rent Source: Colliers International Average occupancy rate Grade A Grade B Grade C sq m Grade A Grade B Grade C Average asking rent Average occupancy rate % (*) From 2Q 212, Colliers re-graded office buildings and update the office space based on net floor area (NFA) 8% 6% 4% 2% % 1% 95% 9% 85% 8% 75% 7% The average rents across all grades, exclusive of service charge and VAT tax, was US$2/ sq m/ month in 2Q 212. The average occupancy was recorded at 88.2%, a decrease by 2 percentage points q-o-q. The average occupancy rates in grade B and C office buildings were higher than grade A buildings as their rents are considered more competitive. Moreover many enterprises, both local and foreign, are seeking to cut costs amid financial troubles in Europe, the USA and Vietnam. Grade B and C office buildings achieved average occupancy rates of 88% and 89%, respectively. The average rents were at US$2 & US$16.3/ sq m/ month for grade B and C respectively. GRADE A MARKET MOVEMENT The occupancy rate of all grade A buildings averaged 87% and average rents was US$33.7/ sq m/ month. There was approximately 18,6 sq m of vacant office space. Grade A buildings, with exception of Bitexco Financial Tower which remains in lease up phase, had a generally stable occupancy rate at 97%. It is recorded that a flight to quality is starting to take hold with new Grade A buildings like Bitexco Financial Tower welcoming both new businesses to Vietnam and established companies looking to upgrade their accommodation. OUTLOOK In the second half of 212, HCMC s market will realize approximately 65, sq m GFA of office space from 6 projects within 2h 212, which could continue to put pressure on the occupancy rate and rents. The new supply is expected from The President Place, Times Square, Le Meridien and HMTC. District 1 accounts for 45% of total future supply in HCMC up to the period of 216. The construction of some projects is put on-hold or delayed due to difficulties in obtaining finance support, while multiple developers are reviewing the market positioning of their projects. P2 COLLIERS INTERNATIONAL 5

7 HANOI 2Q 212 OFFICE SUPPLY BY GRADE, 2Q % 25.8% 56.% Grade A Grade B Grade C OPERATION OF GRADE A OFFICES 1% % 4 6% 38 4% % 32 % 3 Q1-1 Q2-1 Q3-1 Q4-1 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Average Occupancy Average Rent (US$/sqm/month) OPERATION OF GRADE B OFFICES 1% 28 8% 26 6% 24 4% 22 2% % 2 Q1-1 Q2-1 Q3-1 Q4-1 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Average Occupancy Average Rent (US$/sqm/month) EXPECTED COMPLETION IN 2H 212 Project District NLA (sqm) Indochina Plaza Hanoi Cau Giay 17,7 EVN Tower Ba Dinh 45,6 Cornerstone Hoan Kiem 25,9 Trico Building Long Bien 13, Apex Tower Tu Liem 17, Tuan Duc Building Hoan Kiem 13, Total 132,2 MARKET OVERVIEW The total supply of Hanoi s office market currently stands at 1.15 million sq m, increased by 24% y-o-y. The Western area of Hanoi, including Cau Giay and Tu Liem districts accounted for 47% of grade A and 29% of Grade B office stock. There are two Grade B office buildings, namely Detech Tower (Cau Giay District) and ICON 4 Tower (Dong Da District) came into the market, adding 32,3 sq m to the current stock and created a marginal impact of 2.9% q-o-q. GRADE A IMPROVES PERFORMANCE Grade A s average occupancy rate in Hanoi remarkably improved by 2.95 percentage points, reaching 75.4% in 1H 212 while experiencing a slight decrease in rent at US$41.23/ sq m/ month. The net absorption was recorded impressively at 14,9 sq m during 2Q 212 as a result of the recent lettings in Keangnam Landmark Hanoi Tower. The market witnessed tenant movement from CBD to the western Hanoi. Though the CBD is still enjoying a healthy occupancy of 93.7%, this is a drop of 1 percentage point q-o-q as several prominent tenants have relocated towards the West to take advantage of lower rent. A TOUGH PERIOD FOR GRADE B The average occupancy rate in grade B buildings decreased approximately by 4 percentage points q-o-q, despite the average rental fell from US$22.9 to US$22.4/ sq m/ month. The large amount of new supply and competition from grade A has created a negative performance for grade B office buildings. New office stock faces the challenge of filling up the vacancies. Tenants are being offered flexible options in the prime buildings with lower rent. OUTLOOK According the published completion dates, total supply up to 214 is expected to double the current stock; however, based on the current construction progress, up to 3% of projects would be delayed to post 214. Future projects are mostly located in non-cbd areas, especially from Cau Giay, Thanh Xuan and Tu Liem districts, accounting for 68% of total future supply. Several buildings will be introduced within this year, including Indochina Plaza Hanoi, EVN Tower, Apex Tower and Cornerstone Building, adding 132,2 sq m onto the market. Average rents and occupancy will continue to drop, especially in the non- CBD areas due to highly competitive offers from offices in the prime locations. Source: Colliers International P2 COLLIERS INTERNATIONAL 6

8 HO CHI MINH CITY 2Q 212 RETAIL SUPPLY BY RETAIL TYPES, 2Q % 32% 7% 4% 6% Department store Shopping center Podium Wholesales Supermarket AVERAGE OCCUPANCY AND RENTS US$/ sq m/ month 1 1% 8 95% 6 9% 4 85% 2 8% 75% Q 212 2Q 212 Average occupancy rate Average Rent AVERAGE RENT BY TYPES US$/ sq m/ month Retail Podium Department Store Shopping Centre Min average asking rent Max average asking rent ESTIMATED FUTURE SUPPLY sq m 7, 6, 5, 4, 3, 2, 1, - 212F 213F 214F 215F 216F Onwards MARKET OVERVIEW In 2Q 212, the total retail supply is recorded at 727,9 sq m, up 12% q-o-q. The leading suppliers are shopping centres and supermarkets. Primary areas for large scale retail development in Ho Chi Minh City are District 1, District 7 and Tan Binh District which will introduce approximately 32, sq m to the market. Also, there are new and planning projects located in District 2. MARKET OPERATION HCMC s retail market is facing competitive pressure to attract tenants. Some developers are now offering lower rents and more incentives to attract tenants. The average occupancy rate in 2Q 212 was approximately 84%, down by 7 percentage points q-o-q. The highest occupancy rate is recorded for department store at 99%, an increase of 1 percentage point q-o-q. Retail podiums overall reached only a 68% occupancy rate. The average rents for shopping centres, retail podiums and department stores are recorded at US$64/sq m/month, a significant decrease of approximately 9% y-o-y due to the lower rents of retail centres in the non-cbd districts. However, retail spaces in prime locations still command rents over US$1/sq m/ month. Some developers are reviewing the development of their retail projects while some developers offered their projects for sale. Many retailers have offered promotions such as discounted pricing, additional promotional products, etc in order to encourage consumers. However, the purchasing power is yet to improve as the consumers are to balance between their demand and increased necessary costs while maintaining the level of savings. Total retail sales of goods and services of Ho Chi Minh City only increased by 8.9% y-o-y. OUTLOOK In 2H 212, approximately 15, sq m of retail space is expected to enter the market, equivalent to 2% of total current supply. New retail project development located in fringe areas of CBD such as Pico Plaza (Tan Binh District) and Pandora City (Tan Phu District) will provide 94, sq m, accounting for 62% total new supply of 212. Vietnam has dropped out of the top 3 in the Global Real Estate Development Index produced by A.T.Kearney due to inadequate infrastructure and high rentals. However, Vietnam still has a certain attractiveness owing to the current size of market as well as growth potential, especially among the large young population. Source: Colliers International P2 COLLIERS INTERNATIONAL 7

9 HANOI 2Q 212 RETAIL SUPPLY BY YEAR (SQ M) 2,, 1,5, 1,, 5, f 213f 214f Existing Supply Additional Supply MARKET AVERAGE RENT & OCCUPANCY 1% % 76 6% 74 4% % 68 % 66 Q2-1 Q3-1 Q4-1 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Average Occupancy Average Rent (US$/sqm/month) RENTS BY TYPE (US$/ SQ M/ MONTH) Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Retail Podium Department Store Shopping Center SOME COMPLETE PROJECTS IN 2H 212 Project District GFA (sqm) Indochina Plaza Hanoi Cau Giay 18, Me Linh Plaza Ha Dong Ha Dong 44, Trang Tien Plaza Hoan Kiem 14, HiWay Supercenter Ha Dong 12, N5 Square Cau Giay 19, MARKET OVERVIEW There was no additional supply coming on stream in 2Q 212, as the total stock of retail space in Hanoi market remained unchanged at 433,7 sq m. The retail market witnessed consolidation in terms of both average asking rent and occupancy. The impact of tightening retail spending and conservative approach by retailers seems to intensify the pressure upon retail developers in Hanoi. BUSY LEASING ACTIVITIES Developers are pushing up their leasing programs to secure leases before the massive supply expected to flow in 2H 212. In the non-cbd districts, Indochina Plaza Hanoi, Me Linh Plaza Ha Dong and HiWay Supercenter would invade the market with total 74, sq m GFA. Hanoi s Heritage retail landmark, namely Trang Tien Plaza, is also offering prime spaces for lease. This might be the only project in the CBD that would come online within 212. MORE PRESSURES ON RETAIL CENTRES The average rent of shopping centres decreased US$1.75/ sq m against 1Q 212 to US$68.21/ sq m/ month. A downward trend in the average asking rent occurred in either inner districts, the East or the West of Hanoi. Some new department stores in the West had reduced asking rents, contributing to a 4.24% reduction in average rent of department store, down to US$65.83/ sq m/ month. All the retail centres witnessed unchanged or minor improvement in occupancy, except for Pico Mall where the tenants are continuously vacating to other locations. The market average occupancy decreased to 87.82%. OUTLOOK An additional retail space of approximately 2, sq m GFA would populate the market in 2H 212, accounting for approximately 46% of total current stock. The arrival of large supply will introduce additional pressure on retail developers. The average rent and occupancy are forecasted to decline further, especially in the West area submarket. The retail market is currently driven by retailers and consumers, developers are forced to find solutions coping with tough challenges and competition pressure. Hapulico Complex Thanh Xuan 36, Total 143, Source: Colliers International P2 COLLIERS INTERNATIONAL 8

10 HO CHI MINH CITY 2Q 212 APARTMENT FOR SALE MARKET OVERVIEW, 2Q 212 7, 6, 5, 4, 3, 2, 1, Units US$/sq m 1,4 1,2 1, Primary Secondary Total units Average asking price PRIMARY MARKET, 2Q 212 Units 1% 25, 8% 2, 6% 15, 4% 1, 2% 5, % > US$2,5 US$1,8-2,5 US$1,1-1,8 < US$1,1 MARKET OVERVIEW HCMC s total supply of primary and secondary apartment market reached approximately 84, units. Supply from District 7, District 2, District 4, Binh Thanh and Tan Phu districts reflects 62% of the total supply. The average asking price recorded at US$1,21/ sq m and US$1,9/ sq m for primary and secondary apartments respectively. Many forms of developers promotion such as lucky draw events, special gifts such as gold-bar, jewelry, furniture package etc., were offered to attract property buyers along with positive monetary and fiscal policies introduced by the Vietnamese government. 2Q 212 witnessed the launching of approximately 2, apartments from 9 high density residential projects while recording the average successful sale of 3%. THE PRIMARY MARKET The total primary supply added up to 27, units from 6 projects with 9% of new launching units belong to mid-tier and affordable apartments. Asking price are ranging from US$6/ sq m to US$1,/ sq m. SECONDARY MARKET, 2Q 212 FUTURE SUPPLY Total units % Sold out US$/ sq m Units 3, 2,5 2, 1,5 1, Go Vap Phu Nhuan Binh Thanh Thu Duc Tan Binh Binh Tan Tan Phu Binh Chanh Nha Be Average Asking Price No. of units 11% 1% 11% 67% 2, 16, 12, 8, 4, The market experienced a development trend of shop house and lofthouse styles that met a variety of customers demand. The asking prices are ranging from US$65 - US$1,/ sq m. THE SECONDARY MARKET The total secondary supply in HCMC currently stands at approximately 57, apartments from 19 complexes. District 7 is still the leading supplier at 3% market share. The asking price in CBD is seeing a slight increase with the average asking price at US$2,94/ sq m due to lack new supply. MARKET OUTLOOK Looking ahead, HCMC s apartment market might expect approximately 6, units from 12 projects, including projects that are currently in planning stage or under construction. It is noted that there is approximately 1% of total future supply from pending projects as the developers are facing obstacles such as slow construction progress, lack of capital and limited demand. Lower interest rates together with financial aid packages for individuals and enterprises from Government and banks will have a positive impact on the apartment market in 2H 212. On-hold Planning Under construction Vacant land Source: Colliers International P2 COLLIERS INTERNATIONAL 9

11 HA NOI 2Q 212 APARTMENT FOR SALE SUPPLY BY DISTRICT, 2Q 212 2, 1,6 1,2 8 4 Cau Giay Thanh Xuan Ha Dong Hai Ba Long Trung Bien Additional Supply (Units) Tu Liem Hoang Dong Mai Da Ba Dinh Tay Ho Asking Price (US$/sqm) NEW SUPPLY BY SEGMENT, 2Q 212 3, 2,5 2, 1,5 1, 5 MARKET OVERVIEW The apartment market in 2Q 212 showed signs of improvement in term of number of transactions-beneficiary from lower interest rates, sluggish stock market and range of incentives being offered by the developers. Asking prices of apartments continued to drop across all segments. The market recorded more transactions while numerous new projects coming on line with incentives such as free bikes, interior packages and discounts. SUPPLY Hanoi market embraced approximately 4,55 apartments in 2Q 212 with 8% represents for mid-tier segment. Ha Dong District emerged as a primary location of new projects, followed by Thanh Xuan and Tu Liem districts. There is no new supply in the inner districts. 12% 9% Future supply up to 214 is estimated to furnish 2,3 units, mostly located in Ha Dong and Cau Giay districts, where the infrastructure is under extensive redevelopment. MARKET OPERATION 8% High-end Mid-end Low-end ASKING PRICE BY GRADE Owner-occupiers are adopting a wait-and-see attitude with anticipation of further price drops. Some issues have arisen in the context of operating apartment complexes such as over use of common space, the issuance of red books, and service fee levels with the result that owner-occupiers have become more prudent in choosing their homes. Most transactions were recorded in mid-tier and low-end segments. The market is witnessing an underlying demand towards small sized apartments of 5-7 sq m at US$75, - US$125,/ unit, excluding VAT tax. Average price of all segments followed the general downtrend with a decline rate of 8% q-o-q. A significant drop was recorded within low-end and high-end segments. OUTLOOK Apartment market in Hanoi is expected to bear an additional of more than 12, units in 2H 212 with low-end segment represents 5% of the total new supply. High-end segment will dominate the market in the next two years, accounting for 48% of the new supply. Majority of the new stock will come from Ha Dong, Cau Giay, Long Bien and other emerging districts such as Hoai Duc, Dan Phuong. Source: Colliers International P2 COLLIERS INTERNATIONAL 1

12 RESEARCH & FORECAST REPORT 2Q 212 VIETNAM 522 offices in 62 countries on 6 continents United States : 147 Canada : 39 Latin America : 19 Asia Pacific: 21 EMEA : 118 With more than 1 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 and geographical locations > Market analysis, development recommendation, pricing and marketing strategy COLLIERS INTERNATIONAL HOCHIMINH Bitexco Building, 7th Fl, Nguyen Hue, District 1, HCM City, Vietnam Tel: HANOI Capital Tower, 1th Fl, 19 Tran Hung Dao Street, Hoan Kiem District, Hanoi, Vietnam Tel: Valuation & Advisory Services > Valuations for land, existing property or development sites > Feasibility study to determine NPV, IRR and highest & best use Office Services > Tenant Representation > Landlord Representation Residential Sales & Leasing Retail Services For further details, please contact: Renee Kha National Associate Director Research & Advisory Services Tel Mobile: renee.kha@colliers.com Investment Services Real Estate Management Services Corporate Services This document/ has been prepared by Colliers International for advertising Industrial Leasing The foundation of our services is the strength and depth of our experience.