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

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

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. 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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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 2014. 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

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 96% 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 92% 24.0 2 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 95% 22.0 3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 90% 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% 20.0 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 88% 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 94% 22.0 12 Opera View 161-167 Dong Khoi 2006 3,100 7.0 93% 26.0 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 89% 25.0 16 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 98% 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% 24.0 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 98% 21.0 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% 28.0 30 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 97% 25.0 Grade B 399,596 6.0 95.5% 23.4 * US$/ sq m/ month (on net area) P.3 Colliers International

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

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 2014. 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

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

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 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 52 100% 3 Parkson Saigon Tourist 35 Le Thanh Ton District 1 2002 17,000 90 100% Department Store 30,200 82.6 100% 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 60% Shopping Centre 113,450 67.2 77% 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 1 2000 335 60% 177 2 New World Saigon 76 Le Lai District 1 2000 533 57% 102 3 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 49% 126 4 Rex 141 Nguyen Hue District 1 2000 289 54% 104 5 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 68% 105 6 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 54% 120 7 Sheraton 88 Dong Khoi District 1 2002 480 68% 183 8 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 73% 235 9 Majestic Saigon 1 Dong Khoi District 1 2007 175 65% 128 10 InterContinental Asiana 39 Le Duan District 1 2009 305 80% 181 11 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 60% 98 12 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 38% 92 5 Star 3,633 61% 137 1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 70% 83 2 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 73% 76 3 Duxton 63 Nguyen Hue District 1 1996 203 74% 79 4 Royal City 133 Nguyen Hue District 1 2000 135 63% 70 5 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 80% 62 6 Oscar 68A Nguyen Hue District 1 2000 108 69% 39 7 Liberty Central 179 Le Thanh Ton District 1 2010 140 63% 70 8 Grand 08 Dong Khoi District 1 2011 107 66% 82 9 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 60% 68 4 Star 1,161 65% 65 P.7 Colliers International

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

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

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

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 1 1995 66 87% 31 2 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 91% 34 3 Sedona Suites 65 Le Loi District 1 1996 89 85% 30 4 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 92% 30 5 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 68% 37 6 InterContinental Asiana Saigon 39 Le Duan District 1 2009 260 98% 36 Grade A 701 91% 34 1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 75% 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 94% 33 4 Diamond Plaza 34 Le Duan District 1 1999 42 92% 29 5 Garden View Court 101 Nguyen Du District 1 2000 76 90% 31 6 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 93% 18 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 60% 28 11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 95% 34 * US$/sq m/month ** Not including VAT Grade B 738 82% 27 *** Buildings are sorted by Year of Completion P.11 Colliers International

OCTOBER 2014 CBD SERVICED APARTMENT MAP P.12 Colliers International

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