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

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

TABLE OF CONTENTS HCMC CBD MARKET REPORT AUGUST 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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AUGUST 2014 COMMERCIAL OFFICE MARKET Market Performance In July, office market in District 1 experienced flat performance as previous month. Grade A buildings witnessed a slight decrease of average NORTHERN CBD asking rent while occupancy rate lifted up 1% m-o-m. CITY CENTRAL At the same time, most Grade B developments saw an upward month with moderate growth in both median rental and occupied spaces. During reviewed month, we noticed an increasing gap between effective and asking rent, especially from landlords of Grade B office buildings. Though being under pressure of lease out vacant areas, they also struggle to retain price strategy on market practices. Grade AAR Occupancy rate Supply A B B B B SOUTHERN CBD FINANCIAL HUB Outlook In the near future, District 1 will still be a sought-after destination for tenants who seek for premium office spaces to either set up or expand their business. However, we predict a trend of moving out the downtown with the completion of buildings with high specifications including Lim Tower 2 (District 3), SSG Tower (Binh Thanh District) and Viettel Office and Trade Center (District 10). Landlords is expected to be more flexible in offers in order to push their leasing activity as well as fulfill vacant spaces before a pipeline of new buildings in CBD come online next year. CBD OFFICE MARKET PERFORMANCE, AUGUST 2014 CBD OFFICE RENTAL GROWTH, AUGUST 2014 P.2 Colliers International

AUGUST 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 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 90.8% 40.5 1 OSIC 8 Nguyen Hue 1993 6,500 6.0 94% 18.0 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 6.0 100% 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 87% 27.0 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 97% 14.0 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 6.0 100% 21.0 20 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 94% 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 72% 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 90% 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 98% 28.0 31 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 27% 22.0 Grade B 399,596 6.0 90.9% 23.5 * US$/ sq m/ month (on net area) P.3 Colliers International

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

AUGUST 2014 RETAIL MARKET Market Performance The CBD retail market segment was almost flat during reviewed PHASE 2 OF SAIGON CENTRE PROJECT UNDER CONSTRUCTION month. All three CBD retail market sectors retained stable average rental rates since May 2014. Retail podium recorded unchanged figures of vacancy rate in July. The department store still enjoyed fully occcupied condition while shopping center saw a gain in occupancy rate after two consecutive decreasing month. SC Vivocity (District 7), Vietttel Complex (District 10), Lim Tower 2 (District 3) and SSG Tower (Binh Thanh) are projects in CBD fringe areas with retail components expected to complete next year while Phase 2 of Saigon Centre is the only active retail developments in CBD. RETAIL & SERVICE REVENUE GROWTH, AUG 2014 Outlook Total retail sales of goods and service revenue were estimated to reach US$2.60 billion in July, 2.7% higher than the previous month and 14.2% year on year increase. Although a gain in gasoline price in June and July have raised transportation fee and prices of several commodities up, CPI figure of HCMC lightly rise 0.12% over the last month. In brief, the city authority inform endeavors to control market prices and curb inflation from now till the year-end. Source: GSO, Colliers International RETAIL PODIUM MARKET PERFORMANCE, AUG 2014 SHOPPING CENTER MARKET PERFORMANCE, AUG 2014 P.5 Colliers International

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

KUMHO AUGUST MONTHLY 2014 RETAIL MARKET MARKET REPORT No Name of Project / Building Address Location Completion Year NLA (sq m) HCMC CBD MARKET REPORT 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 76% 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 76% AUGUST 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% 174 2 New World Saigon 76 Le Lai District 1 2000 533 62% 118 3 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 65% 139 4 Rex 141 Nguyen Hue District 1 2000 289 58% 100 5 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 68% 119 6 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 57% 155 7 Sheraton 88 Dong Khoi District 1 2002 480 72% 186 8 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 75% 234 9 Majestic Saigon 1 Dong Khoi District 1 2007 175 66% 126 10 InterContinental Asiana 39 Le Duan District 1 2009 305 81% 179 11 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 72% 120 12 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 57% 108 5 Star 3,633 66% 146 1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 72% 76 2 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 73% 87 3 Duxton 63 Nguyen Hue District 1 1996 203 77% 79 4 Royal City 133 Nguyen Hue District 1 2000 135 69% 59 5 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 90% 65 6 Oscar 68A Nguyen Hue District 1 2000 108 74% 40 7 Liberty Central 179 Le Thanh Ton District 1 2010 140 65% 74 8 Grand 08 Dong Khoi District 1 2011 107 71% 77 9 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 66% 75 4 Star 1,161 73% 68.9 P.7 Colliers International

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

AUGUST 2014 HOTEL MARKET Hotel Market Overview NUMBER OF INTERNATIONAL VISITORS TO HCMC, AUG 2014 The number of foreign tourists to Vietnam rebounded in July after two consecutive months of decrease, estimating at 564,736. Tourists visiting Vietnam for travel and recreation reached nearly 2.93 million, while 816,000 travelers came for business purposes, and other 836,000 arrivals arrived to visit relatives. HCMC welcomed more than 2.3 million visitors in the first seven months of this year, increasing by 9.1% y-o-y. Total revenue from tourism activities reached 51,965 billion, up 8.5% over the same period. Source: Statistical Office in HCMC, Colliers International Because of the East Sea tension, the growth rate of international tourists to HCMC still weaken. However, the cooperation between hotel owners, tourism agencies and local government is expected to enhance performance of the city s tourism industry. HCMC Tourism Association has launched a domestic tourism promotion program signed with two local carriers, Vietnam Airlines and VietJet Air. Under the program, the national flag carrier Vietnam Airlines will offer a ticket discount of 32% to 70% while lowcost VietJet Air will cut down 49% to 90% on all domestic flights from and to the city. The hotel operators also activated a variety of summer promotions as well as incentives offers to guests. Outlook LAVENUE CROWN, A FUTURE LUXURY HOTEL IN DOWNTOWN Both 5-star and 4-star hotel sectors witnessed an increase of median occupancy rate and room rate after three continuous declining months. Although the growth rate was lower in compared to same period last year, it still show a significant improvement as well as positive market responce regarding recent efforts from operators. In the short-term time, HCMC will focus on domestic tourism stimulus and accelerate tourism promotions in other countries. Regarding future supply, Lavenue Crown will possibly be the next 5-star hotel development in city center. Given the premium location, it is expected to put competitive pressure on existing top-graded hotels in town. P.9 Colliers International

AUGUST 2014 HOTEL MARKET Market Performance HCMC HOTEL FUTURE SUPPLY IN YEAR OF COMPLETION Top-graded hotel developments in HCMC experienced upward trend during July. Last month, the 5-star sector saw a growth rate of 2% in both occupancy rate and average rate. Likewise, the 4-star hotels also recorded a moderate increase in occupancy figure and 6% gain of room rate. Source: Statistical Office in HCMC, Colliers International PERFORMANCE OF 5-STARS HOTEL, AUGUST 2014 PERFORMANCE OF 4-STARS HOTEL, AUGUST 2014 AUGUST 2014 SERVICED APARTMENT MARKET Market Performance NEW PEARL RESIDENCE @ DISTRICT 3 Top-graded serviced apartments in CBD area saw a gain in occupancy rate in July. Grade A buildings retained unchanged asking rent while that of Grade B marginally decline to US$26.7 per sq.m per month. Outlook We noticed a new trend of refunction condominium to serviced apartment development in recent months. The New Pearl in District 3 is the latest condominium project informed to be completed by 3Q 2015 with 160 serviced flats after a prolonged delay in construction. Some condominium projects in CBD fringe are refunctioned to serviced apartment developments Source: Public Domain P.10 Colliers International

AUGUST 2014 SERVICED APARTMENT MARKET Serviced Apartment Overview GRADE A CBD SERVICED APARTMENTS PERFORMANCE GRADE B CBD SERVICED APARTMENTS PERFORMANCE AUGUST 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 82% 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 84% 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 73% 37 6 InterContinental Asiana Saigon 39 Le Duan District 1 2009 260 99% 36 Grade A 701 92% 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 86% 26 3 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 95% 33 4 Diamond Plaza 34 Le Duan District 1 1999 42 98% 29 5 Garden View Court 101 Nguyen Du District 1 2000 76 100% 30 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 36% 25 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 62% 27 11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 100% 30 * US$/sq m/month ** Not including VAT Grade B 738 82% 27 *** Buildings are sorted by Year of Completion P.11 Colliers International

AUGUST 2014 CBD SERVICED APARTMENT MAP P.12 Colliers International

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