vietnam quarterly KNOWLEDGE report

Transcription

1 vietnam quarterly KNOWLEDGE report q4 215 Accelerating success

2 Table of Contents Page ECONOMIC OVERVIEW... VIETNAM... HO CHI MINH CITY... HA NOI HO CHI MINH CITY MARKET OVERVIEW... OFFICE... RETAIL... CONDOMINIUM... VILLA & TOWNHOUSE... SERVICED APARTMENT... INDUSTRIAL HA NOI MARKET OVERVIEW... OFFICE... RETAIL... CONDOMINIUM... VILLA & TOWNHOUSE... SERVICED APARTMENT... INDUSTRIAL Cover Page: Saigon Skyline - View from Diamond Plaza s Helipad.

3 LIST OF FIGures Page Figure 1: Vietnam GDP... Figure 2: Interest Rate and Exchange Rate of Vietnam Figure 3: FDI Capital of HCMC and Hanoi... 6 Figure 4: GDP Growth Rate of HCMC and Hanoi... 6 HO CHI MINH CITY MARKET OVERVIEW Figure 5: Office, Average Asking Rent... 7 Figure 6: Office, Occupancy Rate... 7 Figure 7: Retail, Occupancy Rate... 1 Figure 8: Retail, Average Asking Rent... 1 Figure 9: Retail, Supply by District... 1 Figure 1: Condominium, Net Absorption Rate by Segment Figure 11: Condominium, Sale Price in Figure 12: Condominium, Sold Units Figure 13: Villa and Townhouse, Supply by Year Figure 14: Villa and Townhouse, Current Supply by District Figure 15 Villa and Townhouse, Historical Performance Figure 16: Serviced Apartment, Average Asking Rent by Grade Figure 17: Serviced Apartment, Occupancy Rate by Grade Figure 18: Industrial, Supply by District Figure 19: Industrial, Market Performance LIST OF TABLES Table 1: Macroeconomic Indicators of HCMC and Hanoi... 6 Table 2: Office, Occupancy Rate... 7 Table 3: Significant Office Projects... 8 Table 4: Significant Retail Projects Table 5: Condominium, Significant new launched in Q Table 6: Villa and Townhouse Significant new launched in Q Table 7: Serviced Apartment, Significant Future Project under construction Table 8: Significant Serviced Apartment Projects Table 9: Industrial, Future Supply Table 1: HCMC Industrial Market Overview... 19

4 HA NOI MARKET OVERVIEW LIST OF FIGures Page Figure 2: Office, Average Asking Rent... 2 Figure 21: Office, Occupancy Rate... Figure 22: Office, Current Stock Figure 23: Retail, Market Performance Figure 24: Retail, Occupancy Rate Figure 25: Retail, Total Supply Figure 26: Condominium, Changes in Secondary price by Quarter Figure 27: Condominium, Sale by Quarter and Segment Figure 28: Condominium, Launched Supply by Year Figure 29: Villa and Townhouse, Secondary Price by District Figure 3: Villa and Townhouse, Q-o-Q changes in Secondary Price Figure 31: Villa and Townhouse, Supply by Quarter Figure 32: Serviced Apartment, Average Asking Rent by Grade Figure 33: Serviced Apartment, Occupanvy Rate by Grade Figure 34: Serviced Apartment, Supply by Segment Figure 35: Industrial, Market Performance... 3 Figure 36: Industrial, Supply by District... 3 LIST OF TABLES Table 11: Significant Office Projects Table 12: Significant Retail Projects Table 13: Condominium, New Launched in Q Table 14: Villa and Townhouse, New Launched in Q Table 15: Significant Serviced Apartment Projects Table 16: Industrial, Future Supply... 3 Table 17: Hanoi Industrial Market Overview... 31

5 Q4 215 ECONOMIC OVERVIEW VIETNAM GDP Vietnam s GDP has grown 7.1% in Q4-215, a slight increase from 6.87% of the previous quarter. Overall, the nation s GDP growth reached 6.68% y-o-y in 215. This is the highest growth rate that the country has achieved since 28. The three main compositions of the GDP which are agriculture forestry- fishery, industry- construction, services have growth rates of 2.41%, 6,64%, 6,33% y-o-y respectively. Q1 216 forecast CPI Vietnam has managed to improve macroeconomic stability as the Consumer Price Index (CPI) rose.2% in Q In overall, the country has an inflation of.63% in 215 y-o-y (the core inflation is at 2.5%). This is the lowest CPI in the past 14 years. The low CPI was partly contributed by a decrease in energy and commodity prices. A persistent downtrend of oil s price and a stronger dollar which lowers commodity prices will continue to keep inflation low in 216. CPI in 216 is more likely to increase because the government is on track to increase prices of water, electricity, health care services as well as a legal minimum wage from 1/1/216 onwards. FDI There are about 213 new foreign investment projects in Vietnam with total Investment of both newly registered and supplementary capital reaching USD22.67 billion in 215, an increase of 12.5% Y-o-Y. The capital disbursement also hit a record high of USD14.5 billion. Investments in real estate account for 1.5% total capital, which is equivalent to USD2.39 billion. RETAIL SALES Viet Nam s retail sales of goods and services rose 9.5% in 215, reaching USD148 billion. This is the largest increase since 211. Specifically, retail sales of goods, accounting for 76% of the total sales, reached USD112 billion, up 1.6% y-o-y. Retail sales of accommodation and catering services reached USD17 billion, accounting for 11.5% of the total sales, up 5.2%y-o-y. Retails sales of other services which account for 11.4% of total sales, estimated USD16.9 billion, 7% increase y-o-y. INTERNATIONAL ARRIVALS Vietnam welcomed 7.94 million international visitors in 215, a slight reduction of.2% y-o-y. This is the first time since 29 the number of international visitors has gone down. The number of international arrivals in Vietnam is still modest when being compared with other neighbor nations. In 214, Malaysia received 27.4 million arrivals while Thailand saw 24.8 million international visitors. EXCHANGE RATE In Decision No 273/QD-NHNN, dated December 31, 215, the SBV announces that it would set a central exchange rate every day, instead of maintaining a fixed rate for a long period of time. The trading band of the new exchange rate continues to be plus / minus 3%. The USD/VND rate would be based on the exchange rate changes in the inter-bank foreign exchange market, as well as monetary developments in countries that are heavily involved with Viet Nam s trade, investment. This new daily-adjusted rate mechanism is aimed to be harmony with macroeconomic balance and would be the basis for local credit institutions and foreign banks branches to provide their foreign exchange services. Figure 1: Vietnam GDP Figure 2: Interest rate and Exchage rate of Vietnam 8 GDP per capital (nominal) GDP growth rate Interst Rate Exchange Rate 24, % USD/capita % per annum , 2, 18, 16, 14, 12, VND/USD F , Source: World Bank Colliers International Research Source: Asian Development Bank (ADB) Colliers International Research 216 Colliers International Research Page 5

6 Q4 215 ECONOMIC OVERVIEW HO CHI MINH CITY In 215, GDP of Ho Chi Minh City achieved USD43 billion. GDP growth rate rose 9.85% y-o-y which is a high and stable growth rate compared with previous years. GDP per capita of the city increased from USD5,131 in 214 to USD5,538. Over 12 months of 215, CPI went down.2% y-o-y while it grew 1.65% y-o-y in 214. Transportation sector had the biggest drop of 1.83% due to a fall of fuel and gasoline price. Retail sales achieved VND678,85 billion, an increase 1.5% y-o-y. Credit growth in the city as of 1st December 215 went up 11.5% compared with 9% the same period last year. FDI inflow of both newly registered and supplementary capital to the city has improved substantially with a cumulative number of 5,82 projects worth USD39.1 billion as of 15 December 215. There are 566 new investment projects with capital reaching USD4.6 billion. Investments in Real estate account for USD1.497 billion. Table 1: Marcoeconomic Indicators of HCMC and Hanoi HCMC Hanoi Q4 215 Q1 216F Q4 215 Q1 216F GDP (billion) FDI (million) Retail sales (billion) Export (billion) Import (billion) Source: General Statistics Office I Colliers International Research Figure 3: FDI Capital of HCMC and Hanoi HCMC Hanoi 3 25 Export values are USD billion, up 11.3% y-o-y. Garments, agricultural products and computers & electronic devices are segments contributing the most to export values. Meanwhile, import values are USD33.75 billion, an increase of 9.4% y-o-y. Segments that top the import value table include garment material, plastics and iron & steel. million USD Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 HANOI In 215, Hanoi s GDP achieved USD27.6 billion with growth rate 9.24% y-o-y while GDP per capita reached USD3,6 billion Source: General Statistics Office I Colliers International Research Figure 4: GDP Growth Rate of HCMC and Hanoi Over 12 months of 215, the capital city s CPI increased.89% y-o-y. Out of 11 sectors in the CPI basket, foods& catering services and transportation witnessed a fall in price of.5% y-o-y and 1.45% y-o-y respectively. 14% HCMC Hanoi Retail sales of Hanoi were up 11.5% y-o-y or up 1.7% if price changes are excluded). The capital welcomed 2.24 million international visitors, an increment of 9.6% y-o-y. 12% 1% As of end of 215, FDI inflows of both newly registered and supplementary capital reached USD1.4 billion, which is equal to the amount of 214. Disbursed capital was USD1.1 billion, up 8% y-o-y. In 215, export values grew 2.5% y-o-y to reach USD11.35 billion while those of import went up 4.5% y-o-y. 8% 6% Source: General Statistics Office I Colliers International Research 216 Colliers International Research Page 6

7 Q4 215 HO CHI MINH CITY OFFICE PERFORMANCE The last quarter of 215 saw improvement in rents across all grades, reaching USD28/sqm/mth. Average net asking rents of Grade A increased 1.5% q-o-q to US36/sqm/mth as landlords adjusted rentals to take advantage of limited prime office space and positive macro-economic outlook. Grade B did not experience significant rent growth, staying at USD2/sqm/mth. The market remains tight with average occupancy rate of 95.7%, Grade A s occupancy rate was up 1.3% q-o-q to 96.3% thanks to strong leasing activities at new office buildings. Grade B s occupancy nominally went up to 95.2% as landlords tried to fill up vacant space before the year end. Figure 5: Office, Average Asking Rent US$/sqm/month Grade A Grade B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1F SUPPLY While CBD supply pipeline remained unchanged, non-cbd stock added 3, NLA from the opening of Pearl Plaza. The city currently has 11 Grade A and 57 Grade B office buildings, providing approximately 1,331,347 sqm GFA. In 216, Grade B will take the lead in new supply with nearly 77,sqm NLA from 4 projects. No Grade A projects will come online until 217 when Saigon Centre (phase 2) and Deutsches Haus are due for completion providing an additional 65,859 sqm NLA. Figure 6: Office, Occupancy Rate Grade A % Grade B 4 DEMAND Demand for office space in Ho Chi Minh City will be strengthen by the economic recovery, controlled inflation and interest rates, rapidly improving infrastructure and a more supportive legal framework. In addition, recent free trade agreements such as the Trans-Pacific Partnership are anticipated to enlarge the number of multinational corporations and small and medium sized enterprises, which may in turn trigger a healthy rise in office demand. In terms of tenant profile, finance, banking and service sectors are large space occupiers in most Grade A office buildings and is likely to expand more in the coming years. OUTLOOK By 217, approximately 167,sqm NLA will be added to the supply pipeline. The city center remains the most sought-after location for office tenants. However, due to limited available space in the CBD, suburban area is attractive as an alternative options for those looking for large contiguous floor plates. Asking rents are forecasted to grow steadily as foreign direct investment will surge after the implementation of the Trans Pacific Partnership. 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1F Table 2: Office, Future Supply Building name District Grade NLA (sqm) Completion year Hai Quan Tower 1 B 3, 216 Royal Tower 7 B 21, Saigon Giai Phong 3 B 16, The Waterfront Saigon 1 B 8, Saigon Center Phase 2 1 A 35, Deutsches Haus 1 A 3, 217 Maple Tree Business Center 7 B 24, Colliers International Research Page 7

8 Q4 215 HO CHI MINH CITY OFFICE Table 3: Significant Office Projects No Name Address Completion Year NLA (sqm) Service Charges (*) Occupancy rate Average asking rent (**) 1 Saigon Centre 65 Le Loi , % Saigon Tower 29 Le Duan , % Sunwah Tower 115 Nguyen Hue , % 4. 4 The Metropolitan 235 Dong Khoi , % Diamond Plaza 34 Le Duan , % Kumho Asiana Plaza 39 Le Duan 29 26, 8. 91% Bitexco Financial Tower 45 Ngo Duc Ke 21 37, % President Place 93 Nguyen Du 212 8, % Times Square Nguyen Hue , % 4. 1 Le Meridien 3C Ton Duc Thang 213 9, % Vietcombank Tower 5 Me Linh Square , % 35. Grade A 212, % VTP-OSIC 8 Nguyen Hue , % Yo Co Building 41 Nguyen Thi Minh Khai , 3. 1% Somerset Chancellor Court NguyenThi Minh Khai ,2 5. 1% Central Plaza 17 Le Duan , % Harbour View Tower 35 Nguyen Hue , 5. 94% 2. 6 Saigon Riverside Office 2A-4A Ton Duc Thang , 5. 1% Saigon Trade Center 37 Ton Duc Thang , % MeLinh Point Tower 2 Ngo Duc Ke , % Zen Plaza Nguyen Trai 21 11, % Bitexco Building Nguyen Hue 23 6, 6. 89% The Landmark 5B Ton Duc Thang 25 8, 6. 1% Opera View Dong Khoi 26 3,1 7. 1% City Light 45 Vo Thi Sau 27 1, 5. 1% Petro Tower 1-5 Le Duan 27 13, % The Lancaster Bis Le Thanh Ton 27 7, 5. 9% CJ Building 5 Le Thanh Ton 28 14, 6.5 1% Continential Tower Ham Nghi 28 15, 6. 99% Havana Tower 132 Ham Nghi 28 7, % Royal Center 235 Nguyen Van Cu 28 14, % Sailing Tower 51 Nguyen Thi Minh Khai 28 16, % TMS 172 Hai Ba Trung 29 4, 4. 1% A&B Tower 76 Le Lai 21 17, % Bao Viet Tower 233 Dong Khoi 21 1, % Green Power Tower 35 Ton Duc Thang 21 15, % Maritime Bank Tower 192 Nguyen Cong Tru 21 19, % Saigon Royal 91 Pasteur 21 5, % Vincom Center Le Thanh Ton 21 56, % Empress Tower 138 Hai Ba Trung , % Lim Tower 9-11 Ton Duc Thang , 6. 1% MB Sunny Tower 259 Tran Hung Dao, Co Giang , % Lim Tower 2 Vo Van Tan 215 8, % 24. Grade B 45, % 23.9 (*) US$/sqm/month (NLA) 216 Colliers International Research Page 8

9 Q4 215 HO CHI MINH CITY OFFICE SAIGON SKYLINE REVIEW- CBD HCMC GRADE A OFFICE BUILDINGS KUMHO ASIANA PLAZA 39 Le Duan, District 1 26,/1,42 $ 43. $ 8. DIAMOND PLAZA SAIGON 34 Le Duan, District 1 15,936/2,2 $ 37. $ 8. LE MERIDIEN HOTEL 3C Ton Duc Thang, District 1 9,125/NA $ 29. $ 6. SAIGON TOWER 29 Le Duan, District 1 13,95/NA $ 35. $ 6. DEUTSCHES HAUS 3-5 Le Van Huu, District 1 THE METROPOLITAN 235 Dong Khoi, District 1 15,2/1, $ 33. $ 6. PRESIDENT PLACE 93 Nguyen Du, District 1 8,33/1, $ 31. $ 6. BITEXCO FINANCIAL TOWER 45 Ngo Duc Ke, District 1 37,71/9-1,3 $ 34. $ 8. VIETCOMBANK TOWER 5 Me Linh Square, District 1 41,25/NA $ 35. $ 7. TIMES SQUARE SAIGON Nguyen Hue, District 1 12,74/1,45 $ 4. $ 7. SAIGON CENTRE 65 Le Loi, District 1 11,65/ 1,73 $ 33. $ 6.5 SUNWAH TOWER 115 Nguyen Hue, District 1 2,8/ 1,166 $ 4. $ Colliers International Research Page 9

10 Q4 215 HO CHI MINH CITY RETAIL PERFORMANCE As of Q4 215, the average net asking rent across all retail segments is stable at USD59/sqm/mth. Rents in non CBD area remained unchanged at USD36/sqm/mth at despite new stock entering the market. Figure 7: Retail, Occupancy rate 6, Net Absorption Occupancy Rate 1 Average occupancy rate maintained its high level at 92%, up 2ppts q-o-q. Most of retail developments in the city center have been fully occupied thanks to their prime location. Thao Dien Megamall and Pearl Plaza, two new shopping centers on the outskirts of Ho Chi Minh City also recorded impressive occupancy rate of 95% and 9% respectively due to their great efforts in securing pre-committed tenants. sq m 4, 2, % SUPPLY Three new shopping centers in suburban area have come online in the review quarter, adding a total of 15, GFA to the current stock. Source: -2, Colliers International Research Figure 8: Retail, Average Asking rent 8 Vincom Thao Dien Mega Mall in District 2 and Pearl Plaza in Binh Thanh District are developed to take advantage of the future metro line no.1. Being one-stop-shop destinations for customers, both of them are believed to achieve a good business performance. Meanwhile, the Korean retail chain Emart has been established to meet the growing population and fast rising retail demand in Go Vap Distict. DEMAND It is forcasted that the middle and affluent class in Vietnam with income from USD714 and above a month will triple in size until 22. This group is considered as key potential customers for both local and international retailers. Locally, Ho Chi Minh City retail market is very promising with total retail sales in 215 reaching more than USD3 billion, up 1.5% y-o-y. The growing number of international arrivals to the city also assists the local retail market, which in turn will trigger more space demand. USD/sqm/month Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1F Figure 9: Retail, Supply by District Others 14% CBD NON-CBD Phu Nhuan 6% OUTLOOK The EU Vietnam Free Trade Agreement, the Trans Pacific Partnership (TPP) and AEC integration will all profoundly attract more foreign participation in Vietnam s retail market. In addition, the introduction of metro lines is expected to improve the ability of the population to access retail activities. Hence, new retail developments at the extremities of the metro line are attracting huge interest. Retail supply will be ample through 22 when over a million square meters of new retail supply will be added to the market. District 7 7% Tan Binh 1% District 3 12% District 1 51% 216 Colliers International Research Page 1

11 Q4 215 HO CHI MINH CITY RETAIL Table 4: Significant Retail Projects No Name of Project/Building Address Location Completion Year NLA (sq m) ARR (*) Occupancy Rate 1 Saigon Center Nam Ky Khoi Nghia District Renovation Renovation Renovation 2 Hotel Continental Sai Gon Dong Khoi District % 3 Caravelle Hotel 19 Lam Son Square District % 4 New World Hotel 76 Le Lai District 1 2 1, 6 1.% 5 Zen Plaza Nguyen Trai District , % 6 Sheraton Saigon 88 Dong Khoi District % 7 Opera View Lam Son Square District , % 8 The Manor 1 91 Nguyen Huu Canh Binh Thanh 26 2, 17 1.% 9 Saigon Pearl 92 Nguyen Huu Canh Binh Thanh 29 5, % 1 Kumho Asiana Plaza 35 Le Duan District , % 11 Rex Arcade 141 Nguyen Hue District , 12 1.% 12 The Manor 2 91 Nguyen Huu Canh Binh Thanh 21 2, % 13 ICON Ngo Duc Ke District , 5 99.% 14 The Vista Walk Hanoi Highway District , % 15 President Place 93 Nguyen Du District % 16 Times Square Nguyen Hue District , 9 1.% 17 Saigon Airport Plaza 1 Bach Dang Tan Binh 213 7, % Retail Podium 63, % 1 Parkson Saigontourist Plaza 35 Le Thanh Ton District , 9 99.% 2 Saigon Square Nam Ky Khoi Nghia District , % 3 Parkson Hung Vuong Plaza 126 Hung Vuong District , 6 1.% 4 Parkson Flemington 184 Le Dai Hanh District , 25 9.% 5 Parkson Paragon 3 Nguyen Luong Bang District ,5 4 9.% 6 Taka Plaza 12 Nam Ky Khoi Nghia District , % 7 Parkson C.T Plaza 6A Truong Son Tan Binh , % 8 Parkson Cantavil Premier Hanoi Highway District , % 9 Lucky Plaza 38 Nguyen Hue District , % Department Store 17, % 1 Diamond Plaza 34 Le Duan District , 83 1.% 2 City Plaza 12 Nam Ky Khoi Nghia District 1 2 5, % 3 Superbowl Vietnam TSN 38 Nguyen Hue Tan Binh 22 5,5 2 1.% 4 An Dong Plaza 18 An Duong Vuong District , 4 1.% 5 Nowzone 235 Nguyen Van Cu District , 54 98% 6 Lotte Mart Saigon South 469 Nguyen Huu Tho District , 5 1.% 7 Vincom Center B 72 Le Thanh Ton District , % 8 Maximark 3/2 Extention 3/2 Street District , 35 9.% 9 Lotte Mart Phu Tho Le Dai Hanh District ,5 3 1.% 1 Crescent Mall Nguyen Van Linh District , 35 1.% 11 Satra Pham Hung Pham Hung District , % 12 CMC Plaza 79B Ly Thuong Kiet Tan Binh , 17 1% 13 Union Square Dong Khoi District , 55 6% Shopping Centre 277, % (*) ARR (Average Rental Rate): All rents are stated in net rents per sqm, inclusive service charge but exculding VAT 216 Colliers International Research Page 11

12 Q4 215 HO CHI MINH CITY CONDOMINIUM Table PERFORMANCE 3: Significant Office Projects High absorption rates were reported in projects with strategic locations and developed by prestigious developers. More than 8, apartments were sold in Q4 215, an increase 2 % q-o-q. The year 215 has witnessed the recovery of the property market, supporting by marco economic stability, ongoing construction of metro lines and upgraded transport infrastructure. There was a remarkable rise in the average sale price as the high-end segment took high proportion of the supply pipeline. While the primary price across all segments increased 4.4%y-o-y, that of high-end properties surged 8.3%, reaching USD2,3/sqm on average. Besides, sale price of new and under construction projects grow stronger than those of completed ones. SUPPLY 8 new projects were launched in 215 providing approximately 41, units with the high-end segment dominating new supply. Notable projects in the review quarter are the Nassim in District 2, City Garden Phase 2-Promenade in Binh Thanh District and Charmington La Pointe in District 1. Figure 1: Condominium, Net absorption rate by segment 2% 28% Luxury High-end Mid-end Affordable 15% 15% 32% 2% 4% 58% Figure 11: Condominium, Sale price in 215 (USD/sqm) 42% 69% >23 1% <1 1% Taking advantage the strategic position as a gateway to the city and southern provinces, the eastern area of Ho Chi Minh City has attracted huge interest from developers and homebuyers. Significant investment in infrastructure, housing, and commercial projects has been generated in the area, accounting for 47% of total new supply in this quarter % % DEMAND Demand for housing in Ho Chi Minh City remains high. The city s population is rapidly increasing through migrantion seeking work opportunities. As home loans with low interest rates can be accessible, young people with stable income can afford to buy a condominium. Since the relaxation of regulations on foreign property ownership, there has been notable interest from overseas. However, to make more foreign transactions happen, the market needs clearer legal guidelines from the government % Figure 12: Condominium, Sold Units OUTLOOK In anticipation of the future metro system, new clusters of residential projects have arisen along the lines. It is expected that condominium supply in District 2 and District 9 will surge by 58% and 2% in 217 respectively. In addition, selling prices and transaction numbers are expected to surge once the metro line are come into operation. Since the recovery of the market, developers have shifted their interest to high-end segment. The city has an abundant supply of high -end apartments but is in shortage of mid-end and affordable products. As medium and low -income people have the largest housing demand, developers should focus more on this market segment. units Colliers International Research Accelerating Page success 12

13 Q4 215 HO CHI MINH CITY CONDOMINIUM Table 5: Condominium, Significant new launched in Q4 215 No Name of Project/Building Developer Location * Excluding all kinds of tax, promotions and management fee The information is updated as at the end of 215 Completion Year Number of units Asking Price (US$/sqm) Sale Rate 1 Masteri Thao Dien Thao Dien Investment District ,21 1,3 97% 2 Masteri Thao Dien T5 Thao Dien Investment District % 3 The Art Block Picasso Gia Hoa Corp. District % 4 TDH Phuoc Long Thu Duc House District % 5 Depotmetro Phuc Loc Tho Corp. Thu Duc % 6 Park Riverside M.I.K Corp. District ,2 98% 7 Sarimi Dai Quang Minh District ,8 9% 8 Everich Infinity Phat Dat Corp. District , 51% 9 Leman Luxury Apartments C.T Group District ,5 3% 1 Charmington La Pointe Sacomreal District ,4 8% 11 Saigonres Plaza Saigon Nam Bo Corp. Binh Thanh ,1 76% 12 City Gate Tower Hung Thanh Corp. District , % 13 Luxcity Dia Oc Xanh District ,16 77% 14 Hung Phat Silver Star Hung Loc Phat District , 9% 15 Gold View SGM & TRN Holdings Vietnam District ,95 1,5 63% 16 Grand Riverside Hong Ha Corp. District ,5 27% 17 Sarica Dai Quang Minh District , 87% 18 Lavita Garden Hung Thing Corp. Thu Duc % 19 Promanade City (Phase 2) City Garden Apartments Binh Thanh ,2 7% 2 Nassim Son Kim Land, HongKong Land District ,5 98% 21 Sunrise Riverside NovaLand District , 1,4 32% 22 Rich Star NovaLand Tan Phu 218 2, 1,1 8% 23 Park Vista M.I.K Corp. District , % New launches in Q ,61 1, % 216 Colliers International Research Accelerating Page success 13

14 Q4 215 HO CHI MINH CITY VILLA & TOWNHOUSE PERFORMANCE The villa and townhouse segment performed well in Q4 215 thanks to improved buyer confidence. The transaction volume increased with a growth rate of 5% q-o-q. District 9, District 2 and Nha Be District had the strongest performance due to their large land bank. Taking advantage of the economic recovery and rising market sentiment, new launched projects increased their primary average asking price to 2-3% q-o-q. As supply on the secondary market is limited, prices appreciated 5%-6% compared those on the primary market. Figure 13: Villa and Townhouse, Supply by Year Existing supply New supply dwellings SUPPLY Five new villa and townhouse projects entered the market in Q4 215, providing approximately 1,15 dwellings to the primary market. The existing supply pipeline comprises approximately 8,3 villas and townhouses from 56 projects F Figure 14: Villa and Townhouse, Current Supply by District Decentralised districts, especially District 2 and District 9 took a large proportion of the market share thanks to their large land bank, completed infrastructure and improving connectivity to the city center. 8 6 No. of townhouses No. of villas DEMAND As personal wealth and living standard increase in recent years, Vietnamese people will save more and look to invest. Besides condominiums, landed property has become one of the favourite investment channels in 215. There have been an increasing number of investors attracting to this market segment due to its easy-to-resell feature and high capital gain. Buy-to-let is a popular trend, accounting for 5-7% of total transactions while end-users only took a small proportion in buyer profile. dwellings 4 2 Dist. 9 Dist. 2 Go Vap Nha Be Dist. 7 Binh Thanh Thu Duc Dist. 12 Figure 15: Villa and Townhouse, Historical Performance 5 Binh Tan District 7 District 9 District 2 Others Binh Chanh OUTLOOK More landed property projects will enter the east and south area of the city. Price growth will continue on both primary and secondary markets as more investors will be interested in this segment. USD/sq m Projects with completed internal facilities, strategic locations, affordable selling prices and developer reliability will be attractive to purchasers. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Colliers International Research Accelerating Page success 14

15 Q4 215 HO CHI MINH CITY VILLA & TOWNHOUSE Table 6: Villa and Townhouse, Significant new launched in Q4 215 No Name of Project/Building Developer Location Completion Year Number of units Asking Price (US$/sqm) Sale Rate 1 Citibella Kien A Group District , 75% 2 Park Riverside M.I.K Corp. District % 3 Melosa Garden Khang Dien District % 4 CityLand Garden Hills CityLand Go Vap ,6 6% 5 Nine South Estate VinaCapital District ,2 61% New launches in Q ,196 1,1 5% 216 Colliers International Research Accelerating Page success 15

16 Q4 215 HO CHI MINH CITY SERVICED APARTMENT PERFORMANCE Figure 16: Serviced Apartment, Average asking rent by grade The average net asking rent was softened in Q4 215 as Grade A and Grade B s recorded a nominal drop of 1.2% and 3.8% q-o-q respectively. In the CBD, the average rental rate was US$3,52/ unit/mth for a typical 2-bedroom unit in a popular area with sizes ranging from 8 sqm to 14 sqm. 4 3 Grade A Grade B Occupancy improved on the back of short-term stays during Christmas and New Year holiday. Grade A Grade A and Grade B occupancy increased 1% and 3.6% q-o-q. USD/sq m/month 2 1 SUPPLY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 In 215, the market added 89 Grade A units from The Reverie Residence and 52 Grade B units from Diamond Island Luxury Residence. Another Grade A project will enter the market in the second half of 216. The Ascot Waterfront Saigon developed by Canh Hung Hai Thanh Corporation is coming to its final completion, proving 222 serviced apartments. Grade B stock will be ample in 216 with expected completion from four projects which are Saigon Plaza, C.T Plaza, Viettel Tower and New Pearl Figure 17: Serviced Apartment, Occupancy rate by grade Grade A Grade B DEMAND Demand for serviced apartments in Ho Chi Minh City will be boosted after the government promoted an effective environment for trade and investment relations. The advent of the ASEAN Economic Community (AEC) on 31 Dec 215 and the conclusions of Trans Pacific Partnership (TPP) and other trade agreements in 215 are expected to bring in more FDI, foreign investors and business travelers to Ho Chi Minh City. % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Table 7: Serviced apartment, Significant future projects under construction OUTLOOK In the next three years, the market will have 12 projects providing 2,2 units. Due to limited new supply in the city core in the short term, rents and occupancy rates of existing projects will experience positive correction. Demand continues to be strong from expatriates and MNCs. Project name District Grade Total units Expected Completion Ascott Waterfront Saigon 1 A 222 2H 216 Saigon Plaza 1 B 119 3Q 216 Saigon South Place 7 A 48 4Q 216 Saigon Center Phase 2 1 A Colliers International Research Accelerating Page success 16

17 Q4 215 HO CHI MINH CITY SERVICED APARTMENT Table 8: Significant Serviced Apartment Projects No. Project Name Address Location Completion Year Total Room Average Occupancy ARR(*) (**) 1 The Landmark 5B Ton Duc Thang District % 26 2 Sedona Suites 65 Le Loi District % 3 3 Somerset Chancellor Court Nguyen Thi Minh Khai District % 34 4 Nguyen Du Park Villas 111 Nguyen Du District % 3 5 The Lancaster Bis Le Thanh Ton District % 37 6 Intercontinental Asian Saigon 39 Le Duan District % 36 Grade A % Norfork Mansion Ly Tu Trong District % 26 2 Saigon Sky Garden 2 Le Thanh Ton District % 26 3 Somerset HCM 8A Nguyen Binh Khiem District % 26 4 Diamond Plaza 34 Le Duan District % 29 5 Garden View Court 11 Nguyen Du District % 31 6 Ben Thanh Luxury Ky Con District % 18 7 Lafayette De SaiGon 8 Phung Khac Khoan District % 28 8 Vincom Center 45A Ly Tu Trong District % 26 9 Nikko Saigon 235 Nguyen Van Cu District % 3 1 Saigon City Residence 8A/3D2 Thai Van Lung District % Spring Court 1Bis Phung Khac Khoan District % 23 Grade B % 25.9 (*) US/sqm/month (**) ARR (Average Rental Rate): All rents are stated in gross rents per sqm, not including VAT and serviced charge 216 Colliers International Research Accelerating Page success 17

18 Q4 215 HO CHI MINH CITY INDUSTRIAL PERFORMANCE The occupancy and rent rates are stable. Gross asking rent ranges from USD6- USD286/sqm./term with an average rate is at USD12/sq.m/term. The remaining Land Use Right year terms range from years. Average occupancy rate is 67.2%. Rental rate of ready built factory ranges from USDD4- USD8/month for a whole 3sqm-45sqm factories, or USD88- USD25/month for 5sqm-12sqm factories. Figure 18: Industrial, Supply by District Nha Be 8% Dist. 7 8% Others 13% Dist. 9 22% SUPPLY Southern Economic Zone include HCM city and surrounding provinces such as Long An, Dong Nai, Ba Ria Vung Tau, Binh Duong. Tay Ninh. The economic zone has 16 active IPs with total leasable areas of 33,5ha. Ho Chi Minh city and Hanoi are two cities which comprise the highest number of IPs in Vietnam. Ho Chi Minh City has 3,92ha industrial area which are allocated in 18 IPs. No new supply was delivered during the last quarter of 215. The leasable area is estimated to be about 67% of the total industrial land area, which is equivalent to 2,637ha. There is a shortage of ready- built factories which are bigger than 2sqm. DEMAND From a real estate point of view, companies from non- TPP member nations - such as China, Korea, India - would relocate their operations and factories to Vietnam in order to gain tax exemptions for their products. Foreign investments, especially from the U.S and Japan, will also flow into Vietnam more heavily to take advantage of Vietnam s labour force and domestic market. These factors positively contribute to the demand for industrial land, factory, warehouse and offices. Investors and developers aim to focus on clear lands and areas locating near traffic hubs like ports, airports, metro systems. OUTLOOK By 23, there will be 12 more industrial parks in HCMC which would increase the total number of IPs to 3. The total industrial area is projected to be 3,ha. Prices and occupancy rate are expected to increase steadily. There is a shortage of skilled and English capable workers in IPs in Ho Chi Minh city. Figure 19: Industrial, Market Performance USD/sq m/month Binh Tan 1% Average Asking Rent Binh Chanh 16% Table 9: Industrial, Future Supply Industrial Park Name Cu Chi 23% Occupancy Rate Binh Tan Dist. 7 Binh Chanh Thu Duc Nha Be Dist. 2 Cu Chi Dist. 9 Dist. 12 Tan Binh District Launched Year GFA (ha) Phuoc Hiep Industrial Park Cu Chi Bau Dung Industrial Park Cu Chi Vinh Loc 3 Industrial Park Binh Chanh Le Minh Xuan 2 Industrial Park Binh Chanh Linh Trung 3 Export Processing Zone Binh Chanh Xuan Thoi Thuong Industrial Park Hoc Mon % 1% 8% 6% 4% 2% % 216 Colliers International Research Accelerating Page success 18

19 Q4 215 HO CHI MINH CITY INDUSTRIAL Table 1: HCMC Industrial Market Overview No Name of Industrial Park Location Distance to CBD (km) Total Area (ha) Asking Rent (US$/sqm) Occupancy LUR Term 1 Linh Trung 1 Export Processing Zone Thu Duc % Linh Trung 1 Export Processing Zone Thu Duc % Binh Chieu Industrial Park Thu Duc % Tay Bac Cu Chi Industrial Park Cu Chi % Tan Thoi Hiep Industrial Park District % Tan Phu Trung Industrial Park Cu Chi % Tan Thuan Export Processing Zone District % Hiep Phuoc Industrial Park Nha Be % Tan Tao Industrial Park Binh Tan % Tan Binh Industrial Park Tan Binh % Le Minh Xuan Industrial Park Binh Chanh % Vinh Loc Industrial Park Binh Chanh % Phong Phu Industrial Park Binh Chanh % Dong Nam Industrial Park Cu Chi % An Ha Industrial Park Binh Chanh % Cat Lai Industrial Park District % Automotive - Mechanical (Hoa Phu) Cu Chi % 262 Total 3,8 83% 216 Colliers International Research Page 19

20 Q4 215 HA NOI OFFICE PERFORMANCE Average occupancy across all grades improved to 88%. Grade A s occupancy was 87%, up 6. ppts q-o-q while Grade B s increased to 89%, up 1.1ppts q-o-q. Grade A average net asking rents recorded a growth rate of 1% q-o-q, reaching USD29.2/sqm/month. In contrast, due to abundant supply, Grade B s dropped.7%, sitting at USD17.6/ sqm/month. By location, Midtown had the most impressive performance with both rent and occupancy improved 1.5% and 7.9ppts respectively. SUPPLY The supply pipeline remained unchanged in 215. Currently there are 141 office buildings, providing approximately 1,378,644 sqm NLA. By location, 43% of total Grade A s stock is located in the West with approximately 173,5sqm, followed by the CBD with 171,sqm, at 42% share. Grade B dominated the market with medium scale projects in Dong Da district. The market is expected 37,411 sqm NLA of TNR Tower to Grade A stock in early 216. Located on Nguyen Chi Thanh road in Dong Da District, the 3-storey new Grade A standard office building will provide large floor plate of approximately 2,2sqm which is easy for fitting out and operation. DEMAND Given advantages in geographical location, human resources and fast economic growth speed, Hanoi is considered as an ideal destination for foreign investment. In 215, foreign investors have engaged in 352 projects in Hanoi, with the total capital of USD91.7 million. Due to the increase in disbursed FDI, demand for office space is growing steadily. OUTLOOK By 217, approximately 167,sqm NLA will be added to the supply pipeline. The city center remains the most sought-after location for office tenants. However, due to limited available space in the CBD, suburban area is alternative options for those looking for large contiguous floor plates. Asking rents are forecasted to grow steadily as foreign direct investment will surge after the implementation of the Trans Pacific Partnership. Figure 2: Office, Average Asking Rent US$/sqm/month Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1F Grade A Figure 21: Office, Occupancy Rate 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Grade A Grade B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1F Figure 22: Office, Current Stock sq m 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, - Grade B Grade A Grade B Grade C Q1 Q2 Q3 Q4 Q F. 216 Colliers International Research Accelerating Page success 2

21 Q4 215 HA NOI OFFICE Table 11: Significant Office Projects No Name Address Completion Year NLA (sqm) Service Charges (*) Occupancy rate Average asking rent (**) 1 Central Building 31 Hai Ba Trung ,653-1% 47 2 International Centre 17 Ngo Quyen ,5 7 9% 25 3 Hanoi Tower 49 Hai Ba Trung , % Ly Thai To Building 63 Ly Thai To ,753-1% 47 5 Sun Red River Building 23 Phan Chu Trinh , % 38 6 Vietcombank Tower 198 Tran Quang Khai 2 19,563-1% 29 7 Opera Business Centre 6 Ly Thai To 27 3,787 included 85.1% 25 8 Pacific Palace 83B Ly Thuong Kiet 27 16, % 2 9 Asia Tower 2 Nha Tho 27 3,1 included 76.7% 35 1 Sun City Building 13 Hai Ba Trung 27 6,4-1% BIDV Tower 194 Tran Quang Khai 21 1,12-95% Sentinel Place Hang Da 21 8, - 76% Corner Stone 16 Phan Chu Trinh ,5 7 7% 3 14 Hong Ha Center 25 Ly Thuong Kiet , % 19 Grade A 144,435 81% 31 1 Tungshing Square 2 Ngo Quyen ,36-89% 2 2 Melia Hotel 44B Ly Thuong Kiet ,5-9% 38 3 Prime Centre 53 Quang Trung ,6-95.8% 27 4 VIB Hai Ba Trung 59 Quang Trung 26 3, - 68% 16 5 Capital Tower 19 Tran Hung Dao 21 21, % 21 6 Hanoi Tourist Building 18 Ly Thuong Kiet 21 7,6-1% 24 7 Capital Building 72 Tran Hung Dao 213 5,8-86.2% 25 8 Coalimex Building 33 Trang Thi 213 5, % 13 9 VID Building 115 Tran Hung Dao 213 4, % 23 1 Artex Port Ngo Quyen 214 4,725-1% 23 Grade B 76,621 91% 23.5 (*) US$/sqm/month (NLA) 216 Colliers International Research Page 21

22 Q4 215 HA NOI RETAIL Table PERFORMANCE 3: Significant Office Projects The average net asking rents slightly improved due to higher rents offered at the new shopping center. While CBD rents remained stable at USD8/sqm/mth, non-cbd increased 3.7% q-o-q to USD28/sqm/mth. Overall occupancy rate increased 5ppts q-o-q, reaching 89.3% thanks to strong leasing activities in new retail developments. SUPPLY Hanoi retail stock consists of 151 developments with more than 1 million sqm GFA. In mid of November 215, one new shopping center came online, adding an extra 55,4sqm GFA to the total stock. Located in Nguyen Chi Thanh street, a connection hub between Hanoi CBD with the new urban area in the West, Vincom Center Nguyen Chi Thanh provides one stop shop for city residents with retail outlets, entertainment facilities and food court. This is the fifth retail center developed by Vin Group in Hanoi. Figure 23: Retail, Market Performance 1% 95% 9% 85% 8% 75% Figure 24: Retail, Occupancy Rate 1 95 Rental rate CBD Non-CBD Occupancy Q1 216F US$/sqm/month 9 DEMAND With a population of more than 9 million people, young workforce, increasing GDP per capita and positive economic outlook, Vietnam retail market is appealing to foreign retailers. Recent M&A transactions on retail centers have shown positive signs that international retailers are hoping to quickly penetrate to the domestic market. As the number of modern retail developments in Vietnam is smaller than that of neighbor countries, demand for retail space will be sustained, especially in large cities as Hanoi and Ho Chi Minh City. % F Figure 25: Retail, Total Supply CBD Non-CBD 7, 6, OUTLOOK In 216, the market will experience abundant supply from Vin Group retail projects such as Vincom Exchange City in Tu Liem District or Vincom Starbowl in Dong Da District. On the consumer front, the opening of mega malls has transformed Hanoi retail landscape. This presents opportunities for food service and lifestyle brands to offer innovative products and services for increasingly sophisticated consumers. sq m 5, 4, 3, 2, 1, Q1 216 F 216 Colliers International Research Accelerating Page success 22

23 Q4 215 HA NOI RETAIL Table 12: Significant Retail Projects No Name of Project / Building Address Location Completion Year NLA (sq m) ARR (*) Occupancy Rate 1 Central Building 31 Hai Ba Trung Hoan Kiem % 2 Hanoi Tower 49 Hai Ba Trung Hoan Kiem , % 3 63 Ly Thai To Building 63 Ly Thai To Hoan Kiem % 4 ICC Building 71 Nguyen Chi Thanh Dong Da 26 2, % 5 Pacific Place 83b Ly Thuong Kiet Hoan Kiem 27 2, 45 9% 6 Opera Business Center 6b Trang Tien Hoan Kiem 27 1, % 7 Golden Westlake 151 Thuy Khue Tay Ho 27 1, % 8 Sun City 13 Hai Ba Trung Hoan Kiem % 9 Asia Tower 6 Pho Nha Tho Hoan Kiem % 1 Sentinel Place 41A Ly Thai To Hoan Kiem % 11 Sky City Tower 88 Lang Ha Dong Da 21 5, % 12 Han Viet Tower 23 Minh Khai Hai Ba Trung % 13 Rainbow Tower 19/5 KDT Van Quan Ha Dong % 14 Hapumedicenter 85 Vu Trong Phung Thanh Xuan , % 15 The Lancaster Hanoi 2 Nui Truc Ba Dinh 213 3, % 16 Madarin Garden Residential 1 Hoang Minh Giam Cau Giay , % Retail Podium 51,64 78% 1 Vincom Center Ba Trieu - Tower A&B 191 Ba Trieu Hai Ba Trung 24 17, 55 98% 2 Vincom Center Ba Trieu - Tower C 191 Ba Trieu Hai Ba Trung 24 1, % 3 Ruby Plaza 44 Le Ngoc Han Hai Ba Trung 27 5,2 29 1% 4 Syrena 51B Xuan Dieu Tay Ho 28 5, 23 96% 5 Trang Tien Plaza 24 Hai Ba Trung Hoan Kiem 28 14, 1 85% 6 Savico MegaMall 7-9 Nguyen Van Linh Long Bien , % 7 Keangnam Palace Landmark Lot E6, Pham Hung Tu Liem 211 6, % 8 Vincom Center Long Bien KDT Vincom Long Bien , 19 46% 9 Indochina Plaza Hanoi 241 Xuan Thuy Cau Giay , % 1 SapoMart Ha Dong 8 Quang Trung Ha Dong , % 11 Ocean Mall 5 Hoang Dao Thuy Cau Giay 213 1, 1-3 1% 12 Vincom Mega Mall - Royal City 72A Nguyen Trai Thanh Xuan , 3 92% 13 Vincom Mega Mall - Time City 458 Minh Khai Hai Ba Trung 214 2, 27 92% 14 Aeon Mall Long Bien 2 Co Linh Long Bien % 15 Vincom Nguyen Chi Thanh 54A Nguyen Chi Thanh Dong Da ,5 4 96% Shopping Centre 719,346 86% 1 Parkson (Viet Tower) 198 Tay Son Dong Da 27 15, % 2 The Garden (Bitexco) Me Tri Tu Liem 27 23, % 3 Ho Guom Plaza Ha Dong Ha Dong , % 4 Lotte Department Store 54 Lieu Giai Ba Dinh , % Department Store 11, % (*) ARR (Average Rental Rate): All rents are stated in net rents per sqm, inclusive service charge but exculding VAT 216 Colliers International Research Accelerating Page success 23

24 Q4 215 HA NOI CONDOMINIUM PERFORMANCE The market saw an upward trend in both sales and transactions as both developers and buyers regained the confidence. Approximately 21, transactions have been made in 215, doubling the amount of the same period last year. High-end and luxury segment continued to dominate the market, accounting for 32% of the market share. Price growth continued on moderate pace on both primary and secondary market. New projects have higher price of 3-5% y-o-y while high-end projects saw price rises of about 5% to 7% q-o-q. On the secondary market, price climbed.3% q-o-q and 1.1% y-o-y. SUPPLY The review quarter recorded more than 28, units coming online, increasing the total stock to 7% y-o-y. Figure 26: Condominium, Changes in secondary prices by Quarter % Figure 27: Condominium, Sales by Quarter and Segment In term of supply by location, the South and CBD-fringe account for half of total new launches. With fast pace of urbanization and well-developed infrastructure, the West and South West, especially My Dinh area, has witnessed an increasing number of new residential projects, accounting for 46% of total launches Luxury High-end Mid-end Affordable DEMAND Demand for accommodation keeps growing on the back of low interest rate for home loan, young population, high marriage rate and increasing household income. Buyers tend to put more weight on projects with good facilities and landscape. In addition, the market is supported by revised Housing Law which allows property ownership for foreigners. Also, buy-to-let condominiums have become popular for property investors due to its attractive rental yield Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Figure 28: Condominium, Launched Supply by Year 3 OUTLOOK As Lunar New Year is coming soon, developers are trying to speed up construction progress to hand over final products to their clients. The market sentiment is expected to be higher as buyers prefer to settle their transactions during the lunar year end. Hanoi supply pipeline will welcome approximately 24, units in 216. It is concerned that the authority should re-adjust the urban planning as high density of residential and commercial buildings in the city center have been putting high pressure on traffic. Public transportation should be utilised efficiently to reduce traffic jams in new residential urban area. sq m F. 216 Colliers International Research Accelerating Page success 24

25 Q4 215 HA NOI CONDOMINIUM Table 3: 13: Significant Condominium, Office New Projects launched in Q4 215 No Name of Project/Building Developer Location * Excluding all kinds of tax, promotions and management fee The information is updated as at the end of 215 Completion Year Number of units Asking Price (US$/sqm) 1 HH2 ABC Xuan Mai Sparks Tower Vinacotex Xuan Mai Ha Dong Helios Tower NHS, Lilama, Kim Khi Hanoi Hoang Mai , 3 Times Tower - HACC1 Complex Building Xay Dung so 1 Hanoi Thanh Xuan ,4 4 Dong Mo Handico 5 Hoang Mai VP7 Linh Dam Muong Thanh Group Hoang Mai Goldmark City 136 Ho Tung Mau Viet Han Corp. Tu Liem 217 5, 65 7 Central Point Trung Kinh MB Land Cau Giay ,4 8 MB Land Central Point My Dinh MB Land Nam Tu Liem ,3 9 Ecolife Capitol Thudo Invest Tu Liem ,1 1 The Garden Hill BID Vietnam Tu Liem ,3 11 Gold Season Mua Dong Real Estate - VID Thanh Xuan 218 1,5 1,3 12 CT4 Vimeco Hanel Trung Hoa VIMECO Group Cau Giay ,4 13 The Golden An Khanh 32T Song Da Thang Long Hoai Duc New launches in Q , Colliers International Research Page 25

26 Q4 215 HA NOI VILLA & TOWNHOUSE PERFORMANCE The year-end sentiment helped to boost more successful transactions and leverage sale price. For completed projects with comprehensive infrastructure, primary price growth is from 5% to 1%. The average secondary price was USD3,214/sqm, up 1.4% q-o-q. By location, Ha Dong District recorded the highest price growth of 1% y-o-y. Figure 29: Villa and Townhouse, Secondary price by District USD/sq m Q3-215 Average Q4-215 Average Market average price Q SUPPLY The supply pipeline this year has seen approximately 1,2 villas and townhouses introduced to the market. New projects are concentrated in Tay Ho, Ha Dong, Tu Liem, Thanh Xuan and Hai Bai Trung districts where having well-developed infrastructure and convenient accessibility to the city center. 2 Thanh Xuan Cau Giay Tay Ho Tu Liem Hoang Mai Ha Dong Long Bien Thanh Tri Hoai Duc Gia LamMe Linh Figure 3: Villa and Townhouse, Q-o-Q changes in secondary price Notable launches in 215 included Park City, Gold Silk, Pandora Trieu Khuc and Gold Silk. 7 Market average price Q4 215 Q-o-Q changes DEMAND For Vietnamese, buying a house during the year-end is to celebrate a prosperous working year and also to enjoy the Lunar new year in the new house. As year-end income normally increases, demand for housing at this time is highest in a year. USD/sqm % Due to ongoing demand for decent homes with good facilities and improving infrastructure, the villa and townhouse market will perform well in terms of sale transaction volumes. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q OUTLOOK Price growth is expected to be steady in 216 as there are good signs of market recovery. Landed properties with completed internal infrastructure and convenient accessibility will continue to attracted buyers. Savvy developers will focus on building projects with great facilities and landscape to cater higher demand from owneroccupiers. Figure 31: Villa and Townhouse, Supply by Quarter projects No. of Units No. of Projects units Q3 Q4 Q1 Q2 Q3 Q Colliers International Research Accelerating Page success 26

27 Q4 215 HA NOI VILLA & TOWNHOUSE Table 3: 14: Significant Office new Projects launched in Q4 215 No Name of Project/Building Developer Location * Excluding all kinds of tax, promotions and management fee The information is updated as at the end of 215 Completion Year Number of units Asking Price (US$/sqm) 1 The Premier Ton That Thuyet Mien Nui Corp. Cau Giay ,5 2 Gold Silk Complex HANOVID Ha Dong Vinhomes Gardenia Cau Dien Hong Ngan Corp. Nam Tu Liem ,3 4 Mon City Hai Dang Corp Tu Liem ,2 5 Green Pearl Deawoo E&C, Thuduc House, Phong Phu Corp, Vinatex Hai Ba Trung , 6 Pandora Hoa Binh VCM Thanh Xuan , 7 Pandora Trieu Khuc Vietnam Motors Corp. Thanh Xuan ,3 8 Starlake Deawoo E&C Bac Tu Liem, Tay Ho, Cau Giay , New launches in Q ,23 2, Colliers International Research Accelerating Page success 27

28 Q4 215 HA NOI SERVICED APARTMENT Table PERFORMANCE 3: Significant Office Projects In Q4 215, occupancy rate and average asking rate moved in opposite directions. Occupancy rate went up steadily 4% q-o-q to 86.4%, while average rental rate decreased slightly 1% q-o-q to USD31.8. SUPPLY There are 3,239 units in Hanoi in which Grade A and B segments account for more than 9%. More than 6% of serviced apartments are located in the CBD. DEMAND In 215, FDI inflows to the city reached USD1.4 billion which is equal to the amount of 214. Disbursed capital is US$1.1 billion, up 8% y-o-y. Figure 32: Serviced Apartment, Average asking rent by grade USD/sq m/month Grade A Grade B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Figure 33: Serviced Apartment, Occupancy rate by grade New big projects such as Samsung s Bac Ninh and Samsung s Thai Nguyen might increase significantly demand for serviced apartments in Hanoi. Besides, Hanoi and HCMC are home of large Korean and Japanese communities which estimate to be more than 8, people. 1% 9% 8% Grade A Grade B 7% OUTLOOK According to Hanoi Real Estate Association (HREA) there will be more than 24, residential apartments to be on sales in 216. A certain percentage of these apartments will be leased out for tenants. This will create a big substitution for serviced apartments. In addition, the new Law on Housing and Law on Real Estate Business allow foreigners to own property in Vietnam. Somehow the new laws may provide foreigners who stay in Vietnam in long term an alternative for renting a serviced apartment. 6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Figure 34: Serviced Apartment, Supply by Segment Grade C 5% Middle-end and low-end can compete more freely and effectively with high-end units thanks to advancement of technology. Applications such as Airbnb allow owners of serviced apartments in middle segment to reach to potential customers more effectively Majority of units are located in districts Cau Giay, Ba Dinh and Hai Ba Trung. Grade B 42% Grade A 53% 216 Colliers International Research Accelerating Page success 28

29 Q4 215 HA NOI SERVICED APARTMENT Table Table 3: 15: Significant Significant Office Serviced Projects Apartment Projects No Project Name Address Location Total Units Average Occupancy (%) ARR(*) (**) 1 Hanoi Daewoo 36 Kim Ma Ba Dinh Fraser Suites Hanoi 51 Xuan Dieu Tay Ho Hanoi Club 76 Yen Phu Tay Ho Hanoi Somerset Grand 49 Hai Ba Trung Hoàn Kiem Pacific Place 83B Ly Thuong Kiet Hoan Kiem Sendona Suites 96 To Ngoc Van Tay Ho Sofitel Plaza 1 Thanh Nien Ba Dinh Somerset Hoa Binh 16 Hoang Quoc Viet Cau Giay Somerset West Lake 254D Thuy Khue Tay Ho Sun Red River 23 Phan Chu Trinh Hoan Kiem Intercontinental Ha Noi 13 Nghi Tam Tay Ho Grade A 1, Atlanta 49 Hang Chuoi Hai Ba Trung Flower Village Hanoi 14 Thuy Khue Tay Ho Elegant Suites 19B Ha Hoi Hoan Kiem Elegant Suites Westlake 1C Dang Thai Mai Tay Ho Hanoi Lake Nam Trang Ba Dinh Hoa Binh Green No. 14, Ally 376 Buoi Ba Dinh Lakeside Garden 56 Xuan Dieu Tay Ho May Fair 34B Tan Phu Ba Dinh Oriential Palace 33 Tay Ho Tay Ho Park View 9 Nguyen Binh Khiem Hai Ba Trung Rainbow 7 Trieu Viet Vuong Hai Ba Trung Rose Garden 17 Ngoc Khanh Ba Dinh Swan Lake 3/61/31 Xuan Dieu Tay Ho Skyline Tower 4 Dang Dung Ba Dinh V-Tower 649 Kim Ma Ba Dinh DC Building 144 Doi Can Ba Dinh Hoa Binh Hotel 27 Ly Thuong Kiet Hoan Kiem Palace de Thien Thai 2 Tho Nhuom Hoan Kiem The City Residences 37 Phan Dinh Phung Ba Dinh Candeo Hotel Doi Can Ba Dinh Grade B Colliers International Research Accelerating Page success 29

30 Q4 215 HA NOI INDUSTRIAL PERFORMANCE In general, rental rates in Hanoi are lower than those in Ho Chi Minh city. Gross asking rent in Hanoi s IPs range from USD5- USD19/sqm/term and remaining lease term is from 3-45 years. Hoa Lac High- tech park has the lowest the city s gross asking rent which is at USD5-6/sqm./term. The 55ha high tech park has only a modest occupancy rate of 18%. Rent of ready- built factory- in Hanoi is about US$1.2/sqm/month which is 3% less than those in Ho Chi Minh city. SUPPLY The Northern Economic Zone including Hanoi and provinces Hung Yen, Hai Duong, Hai Phong, Vinh Phuc, Quang Ninh, Bac Ninh comprise 46 active IPs with total leasable 12,1ha. Hanoi has 12 IPs and more than 3,2ha of total area. Figure 35: Industrial, Market Performance USD/sq m/month Asking price Occupancy Rate Tu Liem Dong Anh Chuong My Me Linh Soc Son Phu Xuyen Thanh That Long Bien Figure 36: Industrial, Supply by District % DEMAND China, Japan and Hong Kong (SAR) are three most popular investors at Hanoi s IPs. Popular investments are from industries such as intermediate goods, machinery, spare parts & accessories, electronics. Infrastructures are being developed to connect northern provinces with Hanoi which will significantly reduce time and costs of transportation and commercial traffic. Highways such as Ha Noi-Hai Phong, Ha Noi-Lao Cai, Ha Noi-Thai Nguyen will help enhance connectivity and increase the efficiency of the northern economic region. These will positively contribute to improve the occupancy rate and asking rate of IPs. Me Linh 12% Tu Liem 9% Chuong My 12% Others 9% Thanh That 23% Dong Anh 35% OUTLOOK In 22, there will be 14 more IPs to begin operating which would provide 6,1 hectares more to the market. The capital is projected to be home of 33 IPs with total area of 8, hectares by 23. Prices and occupancy rate are expected to increase steadily in the next 1-3 years In general, average salary of workers in Northern economic region is lower than those in the South. Consequently, there is a southward movement of employees to work in Ho Chi Minh City and its surrounding provinces. This leads to a shortage of workers in Northern economic region s IPs. Table 16: Industrial, Future Supply Industrial Park Name District GFA (ha) Khu Chay Ung Hoa 1,18 Nam Phu Cat Quoc Oai 5 Phu Xuyen Phu Xuyen 488 Thanh Oai II Thanh Oai 48 Phu Nghia expansion Chuong My 46 North Thuong Tin Dong Anh 429 Soc Son VIP Soc Son Colliers International Research Page 3

31 Q4 215 HA NOI INDUSTRIAL Table Table 3: 17: Significant Hanoi Industrial Office Market Projects Overview No Name of Industrial Park Location Distance to CBD (km) Total Area (ha) Asking Rent (US$/sqm) Occupancy (%) LUR Term 1 Nam Thang Long Tu Liem Noi Bai Soc Son Dai Tu Long Bien Quang Minh Me Linh Phu Nghia Chuong My Hanssip (phase 1) Phu Xuyen Dong Anh Dong Anh Bac Thang Long Dong Anh Sai Dong B (Phase I&II) Long Bien Thang Long Dong anh Hoa Lac Hi-Tech Thach That Thach That - Quoc Oai Thach That Total 3, Colliers International Research Page 31

32 VIETNAM RESEARCH & FORECAST REPORT About Colliers International Colliers International is a leader in global real estate services, defined by our spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, we integrate the resources of real estate specialists worldwide to accelerate the success of our partners. We connect through a shared set of values that shape a collaborative environment throughout our organization that is unsurpassed in the industry. 52 offices in 67 countries on 6 continents 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 The foundation of our services is the strength and depth of our experience. $2.3 billion in annual revenue 1.7 billion square feet under management 16,3 professionals and staff COLLIERS INTERNATIONAL VIETNAM HO CHI MINH CITY Bitexco Office Building, 7th Floor Nguyen Hue Street District 1, HCM City, Vietnam Tel: HANOI Press Club Building, 4th Floor 59A Ly Thai To Street, Hoan Kiem District, Hanoi, Vietnam Tel: Publication Coverage Frequency Content Availability Knowledge Report/ Market Insights Vietnam Cities Quarterly All market sectors Publicly available Investment report Vietnam Quarterly Economic updates and Investment highlights Publicly available CBD Report HCMC CBD Monthly Office, Retail, Hotel and Publicly available Serviced Apartment Residential launch update HCMC Monthly Residential Publicly available Asia Pacific Office Report Vietnam Property Market Report Development Recommendation Asia Pacific Quarterly Office market Publicly available including Vietnam Vietnam cities Quarterly All market sectors On subscription Vietnam cities At request All market sectors On subscription For further information, please contact us: DAVID JACKSON General Director david.jackson@colliers.com HA VO Senior Research Analyst ha.vo@colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved. 216 Colliers International Research Accelerating success