VIỆT NAM DƯỚI GÓC NHÌN QUỐC TẾ

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2 VIỆT NAM DƯỚI GÓC NHÌN QUỐC TẾ 2 CBRE MARKET INSIGHTS Q1 2017

3 VIETNAM IN THE FOREIGN PRESS 3 CBRE MARKET INSIGHTS Q1 2017

4 FREE TRADE AGREEMENTS 4 CBRE MARKET INSIGHTS Q1 2017

5 FDI Stable flow of FDI into Real Estate 75% Vietnam Registered FDI in 3M 2017: USD7.7 billion, up 77.6% y-o-y % 4% 7% 4% 3M % Manufacturing Real Estate Retail, Vehicle Sales Others FDI to Vietnam compared to selected SEA countries 2016 (US$ billion) Vietnam Malaysia Thailand Singapore Indonesia Source: Trading Economics, Rappler, MPI Top FDI Investors, USD million, 3M 2017 Major FDI projects in 3M 2017 Japan Taiwan China Singapore South Korea , 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. Source: Vietnamese General Statistics Office. 5 CBRE MARKET INSIGHTS Q1 2017

6 INCREASING FDI FROM CHINA FDI from China, as Percentage of Vietnam s Total FDI FDI from China, US$ million, % 10% 8% 6% 4% 2% 0% Thailand Myanmar Malaysia Vietnam Singapore M 2017 FDI from China (% of Total FDI) - 5,000 10,000 15,000 Source: Ministry of Planning and Investment Source: Ministry of Planning and Investment, Department of Statistics, Bank of Thailand, Bank Negara Malaysia, 6 CBRE MARKET INSIGHTS Q1 2017

7 DASHBOARD PRODUCED MONTHLY ECONOMIC INDICATORS 2Y 1Y 6M 3M 1M Current BANKING & FINANCE 2Y 1Y 6M 3M 1M Current VN-Index CPI (%) y-o-y USD/VND (inter-bank) 21,458 22,300 21,949 22,232 22,232 22,252 Trade balance (US$, bil) Retail & services Turnover (VND, tril) (1.0) (0.4) (0.1) (1.2) Local gold (VND mil/tael) 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% Source: GSO, Feb, 2017 Source: GSO, SBV, SJC & HSX, Mar, 2017 REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current CONDO NEW LAUNCH 2Y 1Y 6M 3M 1M Current Real Estate Holding & Development Listed Companies HCMC New launches (unit) 70,705 35,780 16,285 8,316 3,199 2,890 Real Estate Services Listed Companies HN New launches (unit) 51,851 30,760 19,223 11,526 5,814 2,814 Source: Stockbiz, Mar 2017 Source: CBRE, Mar, 2017 (*) 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. 7 CBRE MARKET INSIGHTS Q1 2017

8 Percentage change Percentage change BCI NUMBERS Projects under construction, y-o-y change All future projects ( ), y-o-y change 400% 300% 200% 100% 2017 YTD vs vs % 300% 200% 100% 2017 YTD vs vs % 0% -100% HCMC Hanoi Da Nang Can Tho Khanh Hoa Vung Tau Hai Phong -100% HCMC Hanoi Da Nang Can Tho Khanh Hoa Vung Tau Hai Phong Projects Under Construction HCMC Hanoi Da Nang Can Tho Nha Trang Vung Tau Hai Phong All Future Projects ( ) HCMC Hanoi Da Nang Can Tho Nha Trang Vung Tau Hai Phong Office Retail Office Retail Hospitality and SA Hospitality and SA Residential Total Source: CBRE Vietnam, March Residential Total Source: CBRE Vietnam, March CBRE MARKET INSIGHTS Q1 2017

9 Interest rate (%) INTEREST RATES Interest rates start picking up M 2017 Source: Vietnamese General Statistics Office, Commercial banks, SBV. Average CPI (y-o-y) Lending rate Deposit rate Bank Deposit Rate as of 2016 (12 months) Deposit Rate as of Mar.2017 VPBank 6.8% 7.5%-9.1% (*) Sacombank 6.8% % (*) Eximbank 6.5% 7-7.3%(*) (*) depend on terms, payment terms, etc. 9 CBRE MARKET INSIGHTS Q1 2017

10 Index INVESTMENT CHANNELS Return from Different Asset Classes Mar Feb Jan Dec Nov Oct Sep Aug July June May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun % y-o-y US$ 22,800 2% y-o-y VND 36.7 mil. 10% y-o-y VN-Index Local Gold USD/VND Source: Vietnamese General Statistics Office, FTP Securities, SJC. 10 CBRE MARKET INSIGHTS Q1 2017

11 VIETNAM STOCK MARKET Regional view 11 CBRE MARKET INSIGHTS Q1 2017

12 WHERE THE MONEY GOES 12 CBRE MARKET INSIGHTS Q1 2017

13 WHAT SHAPES OUR LIVES Population of 65+ as Percentage of Total Population, by Year 20% 15% 10% 5% 0% Thailand Vietnam Malaysia Philippines Cambodia Source: United Nation CBRE MARKET INSIGHTS Q1 2017

14 SIDEWALK CLEARING For Better or Worse? 14 CBRE MARKET INSIGHTS Q1 2017

15 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 15 CBRE MARKET INSIGHTS Q1 2017

16 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 : Unhealthy for sensitive groups AQI : Moderate AQI : Unhealthy for all Source: U.S. Environmental Protection Agency 16 CBRE MARKET INSIGHTS Q1 2017

17 17 CBRE MARKET INSIGHTS Q1 2017

18 INFRASTRUCTURE 18 CBRE MARKET INSIGHTS Q1 2017

19 CITY INFRASTRUCTURE Elsewhere in the region Jakarta, Indonesia Manila, Philippines Bangkok, Thailand 19 CBRE MARKET INSIGHTS Q1 2017

20 CITY INFRASTRUCTURE HCMC: Flooding Continues to be a Challenge 2/2/ /3/2017 Nguyen Huu Canh Street, Binh Thanh District Song Hanh Street, District 12 Vo Van Ngan Street, Thu Duc District Ba Huyen Thanh Quan Street, District 3 20 CBRE MARKET INSIGHTS Q1 2017

21 New Projects To Solve Infrastructure Issues: Flooding And Traffic Congestion Hiep Phuoc Station 66km embankment Bach Dang Station Electric bus Water bus Lo Gom Station 21 CBRE MARKET INSIGHTS Q1 2017

22 SOLVING CONGESTION PROBLEM Bridges, Underpasses, Overpasses HCMC Nguyen Van Cu Bridge connection line 2017 Overpass Truong Son Tan Son Nhat airport Overpass Nguyen Kiem Nguyen Thai Son Nguyen Tri Phuong Bridge connection line CBRE MARKET INSIGHTS Q1 2017

23 AND HANOI Under-planning overpass Completed overpass Vinh Tuy Co Linh Overpass Opening: 9 Mar CBRE MARKET INSIGHTS Q1 2017

24 EXTEND AND UPGRADE Infrastructure improvement quickens in the increasingly busy West Extended Hoang Quoc Viet & Nguyen Co Thach Road Extended Hoang Quoc Viet 1 2 Xuan Thuy Dien Section 1 Residential project Source: CBRE Vietnam, News.zing.vn Schools & Uni Metro line No.3 Nhon Hanoi Raiway Extending Upgrading Ho Tung Mau Le Duc Tho 2 24 CBRE MARKET INSIGHTS Q1 2017

25 METRO LINE: FIRST LINE SET TO OPEN THIS YEAR Noi Bai Airport Metro Line No.2A (Cat Linh Ha Dong) 90% completed - To be opened this year Me Linh Cat Linh - MIDTOWN La Thanh Thai Ha 2A Lang Ba Vi Me Linh Lien Ha Nhon 4 National University Ha Dong Thuong Dinh Station La Khe 5 Trôi 8 Son Dong 3 Ga Hà Nội Cát Linh 3 1 Yen Vien Van Khe Ha Dong Ga Hà Đông (Mới) Tây Nam Nhu Quynh Ring Road No.3 Thanh Xuan 3 2A 1 Yen So 8 Duong Xa Under Planning Under Construction Ha Dong Ngoc Hoi Under Construction About to be opened 25 CBRE MARKET INSIGHTS Q1 2017

26 INFRASTRUCTURE HCMC: Thu Thiem Updates CBRE MARKET INSIGHTS Q1 2017

27 TOWNSHIPS HCMC: Greater in both quantity and scale Phu My Hung 750ha Phu My Hung 750ha Dong Tang Long 160ha Phu My Hung Dong Tang Long Cat Lai Harbor City Saigon Sport City GS Metro City D.7 D.7 D.9 Cat Lai 153 ha Harbor City 50 ha D.2 64 ha VinCity Nha Be 349 ha Vinhomes Can Gio D.2 D.8 D ha Can Gio 1,121 ha Saigon New City Saigon Marina City Township Criteria Project scale: over 50ha Social infrastructure such as School, Hospital, Clear master plan Cu Chi 15,000 ha Saigon Peninsula Can Gio 1,430 ha 27 CBRE MARKET INSIGHTS Q D ha

28 Tay Ho TOWNSHIPS Hanoi: Stronger focus on product offerings Ciputra 332ha Linh Dam 200ha Ciputra 332ha Geleximco 135ha Vinhomes Riverside 50 ha Long Bien Linh Dam 200ha Van Phu 94ha Park City 77ha Ha Dong CIputra Geleximco Park City Gamuda Hoang Mai 160ha The Manor Central Park Linh Dam Van Phu Vinhomes Riverside Ecopark Tay Ho ha Starlake Hoang Mai Geleximco 135ha Ecopark 499 ha Gamuda 500ha Ha Dong Van Phu 94ha Hung Yen Hoang Mai Township Criteria Project scale: over 50ha Social infrastructure such as School, Hospital, Clear master plan Gia Lam 300 ha Vin City Hung Yen 500 ha Ha Dong 28 CBRE MARKET INSIGHTS Q1 2017

29 HCMC 20 GOLDEN SITES 6 Under Construction 16 SJC VINHOMES GOLDEN RIVER LAVENUE CROWN SAIGON MELINH TOWER THE SPIRIT OF SAIGON TAX PLAZA 29 CBRE MARKET INSIGHTS Q1 2017

30 HANOI CBD CBRE GOLDEN SITES Under construction and Under planning FOUR SEASONS HANOI 11 ORIENTAL SUN TOWER UNDER PLANNING 1 D. San Raffles HANOI APARTMENT CENTRE Hai Ba Trung 3 Le Phung Hieu 4 TNR Tower Hang Bai Hang Bai 7 94 Lo Duc PARK HYATT HANOI 8 Corner of Hang Bai and Ly Thuong Kiet Str. 7 UNDER CONSTRUCTION SUN GRAND CITY ANCORA Source: CBRE Vietnam. 30 CBRE MARKET INSIGHTS Q1 2017

31 LEGAL UPDATES 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 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. 31 CBRE MARKET INSIGHTS Q1 2017

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34 INVESTMENT Development Sites Commercial CapitaLand Site at Vinhomes Golden River Transaction date December 2016 Type Land area GFA Retail, Office 6,042 sm 106,853 sm Plot ratio 17.7 Price psm (on land) TBC 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. Price psm (on GFA) Seller Buyer TBC Vingroup CapitaLand Source: CBRE Vietnam, Q 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 34 without prior written permission of CBRE. CBRE MARKET INSIGHTS Q1 2017

35 INVESTMENT Development Sites Commercial 23 Le Duan Site in Ha Dong Dis. Lotte/Ciputra Mall City HCMC Hanoi Hanoi Transaction date January 2017 January 2017 N/A Type Commercial 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 (auction price) N/A N/A Seller Government land allocation via auction BIM Group UDIC Buyer Tan Hoang Minh Aeon Mall Lotte Group Source: CBRE Vietnam, Q 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 35 without prior written permission of CBRE. CBRE MARKET INSIGHTS Q1 2017

36 INVESTMENT Development Sites Residential CII Plots in Thu Thiem D1mension G Thao Dien City HCMC HCMC HCMC Transaction date March 2017 September 2016 June 2016 Type Residential 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 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 CapitaLand JV of Frasers CentrePoint & An Duong Thao Dien Source: CBRE Vietnam, Q 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 36 its accuracy and completeness. This information is presented CBRE MARKET exclusively INSIGHTS for use by Q1 CBRE 2017 clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

37 INVESTMENT Income Producing Assets Le Meridien (office component) Continental Tower formerly Fideco Tower Kumho Asiana Complex A&B Tower City HCMC HCMC HCMC HCMC Transaction date Q Q June 2016 Q Type Office Office Hotel, 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 Price psm (on land) Price psm (on GFA) TBC TBC TBC TBC TBC TBC TBC TBC Seller Tien Phuoc Fideco Land Kumho Asiana Buyer Mitsubishi Estates TBC Mapletree Investment A&B Development Source: CBRE Vietnam, Q 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 37 its accuracy and completeness. This information CBRE is presented MARKET exclusively INSIGHTS for use Q1 by 2017 CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. Fujita

38 INVESTMENT Income Producing Assets Sedona Suites Hanoi IRT Da Nang Capital Tower International Centre City Hanoi Da Nang Hanoi Hanoi Transaction date Q Q 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 Price psm (on land) Price psm (on GFA) TBC TBC TBC TBC 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, Q Information contained herein, including projections, has been obtained from sources believed 38 to be reliable. While we do not doubt its accuracy, CBRE we have MARKET not verified INSIGHTS it and make Q 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 INVESTMENT The Real Estate Developers that Own Nguyen Hue Van Thinh Phat Saigontourist Tai Nguyen Sunwah Group BIDV Satra Source: Zing.vn Union Square Plot Le Loi-Nguyen Hue- Dong Khoi-Nguyen Thiep Palace Saigon Times Square Vinatex Tai Nguyen Majestic Duxton Plot Nguyen Hue-Ngo Duc Ke-Ho Tung Mau-Huynh Thuc Khang Sunwah Tower BIDV Tower Kim Do Hotel Satra Tax Plaza Rex Hotel 39 CBRE MARKET INSIGHTS Q1 2017

40 4 core districts (*) Thanh Xuan Cau Giay Tay Ho Ha Dong Hoang Mai Long Bien Tu Liem (**) District 1 District 2 (lowrise & mixed use) District 3 District 4 District 5 District 7 District 8 Binh Thanh District District 9 (Phuoc Long, Phu Huu)* Price per sqm GFA (US$/sm GFA) Price per sqm GFA (US$/sm GFA) INVESTMENT Land Price Hanoi HCMC 3,000 2,500 2,000 1,500 1,000 3,000 2,500 2,000 1,500 1, Q 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, 40 location, clear legal status and other restrictions. CBRE CBRE MARKET does not INSIGHTS accept any Q1 liability 2017 under any cause of action including negligence for any loss arising from use of or reliance upon this information.

41 INVESTMENT Higher interest for Vietnam thanks to strong macro fundamentals and higher initial yields Preferred Markets for Investment (cross-border* only) 35% Higher Interest Lower Interest 30% 25% 20% 15% 10% 5% 0% Australia Vietnam Singapore India Hong Kong Indonesia Japan China South Korea Philippines (*) Cross border refers to respondents domiciled in the different country as the most attractive destination selected Source: CBRE Asia Pacific Investor Intentions Survey 2015, 2016 and CBRE MARKET INSIGHTS Q1 2017

42 % of respondents INVESTMENT Preferred Sectors for Investment Preferred Sectors for Investment 40% 35% % 25% 20% 15% 10% 5% 0% Office Logistics & Industrial Retail Multifamily / Leased residential Hotels / Resorts Source: CBRE Asia Pacific Investor Intentions Survey 2015, 2016 and CBRE MARKET INSIGHTS Q1 2017

43 INVESTMENT Preferred Alternative Sectors for Investment Real estate debt Single family residential Leisure / Entertainment Not invested, but actively looking for exposure Already invested Infrastructure Student living Data centre Automotive / Car parks Retirement living / Senior housing Healthcare Self-storage Property Companies: 47% ; Funds: 27% SWIPe: 13% Funds: 33% ; Property Companies: 31% SWIPe: 16% 0% 5% 10% 15% 20% 25% High New Interest Source: CBRE Asia Pacific Investor Intentions Survey 2015, 2016 and CBRE MARKET INSIGHTS Q1 2017

44 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 Q CBRE MARKET INSIGHTS Q1 2017

45 45 CBRE MARKET INSIGHTS Q1 2017

46 VIETNAM HOSPITALITY What s happening Record number of international visitors to Vietnam in the first 2 months of 2017 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. 46 CBRE MARKET INSIGHTS Q1 2017

47 Units SECOND HOME MARKET 6,000 5,000 4,000 Sales and New Launches, Condotel 3,000 2,000 1,000 0 New launches Sale Volume New launches Sale Volume New launches Sale Volume Q Da Nang Nha Trang Phu Quoc Some newly launched projects in Q 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 Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

48 DA NANG Fast Progress International Flights to Da Nang China (12 cities) South Korea (2 cities) Laos (2 cities) Hong Kong Japan Thailand DA NANG Cambodia Malaysia Singapore Since 2017, Da Nang will organize International Fireworks Festival annually. It expects the first flight on May 8, and there will be preparations to 48 CBRE MARKET INSIGHTS Q welcome delegations to the APEC Economic Leaders Week in Nov.

49 DA NANG Five-star resorts in Da Nang InterContinental Sun Peninsula Premier Village Pullman Furama Fusion Maia Olalani Crown Plaza Hyatt Regency Vinpearl Master plan approved for developing Son Tra into a national-level tourism area VS. Pulchra Sheraton (under const.) Nam Phat (under const.) Naman Retreat Oversupply concern in Da Nang s hotel market? 49 CBRE MARKET INSIGHTS Q1 2017

50 Tourist arrivals (thousand people) HOSPITALITY SAPA Boom in infrastructure and tourism development Hanoi Lao Cai Highway 245km Fansipan Cable Car BRT Hanoi Lao Cai Opening: Sep 2014 Travelling time: 7h 3.5h Opening: Feb 2016 Travelling time: 48h 30 mins Opening: Jan 2017 Travelling time: 3h45min Tourist arrivals to Sapa Total estimated capital: VND3,500 billion No. of passengers/year 560,000 1,585,000 Tons of goods/year 600 2,880 4,000 3,500 3,000 2,500 2,000 1,500 1, F 2020F 2030F International tourists Domestic tourists 50 CBRE MARKET INSIGHTS Q1 2017

51 The most common accommodation HOSPITALITY SAPA An emerging resort hub BEFORE 2016 FROM 2016 ONWARDS Homestay Motels 5-star hotel - MGallery 5-star hotel of CTX 2-3 star hotels NO 5-star Hotel Sapa Jade Hill Resort 4-star hotel, Sapa Indochina International 51 CBRE MARKET INSIGHTS Q1 2017

52 52 CBRE MARKET INSIGHTS Q1 2017

53 OFFICE Market Snapshot Q HCMC HANOI Grade A No new supply US$37.0 psm pm 6.4% vacancy +3.6% y-o-y +1.9 ppts y-o-y +1.2% q-o-q -1.7ppts y-o-y No new supply US$29.4 psm pm 13.2% vacancy +4.6% y-o-y +3.3% q-o-q -8.8ppts y-o-y -2.6ppts q-o-q 5,404 sm NLA new supply 8,385 sm NLA new supply Grade B US$22.0 psm pm +11.5% y-o-y +4.8% q-o-q US$17.8 psm pm +0.7% y-o-y +0.2% q-o-q 2.6% vacancy -1.7ppts y-o-y +0.2ppt q-o-q 16.4% vacancy +7.3 ppts y-o-y +0.2ppt 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 Grade A performed well with increase rents and lower vacancy Higher vacancy rate of Grade B since new supply continue to enter market. 53 CBRE MARKET INSIGHTS Q1 2017

54 Asking Rents (US$/sm/month) Vacancy (%) Asking Rents (US$/sm/motnh) Vacancy (%) OFFICE Rents and Vacancy HCMC HANOI 40 40% 40 40% 35 35% 35 35% 30 30% 30 30% 25 25% 25 25% 20 20% 20 20% 15 15% 15 15% 10 10% 10 10% 5 5% 5 5% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0% Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

55 NLA (sm) NLA (sm) OFFICE Net Absorption HCMC HANOI 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, ,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Grade A Grade B 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Grade A Grade B Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

56 Rents (US$ psm pm) Rent (US$ psm pm) OFFICE Grade A Case Study (*): Rental Rates through 10 years HCMC Hanoi (*) Selected Rents of a Building in CBD recorded at Q1 56 of each year, Rents include Serviced Charge, CBRE exclude MARKET VAT INSIGHTS Q Source: CBRE Vietnam, Q

57 HANOI HCMC OFFICE Demand Largely From Relocation And Expansion 2016 Q % New-to-market letting 9% HANOI Demand remains strong in traditional sectors Relocation & Expansion 75% 91% Manufacturing 27% 16% 18% Finance and Banking 12% - 7% IT/Technology 15% - 12% New-to-market letting Relocation & Expansion 84% 82% HCMC The surge of IT and Logistics Logistics 12% Source: based on CBRE s enquiries, 2017 y-t-d 57 CBRE MARKET INSIGHTS Q1 2017

58 OFFICE Higher Demand for Large Floor Plate HCMC Q % 45% 17% 14% 19% % 45% 18% 10% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% <100sm 100sm - 299sm 300sm - 699sm 700sm - 1,000 sm >1,000 sm Hanoi Q % 34% 21% 14% 10% % 47% 16% 5% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% <100sm 100sm - 299sm 300sm - 699sm 700sm - 1,000 sm >1,000 sm Source: based on CBRE s enquiries, 2017 y-t-d 58 CBRE MARKET INSIGHTS Q1 2017

59 HCMC OFFICE Future Supply 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 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 CBRE MARKET INSIGHTS Q1 2017

60 HANOI OFFICE Future Supply 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 Vietinbank Tower, Tay Ho GFA: 100,000 sm 2. FLC Twin Tower, Cau Giay - GFA: 35, Oriental Sun Tower, Hoan Kiem GFA: 23,300 sm 4. Eurowindows, Dong Da GFA: 16,592 sm 5. Office building at Metropolis, Ba Dinh Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

61 OFFICE Supply Trend: Co-Working Space Still Expanding in Vietnam Dreamplex to open second coworking space Dreamplex 2 Grand Opening on 2nd March, 2017 Toong at the Oxygen Opening on 25 th March, 2017 Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

62 OFFICE. And also APAC 62 CBRE MARKET INSIGHTS Q1 2017

63 OFFICE Market Cycle Bangkok High Confidence HongKong More Buyers than Sellers Boom Slow Down Over-Supply Landlord s Market HCMC Rent Increase Improving Fundamentals Recovery Falling market Rent Reduce More Sellers than Buyers Tenant s Market Jakarta Hanoi Lack of Confidence Singapore Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

64 64 CBRE MARKET INSIGHTS Q1 2017

65 RETAIL Market Snapshot Q HCMC HANOI 17,500 sm new supply No new supply US$55.8 psm pm +0.6% y-o-y +10.2% q-o-q US$33.0 psm pm +0.1% y-o-y -9.2% q-o-q 8.0% vacancy +1.1ppts y-o-y -2.6ppts q-o-q 10.6% vacancy +5.4ppts y-o-y -2.2ppts 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 Quiet quarter with no new supply. Rental rate remained stable since the previous quarter. Non-CBD continues to be future trend for coming projects. 65 CBRE MARKET INSIGHTS Q1 2017

66 YTD YTD NLA, sm RETAIL Slight increase in supply HCMC HANOI 300, , , , ,000 50, s pipeline >125,000 sm CBD Premium Home 4,000 sm of Snow Town@CBD Premium Home District 2 Sense Market 23/9 1,500 sm NLA retail District 1 Q4 Q3 Q2 Q1 - No New Supply Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

67 Asking Rents (US$/sm/month) Vacancy Rate (%) Asking Rents (US$/sm/month) Vacancy Rate (%) RETAIL Vacancy Rate Increases while Rental stays flat HCMC HANOI % % % % 80 30% 80 30% 40 15% 40 15% 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0% Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

68 RETAIL HCMC Future Supply 3 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 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 4 3 Source: CBRE Vietnam, REIC CBRE MARKET INSIGHTS Q

69 RETAIL Hanoi Future Supply 1. Artemis Shopping Center, Thanh Xuan 27,000 sm 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 Lotte Mall, Tay Ho 130,000 sm 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 3 2 Source: CBRE Vietnam, REIC. 69 CBRE MARKET INSIGHTS Q

70 RETAIL To Make an Attractive Sidewalk More pedestrians streets under planning Sidewalks being cleared in both cities Thu Thiem Square Bui Vien 2 nd walking street And the creative solution. 70 CBRE MARKET INSIGHTS Q Source: Project for Public Spaces

71 RETAIL New Retail Areas The underground is now a thing New comers Ly Tu Trong Str., HCMC Sense Market 23/9, HCMC Royal City, Hanoi Times City, Hanoi Vincom Plaza, Hanoi 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 71 CBRE MARKET INSIGHTS Q Number of stores nationwide

72 DEMAND Vietnamese millennials: Shaping trends CBRE ASIA PACIFIC F&B the relentless battle Asia Pacific Millennials: Shaping the future of real estate Cinemas the rising star CGV Lotte Cinema Platinum Galaxy BHD Others Source: KDB Daewoo Source: CBRE Asia Pacific. 72 CBRE MARKET INSIGHTS Q1 2017

73 RETAIL Market Cycle Bangkok High Confidence More Buyers than Sellers Boom Slow Down Over-Supply Landlord s Market HCMC Rent Increase Improving Fundamentals Recovery Falling market Rent Reduce More Sellers than Buyers Tenant s Market Jakarta HongKong Lack of Confidence Singapore Hanoi Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

74 74 CBRE MARKET INSIGHTS Q1 2017

75 SERVICED APARTMENT Market Snapshot Q HCMC HANOI No new supply No new supply Grade A US$36.0 psm +8.8% y-o-y +0.8% q-o-q US$31.8 psm +1 % y-o-y +1.3% q-o-q 5.0% vacancy -2.0 ppts y-o-y -0.5ppt q-o-q 9% vacancy -3.1 ppts y-o-y -7.4 ppts q-o-q No new supply No new supply Grade B US$29.7 psm +8.9% y-o-y 0% q-o-q US$21.19 psm -0.2% y-o-y -4.3% q-o-q 9.1% vacancy 0.8 ppt y-o-y -1.9 ppts q-o-q 17% vacancy -2.3 ppts y-o-y +0.4 ppt 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 (nonserviced apartment). Positive sign across all grades as occupancy improved. Rental rate remains relatively stable 75 CBRE MARKET INSIGHTS Q1 2017

76 Units SERVICED APARTMENT Implication for districts only, not exact project location HCMC CBD still in the Limelight HANOI Midtown & North are the hubs No. of Project No. of Project % of total supply (units) 2% 19% 42% 17% 14% 5% % of total supply (units) 19% 9% 32% 27% 9% 4% Occupancy 94% 85% 95% 92% 92% 89% Occupancy 86% 81% 88% 88% 88% 92% 4,000 3,000 2,000 1,000 - Source: CBRE Vietnam, Q HCMC Hanoi Da Nang Q CBRE MARKET INSIGHTS Q1 2017

77 SERVICED APARTMENT Increasing Competition from Buy-to-Let HCMC RENTAL RATE PER SQUARE METRE HANOI RENTAL RATE PER SQUARE METRE BUY-TO-LET RENT SERVICED APARTMENT RENT BUY-TO-LET RENT SERVICED APARTMENT RENT District 1 $19 $34 Tu Liem $8 $24 District 2 $13 $22 Cau Giay $11 $34 District 3 $26 $32 Hoan Kiem $11 $25 District 7 $13 $33 Tay Ho $9 $28 Binh Thanh $15 $20 Ba Dinh $11 $27 * Survey on buy-to-let rent of high-end condominium Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

78 SERVICED APARTMENT Short Term Leases Increase Source: Agoda, retrieved on 16/3/ CBRE MARKET INSIGHTS Q1 2017

79 Asking rent (US$/sm/month) Vacancy rate Asking Rent (US$/sm/month) Vacancy Rate (%) SERVICED APARTMENT HCMC HANOI 40 40% 40 40% 35 35% 35 35% 30 30% 30 30% 25 25% 25 25% 20 20% 20 20% 15 15% 15 15% 10 10% 10 10% 5 5% 5 5% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0% 0 Q1 Q2Q3 Q4Q1 Q2Q3 Q4Q1 Q2Q3Q4Q1 0% Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

80 SERVICED APARTMENT HCMC Future Supply 1. Ascott Waterfront, D1 222 units 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 Mai House, D3 43 units 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 Saigon South Phase 2, D1 243 units Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

81 SERVICED APARTMENT Hanoi Future Supply 2 1. Somerset West Point, Tay Ho 247 units 2. Trang An Complex, Cau Giay 40 units 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 5 3 Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

82 82 CBRE MARKET INSIGHTS Q1 2017

83 83 CBRE MARKET INSIGHTS Q1 2017

84 CONDOMINIUM Market Snapshot Q HCMC HANOI -49% y-o-y +36% y-o-y 5,083 newly launched units -44% q-o-q 9,398 newly launched units +3% q-o-q 6,501 sold units -29% y-o-y -47% q-o-q 6,143 sold units +57% y-o-y -7% q-o-q US$1,595 psm +13% y-o-y +6% q-o-q US$1,263 psm +13% y-o-y -4% q-o-q Moving to Mid-end market: mid-end products accounted for 52% of total launch and 67% of total sales in Q Average primary marketing pricing up by 13% y-o-y mostly due to more expensive projects launched Affordable segment: 19% of new launch in Q up from 7% in Q Average primary marketing pricing up by 13% y-o-y mostly due to more expensive projects launched 84 CBRE MARKET INSIGHTS Q1 2017

85 Units Units CONDOMINIUM New launch: Divergent paths 15,000 10,000 5,000 0 HCMC DECREASE IN NUMBER OF PROJECTS AND UNITS LAUNCHED Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q AND HANOI TO INCREASE Q Average last 4 quarters 21 projects 24 projects 15,000 10,000 5,000 Q Average last 4 quarters 35 projects 24 projects 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

86 CONDOMINIUM Lower-end segments: Continue their expansion Percentage changes of new launch by segment (q-o-q) HCMC HANOI 250% 200% 150% 100% 50% 0% -50% -100% -150% 0% -50% -100% -150% Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

87 No. of Sold Units No. of Sold Units CONDOMINIUM Sold units - Mid-end dominated Q HCMC HANOI 14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 4,000 4,000 2,000 2,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Luxury High-end Mid-end Affordable Luxury High-end Mid-end Affordable Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

88 Primary price (US$ psm) Primary price (US$ psm) CONDOMINIUM Primary pricing $5,000 $4,000 $3,000 $2,000 $1,000 $0 HCMC Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q HANOI $5 000 $4 000 $3 000 $2 000 $1 000 $ 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Luxury High-end Mid-end Affordable Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

89 CONDOMINIUM HCMC Notable Future Supply 1. RichLane Residences, D7 259 units Viet Capital Centre, D1 36 units 3. Sunwah Pearl, Binh Thanh 1,200 units 4. Sensation Capitaland, D2 300 units Waterina, D2 86 units 6. Glenwood Maison, D2 300 units 4 7. Vincity, D9 10,000 units Lavenue Crown, D1 200 units 2. Springlight City, D1 892 units 3. The Spirit of Saigon, D1 495 units 4. NEXUS, D1 300 units Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

90 CONDOMINIUM Hanoi Notable Future Supply 1. Kosmo Tay Ho, Bac Tu Liem 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 Sunshine Center, Nam Tu Liem 8. Vincity, Tu Liem Vinhomes Smart City, Thanh Xuan Aquabay Grand Park, Hung Yen 3. Avenue Park, Long Bien 4. Park City, Ha Dong 5. D'.El Dorado, Tay Ho 4 6. D'. Jardin Royal, Hai Ba Trung 7. Sunshine Boulevard, Thanh Xuan Source: CBRE Vietnam. 90 CBRE MARKET INSIGHTS Q1 2017

91 CONDOMINIUM Disruptive Tech - Added-value Experience For Buyers A New Dimension in Home Buying: Virtual Reality 3D walk-through website 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. 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 CBRE MARKET INSIGHTS Q1 2017

92 CONDOMINIUM Lower-end segments: Wait for a positive change Challenges remain after handover Big developers to join Better quality to come? Source: Images retrieved from the internet 92 CBRE MARKET INSIGHTS Q1 2017

93 CONDOMINIUM East and West Saigon River Vinhomes Central Park VinGroup 11,189 units US$2,010/sm Sold rate: 91% Saigon Pearl SSG 1,507 units US$1,540/sm Sold rate: 100% The Manor Bitexco 1,047 units US$1,630/sm Sold rate: 100% Saigon Blue Moon H.P.C.I. 5,000 units US$ N/A Sold rate: N/A Vinhomes Golden River VinGroup 5,050 units US$4,480/sm Sold rate: 78% Opal Pearl SSG 180 units US$1,869/sm Sold rate: 75% Marina Bay CII N/A units US$ N/A Launched project Future project Thu Thiem Lake View CII N/A units US$ N/A Sunwah Pearl Sunwah Group 1,200 units US$2,550/sm Sold rate: N/A GS Thu Thiem GS E&C N/A units US$ N/A 93 CBRE MARKET INSIGHTS Q1 2017

94 CONDOMINIUM Hanoi: Thanh Xuan and Cau Giay Districts a busy construction site D Capitale 2,500 units $2,114 psm Imperia Garden 2,158 units $1,482 psm Handiresco 336 units $1,313 psm Completed Project Under Construction Future Supply Thanh Xuan Complex 378 units $1,357 psm The Legend 460 units $1,293 psm Thong Nhat Complex 552 units $1,213 psm Gold Season 760 units $1,257 psm Hapulico Complex 800 units $1,353 psm Royal City 4,460 units $1,833 psm Sunshine Boulevard Secondary price psm (excluding VAT) Golden Land 692 units $1,313 psm Vinhomes Smart City 94 CBRE MARKET INSIGHTS Q1 2017

95 CONDOMINIUM CBRE Sales: Bigger in unit sizes By Purpose More end-user Q Q Q Q Q % 20% 40% 60% 80% 100% Buy-to-let Buy-to-gain Owner Occupied By Unit Size sm Q Q Q Q Q % 20% 40% 60% 80% 100% By Location Q Q Q Q Q District 2 0% 20% 40% 60% 80% 100% District 1 District 2 District 3 District 4 District 7 Binh Thanh District By Product Q Q Q Q Q % 20% 40% 60% 80% 100% 1BR 2BR 3BR 4BR * The analysis above is based on CBRE Vietnam s residential closed deals and should not be used as a marketwise benchmark. Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

96 CONDOMINIUM Market Cycle Hanoi & HCMC Bangkok High Confidence Phnom Penh More Buyers than Sellers Boom Slow Down Over-Supply Seller s Market Price Increase Price Reduce Buyer s Market Improving Fundamentals Recovery Falling market More Sellers than Buyers Lack of Confidence Singapore Source: CBRE Vietnam, Q CBRE MARKET INSIGHTS Q1 2017

97 97 CBRE MARKET INSIGHTS Q1 2017

98 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 New Supply (units) HCMC LANDED PROPERTY HCMC: New launches of the East dominated in Q ,500 1, Source: CBRE Vietnam, Q Q Launches 0% Sales 553 q-o-q % y-o-y 18% q-o-q 82% y-o-y 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, Q CBRE MARKET INSIGHTS Q1 2017

99 HCMC LANDED PROPERTY New Launches Thang Long Home Thu Duc River Park Scale: 215 units Primary selling price: 1,500 USD/m2 Valora Kikyo District 9 Scale: 176 units Primary selling price: 1,700 USD/m2 Valencia Riverside Scale: 110 units Primary selling price: 2,200 USD/m2 Merita Khang Dien Scale: 400 units Primary selling price: 1,650 USD/m2 Scale: 131 units Primary selling price: 2,050 USD/m2 District 2 99 CBRE MARKET INSIGHTS Q1 2017

100 Average asking price (US$/sm, on land area) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 HCMC LANDED PROPERTY Stable Selling Price in most areas HCMC: Stable Selling Price in most areas 4,000 3,500 3,000 2,500 2,000 1,500 1,000 Source: CBRE Vietnam, Q District 2 District 9 District 7 Others District 2 District 9 District 7 Others Ready-built Villa/Townhouse (q-o-q) 1-5 % 4-6% 4.7% Flat Land plots (q-o-q) 16-40(*)% *: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 CBRE MARKET INSIGHTS Q1 2017

101 HCMC LANDED PROPERTY Future Supply Offer Wide Choice Of Sizes and Locations 1. Park Riverside Phase 2, District 9 2. LaVila Phase 2, Nha Be District 3. Valora Mizuki, Binh Chanh District 4. Harbour City, District further VinCity, District 9 2. Sala Dai Quang Minh, District 2 3. GS Metro City, Nha Be District 4. Peninsula, District Source: CBRE Vietnam, REIC. 101 CBRE MARKET INSIGHTS Q1 2017

102 Units HANOI LANDED PROPERTY Vibrant launching activities Hanoi: New Supply, 2014 Q ,357 units Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1,238 units Villa Terraced Shophouse Source: CBRE Vietnam, Q Q Launches 1,238 units 628% q-o-q 78% y-o-y 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 102 CBRE MARKET INSIGHTS Q1 2017

103 HANOI LANDED PROPERTY Busy launches Ciputra Zone K Eurowindow River Park Units launched: 161 units Primary price: $5,000 psm Tay Ho District Units launched: 65 units Primary price: $1,532 psm Dreamland Long Bien District Ecopark Marina Arc Units launched: 46 units Primary price: $5,900 psm Tu Liem District Vinhomes Green Bay Vinhomes Riverside Phase 2 The Harmony Units launched: 20 units Primary price: $4,800 psm Units launched: 390 units Primary price: $5,700 psm 1 st launch: 556 units Primary price: $3,000 psm Hung Yen 103 CBRE MARKET INSIGHTS Q1 2017

104 US$ psm HANOI LANDED PROPERTY Secondary pricing up in almost all core urban districts Hanoi: Secondary Price of completed units, 2014 Q ,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: CBRE Vietnam, Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Cau Giay Tu Liem Tay Ho Hoang Mai Ha Dong Long Bien Completed Villa/Townhouse Cau Giay Tu Liem Tay Ho Ha Dong Long Bien Q-o-Q 1.4% 4.6% 7.1% 3.5% 2.2% Y-o-Y 9.2% 10.5% 9.2% 8.6% 3.0% 104 CBRE MARKET INSIGHTS Q1 2017

105 HANOI LANDED PROPERTY Future Supply Q Q Q Ecopark CBD Starlake The Manor Central Park Expected launch: N/A Expected next launch:150 units Lacasta Daewoo Expected launch: ~600 units Splendora Phase 2 Expected launch: 359 units Expected launch: 878 units 105 CBRE MARKET INSIGHTS Q1 2017

106 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. 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. Hanoi: Grade A will perform well since no new supply in 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. 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. The market awaits larger scale projects. Placemaking and experiential retail remain a challenge for existing and future landlords. Intense competition is expected. 106 CBRE MARKET INSIGHTS Q1 2017

107 VIETNAM - THE GREATEST COMEBACK IN REAL ESTATE HISTORY 107 CBRE MARKET INSIGHTS Q1 2017

108 THE WAY AHEAD 108 CBRE MARKET INSIGHTS Q1 2017

109 THE WAY AHEAD 109 CBRE MARKET INSIGHTS Q1 2017

110 AT CBRE, WE LIVE AND BREATHE THE BUSINESS OF REAL ESTATE Every 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 110 CBRE MARKET INSIGHTS Q1 2017

111 Thank You For more information regarding this presentation please contact: CBRE Vietnam Co., Ltd. Research & Consulting T F research.vietnam@cbre.com All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the 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 subscribe for 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 be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorised publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.