NOVEMBER 2014 HCMC CENTRAL BUSINESS DISTRICT HO CHI MINH CITY. CBD MARKET Report.

NOVEMBER 2014 HCMC CENTRAL BUSINESS DISTRICT HO CHI MINH CITY CBD MARKET Report www.colliers.com/vietnam

TABLE OF CONTENTS HCMC CBD MARKET REPORT NOVEMBER 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. 2-4 2 3 3 4 4-6 4 4 5 6 6-8 7 7 8 8 8-10 8 9 9 10

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NOVEMBER 2014 COMMERCIAL OFFICE MARKET Market Performance The office market in CBD showed no significant movement in recently month due to seasonal factor. Grade A segment still stayed at high occupancy rate and NORTHERN CBD average asking rent. Moreover, the market recorded a closer approach from effective rent to asking rent thanks CITY CENTRAL to limit in Grade A supply. Hence, the gap is narrowed and stabilized at around US$2 per sq. m At the same time, Grade B s occupancy rate witnessed a slightly decline in previous month, whilst average asking rent grew nearly US$0.3 to US$23.7/ sq m/ month in November. Grade AAR Occupancy rate Supply A B B B SOUTHERN CBD FINANCIAL HUB B Outlook Ho Chi Minh City led cities and provinces nationwide in attracting foreign direct investment (FDI) in the first 11 months of this year, with a total registered and additional capital of US$2.78 billion, accounting for 20.8% of the country s total figure. Since there will be limit office developments scheduled for completion in the HCMC CBD during latter half of 2015, the current upward trend for occupancy rate is expected to be sustained in 2015. Moreover, premium rents are forecasted to keep growing, as landlords have become more optimistic that many expiring leases for office space in Central CBD are expected to be renewed, due to the lack of alternative office space elsewhere. HCMC FDI GROWTH, OCTOBER 2014 CBD OFFICE PERFORMANCE BY ZONE, OCTOBER 2014 P.2 Colliers International

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 1996 11,650 6.5 98% 38.0 2 Saigon Tower 29 Le Duan 1997 13,950 6.0 91% 37.0 3 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 95% 40.0 4 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 93% 40.0 5 Diamond Plaza 34 Le Duan 1999 15,936 8.0 99% 37.0 6 Kumho Asiana Plaza 39 Le Duan 2009 26,000 8.0 93% 50.0 7 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 91% 35.0 8 President Place 93 Nguyen Du 2012 8,330 6.0 88% 33.0 9 Times Square 22-36 Nguyen Hue 2012 9,000 7.0 86% 50.0 Grade A 158,576 7.0 93% 40.2 1 OSIC 8 Nguyen Hue 1993 6,500 6.0 98% 24.0 2 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 100% 22.0 3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 100% 22.0 4 Central Plaza 17 Le Duan 1997 6,094 5.0 99% 24.0 5 Saigon Riverside Office 2A-4A Ton Duc Thang 1997 10,000 5.0 98% 19.0 6 Saigon Trade Center 37 Ton Duc Thang 1997 31,416 6.0 77% 23.0 7 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 81% 18.0 8 MeLinh Point Tower 02 Ngo Duc Ke 1999 17,600 6.0 100% 24.0 9 Zen Plaza 54-56 Nguyen Trai 2001 11,037 5.0 94% 21.0 10 Bitexco Office Building 19-25 Nguyen Hue 2003 6,000 5.0 100% 24.0 11 The Landmark 5B Ton Duc Thang 2005 8,000 5.0 90% 20.0 12 Opera View 161-167 Dong Khoi 2006 3,100 7.0 87% 27.0 13 Petro Tower 1-5 Le Duan 2007 13,304 5.0 99% 30.0 14 City Light 45 Vo Thi Sau 2007 10,000 5.0 96% 16.0 15 The Landcaster 22Bis Le Thanh Ton 2007 7,000 5.0 100% 25.0 16 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 97% 24.0 17 Fideco Tower 81-85 Ham Nghi 2008 15,000 6.0 91% 18.0 18 Havana Tower 132 Ham Nghi 2008 7,326 6.0 96% 20.0 19 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 96% 22.0 20 Royal Center 235 Nguyen Van Cu 2008 14,320 5.0 100% 23.0 21 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 23.0 22 Bao Viet Tower 233 Dong Khoi 2010 10,650 6.0 99% 21.0 23 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 98% 22.0 24 Vincom Center 68-70-72 Le Thanh Ton 2010 56,600 5.0 92% 23.0 25 Saigon Royal 91 Pasteur 2010 5,340 4.0 92% 20.0 26 A&B Tower 76 Le Lai 2010 17,120 6.0 95% 28.0 27 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19.596 5.0 91% 23.0 28 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 97% 30.0 29 Lim Tower 9-11 Ton Duc Thang 2013 29,265 6.0 98% 27.0 30 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 97% 25.0 Grade B 399,596 6.0 95% 23.7 * US$/ sq m/ month (on net area) P.3 Colliers International

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

NOVEMBER 2014 RETAIL MARKET Market Performance According to the municipal Statistics Office, HCMC s Consumer Price Index (CPI) in October dropped 0.36% from October, CPI AND RETAIL-SERVICE REVENUE GROWTH, NOVEMBER 14 surged by 2.41% comparing with the same month previous year. A fall was recorded in three groups and services in the CPI basket with transport services down by 2.98% due to continuous declines in petroleum price. In addition, a slight decrease was recorded in the group of restaurants and catering services due to big sale promotions launched by many shopping malls in the city. It should be noted that over the past four years, HCMC s CPI in November saw rises in comparison to the previous month but this year s November witnessed reduction. The closing of Tax Center is a main reason why the occupancy rate of retail market went up in this November when the tenants from there are moving to Union Square and Lucky Plaza. In specific, occupancy rate of shopping centre increase from 77% in October to 84% in reviewed month. While the asking rent of three segments including retail podium, department store and shopping centre stayed unchanged comparing with previous month. Overall, the retail sector within HCMC CBD area is still stagnant Source: GSO, Colliers International Outlook Following to The Nielsen Global Survey of Consumer Confidence and Spending Intentions, consumer confidence in Vietnam gained further momentum in the third quarter exceeding 100 points to stand at 102. Therefore, the retail market has been tough, but the study showed some really positive signals, which is fantastic leading up to Tet and into 2015. reflecting in downturn performance of almost all retail centers. Pull back in consumer power and high rental rate put pressure on retailers that force them to consolidate brands or move out to shops on streets. Source: GSO, Colliers International RETAIL PODIUM MARKET PERFORMANCE, NOV 2014 SHOPPING CENTER MARKET PERFORMANCE, OCT 2014 P.5 Colliers International

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

KUMHO NOVEMBER MONTHLY 2014 MARKET RETAIL REPORT MARKET 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 132-134 Dong Khoi District 1 2000 200 90 100% 2 Caravelle Hotel 19 Lam Son Square District 1 2000 150 90 100% 3 New World Hotel 79 Le Lai District 1 2000 1,000 60 93% 4 Sheraton Saigon 88 Dong Khoi District 1 2002 750 125 67% 5 Opera View Lam Son Square District 1 2006 1,260 85 100% 6 Kumho Asiana Plaza 35 Le Duan District 1 2009 6,830 35 100% 7 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100% 8 ICON 68 45 Ngo Duc Ke District 1 2011 8,000 40 80% 9 President Place 93 Nguyen Du District 1 2012 800 70 71% 10 Times Square 22-36 Nguyen Hue District 1 2013 9,000 90 80% Retail Podium 29,990 65.3 87% 1 Diamond Plaza 34 Le Duan District 1 1999 9,000 83 100% 2 Zen Plaza 54-56 Nguyen Trai District 1 2001 6,817 50 90% 3 Parkson Saigon Tourist 35 Le Thanh Ton District 1 2002 17,000 90 100% Department Store 30,200 82.4 99% 1 Saigon Center 65 Le Loi District 1 1996 3,500 75 100% 2 City Plaza 230 Nguyen Trai District 1 2000 5,250 25 100% 3 Tax Center 135 Nguyen Hue District 1 2003 7,000 75 100% 4 Saigon Square 1 77-89 Nam Ky Khoi Nghia District 1 2006 1,300 167 100% 5 Nowzone Nguyen Van Cu District 1 2008 9,000 40 100% 6 Saigon Square 2 7-9 Ton Duc Thang District 1 2009 1,400 90 80% 7 Vincom Center B 72 Le Thanh Ton District 1 2010 45,000 65 80% 8 Taka Plaza 102 Nam Ky Khoi Nghia District 1 2011 1,000 90 100% 9 Union Square Dong Khoi District 1 2012 38,000 73 80% Shopping Centre 113,450 67.2 84% NOVEMBER 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 1 2000 335 63% 165 2 New World Saigon 76 Le Lai District 1 2000 533 59% 110 3 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 53% 125 4 Rex 141 Nguyen Hue District 1 2000 289 53% 105 5 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 67% 120 6 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 58% 130 7 Sheraton 88 Dong Khoi District 1 2002 480 64% 210 8 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 85% 236 9 Majestic Saigon 1 Dong Khoi District 1 2007 175 67% 135 10 InterContinental Asiana 39 Le Duan District 1 2009 305 86% 218 11 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 56% 110 12 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 38% 108 5 Star 3,633 62% 148 1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 72% 100 2 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 75% 92 3 Duxton 63 Nguyen Hue District 1 1996 203 60% 75 4 Royal City 133 Nguyen Hue District 1 2000 135 66% 59 5 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 80% 55 6 Oscar 68A Nguyen Hue District 1 2000 108 65% 40 7 Liberty Central 179 Le Thanh Ton District 1 2010 140 68% 90 8 Grand 08 Dong Khoi District 1 2011 107 64% 77 9 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 57% 88 4 Star 1,161 67% 74.7 P.7 Colliers International

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

NOVEMBER 2014 HOTEL MARKET Hotel Market Overview According to the Viet Nam National Administration of Tourism (VNAT), Vietnam welcomed more than 7.2 million foreign NUMBER OF INTERNATIONAL VISITORS TO HCMC, NOV 2014 arrivals in the first 11 months of 2014, up 5.4% against the same period last year. Of the total, nearly 4.3 million foreigners chose Vietnam as the destination for their vacations, while more than 1.2 million others came for business purposes. During January-November, the tourism sector served 36.4 million domestic tourists, up 8.9% y-o-y. Whilst the tourism sector s total revenue hit US$10 billion, an increase of 15.2% comparing with the same period in 2013. Following to the HCMC government s figures, in the January- October period, the city saw 3.9 million international tourists, Source: Statistical Office in HCMC, Colliers International a y-o-y rise of 7%, and posted tourism revenues of VND78.7 trillion, a rise of 4% versus a year ago. Thanks to a strong growth of foreign visitors, occupancy rate PERFORMANCE OF TOP-GRADED HOTELS IN HCMC, NOV 2014 of both 4- and 5-star segments have witnessed an increase of 1% from 61%, 66% to 62%, 67% respectively in October. However, a healthy supply of 3-star hotel sector in CBD put a high pressure on hotel market when total top-tier s units in this area are overstock. At the same time, 5-star hotel s average room rate increased to 8% comparing with October and rental rate of 4-star hotel had a slight increase of 5% over the previous month. But, it should be mentioned that high graded hotel segment s rental rate went down nearly 23% from the same period in 2012. Source: Statistical Office in HCMC, Colliers International Outlook To maintain growth momentum, the city s tourism sector will organize many programs including a food festival towards the yearend, promote 100 interesting places and launch waterway tours, to lure more guests to the city. At the end of the year, there have many kinds of festival which are considered that chances to help hotel owners make more profit from F&B activities (Food and Beverage) and other services including conference, retail space. P.9 Colliers International

NOVEMBER 2014 HOTEL MARKET PERFORMANCE OF 5-STARS HOTEL, NOVEMBER 2014 PERFORMANCE OF 4-STARS HOTEL, NOVEMBER 2014 NOVEMBER 2014 SERVICED APARTMENT MARKET Market Performance In November, the average asking rent of top graded serviced apartment remained stable when occupancy rate kept their upward trend. In detail, Grade A s vacancy rate was nearly 9%, a decrease of 2% comparing with October while occupancy rate of Grade B increased 1% to 83% in reviewed month. Outlook HCMC has led the way in terms of cities attracting Foreign Direct Investment (FDI). Stable inflow of FDI capital makes the city an economic hub of Vietnam with a large number of regional head offices located in the city and foreign nationals arriving for employment or investment purposes. Moreover, blooming of private residential projects has hold off investment in serviced apartment in HCMC CBD area in recent years due to faster return of investment capital. The latest development was built since 2011 and the most possible new supply (100 units from Times Square) is expected to come on stream in 2015. Therefore, the serviced market in CBD is forecasted to be in upward trend in next year. P.10 Colliers International

NOVEMBER 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview GRADE A CBD SERVICED APARTMENTS PERFORMANCE GRADE B CBD SERVICED APARTMENTS PERFORMANCE NOVEMBER 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 1 1995 66 85% 30 2 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 92% 34 3 Sedona Suites 65 Le Loi District 1 1996 89 90% 30 4 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 96% 30 5 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 75% 37 6 InterContinental Asiana Saigon 39 Le Duan District 1 2009 260 96% 36 Grade A 701 91% 33.9 1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 78% 26 2 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 90% 26 3 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 97% 33 4 Diamond Plaza 34 Le Duan District 1 1999 42 95% 29 5 Garden View Court 101 Nguyen Du District 1 2000 76 84% 31 6 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 93% 18.5 7 Vincom Center 72 Le Thanh Ton District 1 2010 60 34% 26 8 Lafayette De Saigon 08 Phung Khac Khoan District 1 2010 18 100% 29 9 Spring Court 1Bis Phung Khac Khoan District 1 2011 14 86% 19 10 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 70% 28 11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 71% 34 * US$/sq m/month ** Not including VAT Grade B 738 83% 27.1 *** Buildings are sorted by Year of Completion P.11 Colliers International

NOVEMBER 2014 CBD SERVICED APARTMENT MAP P.12 Colliers International

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