4, , CONSULTANCIES PROPERTIES 655,646 DEALS CLOSED WORTH M 2 MILLION MILLION US$ US$ OFFICE COMMERCIAL SPACE QUARTERLY REPORTS

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1 US$ OFFICE RESIDENTIAL RETAIL DEALS CLOSED RESIDENTIAL UNITS CONSULTANCIES 38 QUARTERLY REPORTS 21 PROPERTIES MANAGED WORTH MORE THAN MILLION COMMERCIAL SPACE M 2 WORTH TRANSACTED VALUE 110,000 US$ 2009 FOR 325 MILLION PROPERTY ENQUIRIES 4, ,646 M 2 CB Richard Ellis Page 1

2 Vietnam Real Estate Update & Market Overview th January 2010 Kuala Lumpur Convention Centre Presented by: Marc Townsend Managing Director CB Richard Ellis (Vietnam) Co., Ltd.

3 Economic Overview Estimates 2010f GDP Growth Rate 8.5% 6.2% 1 5.3% 1 6.5% 3 Lending Rate 14-16% 12.75% Down from 21% in Q3 12.0% effective (1 Dec 2009 by SBV) 12% 2 Inflation (Average) 8.3% 22.9% 6.9% 1 y-o-y <7% y-o-y 3 Trade Deficit US$-12.5 billion US$-18 billion US$-12.2 billion 1 N/A Gold Price per Tael VND16.1million (Dec 2007) VND17.8 million (31 Dec 2008) VND million (31 Dec 2009) N/A US$/VND 16,026 17,400 (31 Dec 2008) 18,451 (31 Dec 2009) - FDI (Committed) FDI (Implemented) US$21.3 billion US$71.7 billion US$21.5 billion 1 US$22-25 billion 3 US$4.6 billion US$11.7 billion US$10.0 billion n/a Source: Historical data by GSO, 1 GSO 2 BMI Q4/2009 Report, 3 Govement Forecast CB Richard Ellis Page 3

4 Economy GDP Vietnam maintained positive GDP growth amid the global economic turbulence: One of the few countries in Asia with strong positive economic growth Third quickest economic recovery after China and India, beating other Southeast Asian neighbours REAL GDP GROWTH RATE ACROSS ASIAN COUNTRIES Real GDP Growth (%) e 2010f Indonesia Malaysia Philppines Vietnam Source: Vietnam General Statistics Office, IMA Asia CB Richard Ellis Page 4

5 Economy Interest & Inflation Y-O-Y CHANGE IN CONSUMER PRICE INDEX (CPI) IN VIETNAM Inflation to re-emerge, providing impetus to put cash to work in Real Estate: Housing & Construction Dec.09: +5.8% y-o-y Food & food stuffs Dec.09: +12.6% y-o-y 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% INTEREST RATES PUBLISHED BY SBV Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 Apr 08 May08 June08 July 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May09 Jun09 Jul09 Aug09 Sep09 Oct09 Nov09 Dec09 Interest Rates (%) Y-O-Y CPI (%) Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 CPI Food & Food Stuff Housing & Construction Materials Source: General Statistics Office Interest Rates increased by 1% since 1 Dec limit credit growth and rein in inflation. Base interest rate by end-2009: Vietnam: 8% Philippines: 2% Indonesia: 6.5% Base Rate Discount Rate Refinancing Rate Source: State Bank of Vietnam CB Richard Ellis Page 5

6 Economy FDI FOREIGN DIRECT INVESTMENT (FDI) INTO VIETNAM FDI dropped dramatically compared to 2008, but still second highest year on record 2009 registered FDI: US$21.48 billion 2009 implemented FDI: US$10 billion Implemented FDI dropped less than 15% FDI (US$ Billions) Vietnam Philippines p Total Capital Implemented Capital Source: General Statistics Office, Ministry of Planning and Investment Estimates US$21.3 bil US$4.6 bil US$71.7 bil US$4.1 bil US$21.4 bil US$1.5 bil 2010: US$22-25 billion (MPI forecast) Malaysia n/a U$$12.9 bil Indonesia US$10.3 bil US$18.5 bil n/a US$30 bil CB Richard Ellis Page 6

7 Economy Gold & Stock Market Gold now consolidating: around VND26.6mil 26.7mil/tael Stock market slowed toward year end, but potential for more foreign funds in 2010 VND/Tael 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 DOMESTIC GOLD PRICE Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Source: Saigon Jewelry Holding Company CB Richard Ellis Page 7

8 Economy Exchange Rates Confidence in the Dong still devaluation pressure in the short term but stability should return on export strength & reduction of stimulus US$/VND QUARTERLY INTER-BANK EXCHANGE RATE 19,000 18,000 17,000 16,000 15,000 14,000 13,000 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Source: State Bank of Vietnam CB Richard Ellis Page 8

9 2010 Government Decrees. Further clarifications expected on the ownership regulations for Resident Foreigners and Viet Kieu 2010 Market waiting to feel impact of new announcement that does not permit residences to be used as offices Current debate over allowing developers to pre-sell 20% of their development directly, outside of current regulations The Personal Income Tax (PIT) on housing transactions went into effect on September 26, 2009 New flat tax on transactions rather than multiple options which simplifies collections 2010 will see the implementation of the collection of these taxes CB Richard Ellis Page 9

10 Regional Infrastructure Half of Lang Hoa Lac Highway opened in October 2009 with completion expected in late 2010 or early 2011 Major regional highways broke ground and made progress with Hanoi Lao Cai, Hanoi Thai Nguyen, and Hanoi Hai Phong Highway all starting Huge impact in 5-10 years especially for the provinces Photo of Lang Hoa Lac Highway Photo of Hanoi Hai Phong Highway CB Richard Ellis Page 10

11 Urban Infrastructure Vinh Tuy and Thanh Tri Bridges finished, reducing time across Red River Two metro lines have signed foreign contractors and plan to begin construction in early 2010 Kim Lien Tunnel opened in June 2009 improving Ring Road 1 104,235 cars sold in Vietnam in 2009 compared to only 40,853 in 2006 Delayed infrastructure will hurt more and more Photo of Thanh Tri Bridge Photo of Kim Lien Tunnel CB Richard Ellis Page 11

12 2009 Infrastructure Milestones Air & Sea Seaports First vessel into Saigon Premier Container Port Airports DANANG First flight from Taipei. Planned 2010 flights from Japan. New International Airport to be completed DALAT New international airport completed NHA TRANG / CAM RANH First international flight from Singapore. Planned 2010 flights from Russia. Lack of regular international flights to destinations outside of Hanoi and HCMC. Saigon Premier Container Port Lien Khuong Int l Airport - Dalat CB Richard Ellis Page 12

13 Hanoi Residential 2010 Year LAUNCHED CONDO UNITS Luxury & High-end 2,003 (6 projects) 4,511 (15 projects) 3,174 (8 projects) Mid-range 3,323 (13 projects) 6,014 (19 projects) 5,407 (9 projects) Affordable 438 (3 projects) 2,567 (4 projects) - Total 5,864 (22 projects) 13,356 (38 projects) 8,581 (17 projects) 40% of 2009 supply launched in Oct & Nov, sudden surge followed by return to steady demand More projects may launch in 2010 based on market conditions Residential market will remain the strongest market urban growth, shifting family structure, and its role as primary investment option CPI increase driving cash to be transferred to housing or land Property around West Lake should continue appreciating, especially on western edge Supply to increase significantly across all grades Quality projects will continue to sell well Projects of dubious quality in substandard locations will struggle CB Richard Ellis Page 13

14 Hanoi Residential - Outlook Don t fall into the trap The market for units priced above $2,000 psm is limited. Projects need prime location, high grade advisors / contractors (architects, marketing, quality control), extensive facilities, and limited units Handover of high-end and luxury projects in Good gauge of true demand (Vincom, Golden Westlake, Sky City Towers) Anything over 1,000 units cut costs, eliminate frills, create efficient unit sizes and target the middle to upper-middle class market ($1,000 to $1,600 psm) Villas will remain the aspiration of most families, but people will come to terms with rising urban land costs Choice between condominiums in urban core or villas on the fringe Expect more pressure from government to progress with lower cost housing CB Richard Ellis Page 14

15 Hanoi Residential - Outlook Mid-range market will dominate transaction activity with more launches if demand persists Small niche demand for luxury projects will remain Prime locations, limited units (~100), respected developers Still heavy speculation, but end-users exist Observe hand-over of high end projects in 2010, who is living there? Overall market pricing should trend down as more projects focus on large middle and upper-middle class market with price points below $1,500 psm Suburban projects will introduce Hanoi to benefits of living outside core city More space Dramatically reduced prices for similar quality Air quality, improved environment CB Richard Ellis Page 15

16 HCMC Residential 2010 Year LAUNCHED UNITS Luxury & High-end 4,005 2,781 12,737 Mid-end 3,818 4,276 10,380 Affordable 1,630 3,619 5,130 Total SOLD UNITS 9,453 (24 projects) 10,676 (32 projects) Fierce Competition Over supply of units in/around HCMC Backlog of units from 2008/2009 Expected 2010 launches add additional 30,000 units (3x the amount launched in 2008 or 2009) Affordable and mid-end market will continue to dominate 28,247 (57 projects) Total 3,127 5,957 - CB Richard Ellis Page 16

17 HCMC Residential 2010 US$ psm CAPITAL VALUES ,000 5,000 4,000 3,000 2,000 1, Luxury High-end Mid-end Affordable Buyers Primary Concerns Brand, Location, Price Super-Deluxe segment will emerge and begins to attract some serious attention FIRST! - $10,000/sm condo AND $3 million villa to be offered to the market Buying patterns split with end-users buying later and short term investors buying at product launch CB Richard Ellis Page 17

18 Second Home Market 2010 Second Home Markets Hoa Binh / Ha Tay Different concept (mountains) but still early. Need to be near traditional resort area (Mai Chau, Ba Vi, Tam Dao) Danang Strong supply, demand may diminish due to the rise of other locations Nha Trang Enters the Residential home market with multiple condominium projects launching in Strong competitor to Danang with more developed tourist market (local & international) Long Hai / Vung Tau Continued interest in these convenient vacation get-aways but with limited opportunities Mui Ne / Phan Thiet The Superstar of 2010 with multiple opportunities for home ownership, golfside, beachside or hillside, villa or condo, traditional or modern. Access is limited to buses and cars Dalat Target buyers will be Vietnamese. Foreign buyers are no longer the main target of these homes. Beach units will rely on foreigners for rental pool after completion CB Richard Ellis Page 18

19 Hanoi Office 2010 Office rents will continue falling Office rents will not start rising until construction slows Stabilization can occur with strong FDI growth and shifting Vietnamese demand Enquiries were much stronger in 2H 2009, but slow at year end Limited drop in Grade A rents (many still above $40 psm) has allowed Grade B buildings to find tenants and appear to stabilize in low $20 s for now International schools, local financials, SOE subsidiaries continue looking for large spaces or whole buildings 2,000 sm 5,000 sm AVERAGE ASKING RENTS OF HANOI GRADE A & B OFFICE PROPERTIES US$ psm per month (incl. service charge and excl. VAT) $60 $50 $40 $30 $20 $10 $ Q Q Q Q Q Q Q Q4 Grade A Grade B CB Richard Ellis Page 19

20 Hanoi Office 2010 Most of the take-up is at new buildings and generally at rents under $25 per sm Net absorption (sm) 16,769 52,730 Lowest net absorption during Q2.08 Q1.09: -13,346 sm 2010 should see absorption at almost double 2009, but still more supply Despite continued strong net absorption, 53,000 sm of Grade A and B space is still empty and looking for tenants at the end of 2009 with over 150,000 sm of more space coming in 2010 Concerns about oversupply with huge market changing buildings guaranteed to open in the next two years: Keangnam (90,000 sm NFA), Grand Plaza (Charmvit) (45,000 sm NFA); EVN Tower (45,000 sm NFA); Capital Tower (23,000 sm NFA); Crown Complex (16,000 sm NFA) and more CB Richard Ellis Page 20

21 Hanoi Office - Outlook Developers finally coming to terms with the idea of stable or falling rental levels Long terms leases are a win-win with both the tenant and landlord getting security Developers will follow example of CEO Tower (10-50 year leases), only new building to stabilize in current market (5% vacancy, 3 months after opening) More large companies, mainly local, will look to consolidate offices, expecting longer leases and favorable rentals Stabilizing new buildings will continue to rent at rates below comparable existing buildings May outperform existing offices in mid-term, but need to stabilize first If rentals continue to fall in new well located Grade A or B+ buildings, beware of major movement when the rent saved actually covers the cost of the move Remember most tenants did not lease at the market peak. Most Grade A tenants are paying between $25 and $40 psm CB Richard Ellis Page 21

22 HCMC Office 2010 AVERAGE ASKING RENTS, HCMC OFFICE MARKET $80.0 $60.0 US$/sm/month $40.0 $20.0 $0.0 Q1.07 Q2.07 Q3.07 Q4.07 Q1.08 Q2.08 Q3.08 Q4.08 Q1.09 Q2.09 Q3.09 Q4.09 Grade A Grade B Grade C Average rents (US$/sm/month) Significant increase in office enquiries at the end of 2009, expected to continue Over 100,000 sm of vacant space carries over 2010 will see a more new space come on-line than 2008 & 2009 combined more than 350,000 sm Take up will double from c.300,000 sm Amount of new and existing supply ensures that 2010 is the year of the tenant Demand will come from existing Vietnamese firms and MNC s expanding into Vietnam Image is key your office/building is a reflection of your business CB Richard Ellis Page 22

23 HCMC Office 2010 Tenant/Investor Strategies Extend lease lengths as rental prices bottom out Strata titling buy floors Take a headlease on a building, lease extra space Buy a completed building, it s cheaper than developing Landlord Strategies New realism to attract tenants fit out cost contribution, lower asking prices, greater overall flexibility The most profitable landlords will look for incomes other than rent - building sponsorship, communication company income Lead with a LEED building Keep the faith buildings will fill out CB Richard Ellis Page 23

24 Hanoi Retail 2010 CBD shopping centres stay strong in 2009 Retail, Hanoi CBD Non CBD Average asking rent (US$/sm/month) $69.25 $42.4 Vacancy 0.54% 36.92% Outside the CBD, a large new supply struggles to stabilize, limited by affordable street front rents Retail Supply f 2011f 2012f CBD 40,697 40,697 49,197 49,197 49,197 83,879 Non CBD 12,500 34,990 54, , , ,036 CBD will still face limited supply, but conversion of shop houses into modern retail shops will limit rental growth Major projects in 2010 include Grand Plaza (25,000 sm), Bac Ha Plaza (7,600 sm), and Xuan Thuy Tower (5,600 sm) CB Richard Ellis Page 24

25 Hanoi Retail - Outlook Wet markets are in the process of converting to enclosed shopping centres. What will be the outcome? Hanoi now has 6.5 million residents with growing urbanization along major transport routes. Suburban retail will follow Decentralization over the Red River (Savico Plaza) and to the west (The Garden, Grand Plaza Hanoi, Keangnam etc) Renovated shophouses will continue to play main role in CBD (Nine West, FCUK, Calvin Klein Jeans, Converse, Mango all in shophouses) Challenge of ENT hampers access for overseas retailers Biggest expansion came from F&B Not JV s or foreign entrants, just local franchisee with branding rights CBD rental rates should remain stable despite limited new supply due to rapid redevelopment of existing shophouses Outside the CBD, newer shopping centres will stabilize as more local and mid-market brands take advantage of the major population centres to the west and south of the city CB Richard Ellis Page 25

26 HCMC Retail 2010 Retail New Supply (sm) f CBD 1,280 11,882 18,781 65,050 Non CBD 24,000 50,300 46,687 68,000 Supply of prime CBD retail space to triple in 2010 New retail space shifts from shophouse to shopping malls Non CBD space to increase almost 50% All CBD space to be absorbed as demand remains strong and current supply is limited top rental prices to increase Demand to come from: Expanding Vietnamese retail chains nationwide rollout International and Vietnamese F & B Arriving International brands as WTO hangover wears off Large scale international brand operators (Tesco/Wal-Mart) remain on the sidelines Franchising will be key to (local) F&B expansion CB Richard Ellis Page 26

27 HCMC Retail Opportunities 2010 Underground retail: Growing as traditional street-side retail space is limited Vincom Centre leading the pack with this trend Others join in with adaptations La Van Tam Park to break ground in 2010 Market-style retail to expand: Saigon Square I & II will be copied Consumers have confidence in what they know Short-term developments capitalising on underused land slated for redevelopment Located in densely populated areas Quick set-up allows investors to gain almost immediate returns Rental rates higher than formal settings CB Richard Ellis Page 27

28 Hanoi Serviced Apartments 2009 saw a correction in serviced apartment rentals, but vacancies remained low in old buildings and new supply from 2008 was fully absorbed Hanoi Total Supply (units) 1,885 1,891 Avg. Asking Rent (US$/sm/month) $33.88 $28.62 Vacancy Rate (%) 20% 11% Budgets changed, but expatriates continued coming into Hanoi and governmental organizations supplied a large portion of demand Historical lack of condominiums for rent in Hanoi will change soon, putting pressure on long-term serviced apartments Apartment buildings need to convince people to move out of their big houses. Can win with construction quality, insulation, good services, etc; otherwise price premium just too high Short-term stays with daily rates will stay as popular option to cover up revenue lost to higher vacancy CB Richard Ellis Page 28

29 Hanoi Serviced Apartments 2010: Stable Year 310 units in 2010, plus further boutique projects Est. New Supply (units) 2010f 2011f 2012f Hanoi Demand could grow with more businesses entering Hanoi New entrants to Vietnam and firms already in HCMC hoping to take advantage of growth in Hanoi Yet to see many large scale standard rental apartments (The Manor), but more buy-to-let will be available in 2010 Best serviced apartments already stabilized, newer projects or older buildings may continue to see rentals slip but could stabilize during 2010 Hanoi tenants stayed during recession but asked for rent adjustments or moved to cheaper buildings Will hotel sponsored serviced apartments succeed? (Charmvit, Crown Complex, Keangnam) Can tenants afford the premium? CB Richard Ellis Page 29

30 HCMC Serviced Apartments f 2011f 2012f Total Supply 2,859 3,212 3,582 4,291 5,035 Anticipated New Units n/a n/a Avg. Asking Rent (US$/sm/month) $29.66 $24.94 n/a n/a n/a Vacancy Rate 12% 16% n/a n/a n/a Three new serviced apartments with 370 units (in D.7, D.1 and D.2) to enter the market in 2010, plus further boutique projects Supply is limited and thus demand must only increase slightly to have significant impact on occupancy Competition from buy-to-let apartments; The Manor 1: still popular Saigon Pearl River Garden Cantavil Hoan Cau Multiple developments in District 7 Tenants may have a short term advantage negotiating rental rates and services Supply will be under pressure by the end of 1H 2010 as International trade and associated SA demand returns. CB Richard Ellis Page 30

31 Hanoi Hotel 2010 Occupancies looking much better in Q3 and Q with improving numbers for QUARTERLY ADR AND OCCUPANCY RATE OF HANOI 5-STAR HOTELS IN % 60.00% 40.00% ADR will remain in current position longer Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/ % 0.00% New brands are entering the market, creating variety (Mercure, Marriott, Pullman, Holiday Inn, and more) Arrivals to Hanoi in 2009 / in comparison with 2008 International arrivals Local arrivals Average Daily Rate (ADR) : 1.03 million, 11.7% : 6.7 million, 1.8% Occupancy rate CB Richard Ellis Page 31

32 Hanoi Hotel Future Supply Year Number of project CBD Number of hotel room Number of project Non-CBD Number of hotel room ,033 Major entrants: Grand Plaza (Charmvit) : 600 rooms (2010) Crowne Plaza : 386 rooms (2010) Intercontinental Keangnam : 383 rooms (2011) CB Richard Ellis Page 32

33 Hanoi Hotel - Outlook Huge recovery of hotel occupancy occurred in 2H 2009 and will carry into 2010 This will not create any sustained growth in ADR Temporary spike in ADR should occur in Q due to 1000 th anniversary CBD hotels could see ADR growth by year end with upswing in tourism and business travel. New hotels to the west limited by lack of tourist appeal More local brands will expand, taking advantage of strong domestic travel International budget flags will continue to expand in Hanoi, HCMC and the tier-2 cities CB Richard Ellis Page 33

34 HCMC Hotels 2010 High season occupancy rates (to date) on par with previous years and expected to steadily recover the remainder of the year Already 85%-95% occupancy during peak weeks Strong growth in local demand Return of international business travelers and MICE Vietnamese companies going international Saigon Tourist in the US, Saigon Investment Group in Laos Local developers invest in/develop hotels Expansion of hotel brands and styles Local brands expand nationally Increased competition in the top end segment New International Brands - IBIS (D1&D7) & Nikko (D1) International Budget Brands will enter Smaller boutique hotels (not star rated) Business hotels in Industrial Parks CB Richard Ellis Page 34

35 HCMC Hotel Future Supply Year of Completion 2010 (473 rooms) 2011 (1,175 rooms) Project Management Location No. of rooms LIBERTY 6 Self D GOLDEN TOWER Self D SAIGON GIVRAL Self Phu Nhuan 209 NEW PACIFIC Self D GRAND EXTENTION Self D NIKKO SAIGON Nikko D TIMES SQUARE Self D LE MERIDIEN SAIGON Starwood D (858 rooms) NOVOTEL SAIGON CENTRE Accor D IBIS BEN THANH PALACE Accor D IBIS SAIGON SOUTH Accor D SAIGON CONVENTION AND EXHIBITION Self D.7 1,000 Total 3,506 CB Richard Ellis Page 35

36 Hanoi Industrial 2010 Demands for high quality and strategically positioned logistics warehousing will continue to increase though will not be fully met in 2010 Industrial market will return to an inbound market as foreign manufacturers rebound Industrial park landlords and managers will reluctantly begin to soften their positions on pricing and fees Industrial park developers will come back to the market seeking opportunities Northern industrial market will gain attention as road infrastructure improves and airports and seaports support more international transport CB Richard Ellis Page 36

37 HCMC Industrial 2010 Carry over vacancy from 2009 results in Industrial park landlords may soften on pricing and fees Factory owners have offered the lower prices. Strong demand for small-to-middle size manufacturers requiring for land lots between 1,000-5,000sm Opportunities for ready-built/build-to-suit developers as manufacturers enter with specific needs that current supply can not meet Demand for Logistic Centres (Warehouse/Distribution Centres/ICDs) In the new port areas; SPCT (Hiep Phuoc), Port of Singapore Authority and Saigon New Port (in Cai Mep-Thi Vai). Warehousing in Cat Lai Port Area. CB Richard Ellis Page 37

38 Land in Hanoi 2010 Change in land prices driven by infrastructure Three Stages Planned Under Construction Opening (Completion) As a road or other project progresses through each stage, risk of delay or failure decreases Leading to adjustment in land prices Longer delay between stages makes any progress more unexpected Major projects that could change stages in 2010: Cat Linh Ha Dong Metro Line (starting construction) Lang Hoa Lac Highway (completion) Ring Road 3 Nhat Tan Bridge for Dong Anh (bridgehead construction) Hanoi Hai Phong Highway (starting construction in Hanoi) CB Richard Ellis Page 38

39 Investment 2010 Vietnamese investors will continue to dominate Foreign investment will begin to trickle back in slowly, but will focus on an equal basis, Hanoi - HCMC Foreign investors going to the provinces/under developed districts to combat land prices Real Estate Funds to continue to divest and consolidate More IPO listings as capital markets recover Local developers will utilise increasingly sophisticated fundraising options in Vietnam and abroad Investors/retailers look at purchasing long-term lease of retail podiums Failure of self-managed podiums present opportunities CB Richard Ellis Page 39

40 CBRE s MOST Fearless Forecasts 2010 Office take up will double but rents not to recover until 2011 Hotel occupancies to recover by the second half of 2010 ENT problems persist, local retail demand will be insatiable Local developers continue to lead the way tallest, biggest and most expensive Traffic congestion will restrict daily life and limit spending The super-deluxe condo / villa market will attract some serious attention District 9 will spawn ten new villa projects The number of real estate funds will shrink and characteristics will change Serviced apartment demand will recover by the end of the first half Go on, be a Tiger CB Richard Ellis Page 40

41 Hanoi Coming of Age Final Thoughts A Millennium of Thang Long - Hanoi Hanoi and HCMC converging in development Investment and development market from local and foreign groups swung away from HCMC to Hanoi in 2009 and this trend will continue throughout 2010 Residential market continues in popularity as Hanoians show preference for real estate over stocks Serviced apartment, hotel & office market not just supported by stable demand from embassies, NGOs, Development Organizations (ADB, World Bank) Townships and complexes have struggled for many years to go through clearance and approvals become a sub-developer and start building in one! Government pressure and support for the 1000 th anniversary will lead to strong progress for Hanoi throughout 2010 CB Richard Ellis Page 41

42 Quarterly Reports for Ho Chi Minh City and Hanoi Economic Overview Current Rents and Prices Office Retail Hotel Residential for Sale Available for each city, in English or Vietnamese Investment Serviced Apartments Construction Costs CB Richard Ellis Page 42

43 THANK YOU CB Richard Ellis, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. CB Richard Ellis Page 43