Vietnam Property Market Overview 2016

Vietnam Property Market Overview 2016

Economic Highlights

Vietnam Economic Overview GDP Growth % 10.0 8.0 6.0 4.0 2.0 Real GDP Growth (y-o-y) 1Q16 1Q15 1Q14 Vietnam 5.5% 6.1% 5.0% HCMC 7.1% 6.9% 7.7% Hanoi 7.0% 7.6% 6.6% 0.0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 Vietnam economy structure 10 11 12 13 14 15 16 Quarterly GDP GDP ytd 47% 15% Agro-forestry and Fisheries Construction and Industry 38% Services 3

Vietnam Economic Overview % 6.0 3.0 0.0 CPI - Overall % 0.8 0.6 0.4 0.2 0.0-0.2-0.4-0.6 Transport services 8.4% Medical services 9.4% y-o-y m-o-m CPI 1Q16 versus 1Q15: 1.3% Education services 3.6% 4

Vietnam Economic Overview USD mil 25,000 FDI to Vietnam Projects 2,500 Real Estate ranked #2 20,000 2,000 USD 240 million newly registered capital 11 newly registered projects 15,000 1,500 10,000 5,000 1,000 500 FDI in 1Q16 economic activities 0 2011 2012 2013 2014 2015 2016ytd Registered FDI Disbursement FDI Projects 0 3% 14% 5% 6% 72% Processing Real estate Entertainment Logistics Others 5

Vietnam Economic Overview "000 arrivals Visitors to Vietnam 60,000 50,000 40,000 30,000 20,000 10,000 0 2009 2010 2011 2012 2013 2014 2015 2016ytd March 2016, foreign visitors to Vietnam: Up 28.3% y-o-y China: up 66% Korea: up 30% foreign visitors domestic visitors 6

HCMC Market Overview

Office

HCMC Office Stock Saigon Centre Saigon Tower Diamond Plaza Grade A office buildings Bitexco Financial Tower Times Square 1996 1997 1998 1999 2000 2001 2008 2009 2010 2011 2013 2015 Sunwah Tower Metropolitan Tower Kumho Asiana Plaza Vietcombank Tower 9

HCMC Office Market Overview Current Supply 2011-16 1.33M 1.42M 1.52M 1.59M 1.70M 1.71M sqm (NFA) sqm (NFA) sqm (NFA) sqm (NFA) sqm (NFA) sqm (NFA) Typical New Supply in 2015-16 Vietcombank Tower 37,000 sqm Pearl Plaza 28,000 sqm 2011 2012 2013 2014 2015 1Q16 Grade A Grade B Grade C Suburban Slightly increase in supply o o In 1Q16, two new office buildings joined the market, adding nearly 15,000 sqm to total supply. Good construction progress was witnessed at Saigon Centre Phase II and Deutsches Haus, which are both scheduled for completion in 2017. 144 Cong Hoa 8,000 sqm 10

HCMC Office Market Overview Some newly completed buildings 426.1K sqm No. of buildings by NFA 473.1K sqm 14 31 Building name NFA (sqm) Completion Robot Tower 3,200 2015 Hai Ha Building 3,000 2015 PT Building 2,857 2015 Lim Tower II 8,500 2015 Song Tra Tower 5,500 2016 144 Cong Hoa 8,000 2016 55 402.1K sqm 416.4K sqm 146 HCMC Lottery Tower 18,260 2014 Samco Building 12,177 2014 Times Square 11,600 2013 Pearl Plaza 28,080 2015 Vietcombank Tower 37,000 2015 < 5,000 sqm 5,000-10,000 sqm 10,000-20,000 sqm > 20,000 sqm Vietinbank Tower 28,629 2014 11

HCMC Office Market Overview 1Q15 10.1% Vacancy rates 6.0% 7.5% 1Q16 Grade A Grade B Grade C Suburban 17.3K 21.4K 22.2K 41.9K 4Q15 Demand improves considerably o Net absorption was recorded at approximately 30,000 sqm in 1Q16, mainly thanks to the Suburban segment. o Many tenants relocated their office to the suburban area as the current supply in the CBD could not meet their expansion plans. 12

HCMC Office Market Overview Recent leasing deals of more than 1,000 sqm 22% Client name Previous location New location 44% Orion CJ Tower Pearl Plaza JIT Vietnam Petro Tower Pearl Plaza 33% Liberty Insurance Kumho Asiana Plaza Vincom Tower BIC New acquisition Pearl Plaza >1,000 sqm 500-1,000 sqm < 500 sqm o Demand in small- to mid-size office units accounted the biggest market share, based on number of leasing transactions during 1Q16. 13

HCMC Office Market Overview Average rents % Q-o-q changes in 1Q16 USD/sqm/mth Q-o-Q change Y-o-Y change Grade A Grade B Grade C Suburban 38.0 0.2% -0.3% 25.1 0.9% 2.8% 16.5 0.2% 0.5% 13.3 0.2% 1.2% Overall USD/sqm/month 20.7 0.5% 1.5% - 10 20 30 40 50 60 70 80 Rents continue to go up o Average rents are higher q-o-q across the board, with the Grade B segment registering the highest increase of 0.9%. o Many landlords felt more confident on quoting higher rental rates, as a result of an optimistic outlook at the current market. 14

HCMC Office Market Overview Future Supply 2016-2018 55 K 136K 123K 74K sqm (NFA) sqm (NFA) sqm (NFA) Upcoming projects Mapletree Business Center Suburban 28,700 sqm Saigon Giai Phong Tower Grade C 8,500 sqm 2016 2017 2018 Grade A Grade B Grade C Suburban Upward trend in rents Limited supply of Grade A office in 2016 o o Approximately 55,000 sqm of new office space is expected for the remainder of 2016, with the majority being located in suburban areas. One decentralised Grade A office building, with GFA around 30,000 sqm, is likely to complete by year-end. 15

Residential Apartment & Villa / Townhouse

HCMC Residential Market Overview Total Stock of Apartments 2011-16 41.6K 52.8K 59.7K 67.1K 75.8K 76.9K units units units units units units Some new completions in 1Q16 The Prince Residence 303 units by Novaland Group Galaxy 9 460 units by Novaland Group 2011 2012 2013 2014 2015 2016 ytd Affordable Mid-end Premium Luxury - less than 1% Khang Gia Go Vap Block 1 321 units by Khang Gia JSC 17

HCMC Residential Market Overview Some new completions in 1Q16 Total Stock of Villas / Townhouses 2011-16 2,650 3,181 3,594 3,841 4,159 4,197 units units units units units units Lucky Dragon 38 units by Novaland Group. 2011 2012 2013 2014 2015 2016 ytd Villas / Townhouses 18

HCMC Residential Market Overview New launches 9,720 units launched in 1Q16 New launches in 1Q16 28% q-o-q 63% y-o-y 1,989 20% 2,795 29% Apartment By Districts in 1Q16 524 units 599 units 593 units 1,420 units 1,992 units 616 units 135 units 4,936 51% Premium Mid-end Affordable 19

HCMC Residential Market Overview New launches By Districts in 1Q16 Villa / Townhouse 279 units launched in 1Q16 44% q-o-q 98% y-o-y District 9 101 units Nha Be District 134 units Binh Chanh District 27 units Proportion of affordable units 2014 2015 1Q16 61% 82% 38% 20

HCMC Residential Market Overview Take-up rates Units sold per quarter 8,974 7,572 5,205 19% q-o-q 24% 1Q15 2Q15 3Q15 4Q15 1Q16 72% y-o-y 50% < 1,500 USD/sqm Apartment 26% >= 1,500 USD/sqm 46% 21

HCMC Residential Market Overview Take-up rates Villa / Townhouse 168 Units sold per quarter 33% q-o-q 58% y-o-y 396 266 1Q15 2Q15 3Q15 4Q15 1Q16 AFFORDABLE units 46% o o Nha Be District topped other sub-markets, thanks to the good performance of the Nine South Estate project. In the meantime, District 9 still managed to have a strong sales momentum with 79 units 22

HCMC Residential Market Overview Prices 1,500 1,300 1,100 900 700 Average prices 1Q15 2Q15 3Q15 4Q15 1Q16 Primary price 0.9% q-o-q 2.1% q-o-q Secondary price 5.1% y-o-y 7.7% y-o-y Apartments Average Asking Price by Segment All Apartments 1,382 1,143 Affordable 815 732 Mid-end 1,378 1,313 Premium 2,121 1,981 Luxury 3,665 4,271 0 1,000 2,000 3,000 4,000 USD/sqm Primary Price Secondary Price Apartment Prices continue to extend their prevailing upward trends o Primary market: Apartments: Prices moved higher, and considerably so in the Mid-end segment. Some marked increases were seen in Districts 2 and 4. Villas / Townhouses: Prices continued to rise at a fast pace, mostly led by some largescale affordable projects in District 9. o Secondary market: Apartments: Prices were higher across the board, with growth of 5-7% q-o-q recorded in an increasing number of properties. Villas / Townhouses: Price uptrend continued but at a slower pace than in recent quarters. 23

HCMC Residential Market Overview Prices 4,000 Average prices 0.7% q-o-q 4.1% y-o-y 3,000 2,000 Villa / Townhouse 1,000-1Q15 2Q15 3Q15 4Q15 1Q16 2.0% q-o-q 1.3% y-o-y Primary price Secondary price Average asking prices (USD/sqm) in 1Q16 on GFA Primary price Secondary price 1,101 3,131 o The considerable gap between the two indices, primary and secondary prices, is seen as indicative of the increasing expansion of the low-end sub-segment in recent years. 24

HCMC Residential Market Overview Projected completions Notable upcoming completions in 2016-18 Project name No. of units Completion Sunrise City North Towers 616 2016 VCP Park 1 & 5 872 2016 2016 15,383 Apartment Hoang Anh Thanh Binh 1,000 2016 Lexington Residence 1,310 2016 VCP Central 1, 2 & 3 1,447 2016 2017 32,071 Vista Verde 1,152 2017 Scenic Valley 1,202 2017 2018 29,639 units Masteri Thao Dien T1-T5 3,957 2017 (*) all projectedfiguresareproducedbasedonprojectsmadeknownpublicly only VCP L1-L6, P2, P6, P7 5,647 2017 25

HCMC Residential Market Overview Projected completions Villa / Townhouse Notable upcoming completions in 2016-18 Project name No. of units Completion Saigon Pearl Villas Phase III 52 2016 Dragon Parc 58 2016 2016 442 Vinhomes Central Park Villas 93 2016 Holm Residences 29 2017 2017 2,271 Saroma Villas 177 2017 Mega Village 323 2017 2018 1,237 units Park Riverside 544 2017 Nine South Estate 381 2018 (*) all projectedfiguresareproducedbasedonprojectsmadeknownpublicly only Melosa Garden 442 2018 26

HCMC Residential Market Overview Projected launches By Districts in 2016-18 Apartment 20,000 new units expected for the remainder of 2016 25-30% of the 2016 new supply will be High-end apartment units Units Binh Tan Binh Chanh Thu Duc Tan Dist. 9 Binh Binh Thanh Dist. 2 Tan Phu CBD Dist. 7 Nha Be (*) all projected figures are produced based on projects made known publicly only 27

HCMC Residential Market Overview Projected launches New & Subsequent launches in 2016 Park Riverside Saroma Villas Villa / Townhouse 1,800-2,000 new units expected for the remainder of 2016 Sala Shophouses Saigon Pearl Villas (*) all projectedfiguresareproducedbasedonprojectsmadeknownpublicly only Holm Residences Nine South Estate 28

HCMC Residential Market Overview Vinhomes Golden River Basic Information 2 Ton Duc Thang, Ben Nghe, District 1, HCMC by Vingroup Land area (ha) 25.29 Building density 18.6% No. of blocks 16 No. of villas (unit) 63 No. of apartment blocks 13 - Aqua 1 50F, ~ 750 units - Aqua 2 50F, ~ 550 units - Aqua 3 42F, ~ 450 units - Aqua 4 36F, ~ 400 units 29

Retail

HCMC Retail Stock CBD Shopping Centres 2015 2016 Non-CBD Shopping Centres 2011 2012 2013 Aeon Tan Phu Cantavil Premier Pico Plaza 2014 2010 Pandora City 2009 Crescent Mall 1996 1999 2002 Maximark Cong Hoa 2005 2008 Lotte Mart Phu Tho 2007 Parkson Flemington Parkson Saigon Paragon Lotte Mart Q7 Parkson C.T. Plaza Parkson Hung Vuong SC VivoCity Vincom Thu Duc Vincom Quang Trung Pearl Plaza Vincom Thao Dien Emart Vincom Plaza Go Vap Vincom Le Van Viet 31

HCMC Retail Market Overview Current Supply 2011-2016 0.75M 0.84M 0.87M 0.93M 1.13M 1.20M sqm (NFA) sqm (NFA) sqm (NFA) sqm (NFA) sqm (NFA) sqm (NFA) 2011 2012 2013 2014 2015 1Q16 CBD Shopping Centre Non-CBD Shopping Centre Others Supply largely increases o o Two new shopping centres, Vincom Plaza Go Vap and Vincom Plaza Le Van Viet, added 65,400 sqm to the HCMC retail market. Convenience stores were expanding aggressively in 1Q16, among which the Vinmart+ chain was at the fastest pace. 32

HCMC Retail Market Overview New supply in 1Q16 Timeline of Delivery Name of Projects Vincom Plaza Go Vap Vincom Plaza Le Van Viet Completion Date January 2016 March 2016 Location Go Vap District District 9 Retail Area (NFA) 22,400 sqm 43,000 sqm Developer Vingroup Vingroup

HCMC Retail Market Overview Net absorption higher o o 1Q15 4Q15 9.3% 9.0% Vacancy rates 1Q16 9.2% Net Absorption In 1Q16, total net absorption of shopping centre totaled more than 50,000 sqm, mainly thanks to the quarter s new supply. The overall occupancy rate of the Shopping Centre segment remained high, driven by the F&B sector. 68,000 60,000 52,000 44,000 36,000 28,000 20,000 12,000 4,000-4,000 1Q16 CBD Non-CBD Vacancy Rate 10.1% 8.9% Net Absorption (sqm) - 58,110 1Q15 2Q15 3Q15 4Q15 1Q16 16.0% 12.0% 8.0% 4.0% 0.0% Vacancy Rate 34

HCMC Retail Market Overview Average Net Rents & Q-o-Q changes USD/sqm/mth Q-o-Q change Y-o-Y change CBD 64.2 0.0% 0.0% Non-CBD 33.9 0.0% -0.8% All 40.8 0.0% -0.4% 0.0 65.0 130.0 Rents decline o While average rent in the CBD sub-market remained stable, the Non-CBD sub-market was slightly down q-o-q, due to low asking rents at the new projects. o The average gross rent of the Shopping Centre segment was USD 46.3 per sqm per month, a marginal decrease of 1 bps q-o-q. 35

HCMC Retail Market Overview Future Investment Grade Supply 2016-2018 137.2K 67.0K 57.4K sqm (NFA) sqm (NFA) sqm (NFA) Upcoming Launched Projects Aeon Binh Tan 59,000 sqm Open in 4Q16 Shopping Mall Supply to increase substantially o Many well-known retailers plan to open their next shopping malls in 2016 such as Lotte Group and AEON. The year 2016 to remain a challenge o 2016 2017 2018 CBD Shopping Centres Non-CBD Shopping Centres Downtrend in rent is expected to continue at low-performing properties, with lack of good quality tenant mix and low footfall. Lotte Mart Go Vap 27,410 sqm Open in 2Q16 Shopping Mall Saigon Centre Phase II 32,500 sqm Open in 4Q16 Shopping Mall 36

M&A Activities

Notable transactions in 1Q16 TNR Tower The Nam Hai Resort and Spa, Quang Nam Province A&B Tower 24 floor office of 30-floor mixed use development at 56 Nguyen Chi Thanh, Ba Dinh Dist., Hanoi Sold by Vingroup to TNR Holdings Estimated transacted price of USD 110 mil Grade B Office building in District 1, HCMC, Vietnam Estimated transacted price of USD 47.5 million for 70% interest Six Sense Con Dao Luxury beachfront resort of 40 villas and 60 hotel rooms Undisclosed price Five-star luxury beach resort Undisclosed price Keppel Land in JV to develop Empire City 14.6ha waterfront site in Thu Thiem New Urban Area Subscribe for 40% interest for total consideration of USD 93.9 mil Keangnam Hanoi Landmark Tower Vietnam s tallest building of office, hotel, retail, serviced apartments and residential in the new CBD of Hanoi Acquired by AON Holdings Estimated price: USD 383 million 38

Outlook 2016

Market Outlook Economy o Economy predicted to grow at 6.7%, second fastest economy in the world behind India o Global economy headwinds expected which could effect exports, especially China o Focus on local banks to reform and address NPL s - creating artificial market conditions Office market o No new office space in HCMC CBD will increase rents by 1-3% o Limited space opportunities for large occupiers in the CBD, so occupiers will need to consider non CBD locations o Will Saigon One rise from the ashes? o Enquiries from the FMCG, IT, insurance and financial industries will drive demand in the coming quarters Residential Market o 16,500 Residential Apartments due for completion in 2016, compared to 8,645 in 2015 o 20,000 new launches by end-2016, 30% in High End sector o More developers entering the market o Prices expected to grow 1-2% per quarter 40

Market Outlook Retail o Aeon and Lotte Group continue to expand in 2016 o Downtrend in rent is expected to continue at low-performing properties with lack of good quality tenant mix and low footfall. o Many new retailers expected to enter the market, subject to good quality space M&A o Strong interest from foreign investors o Vietnam looks favourable compared to many other South East Asian countries, as the economy and real estate markets improve o Foreign investors will continue to prefer income producing assets in major cities, will consider good quality J.V Partners o Will major Vietnamese developers will continue to dominate the market if banks tighten lending. 41

Market Outlook Always Expect the Unexpected! 42

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