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

Transcription

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

2 TABLE OF CONTENTS HCMC CBD MARKET REPORT OCTOBER 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

3 As you focus on your customer, we focus on you. You re an expert in knowing what your customers want often before they do. We bring the same approach to your business. Colliers International is built on an enterprising culture of collaboration and innovation. We provide creative, strategic solutions to all our clients. Whether you need sales and leasing brokerage, property marketing, research and demographics, or asset and property management, we have retail professionals across Vietnam who can meet the real estate needs of retail tenants, landlords and developers. Today s real estate challenges require more than geographic reach and local knowledge: they require integrated expertise in market segmentation, valuation, disposition, assembly, debt and equity strategies and much more. Our integrated platform and our experienced bring you closer to your customers.

4 OCTOBER 2014 COMMERCIAL OFFICE MARKET Market Performance In September, Grade A s asking rent remained at US$40/ sq m/ month while occupancy rate went up 93% with m-o-m increase of 3%. NORTHERN CBD Meanwhile, Grade B properties in South and North CBD experienced healthy leasing activities from moving of CITY CENTRAL tenants from City Central given recent commencement of a big infrastructure construction site. As a result of that, both average asking rent and occupancy rate in these areas gained moderately compared to previous months. At the same time, Grade B s buildings in Financial Hub continued to ease their asking rent to match the clients budget. Grade AAR Occupancy rate Supply A B B B B SOUTHERN CBD FINANCIAL HUB Outlook Foreign direct investment (FDI) registered in HCM City have increased by 6.9% to more than US$1.18 billion as of September Figures from HCM City Statistics Office also showed that the southern City granted licenses to 277 new foreign-invested projects worth US$1.1 billion, with the real estate sector attracting 7 projects worth US$450.4 million and industry/ trade areas welcome 100 projects worth US$452 million. City Authorities said investors from countries and territories such as South Korea, Mainland China, Hong Kong and Taiwan were accelerating their investments in HCMC that has endevoured to remain a promising investment destination for foreign investors in the future. HCMC FDI GROWTH, OCTOBER 2014 CBD OFFICE PERFORMANCE BY ZONE, OCTOBER 2014 P.2 Colliers International

5 OCTOBER 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 , % 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 , % 25.0 Grade B 399, % 23.4 * US$/ sq m/ month (on net area) P.3 Colliers International

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

7 OCTOBER 2014 RETAIL MARKET Market Performance SAIGON TAX CENTER IS OFFICIALLY CLOSED SINCE OCT 2014 September recorded an upward trend of all three CBD retail market sectors including retail podium, shopping center and department store since June Department store retained fully occupancy condition and stable average rental rate for the sixth consecutive months. Retail podium and shopping center also saw positive growth in both rental and occupancy rate during last month. Since early of October, Saigon Tax Center will be closed. The developer, SATRA Group, has announced a development plan of a new complex consist of hotel and retail components on this land area. Situated at the crossroad of Nguyen Hue and Le Loi Street and considered as one of the most prime location in HCMC, the new development is expected to be a high end shopping destinations in town. RETAIL & SERVICE REVENUE GROWTH, OCT 2014 Source:Public Domain Outlook The HCM City s Statistics Office reported that the CPI in September was up 1.13% against August, with a y-o-y increase of 3.16%. According to the Office, the cost of educational goods and services acheived greatest growth of 19% compared to August, as the consumers in HCM City stocked up on school supplies for the new academic year. Source: GSO, Colliers International RETAIL PODIUM MARKET PERFORMANCE, OCT 2014 SHOPPING CENTER MARKET PERFORMANCE, OCT 2014 P.5 Colliers International

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

9 KUMHO OCTOBER MONTHLY 2014 RETAIL MARKET MARKET REPORT HCMC CBD MARKET REPORT No Name of Project / Building Address Location Completion Year NLA (sq m) Average Rental (US$/sq m/month) Occupancy Rate 1 Hotel Continental Saigon Dong Khoi District % 2 Caravelle Hotel 19 Lam Son Square District % 3 New World Hotel 79 Le Lai District , % 4 Sheraton Saigon 88 Dong Khoi District % 5 Opera View Lam Son Square District , % 6 Kumho Asiana Plaza 35 Le Duan District , % 7 Rex Arcade 141 Nguyen Hue District , % 8 ICON Ngo Duc Ke District , % 9 President Place 93 Nguyen Du District % 10 Times Square Nguyen Hue District , % Retail Podium 29, % 1 Diamond Plaza 34 Le Duan District , % 2 Zen Plaza Nguyen Trai District , % 3 Parkson Saigon Tourist 35 Le Thanh Ton District , % Department Store 30, % 1 Saigon Center 65 Le Loi District , % 2 City Plaza 230 Nguyen Trai District , % 3 Tax Center 135 Nguyen Hue District , % 4 Saigon Square Nam Ky Khoi Nghia District , % 5 Nowzone Nguyen Van Cu District , % 6 Saigon Square Ton Duc Thang District , % 7 Vincom Center B 72 Le Thanh Ton District , % 8 Taka Plaza 102 Nam Ky Khoi Nghia District , % 9 Union Square Dong Khoi District , % Shopping Centre 113, % OCTOBER 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 % 92 5 Star 3,633 61% Continental Saigon Dong Khoi District % 83 2 Norfolk Hotel Le Thanh Ton District % 76 3 Duxton 63 Nguyen Hue District % 79 4 Royal City 133 Nguyen Hue District % 70 5 Palace Saigon Nguyen Hue District % 62 6 Oscar 68A Nguyen Hue District % 39 7 Liberty Central 179 Le Thanh Ton District % 70 8 Grand 08 Dong Khoi District % 82 9 Liberty Central Riverside 17 Ton Duc Thang District % 68 4 Star 1,161 65% 65 P.7 Colliers International

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

11 OCTOBER 2014 HOTEL MARKET Hotel Market Overview According to the Viet Nam National Administration of Tourism NUMBER OF INTERNATIONAL VISITORS TO HCMC, OCT 2014 (VNAT), Vietnam has welcomed more than 6 million foreign arrivals over the past nine months, a y-o-y increase of 10%. It has also served 32 million domestic holidaymakers, up 8% compared to the same period last year. Over the period, tourism revenue was posted over VND179 trillion, representing a y-o-y rise of 19%. Meanwhile, some 3.1 million international tourists came to HCMC in the nine months, generating revenue of around VND67 trillion. The figures climbed by 10.7% and 10.5% against the Source: Statistical Office in HCMC, Colliers International corresponding period last year, respectively. Market Performance PERFORMANCE OF TOP-GRADED HOTELS IN HCMC, OCT 2014 During last month, the average room rate of high class hotels in HCMC saw a notable decline as a consequence of discount programs offered by the hostel owners. Therefore, despite the fact that tourists came to HCMC increased significantly in reviewed month, revenue of tourism market went down sharply, an m-o-m decrease of 14.2%. The occupancy rate of 5-star hotel segment dropped for the third consecutive months, staying at 65%. The rental of 4-star segment also decreased by 9% over August, but thanks to its lessening, occupancy rate went up by Source: Statistical Office in HCMC, Colliers International 1% comparing with last month. Outlook With a total investment of VND2,311 billion, an expansion of International Terminal 2 in Tan Son Nhat International Airport project was approved by Ministry of Transportation last month that will be started in November 2014 and completed after 26 months. After finishing, it will cover an area of 115,834 sq. m with capacity of serving more than 13 million passengers per year. P.9 Colliers International

12 OCTOBER 2014 HOTEL MARKET PERFORMANCE OF 5-STARS HOTEL, OCTOBER 2014 PERFORMANCE OF 4-STARS HOTEL, OCTOBER 2014 OCTOBER 2014 SERVICED APARTMENT MARKET Market Performance Top-tier serviced apartment market in HCMC CBD area witnessed reverse movement in September. Grade A serviced apartments recorded a decline in occupancy rate after upward trend of the last three months while average asking rent remained unchanged. Meanwhile, occupancy rate of Grade B developments gained 2% to reach 82% given stable rent at US$27 per sq. m per month. Outlook Given a few change of new supply would come on line till the end of this year, we expect insignificant change for the top-graded serviced apartment market in HCMC CBD area. Both average rental and occupancy rate of top-tier segment would be stable regarding to steady performance throughout this year so far. These figures of some developments would record changes at larger margin in response to business strategy of the developer / operator. Beside new supply, private flat for lease remains the major competitive sector to serviced apartment in HCMC in both term of price and location. P.10 Colliers International

13 OCTOBER 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview GRADE A CBD SERVICED APARTMENTS PERFORMANCE GRADE B CBD SERVICED APARTMENTS PERFORMANCE SEPTEMBER 2014 SERVICED APARTMENT HCMC CBD MARKET REPORT No Project Name Address Location Completion Year Total Room Average Occupancy ARR(*) 1 The Landmark 5B Ton Duc Thang District % 31 2 Somerset Chancellor Court Nguyen Thi Minh Khai District % 34 3 Sedona Suites 65 Le Loi District % 30 4 Nguyen Du Park Villas 111 Nguyen Du District % 30 5 The Landcaster 22 Bis Le Thanh Ton District % 37 6 InterContinental Asiana Saigon 39 Le Duan District % 36 Grade A % 34 1 Somerset HCM 8A Nguyen Binh Khiem District % 26 2 Saigon Sky Garden 20 Le Thanh Ton District % 26 3 Norfolk Mansion Ly Tu Trong District % 33 4 Diamond Plaza 34 Le Duan District % 29 5 Garden View Court 101 Nguyen Du District % 31 6 Ben Thanh Luxury Ky Con District % 18 7 Vincom Center 72 Le Thanh Ton District % 26 8 Lafayette De Saigon 08 Phung Khac Khoan District % 29 9 Spring Court 1Bis Phung Khac Khoan District % Nikko Saigon 235 Nguyen Van Cu District % Saigon City Residence 8A/3D2 Thai Van Lung District % 34 * US$/sq m/month ** Not including VAT Grade B % 27 *** Buildings are sorted by Year of Completion P.11 Colliers International

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

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