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

Transcription

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

2 TABLE OF CONTENTS HCMC CBD MARKET REPORT JULY 2014 Market Highlights Page OFFICE MARKET Market Overview Market Performance Outlook Table RETAIL MARKET Market Overview Market Performance Outlook Table HOTEL MARKET Market Overview Market Performance Outlook Table SERVICED APARTMENT Market Performance Outlook Table CONTACTS

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4 JULY 2014 COMMERCIAL OFFICE MARKET Market Performance Generally, during the first half of this year, CBD office market continues being on the right track with improvements from both Grade A and Grade B buildings NORTHERN CBD compared to recent years. However, reviewed back since the begin of 2014, although CITY CENTRAL the occupancy rate reveal a promising period for the office market, actual fluctuation of the asking rent presented an announcement of fierce competition between landlords throughout the last two quarters. In June, occupancy rate of both Grade A and Grade B in City Central increased slightly, whilst, the rest of Grade B buildings in other sections remained flat. The average rental of Grade A dropped inconsiderably, staying at US$39.8/ sq m/ month. Meanwhile, the monthly rents of Grade B gained US$0.1 to reach US$23/ sq m. Grade AAR Occupancy rate Supply A B B B B SOUTHERN CBD FINANCIAL HUB Outlook In upcoming months, we do not expect significant surge of CBD office market though the sustainable performance will be retained till the end of this year. Given limit available stocks, tenants face challenges in looking for truly premier office space within top-graded buildings in CBD area. This shortage is predicted to last until the second quarter of As a result of that, we also notice activities of en bloc lease for sublease at top-graded developments. Favoured rental and foreseeing of future gain in rents are major principles of this kind of investment. GRADE A OFFICE PERFORMANCE, JULY 2014 GRADE B OFFICE PERFORMANCE, JULY 2014 P.2 Colliers International

5 JULY 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 158, % 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 399, % 23.1 * US$/ sq m/ month (on net area) P.3 Colliers International

6 JULY 2014 CBD OFFICE MAP * US$/ sq m/ month (on net area) P.4 Colliers International

7 JULY 2014 RETAIL MARKET Market Performance VACANT RETAIL SHERATON PODIUM Last month saw a flat period of all three CBD retail market sectors including retail podium, department store and shopping mall. The average rental rate of department store stayed firm at US$82.6 per sm. because of constant occupancy rate. Whereas, shopping center experienced unchanged vacancy rate even though it dropped almost 10% since early of the year. After a lengthened fully-occupied time, we noticed an available space at Sheraton s podium. This lead to a minor drop of 1% in occupancy rate of retail podium segment. Regardless the small area, vacant condition of that premium location somehow reflected difficulties of retailers, especially luxury brands given tighten consumer s spending. Outlook In June, the total retail sales of goods and services reached CPI AND RETAIL - SERVICE REVENUE GROWTH, JULY 2014 VND54,595 billion, rising 2.8% compared to the previous month. The increase of goods was primarily related to necessary items for daily living, including food and home appliances while other expenses are still depressive. Ho Chi Minh City s Consumer Price Index (CPI) saw a monthon-month increase of 0.58% and year-on-year gain of 5.52%. According to the City Statistic Office, rising medical cost at 11.65% mainly attributed to the higher CPI of the city in June. Source: GSO, Colliers International RETAIL PODIUM MARKET PERFORMANCE, JULY 2014 SHOPPING CENTER MARKET PERFORMANCE, JULY 2014 P.5 Colliers International

8 JULY 2014 CBD RETAIL MAP * US$/ sq m/ month (on net area) P.6 Colliers International

9 KUMHO JULY 2014 MONTHLY RETAIL MARKET MARKET REPORT HCMC CBD 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 Kumho Asiana Plaza 35 Le Duan District , % 7 Rex Arcade 141 Nguyen Hue District , % 8 ICON Ngo Duc Ke District , % 9 President Place 93 Nguyen Du District % 10 Times Square Nguyen Hue District , % Retail Podium 29, % 1 Diamond Plaza 34 Le Duan District , % 2 Zen Plaza Nguyen Trai District , % 3 Parkson Saigon Tourist 35 Le Thanh Ton District , % Department Store 30, % 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, % JULY 2014 HOTEL MARKET HCMC CBD MARKET REPORT 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 % 90 5 Star 3,633 66% Continental Saigon Dong Khoi District % 87 2 Norfolk Hotel Le Thanh Ton District % 87 3 Duxton 63 Nguyen Hue District % 80 4 Royal City 133 Nguyen Hue District % 59 5 Palace Saigon Nguyen Hue District % 57 6 Oscar 68A Nguyen Hue District % 40 7 Liberty Central 179 Le Thanh Ton District % 56 8 Grand 08 Dong Khoi District % 77 9 Liberty Central Riverside 17 Ton Duc Thang District % 64 4 Star 1,161 72% 64.4 P.7 Colliers International

10 JULY 2014 CBD HOTEL MAP * US$/ sq m/ month (on net area) P.8 Colliers International

11 JULY 2014 HOTEL MARKET Hotel Market Overview NUMBER OF INTERNATIONAL VISITORS TO HCMC, JULY 2014 During the first six months of this year, Vietnam has welcomed approximately 4.3 million foreign travellers, a year-on-year increase of 21.11%. However, the number of overseas tourists to Vietnam in June decreased 19.94% compared to the previous month and 4.85% against the same period last year. Although June is the third consecutive month from April seeing a decrease in number of overseas tourists to Ho Chi Minh City, the total number of the last 6 months has reached over 2 Source: Statistical Office in HCMC, Colliers International million, a 9% y-o-y growth. The number of Chinese holidaymakers to the city went up 30% in the first four months of 2014, but then fell significantly following the oil rig dispute. There was also a marginal decline from other international markets regarding concerns of socially insecured condition though incidents actually occurred in nearby provinces. Hence, the City Authority has adopted a plan to enhance security at tourism places and provide official information to relevant stakeholders. Moreover, to make up the fall, the local agencies schedule to intensify tourism promotions in major markets including Japan, Korea, Malaysia, Singapore, Russia and other Eastern European nations. Outlook BEN THANH MARKET, A POPULAR-YET-DISINTERESTED SIGHTSEEING OF THE CITY The significant growth of other domestic tourist destinations put a competitive pressure on performance of HCMC hospitality. The launch and increasing number of direct international flights to coastal places including Da Nang, Nha Trang and Phu Quoc have contributed to a weighty fall of foreign visitors to the city as a transit point. Moreover, as a result of unchange in both quality and quantity of sightseeings, the city is no longer a favorited stop. It requires tight collaboration between the City Tourism Agency and hospitality services providers to resolve this foreseen issue. P.9 Colliers International

12 JULY 2014 HOTEL MARKET Market Performance HCMC HOTEL PERFORMANCE BY GRADE, JULY 2014 Last month, the 5-star sector experienced a notable drop in both occupancy rate and average room rate. Meantime, the 4-star hotel sector also recorded a same trend at minor rate due to the off-season as well as the standoff in the East Sea. Source: Statistical Office in HCMC, Colliers International PERFORMANCE OF 5-STARS HOTEL, JULY 2014 PERFORMANCE OF 4-STARS HOTEL, JULY 2014 JULY 2014 SERVICED APARTMENT MARKET Market Performance THE VISTA DISTRICT 2 Both Grade A and B serviced apartments in CBD area retained flat average asking rent during last month. Grade A developments saw a slight gain in occupancy rate to reach 90% while that of Grade B dropped 1% to 79% in June. Outlook Given stable occupancy rate since early of this year, some serviced apartment buildings are under scheduled renovating process in order to optimise the building s value via refurbished rooms and better facilities. Residential apartments for lease remain major competitors to serviced apartment segment at lower rents and flexible choices in size and location. Residential apartments in CBD fringe are preferred alternatives of CBD serviced apartments P.10 Colliers International

13 JULY 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview GRADE A CBD SERVICED APARTMENTS PERFORMANCE GRADE B CBD SERVICED APARTMENTS PERFORMANCE JULY 2014 SERVICED APARTMENT MARKET HCMC CBD MARKET REPORT 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 % 34 3 Sedona Suites 65 Le Loi District % 30 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 % 34 1 Somerset HCM 8A Nguyen Binh Khiem District % 26 2 Saigon Sky Garden 20 Le Thanh Ton District % 26 3 Norfolk Mansion Ly Tu Trong District % 33 4 Diamond Plaza 34 Le Duan District % 29 5 Garden View Court 101 Nguyen Du District % 31 6 Ben Thanh Luxury Ky Con District % 18 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 Grade B % 27 ** Not including VAT *** Buildings are sorted by Year of Completion P.11 Colliers International

14 JULY 2014 CBD SERVICED APARTMENT MAP P.12 Colliers International

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