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

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

TABLE OF CONTENTS HCMC CBD MARKET REPORT JULY 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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JULY 2014 COMMERCIAL OFFICE MARKET Market Performance Generally, during the first half of this year, CBD office market continues being on the right track with improvements from both Grade A and Grade B buildings NORTHERN CBD compared to recent years. However, reviewed back since the begin of 2014, although CITY CENTRAL the occupancy rate reveal a promising period for the office market, actual fluctuation of the asking rent presented an announcement of fierce competition between landlords throughout the last two quarters. In June, occupancy rate of both Grade A and Grade B in City Central increased slightly, whilst, the rest of Grade B buildings in other sections remained flat. The average rental of Grade A dropped inconsiderably, staying at US$39.8/ sq m/ month. Meanwhile, the monthly rents of Grade B gained US$0.1 to reach US$23/ sq m. Grade AAR Occupancy rate Supply A B B B B SOUTHERN CBD FINANCIAL HUB Outlook In upcoming months, we do not expect significant surge of CBD office market though the sustainable performance will be retained till the end of this year. Given limit available stocks, tenants face challenges in looking for truly premier office space within top-graded buildings in CBD area. This shortage is predicted to last until the second quarter of 2015. As a result of that, we also notice activities of en bloc lease for sublease at top-graded developments. Favoured rental and foreseeing of future gain in rents are major principles of this kind of investment. GRADE A OFFICE PERFORMANCE, JULY 2014 GRADE B OFFICE PERFORMANCE, JULY 2014 P.2 Colliers International

JULY 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 95% 40.0 2 Saigon Tower 29 Le Duan 1997 13,950 6.0 99% 37.0 3 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 91% 43.0 4 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 94% 41.0 5 Diamond Plaza 34 Le Duan 1999 15,936 8.0 99% 41.0 6 Kumho Asiana Plaza 39 Le Duan 2009 26,000 8.0 93% 49.0 7 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 88% 34.0 8 President Place 93 Nguyen Du 2012 8,330 6.0 97% 30.0 9 Times Square 22-36 Nguyen Hue 2012 9,000 7.0 60% 50.0 Grade A 158,576 7.0 90.4% 39.8 1 OSIC 8 Nguyen Hue 1993 6,500 6.0 94% 20.0 2 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 100% 16.0 3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 100% 21.0 4 Central Plaza 17 Le Duan 1997 6,094 5.0 100% 26.0 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 96% 23.0 7 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 98% 22.0 8 MeLinh Point Tower 02 Ngo Duc Ke 1999 17,600 6.0 99% 24.0 9 Zen Plaza 54-56 Nguyen Trai 2001 11,037 5.0 95% 21.0 10 Bitexco Office Building 19-25 Nguyen Hue 2003 6,000 5.0 92% 25.0 11 The Landmark 5B Ton Duc Thang 2005 8,000 5.0 82% 21.0 12 Opera View 161-167 Dong Khoi 2006 3,100 7.0 90% 26.0 13 Indochina Park Tower 4Bis Nguyen Dinh Chieu 2006 2,145 3.0 77% 10.0 14 Petro Tower 1-5 Le Duan 2007 13,304 5.0 99% 30.0 15 City Light 45 Vo Thi Sau 2007 10,000 5.0 98% 15.0 16 The Landcaster 22Bis Le Thanh Ton 2007 7,000 5.0 100% 24.0 17 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 100% 23.0 18 Fideco Tower 81-85 Ham Nghi 2008 15,000 6.0 100% 20.0 19 Havana Tower 132 Ham Nghi 2008 7,326 6.0 99% 21.0 20 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 96% 26.0 21 Royal Center 235 Nguyen Van Cu 2008 14,320 5.0 100% 23.0 22 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 23.0 23 Bao Viet Tower 233 Dong Khoi 2010 10,650 6.0 100% 21.0 24 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 96% 22.0 25 Vincom Center 68-70-72 Le Thanh Ton 2010 56,600 5.0 70% 23.0 26 Saigon Royal 91 Pasteur 2010 5,340 4.0 100% 19.0 27 A&B Tower 76 Le Lai 2010 17,120 6.0 98% 29.0 28 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19.596 5.0 89% 23.0 29 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 93% 26.0 30 Lim Tower 9-11 Ton Duc Thang 2013 29,265 6.0 97% 28.0 31 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 12% 22.0 Grade B 399,596 6.0 89.5% 23.1 * US$/ sq m/ month (on net area) P.3 Colliers International

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

JULY 2014 RETAIL MARKET Market Performance VACANT RETAIL SPACE @ SHERATON PODIUM Last month saw a flat period of all three CBD retail market sectors including retail podium, department store and shopping mall. The average rental rate of department store stayed firm at US$82.6 per sm. because of constant occupancy rate. Whereas, shopping center experienced unchanged vacancy rate even though it dropped almost 10% since early of the year. After a lengthened fully-occupied time, we noticed an available space at Sheraton s podium. This lead to a minor drop of 1% in occupancy rate of retail podium segment. Regardless the small area, vacant condition of that premium location somehow reflected difficulties of retailers, especially luxury brands given tighten consumer s spending. Outlook In June, the total retail sales of goods and services reached CPI AND RETAIL - SERVICE REVENUE GROWTH, JULY 2014 VND54,595 billion, rising 2.8% compared to the previous month. The increase of goods was primarily related to necessary items for daily living, including food and home appliances while other expenses are still depressive. Ho Chi Minh City s Consumer Price Index (CPI) saw a monthon-month increase of 0.58% and year-on-year gain of 5.52%. According to the City Statistic Office, rising medical cost at 11.65% mainly attributed to the higher CPI of the city in June. Source: GSO, Colliers International RETAIL PODIUM MARKET PERFORMANCE, JULY 2014 SHOPPING CENTER MARKET PERFORMANCE, JULY 2014 P.5 Colliers International

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

KUMHO JULY 2014 MONTHLY 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 40 100% 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 99% 8 ICON 68 45 Ngo Duc Ke District 1 2011 8,000 35 79% 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 72% Retail Podium 29,990 63 84% 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 35 95% 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 63 73% 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 66.9 75% JULY 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 58% 169 2 New World Saigon 76 Le Lai District 1 2000 533 60% 118 3 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 64% 138 4 Rex 141 Nguyen Hue District 1 2000 289 75% 100 5 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 68% 112 6 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 56% 150 7 Sheraton 88 Dong Khoi District 1 2002 480 70% 186 8 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 75% 233 9 Majestic Saigon 1 Dong Khoi District 1 2007 175 66% 116 10 InterContinental Asiana 39 Le Duan District 1 2009 305 76% 185 11 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 70% 120 12 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 55% 90 5 Star 3,633 66% 143 1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 72% 87 2 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 70% 87 3 Duxton 63 Nguyen Hue District 1 1996 203 75% 80 4 Royal City 133 Nguyen Hue District 1 2000 135 66% 59 5 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 87% 57 6 Oscar 68A Nguyen Hue District 1 2000 108 71% 40 7 Liberty Central 179 Le Thanh Ton District 1 2010 140 73% 56 8 Grand 08 Dong Khoi District 1 2011 107 68% 77 9 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 68% 64 4 Star 1,161 72% 64.4 P.7 Colliers International

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

JULY 2014 HOTEL MARKET Hotel Market Overview NUMBER OF INTERNATIONAL VISITORS TO HCMC, JULY 2014 During the first six months of this year, Vietnam has welcomed approximately 4.3 million foreign travellers, a year-on-year increase of 21.11%. However, the number of overseas tourists to Vietnam in June decreased 19.94% compared to the previous month and 4.85% against the same period last year. Although June is the third consecutive month from April seeing a decrease in number of overseas tourists to Ho Chi Minh City, the total number of the last 6 months has reached over 2 Source: Statistical Office in HCMC, Colliers International million, a 9% y-o-y growth. The number of Chinese holidaymakers to the city went up 30% in the first four months of 2014, but then fell significantly following the oil rig dispute. There was also a marginal decline from other international markets regarding concerns of socially insecured condition though incidents actually occurred in nearby provinces. Hence, the City Authority has adopted a plan to enhance security at tourism places and provide official information to relevant stakeholders. Moreover, to make up the fall, the local agencies schedule to intensify tourism promotions in major markets including Japan, Korea, Malaysia, Singapore, Russia and other Eastern European nations. Outlook BEN THANH MARKET, A POPULAR-YET-DISINTERESTED SIGHTSEEING OF THE CITY The significant growth of other domestic tourist destinations put a competitive pressure on performance of HCMC hospitality. The launch and increasing number of direct international flights to coastal places including Da Nang, Nha Trang and Phu Quoc have contributed to a weighty fall of foreign visitors to the city as a transit point. Moreover, as a result of unchange in both quality and quantity of sightseeings, the city is no longer a favorited stop. It requires tight collaboration between the City Tourism Agency and hospitality services providers to resolve this foreseen issue. P.9 Colliers International

JULY 2014 HOTEL MARKET Market Performance HCMC HOTEL PERFORMANCE BY GRADE, JULY 2014 Last month, the 5-star sector experienced a notable drop in both occupancy rate and average room rate. Meantime, the 4-star hotel sector also recorded a same trend at minor rate due to the off-season as well as the standoff in the East Sea. Source: Statistical Office in HCMC, Colliers International PERFORMANCE OF 5-STARS HOTEL, JULY 2014 PERFORMANCE OF 4-STARS HOTEL, JULY 2014 JULY 2014 SERVICED APARTMENT MARKET Market Performance THE VISTA CONDOMINIUM @ DISTRICT 2 Both Grade A and B serviced apartments in CBD area retained flat average asking rent during last month. Grade A developments saw a slight gain in occupancy rate to reach 90% while that of Grade B dropped 1% to 79% in June. Outlook Given stable occupancy rate since early of this year, some serviced apartment buildings are under scheduled renovating process in order to optimise the building s value via refurbished rooms and better facilities. Residential apartments for lease remain major competitors to serviced apartment segment at lower rents and flexible choices in size and location. Residential apartments in CBD fringe are preferred alternatives of CBD serviced apartments P.10 Colliers International

JULY 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview GRADE A CBD SERVICED APARTMENTS PERFORMANCE GRADE B CBD SERVICED APARTMENTS PERFORMANCE JULY 2014 SERVICED APARTMENT MARKET 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 81% 31 2 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 93% 34 3 Sedona Suites 65 Le Loi District 1 1996 89 82% 30 4 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 94% 30 5 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 73% 37 6 InterContinental Asiana Saigon 39 Le Duan District 1 2009 260 97% 36 Grade A 701 90% 34 1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 85% 26 2 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 83% 26 3 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 90% 33 4 Diamond Plaza 34 Le Duan District 1 1999 42 98% 29 5 Garden View Court 101 Nguyen Du District 1 2000 76 93% 31 6 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 60% 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% 30 9 Spring Court 1Bis Phung Khac Khoan District 1 2011 14 80% 16 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 17 100% 30 * US$/sq m/month Grade B 738 79% 27 ** Not including VAT *** Buildings are sorted by Year of Completion P.11 Colliers International

JULY 2014 CBD SERVICED APARTMENT MAP P.12 Colliers International

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