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

Transcription

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

2 TABLE OF CONTENTS HCMC CBD MARKET REPORT AUGUST 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 AUGUST 2014 COMMERCIAL OFFICE MARKET Market Performance In July, office market in District 1 experienced flat performance as previous month. Grade A buildings witnessed a slight decrease of average NORTHERN CBD asking rent while occupancy rate lifted up 1% m-o-m. CITY CENTRAL At the same time, most Grade B developments saw an upward month with moderate growth in both median rental and occupied spaces. During reviewed month, we noticed an increasing gap between effective and asking rent, especially from landlords of Grade B office buildings. Though being under pressure of lease out vacant areas, they also struggle to retain price strategy on market practices. Grade AAR Occupancy rate Supply A B B B B SOUTHERN CBD FINANCIAL HUB Outlook In the near future, District 1 will still be a sought-after destination for tenants who seek for premium office spaces to either set up or expand their business. However, we predict a trend of moving out the downtown with the completion of buildings with high specifications including Lim Tower 2 (District 3), SSG Tower (Binh Thanh District) and Viettel Office and Trade Center (District 10). Landlords is expected to be more flexible in offers in order to push their leasing activity as well as fulfill vacant spaces before a pipeline of new buildings in CBD come online next year. CBD OFFICE MARKET PERFORMANCE, AUGUST 2014 CBD OFFICE RENTAL GROWTH, AUGUST 2014 P.2 Colliers International

5 AUGUST 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, % 23.5 * US$/ sq m/ month (on net area) P.3 Colliers International

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

7 AUGUST 2014 RETAIL MARKET Market Performance The CBD retail market segment was almost flat during reviewed PHASE 2 OF SAIGON CENTRE PROJECT UNDER CONSTRUCTION month. All three CBD retail market sectors retained stable average rental rates since May Retail podium recorded unchanged figures of vacancy rate in July. The department store still enjoyed fully occcupied condition while shopping center saw a gain in occupancy rate after two consecutive decreasing month. SC Vivocity (District 7), Vietttel Complex (District 10), Lim Tower 2 (District 3) and SSG Tower (Binh Thanh) are projects in CBD fringe areas with retail components expected to complete next year while Phase 2 of Saigon Centre is the only active retail developments in CBD. RETAIL & SERVICE REVENUE GROWTH, AUG 2014 Outlook Total retail sales of goods and service revenue were estimated to reach US$2.60 billion in July, 2.7% higher than the previous month and 14.2% year on year increase. Although a gain in gasoline price in June and July have raised transportation fee and prices of several commodities up, CPI figure of HCMC lightly rise 0.12% over the last month. In brief, the city authority inform endeavors to control market prices and curb inflation from now till the year-end. Source: GSO, Colliers International RETAIL PODIUM MARKET PERFORMANCE, AUG 2014 SHOPPING CENTER MARKET PERFORMANCE, AUG 2014 P.5 Colliers International

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

9 KUMHO AUGUST MONTHLY 2014 RETAIL MARKET MARKET REPORT No Name of Project / Building Address Location Completion Year NLA (sq m) HCMC CBD MARKET REPORT 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, % AUGUST 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 % Star 3,633 66% Continental Saigon Dong Khoi District % 76 2 Norfolk Hotel Le Thanh Ton District % 87 3 Duxton 63 Nguyen Hue District % 79 4 Royal City 133 Nguyen Hue District % 59 5 Palace Saigon Nguyen Hue District % 65 6 Oscar 68A Nguyen Hue District % 40 7 Liberty Central 179 Le Thanh Ton District % 74 8 Grand 08 Dong Khoi District % 77 9 Liberty Central Riverside 17 Ton Duc Thang District % 75 4 Star 1,161 73% 68.9 P.7 Colliers International

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

11 AUGUST 2014 HOTEL MARKET Hotel Market Overview NUMBER OF INTERNATIONAL VISITORS TO HCMC, AUG 2014 The number of foreign tourists to Vietnam rebounded in July after two consecutive months of decrease, estimating at 564,736. Tourists visiting Vietnam for travel and recreation reached nearly 2.93 million, while 816,000 travelers came for business purposes, and other 836,000 arrivals arrived to visit relatives. HCMC welcomed more than 2.3 million visitors in the first seven months of this year, increasing by 9.1% y-o-y. Total revenue from tourism activities reached 51,965 billion, up 8.5% over the same period. Source: Statistical Office in HCMC, Colliers International Because of the East Sea tension, the growth rate of international tourists to HCMC still weaken. However, the cooperation between hotel owners, tourism agencies and local government is expected to enhance performance of the city s tourism industry. HCMC Tourism Association has launched a domestic tourism promotion program signed with two local carriers, Vietnam Airlines and VietJet Air. Under the program, the national flag carrier Vietnam Airlines will offer a ticket discount of 32% to 70% while lowcost VietJet Air will cut down 49% to 90% on all domestic flights from and to the city. The hotel operators also activated a variety of summer promotions as well as incentives offers to guests. Outlook LAVENUE CROWN, A FUTURE LUXURY HOTEL IN DOWNTOWN Both 5-star and 4-star hotel sectors witnessed an increase of median occupancy rate and room rate after three continuous declining months. Although the growth rate was lower in compared to same period last year, it still show a significant improvement as well as positive market responce regarding recent efforts from operators. In the short-term time, HCMC will focus on domestic tourism stimulus and accelerate tourism promotions in other countries. Regarding future supply, Lavenue Crown will possibly be the next 5-star hotel development in city center. Given the premium location, it is expected to put competitive pressure on existing top-graded hotels in town. P.9 Colliers International

12 AUGUST 2014 HOTEL MARKET Market Performance HCMC HOTEL FUTURE SUPPLY IN YEAR OF COMPLETION Top-graded hotel developments in HCMC experienced upward trend during July. Last month, the 5-star sector saw a growth rate of 2% in both occupancy rate and average rate. Likewise, the 4-star hotels also recorded a moderate increase in occupancy figure and 6% gain of room rate. Source: Statistical Office in HCMC, Colliers International PERFORMANCE OF 5-STARS HOTEL, AUGUST 2014 PERFORMANCE OF 4-STARS HOTEL, AUGUST 2014 AUGUST 2014 SERVICED APARTMENT MARKET Market Performance NEW PEARL DISTRICT 3 Top-graded serviced apartments in CBD area saw a gain in occupancy rate in July. Grade A buildings retained unchanged asking rent while that of Grade B marginally decline to US$26.7 per sq.m per month. Outlook We noticed a new trend of refunction condominium to serviced apartment development in recent months. The New Pearl in District 3 is the latest condominium project informed to be completed by 3Q 2015 with 160 serviced flats after a prolonged delay in construction. Some condominium projects in CBD fringe are refunctioned to serviced apartment developments Source: Public Domain P.10 Colliers International

13 AUGUST 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview GRADE A CBD SERVICED APARTMENTS PERFORMANCE GRADE B CBD SERVICED APARTMENTS PERFORMANCE AUGUST 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 % 30 6 Ben Thanh Luxury Ky Con District % 18 7 Vincom Center 72 Le Thanh Ton District % 25 8 Lafayette De Saigon 08 Phung Khac Khoan District % 30 9 Spring Court 1Bis Phung Khac Khoan District % Nikko Saigon 235 Nguyen Van Cu District % Saigon City Residence 8A/3D2 Thai Van Lung District % 30 * US$/sq m/month ** Not including VAT Grade B % 27 *** Buildings are sorted by Year of Completion P.11 Colliers International

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

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