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VIETNAM REAL ESTATE -TIME TO RECALIBRATE

Presented by: Marc TownsendManaging Director, CBRE Vietnam

2nd July, 2015

2 CBRE | VIETNAM REAL ESTATE – TIME TO RECALIBRATE | JULY 2015

*All the above articles were retrieved in June 2015..

3 CBRE | VIETNAM REAL ESTATE – TIME TO RECALIBRATE | JULY 201513 May 2015 – Son Doong Cave was broadcast in “Good Morning America”

10 May 2015 – Ironman 70.3 Vietnam in Da Nang

*All the above articles were retrieved in June 2015..

1Economic Outlook


VIETNAM’S GDP GROWTH TO QUICKEN, INFLATION EASE

Gross Domestic Product, Vietnam

8.4% 8.2% 8.5%

6.3%5.3%

6.8%5.9%

5.0% 5.4% 6.0% 6.3%

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 6M 2015

Real GDP growth rate Annual average inflation

Inflation eased to a ten-year low

Highest GDP in five years

Source: Vietnamese General Statistical Office, Q2 2015..


Estimated boost to GDP from TPP (as a % of baseline GDP)

Source: Peter A. Petri, Michael G. Plummer and Fan Zhai, "The Trans Pacific Partnership and Asia-Pacific integration: A quantitative Assessment"

FTAs BOOST GDP GROWTH


STRONGER CURRENCY

Forecasted Change in APAC currencies against the US Dollar

Source: CBRE Research, Marcobond, Oxford Economics, May 2015.

17,000

18,000

19,000

20,000

21,000

22,000

De

c-10

Jun-

11

De

c-11

Jun-

12

De

c-12

Jun-

13

De

c-13

Jun-

14

De

c-14

Jun-

15

US

D/V

ND

Int

erba

nk

Exc

hang

e R

ate

18,932

20,668 21,036 21,24621,458

20,803

21,673


Vietnam Retail Sales

RETAIL SALES SHOW MODEST GROWTH

-30%

20%

70%

120%

170%

-

40,000

80,000

120,000

160,000

2008 2010 2012 2014

Gro

wth

rat

e

No.

of c

ars

No. of cars sold % change YoY

Car importers

will have to pay for

emission test

2016

2

1

1: Registration fee reduced from 10% - 20% to 10% - 15% in April.

2: Import duty on cars from ASEAN countries will decrease from 50% to 0% by 2018

Vietnam Car Sold

Source: Vietnam Automobile Manufacturer’s Association, June 2015; Vietnamese General Statistical Office, Q2 2015..

1

2

0%

6%

12%

18%

24%

30%

36%

42%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

6M 2

015

Gro

wth

Rat

e (%

)

Tur

nove

r (T

rillio

n do

ng)

Retail and Services Turnover Retail and Services Turnover Growth


FURTHER CUTS IN BANK INTEREST RATES

0

3

6

9

12

15

18

2007 2008 2009 2010 2011 2012 2013 2014 2015

Inte

rest

rat

e (%

)

Base rate Rediscounting rate Refinancing rate Lending rate Deposit rate

Vietnam Interest Rates

Mortgage rate for the first 12 months:

Jan. 15 June 15• Techcombank 9.49% 7.99%• Vietcombank 7.99% 7.3%• ACB 8.90% 8.0%

• Lending rate: Average lending rate for enterprises.

Source: Vietnamese General Statistical Office, State Bank of Vietnam.


STEADILY RISING STOCK MARKET

Vietnam Stock Market, VNIndex

591

Source: Cafef.vn

2015 VIETNAM TOP 50 LISTEDBEST PERFORMERS

*out of 700 companies in HNX and HOSE

15

Vingroup (VIC)

HCMC InfrastructureInvestment JSC. (CII)

Dat Xanh Real Estate Service (DXG)

FLC Group (FLC)

Ha Do JSC (HDG)

25

49

50

4

INDEX OF REAL ESTATE SECTOR IN 1 YEAR

Source: Stockbiz


-20%

-5%

10%

25%

40%

55%

0.0

0.5

1.0

1.5

2.0

2.5

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2

2015

Gro

wth

rat

e

Mill

ion

ariv

als

International arrivals Growth rate

NOT ALL WINE AND ROSES

International arrivals

Foreign Direct Investment

0

2,000

4,000

6,000

8,000

10,000

Q1

2012

Q2

2012

Q3

2012

Q4

2012

Q1

2013

Q2

2013

Q3

2013

Q4

2013

Q1

2014

Q2

2014

Q3

2014

Q4

2014

Q1

2015

Q2

2015

FD

I (U

S$

mill

ions

)

FDI (Registered) FDI (Implemented)

Source: Tourism Working Group, Vietnamese General Statistical Office, Q2 2015..

Countries 2014 Int’l arrivals2013 – 2014

change

Malaysia 27,437,315 6.70%

Thailand 24,779,768 -6.66%

Singapore 15,086,827 -3.09%

Indonesia 9,300,000 5.68%

Vietnam 7,874,312 3.99%

Philippines 4,833,368 3.25%

Int’l arrivals and growth rate, countries in the region


Vietnam to become a mid-manufacturing country?FUTURE GROWTH POTENTIAL

ASEAN’s three sub-regions

Source: ASEAN’s rise in the global economy, ANZ Research.

Vietnam Trade Balance

Vietnam Export Structure, 6M 2015

19%

13%

8%

9%3%4%5%

39%

Mobile phones and appliances

Garments & textiles

Shoes

Electronics, computers andpartsCrude oil

Seafood

Machinery and parts

Others

-50

-40

-30

-20

-10

0

10

20

30

40

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2012 2013 2014 2015

US

$ b

illio

n

Export Imports

vs. 3.22% in 2010

/LVMC

Source: Vietnamese General Statistical Office, Q2 2015..


BCI NUMBERS

All Future Projects

(2015-2030) HCMC Hanoi

DaNang

Can Tho

NhaTrang

VungTau

HaiPhong

Office 189 218 54 27 10 30 15

Retail 93 124 33 4 14 15 8

Hospitality and SA

37 32 25 3 23 17 6

Residential 234 242 64 6 11 15 8

Total 553 616 176 40 58 77 37

Projects under construction, y-o-y change All future projects (2015 – 2030), y-o-y change

Projects Under

ConstructionHCMC Hanoi

DaNang

Can Tho

NhaTrang

VungTau

HaiPhong

Office 122 80 21 19 7 17 7

Retail 60 41 12 4 6 11 5

Hospitality and SA

25 11 10 2 10 9 1

Residential 155 76 16 4 1 12 3

Total 362 208 59 29 24 49 16

Source: www.bciasia.com; CBRE Vietnam, June 2015 Source: www.bciasia.com; CBRE Vietnam, June 2015

-100%

0%

100%

200%

300%

400%

HCMC Hanoi Da NangCan Tho KhanhHoa

VungTau

HaiPhong

Per

cen

tag

e ch

ang

e

2015 YTD vs 2014 2014 vs 2013

-100%

0%

100%

200%

300%

HCMC Hanoi DaNang

CanTho

KhanhHoa

VungTau

HaiPhong

Per

cen

tag

e ch

ang

e

2015 YTD vs 2014 2014 vs 2013

2Infrastructure Investment


METRO LINE – FAST PROGRESS IN HCMC

HCMC Hanoi

Hanoi to buy 13 China-manufactured trains for urban railway stationStation no. 14 – Suoi Tien bus

Km 18 +905

Station no. 13 – Suoi Tien

Km 16 + 689

Km 15 + 100

Station no. 12 – Hi-Tech industrial park

Station no. 11 – Thu Duc

Km 12 + 724

Km 10 + 975

Station no. 10 – Binh Thai

Station no. 9 – Phuoc Long

Km 9 + 622

Station no. 8 – Rach Chiec

Km 8 + 104

Station no. 7 – An Phu

Km 6 + 454Station no. 6 – Thao Dien

Km 5 + 497

Station no. 5 – Tan Cang

Km 4 + 361

Km 3 + 421

Station no. 4 – Van Thanh Park

Station no. 3 – Ba Son

Km 1 + 587

Station no. 2 – Opera House

Km 0 + 624

Station no. 1 – Ben Thanh

Km 0 + 004

Ben Thanh – Suoi Tien

Pictures taken on 25-Jun

Girders Installed On Metro Line 1 Cat Linh Depot under construction

Hanoi’s Wavy Metro Tracks Raise Eyebrows


AIRPORTS AND PORTS

Phu Quoc International Passenger Port

Construction starts 29 April 2015

Construction period 2015 – 2017

Capacity Cruise liners carrying 5,000-6,000 visitors or 20,000-tonne cargo ships

Investment capital VND1.64 trillion (US$76.4 million)

Long Thanh Airport gets green light from Party leaders


HIGHWAYS AND ROADS

3Regulation Changes


Marc,

I am an individual investor from Hong Kong. I will visit HCMC next week and would like to know the following:

1) Background:• Legal basis for foreign ownership of residential

units (and whether this varies as value and or number of units increases)

• Typical legal and agent fees upon purchase/ sale• Likely taxes/stamp duty etc. including capital gains

tax, tax on rental income. Typical insurance costs

2) Deal:• Available properties and typical asking prices• A view on best locations for our purpose• Likely realisable rents and demand for properties• Property management fees

3) Deal exit:• Tax rules upon sale (as individual entity)• Restrictions on sale e.g. property holding period• Restrictions on repatriating capital or profits out of

Vietnam

Regards,

Residential Properties - Opens Door for Foreign BuyersEFFECTIVE FROM 1ST JULY, 2015

FAQs

Buying a condo in Vietnam –A guide for foreigners

All you need to know…

LAW | ACCOUNTS | TRANFERRING FUNDS | DOCUMENTS REQUIRED | KEY TIPS


VINHOMES LAUNCHING EVENT


Commercial Properties - Bigger battlefield with more playersEFFECTIVE FROM 1ST JULY, 2015

Lease properties for sub-lease

Existing law From July 2015

Acquire completed buildings for own use

Foreign invested firms not allowed to sub-lease rented properties

Foreign invested firms can sub-lease properties that they are renting

Existing law From July 2015

Foreign invested firms can acquire and own a completed building for own use

Foreign invested firms can only own a building if they are the developer


100% Foreign Ownership Limit for Listed CompaniesEFFECTIVE FROM 1ST SEPTEMBER, 2015

On 25-June 2015, the Prime Minister of Vietnam gave the final seal of approval to changes in the Law on Securities to allow for a significant relaxation of foreign ownership limits ("FOL") for Vietnam listed-equities.

FOL for public and listed companies (as well as for securities companies and investment funds) will

be increased from 49% to 100% except banks, which will continue to be limited to 30% until further notice from the PM, and except for sensitive sectors or where the state retains a controlling stake.

Among 73 listed companies in real estatesector

42 companies have foreign shares

9 companies have foreign shares greater than 20%

12%

68%

19%

Foreign ownershipgreater than 20%

Foreign ownershipless than 20%

100% local

Source: CBRE Vietnam, June 2015..

4Condominium Market


Optimism ahead of regulation changesCONDOMINIUM FOR SALE

Developers and buyers remain bullish

Absorption Rate

15,715 units launched in 1H 2015

174% y-o-y

10,494 units (of new launches)

sold in 1H 2015

67%

HCMC HANOI

10,187 units launched in 1H 2015

91% y-o-y

50%

5,130 units (of new launches)

sold in 1H 2015

Source: CBRE Vietnam, Q2 2015.


Continued strong interest in new launchesCONDOMINIUM FOR SALE

10 May 2015 - “The most attractiveInvestment opportunity 2015” event in Hanoi,Vinpearl Premium Villas

9 May 2015 – “Masteri Thao Dien, Block T3” launching event in HCMC

19 May 2015 - “Estella Heights” launching event in HCMC

10 June 2015 – “Gateway Thao Dien”launching event in HCMC

21 June 2015 – “Landmark 4”launching event in HCMC


Busy Launches in Q2 2015: 19 projects – 8,528 units launchedCONDOMINIUM FOR SALE

~57% sold

1450

Project(s)Units

1285

1408

1740

1352

1250 2

3,054

1136

1335 6

1,653

1500

1209

1156

Highest number of launches ever for a single quarter

Continued to move to the East!


19% q-o-q126% y-o-y

Implication for districts only, not exact project location

1H 2015: 15,715 unitsWhole year 2010: ~20,000

unitsWhole year 2007: ~10,300

units

HCMC


Busy launchesCONDOMINIUM FOR SALE

Ba Dinh

1 project129 units

2 projects130 units

3 projects470 units

1 project1,198 units

2 projects160 units

4 projects1,911 units

2 projects320 units

4 projects819 units

Q2/2015: 19 new launches – 5,137 units launched(*) Q1/2015: 18 new launches – 5,050 units

More projects in the West – but bigger developments in the East!

HANOI



Optimism ahead of anticipation on regulation changesCONDOMINIUM FOR SALE

Sold Units, HCMC

0

5,000

10,000

15,000

20,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 1H2015


Highest take-up for a single quarter

Q2 2015: ~10,000 units(both new and previous launches)

Sold Units, Hanoi

Highest take-up for a single quarter

Q2 2015: ~4,500 units(both new and previous launches)

0

5,000

10,000

15,000

20,000

200620072008200920102011201220132014 1H2015


Solid RecoveryCONDOMINIUM FOR SALE

Take-up per period, HANOI


Take-up per period, HCMC

0%

20%

40%

60%

80%

100%

2012 2013 2014 1H 2015

High-end Mid-end Affordable

0%

20%

40%

60%

80%

100%

2012 2013 2014 1H 2015

High-end Mid-end Affordable


District 4 –An Emerging Cluster

CONDOMINIUM FOR SALE

The TresorNovaland459 unitsUS$2,550-$3,050 psm

RiverGateNovaland319 căn hộUS$2,039-$2,512 psm

The Gold ViewTNR Holdings1,760 unitsUS$1,529-$1,609 psm56 units per floor

Icon 56Novaland312 unitsUS$2,617-$3,105 psm

Galaxy 9Novaland~500 unitsUS$1,500-$1,696 psm

District 4

District 1

*Asking prices are quoted exclusive of VAT and maintenance fee


New vs. Old Products – HCMC CONDOMINIUM FOR SALE

Primary vs. Secondary Price of Typical Condominiums in HCMC

Primary Asking Price

Secondary Asking Price


Absorption Rate67%

HCMC1H 2015

Launched15,715 units

Sold10,494 units(for only new launches in the review period)

$1,400

$1,600

$1,800

$2,000

$2,200

Q4 2014 Q1 2015 Q2 2015

Sel

ling

Pric

e (U

S$

psm

)

The Manor-Phase 1

Saigon Pearl - Sapphire

The Vista An Phu

Thao Dien Pearl

Cantavil Premier

Masteri Thao Dien

Estella Heights

Vinhomes Central Park

Gateway Thao Dien


Primary Prices Increase while Secondary Prices Stay Flat

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

Q4 2014 Q1 2015 Q2 2015

Sel

ling

Pric

e (U

S$

psm

)

Royal City

Times City

Golden Land Building

Discovery Complex

Park Hill

Hoa Binh Green City

Imperia Garden

Watermark Tower

Primary Asking Price

Secondary Asking Price

Primary vs. Secondary Price of Typical Condominiums in Hanoi

CONDOMINIUM FOR SALE



Vietnam’s Price CompetitivenessCONDOMINIUM FOR SALE

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Hanoi HCMC Phnom Penh Manila Jakarta Bangkok

Luxury High-end Mid-end Affordable


Primary Asking Price (US$ psm)

5Commercial Properties


HCMC - Steady Supply Across All Grades – Q2 2015 OFFICE

LIM TOWER 2GFA: 20,467 sm

VIETCOMBANK TOWERGFA: 55,000 sm

Grade B

Grade A

ROBOT TOWERGFA: 3,200 sm

Grade C



PETROLAND TOWER

GALAXY 9

RIVERGATE TOWER

Broadening Long-term Leases

OFFICE

PRINCE RESIDENCE

2015 onwards….more office space for saleIn 2014 - Occurrence of long term lease/ selling office space

PEARL PLAZA

SAIGON AIRPORT PLAZA SUNRISE CITY – CENTRAL TOWER

LUCKY PALACE

DIAMOND FLOWERTOWER

TNR TOWER

HEI TOWER

PVI TOWER HUD TOWER DISCOVERY COMPLEX

The Rise of Strata Title



Office Yields STRATA TITLED OFFICES

SAIGON AIRPORT PLAZA

• Rent: US$15/month• Long term rent: 1,750

US$/sm/term• Term: 2059

PRINCE RESIDENCE

• Asking price: VND850 million per lot

• Sub-lease rent: VND10mil per month

• Term: 2064

PEARL PLAZA

• Rent: US$15/month• Long term rent: 1,500

US$/sm/term• Term: 2058

Vietnamese government 10-year bond yield

6.8% (*)Office yields

10% - 14% VS.(*) as of end of June 2015



HCMC - CBRE LEAD AGENCIESOFFICE


PEARL PLAZAGFA: 37,434 sm

Grade B

Grade B

ROBOT TOWERGFA: 3,200 sm

Grade C

Grade A


2013 2015 2015 2015Source: CBRE Vietnam, Q2 2015.


46%

34%

16%4%

Big office space – HCMC vs. HanoiOFFICE

Tenant preferred size (base on CBRE’s enquiry)

26%

39%

20%

15%

1H 20151H 2015

Currently, lack of big office space

in Grade A and B office buildings in

HCMC

HANOI HCMC


Available space per building (grade A/B)

Number of buildings

HCMC Hanoi

> 3,000 sm 4 18

2,000 - 3,000 sm 2 7

1,000 - 2,000 sm 12 18

500 - 1,000 sm 7 12


Rental Stabilization – but for how long?OFFICE

30-35 US$/sm/month

0 90

70-75 US$/sm/month

0 902008 period

2012 & 2015

2016 & 2017

Upward pressure

0 90

HCMC Hanoi

50-55 US$/sm/month

30-35 US$/sm/month

0 90

Downward Pressure

0 90

0 90

Grade A

Narrower rental Gap btw HCMC & HN – for now, but not for long!

Limited quality supply in HCMC while multiple good quality, fringe

CBD mixed use

developments in HanoiSource: CBRE Vietnam, Q2 2015.


The flight to quality – Green is a given, Wellness, a must. OFFICE

FPT office building (Da Nang)

President Place (HCMC)

Green one UN house (Hanoi)

Deutsches Haus (HCMC)


OFFICEUpcoming Supply in 2H 2015

HA

NO

IH

CM

C

HANDICO TOWERSouth Tu Liem Dist. GFA: 29,040 sqm

Grade BHUD TOWERCau Giay Dist.GFA: 56,000 sqm

Grade B

DIAMOND FLOWER Cau Giay Dist.GFA: 20,000 sqm

Grade B

TNR TOWERDong Da Dist.GFA: 56,000 sqm

Grade A

PEARL PLAZAGFA: 37,434 sm

Grade B

HAI NAM OFFICE BUILDINGGFA: ~8,000 sm

Grade C Grade C

PT BUILDINGGFA: 1,000 sm



Grade A buildings are expected to Open in HCMC in next 3 yearsOFFICE

DEUTSCHES HAUSGFA: 40,000 smOpen: 2017

THE ONEGFA: 15,000 smOpen: 2018

SAIGON CENTRE (PHASE 2)GFA: 40,000 smOpen: 2018

Grade A

Grade A

Grade A



RETAILHCMC – Newly opened/closed in Q2/2015 HANOI – Newly opened in Q2 2015

Union SquareDong Khoi – Nguyen Hue, District 1GFA: 39,454 sm

Closed to re-merchandise and re-layout: October 2015 (for 1 year)

SC VivoCityNguyen Van Linh Street, District 7GFA: 72,000 sm

Opened: May 2015

Times Square36 Nguyen Hue, District 1GFA: 4,000 sm

Opened: June 2015

Saigon Square 2To Duc Thang, District 1GFA: 7,750 sm

Closed for renovation: April 2015

• GFA: 23,800 sqm• Location: Ho Guom Plaza, Ha Dong• Occupancy: 84%

• The 5th hypermarket in Hanoi

• The 31st in Vietnam

Saigon CentreLe Loi, District 1GFA: 6,250 sm

Closed for renovation: June 2015 (for 1 year)


1 store expected to open in Can

Tho, July

74 storeswithin a year

300 storeswithin 3 years

NEW ENTRY IN HCMC IN 2015

RETAIL

VinDS


A Breakthrough Retail Format in HCMCRETAIL


Upcoming supply in HCMC in 2H2015RETAIL

Vincom Quang Trung• Quang Trung Str.• 27,000 sm GFA

Vincom Megamall• Hanoi Highway• 120,000 sm GFA

Pearl Plaza• Dien Bien Phu Str.• 20,579 sm GFA

Thasa Plaza• Nguyen Hue Str.• ~6,000 sm

Retail Supply by year, HCMC

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Existing Future


Retail Supply by year, Regional

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Ba

ngko

k

Sin

gapo

re

Jaka

rta

Ha

noi

HC

MC


Upcoming supply in Hanoi in 2H2015RETAIL

Vincom Nguyen Chi Thanh• Location: Dong Da Dist.• 44,500 sqm GFA

Vincom Exchange City• Location: Tu Liem Dist.• 23,140 sqm GFA

AEON MALL• Location: Long Bien Dist.• 108,000 sqm GFA

Retail Supply by year (sqm)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Existing Future



Consumers shop online to avoid going to a shopCONSUMER SURVEY – PART 2

Source: CBRE Asia Pacific Consumer Survey, June 2015.

Vietnam: 73% consumers shop online to avoid going to a shop

Vietnam: average online monthly spending USD26-50 /person


Ascott to expand more aggressively in the coming yearsHOSPITALITY

Citadines RegencySaigon

200 units

Ascott WaterfrontSaigon

222 units

2016

Somerset WestCentral

2017/2018

Somerset TDHai Phong132 units

2015

2018

2016

SomersetDa Nang Bay

121 units

NEW BRAND!NEW BRAND!

Source: CBRE Vietnam & The Ascott Ltd., Q2 2015.


HOSPITALITYVietnam will set up a US$100 million fund to promote tourism

0 10 20 30

Brunei

Myanmar

Lao PDR

Cambodia

Philippines

Vietnam

Indonesia

Singapore

Thailand

Malaysia

Int’l Arrivals (2014) Millions

Visaexempt/free

155

66

158

15

21*

157

19

40

6

58

Source: Tourism Working Group.*Most current data including five European countries.

8.8% 3%HANOI HCMC

1H2015 Int’l arrivals growth y-o-y


HOSPITALITYCoastal Cities The second tower of The Grand

under construction at Ho Tram

Q3 2013 Q2 2015China China

Da Nang Da Nang40%-50% 65%-70%

Of total international flights per week



New hotel brands to Da NangHOSPITALITY

“ Hosting APEC 2017 is good news for Da Nang City as this is a chance to promote the city's image to the world, promising greater number of visitors from various countries and positive impacts on the city's hospitality market.

” Hilton and JW Mariott to push up project

construction to meet the APEC 2017.

Market is expected to have totally 13,404 keys till 2017.

Future supply is dominated by beach-front developments.

6Investment -In Search of Right Partner


INVESTMENT TRANSACTIONS

*All the above articles were retrieved in June 2015.


MARKET CONSOLIDATION


Sailing Tower

Market Peak Vietcombank Tower

Saigon Luxury Apartment

20 golden sites introduced

Kumho AsianaCentec Tower

Le Meridien

Vincom Dong Khoi

Bitexco Financial Tower

Union Square

Times Square

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD

13,000 - 58,000 10,000 - 22,000

4,500

2,203

1,010

Value (US$ million) 10.10 524.73 551.36 80.79 167.24 80.90 93.72 741.00 212.04 36.64No. of transactions 1 8 6 7 4 5 4 8 12 2

His

toric

al tr

ansa

ctio

nsS

igni

fican

t tra

nsac

tions

of

deve

lopm

ent s

ites

in D

istr

ict 1

Sig

nific

ant p

roje

cts

open

e

0

100

200

300

400

500

600

700

800

Development sites (Land cost)Ready-built project (Land cost + construction cost)

VIETNAM INVESTMENT MARKET

Source: Real Capital Analytics, retrieved in June 2015.


LAND VALUES

Price quoted is current asking price.

Source: CBRE Vietnam, Q2 2015

HANOI HCMC

Usage

Mixed-use

Commercial

Residential

Land area

>5,000 sm 1,000 - 5,000 sm <1,000 sm

Cau GiayBaDinh

Hoan Kiem D4D3District 1

Plot ratio: 15

8.7

8

9.5

8.2 811

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Pric

e ps

m o

f la

nd a

rea

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Pric

e ps

m o

f la

nd a

rea

5.2

4.8

6.8

9.2

10.4

4.315.7

5.26.7 1.5


SECTOR SEGMENTHCMC HANOI

RENT/PRICE ABSORPTION RENT/PRICE ABSORPTION

OFFICENew buildings

Mature buildings

RETAILCBD

Non-CBD

CONDOMINIUM

High-end

Mid-end

Affordable

HOTEL

Inner-city hotels

Beach hotels/resorts

SERVICED APT. Grade A

INDUSTRIALLand

Factory/ warehouse

2015 OUTLOOK



SECTOR OUTLOOK

CONDOMINIUM Sales continue to be strong. High-end and luxury projects continue to grab the headlines Should we be worried about an over-hyped market?

OFFICE

Rent remains stable thanks to limited supply. Grade B+ office buildings are getting more competitive to Grade A thanks to their more

favourable rental rates. Take-up rates of these buildings are also expected to expand much bigger than these of Grade A.

Tenants no longer switch offices just because of cheaper rent, which has been the main trend in the years from 2012-2014. They will only move office when they need a larger space or looking for places with higher utilities.

The market will welcome many new customers as investors when the revised Law on Real Estate Business takes effect from July 1.

RETAIL Increasing supplies in the next two quarter, especially from non-CBD locations. Rental rate is expected to further improve thanks to good performance of new supplies. Securing anchor tenant is key of differentiation.

HOSPITALITY

The market continues to be dominated by mid-scale segment. Second home market is expected to revive not only in established areas like Da Nang,

Nha Trang but also in emerging destinations like Phu Quoc and Ha Long. Second home market in the North starts to emerge and develop but it might take some

time for the market to be as active as in Da Nang or Nha Trang.

2015 OUTLOOK


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All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information containedherein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubtits accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessingthe relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only,exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribefor securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may bealtered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorisedpublication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arisingby reason of any person using or relying on information in this publication.

For more information regarding this presentation please contact:CBRE Vietnam Co., Ltd. – Research & ConsultingT +84 8 3824 6125 F +84 8 3823 8418Email: [email protected]

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