ho chi minh city wednesday, 5 july, 2017 - vinalivingvinaliving.com.vn/static/files/update news...
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Ho Chi Minh CityWednesday, 5th July, 2017
Ho Chi Minh City, VietnamWEDNESDAY 5th July 2017
Reverie Saigon
Opening RemarksHang Dang, Managing Director, Vietnam
Macro UpdateRecent Trends on Capital Markets Hospitality Market: Beyond APEC 2017Dung Duong, Head of Research & Consulting, CBRE Vietnam
Commercial Market: The Rise of Millennials,Co-working Space, and Young Demographics RetailingHieu Le, Head of Occupier Leasing, CBRE Vietnam
Residential Market: How Demand is ShiftingKiet Vo, Head of Residential Project Marketing, CBRE Vietnam
Close
09:00am
09:05am
09:35am
10:05am
10:35am
AGENDA
Macro Updates
4
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7E C O N O M Y
Despite absence of the TPP, Vietnam looks confident to attract strong inflow of investment
Source: Press articles were retrieved in June 19th 2017.
5
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7E C O N O M Y
Real Estate Industry is Next Up for Disruption
Source: Press articles were retrieved in June 19th 2017.
Frontier Digital Ventures invests in AutoDeal, PropzyPropzy - an online classifieds platform that originates and facilitates property sale and leasing transactions in Vietnam.
6
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7E C O N O M Y
Proposals toward Transparency, Consistency and Sustainability
Source: Press articles were retrieved in June 19th 2017.
Green buildings are expected to become a new trend in the low‐and medium‐priced housing segments.
7
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7E C O N O M Y
Still Solid Fundamentals
Source: Vietnamese General Statistics Office, commercial banks.
GDP, CPI and Basic Rates
0
2
4
6
8
10
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6M 2017
GD
P g
row
th r
ate
(%)
Inte
rest
rat
e (%
)
Average CPI (y-o-y) Lending rate Deposit rate GDP Growth Rate
8
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7E C O N O M Y
Vietnam is Becoming Increasingly More Attractive to Foreign Investors
Source: Vietnamese General Statistics Office.
6M 2017
Total FDI 6M 2017: US$19.2 billions
54.8% y-o-y
Vietnam’s FDI, 6M 2017 Vietnam’s CEO Survey, May 2017
Source: Vietnam CEO’s Survey by Oxford Business Group, May 2017
“ 70% of top-level executives expect positive business conditions in the next 12 months. Some 20% expect the commercial environment to be very positive, while just 10% of those interviewed thought the months ahead will be negative.
”
33%
44%
11%
2%
4%6% Manufacturing
Utility Production,DistributionMining
Retail and wholesale,vehiclesReal Estate
9
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N F R A S T R U C T U R E
HCMC – Diversifying Public Transport SystemMetro line no. 1
Underground packagestarted on 26 May 2017
Water bus
Trial ride at the endof June. First route
operates in July
Bicycle
Possibility to Develop a Bike -Sharing System in Ho Chi Minh City
Route: An Lac roundabout to Rach Chiec terminalLength: 23kmOperation in: 2019
First BRT line
10
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N F R A S T R U C T U R E
HCMC – Tan Son Nhat Airport Expansion Plan
• Capacity: 25-45 million passenger per year• Plan to finalised in Dec 2017
Source: VNExpress, CafeF, Baomoi.
Tan Son Nhat airport - Expansion
To local departure
To int’ departure
H H
H
H
H
H
Around ten buildings in HCMC have helipads, including Diamond Plaza, Bitexco Financial Tower and Tan Son Nhat Saigon Hotel.
11
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N F R A S T R U C T U R E
Involvement of Local Developers in Building Metro Lines
26
Noi Bai Airport
7
Me Linh
4
1Yen Vien
Nhu Quynh
1
8
Duong Xa
Yen So
Ngoc Hoi
Ha Dong
2A
8
Son Dong
Troi
Ba Vi
5 3
3
Me Linh
Lien Ha
Cat Linh
Under Planning
2AUnder Construction –About to be opened
3 Under Construction
Nhon
Hanoi Station
12
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N F R A S T R U C T U R E
Hanoi – Active Construction on New Key Roads
Completed Under-construction
Truong ChinhUnder-construction (2018)
Nguyen Van Cu – Co Linh Completed – 1/2017 Pham Van Dong Road
Under-construction (2017)
3
4
11
Le Duc Tho – Xuan Phuong Completed – 4/2017
2
Nguyen Xien – Xa La Under-construction (2017)
5
Nguyen Van Cu – Co Linh Completed (1/2017)
O Cho Dua – Voi PhucApproved for Upgrade
6
World’s costliest? Hanoi plans to spend over $342mn building 2.2km road
Capital Market
14
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N V E S T M E N T
Investment Channels
775.5 points
23% y-o-y
22,400VND
0.5% y-o-y
36.3M VND
10% y-o-y
Source: Vietnamese General Statistics Office, FTP Securities, SJC.
Return from Different Asset Classes
0
20
40
60
80
100
120
140
160
180
Jun
Aug
Oct
Dec
Feb
Apr
Jun
Aug
Oct
Dec
Feb
Apr
Jun
Aug
Oct
Dec
Feb
Apr
June
Aug
Oct
Dec
Feb
Apr
June
2014 2015 2016 2017
Inde
x
VN-Index Local Gold USD/VND
15
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N V E S T M E N T
Investors Shift to Seek for Yield Spread
Source: CBRE Asia Pacific Investor Intentions Survey, 2016 and 2017.
VIETNAM IS INCREASINGLY APPEALING TO
FOREIGN INVESTORS.
Main Investment Motivation in Real Estate
Prime Office Yield Relative to 10-year Government Bond
Percentage of 504 responses. 80% of respondents were companies domiciled in Asia Pacific and the other 20% were domiciled primarily in Western Europe, the Middle East and North America.
16
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N V E S T M E N T
Strong Fundamentals
Source: Ministry of Tourism.
-10%
5%
20%
35%
-
5
10
15
20
11
20
12
20
13
20
14
20
15
20
16
1H
20
17
Gro
wth
Rat
e (%
)
Arr
ival
s (M
illio
n pe
rson
s)
International arrivals Growth rate
Strong Growth of Tourist Arrivals to Vietnam
Source: CBRE Research, New Channels for Old Favourites, 2017
Strong Prime Retail Rental Growth
Source: CBRE Vietnam.
-4
-2
0
2
4
6
8
HC
MC
Mum
bai
Gua
ngzh
ou
Shan
ghai
Beiji
ng
Han
oi
Shen
zhen
Bang
kok
New
Del
hi
Sing
apor
e% G
row
th r
ate
17
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7
0
10
20
30
40
50
-
400
800
1,200
1,600
2,000
2011 2012 2013 2014 2015 2016 1H 2017
No.
of tr
ansa
ctio
ns
Tran
sact
ion
valu
e (U
S$ m
illio
n)
Commercial Mixed use Residential No. of transaction
I N V E S T M E N T
Local Investors Dominate
Dislaimer: Transastion includes deals above US$10 million. Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
Source: CBRE Vietnam, RCA.
SELLER
BUYER
100% Local
0% Local
97% Local
31% Local
Vietnam Investment Volume
18
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N V E S T M E N T
Notable Transactions in 1H 2017
Source: RCA retrieved in Jun ‘17, Vietnam Investment Review.
Hanoi TimesSquare, Hanoi
Vinaland divested from Thang Long Property
» Elite Capital Resources
The Everrich 3, District 7, HCMCPhat Dat Real Estate
» Unknown buyer
Dai Phuoc Lotus,Dong NaiVinacapital
» CFLD
Bau Bang UrbanArea & Industrial Park,
Binh DuongBecamex
» Paiho Group
~US$80 mil.198.5 ha
US$12 mil.2.5 ha
US$64 mil.4 ha
9.9 ha
Diamond RiceFlower, Hanoi
Kinh Bac Corporation
» Growing Sun Investment US$250 mil.4.2 ha
Site in Ha Dong Hanoi
BIM Group
» Aeon Mall Vietnam
Lotte/Ciputra MallHanoiUDIC
» Lotte Group
23 Le DuanD1, HCMC
Auction
» Tan Hoang Minh Group
CII Land PlotD2, HCMC
CII
» Hong Kong Land
9.5 ha
7.3 ha
3,025 sqm
7,000 sqm
Q1 2
017
Q2 2
017
19
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N V E S T M E N T
Local Developers Seek Funding from Alternative Sources
Source: CBRE Vietnam.
Financing option Quarter Developer Value US$ mil. Remark
Debt financing Q2 2017 Sacomreal 13 Bond with fixed rate: 11%, tenure: 1 year
Equity raising Q2 2017 SonKim Land 100EXS Capital closed the first round of US$46 million, out of an expected US$100 million follow-on fundraising for SonKim Land
Joint Venture Q2 2017 Nam Long 50% of US$348 mil.
JV with Hankyu Realty, Nishi Nippon Railroad to developMizuki Park, 16 ha in HCMC. This JV was formed last year to develop Flora Sakura, Fuji Residence and KikyoResidence in District 9.
Joint Venture Q1 2017 CII ~US$115 mil. project valueJV with Hong Kong Land to develop 96,000sm development site in District 2
Equity raising Q4 2016 Novaland 120 70% of investors are foreign
Joint Venture Q3 2016 Bitexco 290JV with Mitsubishi Corporation to develop the Manor Central Park in Hoang Mai, Hanoi
Equity raising Q3 2016 FLC 480 From existing shareholders
Debt financing Q2 2016 Nam Long 22 Convertible bond due in 2020, rate 7%
20
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7I N V E S T M E N T
Pending Projects Revitalised
D1mension Kenton Node Thuan Kieu Plaza
HCMC Hanoi
The K-Park, Van Phu NUA
Source: CBRE Vietnam.
Old
ph
oto
sN
ew p
ho
tos
Booyoung Vina
HOSPITALITY MARKETBeyond APEC 2017
22
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
APEC 2017 - An opportunity to showcase Vietnam
Da Nang Airport - International Terminal
Preparations for Summit Week in Nov 2017 Da Nang Airport - International Terminal Da Nang International Media Center Ariyana Danang Exhibition & Convention Center Sheraton Da Nang InterContinental Danang Sun Peninsula upgrade
APEC in numbers 21 nations 200 events across 10 cities of Vietnam 1,000 business leaders 10,000 delegates during Summit Week
Hanoi HCMCDa
NangHa Long
NhaTrang
Hue Vinh Hoi An Can ThoNinhBinh
Source: Vietnam News, CBRE Vietnam.
23
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
International Visitors
International Visitors to Major Cities
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
HCMC Hanoi Da Nang Nha Trang Phu Quoc
Pers
ons
2014 2015 2016 1H 2017
1H 201772% y-o-y
30% y-o-y
International Arrivalsto Da Nang
to Vietnam
Source: Cities’ Departments of Tourism, CBRE Vietnam.
80% y-o-yto Nha Trang
24
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Source: STR Global, CBRE Hotels.Note: Data from 4-5 star hotels; Q2 only includes April and May
No New Supply
US$111.2ADR
73%OCC
▼ 2% y-o-y
▼ 5% q-o-q
▲ 6 ppts y-o-y
▼ 3 ppts q-o-q
0
2,000
4,000
6,000
8,000
10,000
12,000
2014 2015 2016 1H2017
2017F 2018F 2019F
Num
ber
of k
eys
No New Supply
US$112.0ADR
86% OCC
▲ 7% y-o-y
▼ 1% q-o-q
▲ 11 ppts y-o-y
▲ 1 ppts q-o-q
0
2,000
4,000
6,000
8,000
10,000
12,000
2014 2015 2016 1H2017
2017F 2018F 2019F
Num
ber
of k
eys
HANOIHCMC
City hotels – No new upscale hotel openings in 1H2017
4-5 Star Hotel Supply 4-5 Star Hotel Supply
25
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
City hotels – Hanoi hotels continue to outperform
0%
20%
40%
60%
80%
100%
0
30
60
90
120
150
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Occ
upan
cy (%
)
USD
/roo
m/n
ight
0%
20%
40%
60%
80%
100%
0
30
60
90
120
150
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Occ
upan
cy (%
)
USD
/roo
m/n
ight
Source: STR Global, CBRE Hotels.Note: Data from 4-5 star hotels; Q2 only includes April and May
HANOIHCMC
26
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Source: CBRE Vietnam, REIC.
2017
2018 – 2020
1. Hilton Saigon – 350 keys
2. Union Square Hotel – ~300 keys
3. Spirit of Saigon – 250 keys
4. Lavenue Crown Hotel – 235 keys
5. Okura Prestige Saigon Hotel – 250 keys
6. Mai House Saigon – 219 keys
1
No new future supply
2
3 4
56
HCMC – Notable Future 4-5 Star Hotels
27
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Hanoi – Notable Future 4-5 Star Hotels
Source: CBRE Vietnam.
1. Mercure Hanoi – 380 keys
2. Novotel Suites Hanoi – Thai Ha – 300 keys
3. Intercontinental Landmark 72 – 359 keys
1. Hilton Hanoi Westlake – 250 keys
2. Hanoi Aqua Central -138 keys
3. Dong Do Hotel – N/A
4. Westin Hanoi – N/A
5. Four Seasons Hotel Hanoi – 100 keys
6. 10 Tran Ngyen Han Site – N/A
21 3
12
53
2017
2018 – 2020
28
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
4-5 starHotel
Second-home Villa
Condo-tel Length of coastline
4,380rooms
648units
1,263units
50km
7,463rooms
771units
6,769Units
~100km
9,204rooms
1,180units
10,183units
200km
4,500rooms
1,788units
982units
135Km
21,163rooms
4,413units
12,309units
140 Km
Source: CBRE Vietnam.
PHUKET
Coastal Markets – by 1H 2017
Quy Nhon
Quang Binh
PHU QUOC
NHA TRANG
DA NANG
HA LONG
Ho Tram
29
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7
BĐS NGHỈ DƯỠNG BÁN – KHẢ NĂNG TIÊU THỤ
2015
Nha Trang
2016
Phu Quoc
2015 2016
850 units576 units
300 units
2015 2016
Da Nang
4,530 units
Source: CBRE Vietnam, Q2 2017. Source: CBRE Vietnam, Q2 2017. Source: CBRE Vietnam, Q2 2017.
H O S P I TA L I T Y
Second Home Market Sales
1H 2017
377 units
1H 2017
978 units
1H 2017
970 units1,050 units
5,190 units
30
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Note: Yields were surveyed at selected high-end projects and might not represent the entire market.
• Rental yield: 4-6%• Guaranteed yield: 6-7%
(5-15 years)
• Rental yield: 6-9%• Guaranteed yield: 8-10%
(5-10 years)
• Rental yield: 5-9%• Guaranteed yield: 8-10%
(5-10 years)
• Rental yield: 5-10%• Guaranteed yield: 8-12%
(5-10 years)
DA NANG
NHA TRANG
PHUKETPHU QUOC
Source: CBRE Vietnam.
High-end condo-tels High-end condo-tels
Second Home Villas Second Home Villas
Rental Yield & Guaranteed Yield
31
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Operators - More Brands to Arrive
Upc
omin
gEx
istin
g
Note: Not all brands are listed above
32
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Nha Trang – strong influx of condo-tel developments
* Only 4‐5 star hotelsSource: CBRE Vietnam; Photo Credit: Nguyen The Duong
108 93
1 Vinpearl Beachfront Condotel - 40Fl 6 Ibis Styles Hotel - 25Fl 11 Havana Nha Trang Plaza - 42Fl 16 Gold Coast Condotel - 40Flx2
2 Starcity Nha Trang - 21Fl 7 Panorama Condotel - 39Fl 12 Ariyana Smart Condotel - 28Fl 17 Ocean Gate - 40Fl
3 Citadines Bayfront Nha Trang - 26Fl 8 AB Central Square - 36Fl 13 The Costa-InterCon Hotel - 19Fl-29Fl 18 Muong Thanh Grand Hotel - 48Fl
4 Muong Thanh Luxury Hotel - 45Fl 9 Vinpearl Empire - 41Fl 14 Sheraton Hotel - 33Fl 19 Royal Marina Complex - 32Flx2
5 Novotel Hotel - 18Fl 10 Tropicana - 49Fl x 2 15 Nha Trang Center - 20Fl
2
1 7 12 16 17 19
151413114 5 6
Completed Projects Future Projects
18
Q2 2017: 14,871 (hotel* + condo-tel + villa) completed keys By 2020: 36,715 keys
33
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
2
1 9 11
8
1 Cocobay – 50F 6 Premier Heritage – 26-35 Fl x 5 11 Alphanam Luxury- 33Fl 16 Katsutoshi Grand house- 22Fl
2 Ocean Suites - 9Fl 7 Hyatt Place 12 Fusion Suites – 21F 17 Citadines Blue Cove - 27Fl x 2
3 Anvie Resort – 18Fl 8 OceanViews- 21Fl 13 Vinpearl Riverfront – 36 Fl 18 Southern Tran Thi Ly Bridge
4 Hyatt Regency – 12FL 9 Wynham Soleil – 50Fl x 4 14 Novaland – 29Fl
5 Ariyana Resort & Suites- 25Fl x 3 10 Central Coast - 39Fl 15 Fhome – 27Fl x 2
Completed Projects Future Projects
6 10 13
15
177
4
35
12
1618 14
So is Da Nang
Q2 2017: 14,255 (hotel* + condo-tel + villa) completed keys By 2020: 32,021 keys
* Only 4‐5 star hotelsSource: CBRE Vietnam; Photo Credit: Nguyen The Duong
34
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
1 Vinpearl Phu Quoc Resort 6 Movenpick Phu Quoc 11 Salinda Phu Quoc 16 InterContinental Phu Quoc
2 Grand World 7 Chen Sea Resort 12 Mercure Phu Quoc 17 JW Marriott Phu Quoc
3 Starbay 8 The Shells 13 Sol Beach House Phu Quoc 18 Premier Village Phu Quoc
4 Nam Nghi 9 La Veranda Resort 14 Sonasea Villas & Resort 19 Hon Thom Resort
5 Fusion Resort Phu Quoc 10 Long Beach Resort 15 Sunset Sanato Resort 20
Completed Projects Future Projects
Phu Quoc also quickly catching up
* Only 4‐5 star hotelsSource: CBRE Vietnam.
191
45 7
89 10
1112 13 142 3 6 15 16 17 18
Q2 2017: 5,142 (hotel* + condo-tel + villa) completed keys By 2020: 15,464 keys
35
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Re-emergence of Ho Tram
132
45
67
89
1 Vietsovpetro 7 Carmelina Beach Resort
2 The Hamptons Ho Tram 8 Gallery Villas
3 Ho Tram Beach Boutique Resort 9 The Grand Ho Tram
4 Club Med 10 The Grand Ho Tram Phase 2
5 The Sanctuary 11 The Grand Ho Tram Phase 3
6 The Sanctuary Phase 2
10
11
Q2 2017: 1,300 (hotel + condo-tel + villa) completed keys By 2020: ~7,000 keys
* Only 4‐5 star hotelsSource: CBRE Vietnam
Completed Projects
Future Projects
36
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7H O S P I TA L I T Y
Quang Ninh – Bustling with new developmentsStrongly improved infrastructure increasingly boosts tourism and investments
6 18 45N
o. o
f ho
tels
in
Qua
ngN
inh
Van Don
VAN DON
International Airport(under construction)
US$2 bn Casino Project
Hotel Cluster
COMMERCIAL MARKETThe rise of millennials, Co-working space and
Young demographics retailing
38
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Market Snapshot Q2 2017
GRADE AGRADE B
No New Supply
▲ 7.5% y-o-y▲ 2.2% q-o-q
▼ 8.5 ppts y-o-y▼ 2.0 ppts q-o-q
▲ 1.7% y-o-y▼ 1.7% q-o-q
▲ 1.2 ppts y-o-y▼ 1.1 ppts q-o-q
US$ 24.1 psm pm
11.2% Vacancy
No New SupplyUS$ 36.3 psm pm
5.3% Vacancy
24,051 sm NLA New Supply
US$ 13.6psm pm
17.4%Vacancy
23,620 sm NLANew Supply
US$ 21.0psm pm
4%Vacancy
▼ 1.1% y-o-y▲ 0.4% q-o-q
▲ 0.9 ppts y-o-y▲ 1.0 ppts q-o-q
▲ 4.7% y-o-y▼ 4.0% q-o-q
▲ 0.4 ppts y-o-y▲ 1.4 ppts q-o-q
Source: CBRE Vietnam.Asking rents are quoted excluding service charge and VAT
HANOIHCMC
39
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
HCMC – 2017 is the Year of Decentralization
Source: CBRE Vietnam.
Viettel Complex Q2 2017
Mapletree Business Center
Q1 2017
Saigon Giai Phong
Newspaper Q1 2017
Deutsches HausQ3 2017
Etown Central Q4 2017
Saigon Centre P2 Q3 2017
40
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Hanoi – Decentralization is a continued trend
Source: CBRE Vietnam.
Sun SquareQ1 2017
Horison TowerQ2 2017
HUD TowerQ2 2017
Discovery Complex2H 2017
DSD Building2H 2017
Richy Tower2H 2017
41
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
HCMC - Now in Top 40 of World's Most Expensive Office Markets
Hanoi - Improving Grade A Performance
Source: CBRE Vietnam.
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Vaca
ncy
Rate
(%
)
Ask
ing
Rent
(U
S$/s
m/m
onth
)
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Vaca
ncy
Rate
(%
)
Ask
ing
Rent
s (U
S$ p
sm p
m)
Asking Rents recorded are exclusive of Service Charge and VAT.
HANOIHCMC
42
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Net Absorption: Demand shifted toward decentralized areas
Source: CBRE Vietnam.
(20,000)
0
20,000
40,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Net
Abs
orpt
ion
(sm
)
CBD Midtown West Others
HANOI
HCMC
(10,000)0
10,00020,00030,00040,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Net
Abs
orpt
ion
(sm
)
CBD District 1 District 3 District 7 Others (D4, 5, 10, Tan Binh, Binh Thanh, Phu Nhuan)
43
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Co-Working Space: Alternative Supply and Anchor Tenant
Source: CBRE Vietnam, Primed for Growth, Co-working Space in Vietnam.
44
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Diversifying Demand
Q2 2017Q1 2017
HA
NO
IH
CM
C
New-to-market letting
Relocation & Expansion
16%
84%
18%
82%HANOIDemand remains strong in traditional sectors
HCMCManufacturing, Real Estate and Telecommunication to step up
Finance and Banking20%
Manufacturing20% - 24%
IT/Technology9%
New-to-market letting
Relocation & Expansion
21%
79%
9%
91%
Real Estate/ Construction 19%
Telecommunication/ Media 10%
Source: Based on CBRE Vietnam’s enquiries, 2017 y-t-d.
45
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Preferred Leasing Space is Getting Larger
HANOI
HCMC
Source: Based on CBRE Vietnam’s enquiries, 2017 y-t-d.
0%20%40%60%80%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017<100sm 100sm - 299sm 300sm - 699sm 700sm - 1000sm >1000sm
0%20%40%60%80%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
46
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Large Office Leasing Transactions in 1H 2017
Source: Based on CBRE Vietnam’s enquiries, 2017 y-t-d.
No. District Industry Leasing area (sm)
HCMC District 7 Transportation 2,400
HCMC District 7 Home furniture 2,000
HCMC Binh Thanh District Merchandising 1,133
HCMC District 10 Technology 1,019
HCMC District 1 F&B 1,000
HCMC District 1 Business Center 1,000
HCMC Tan Binh District Fashion 975
Hanoi Ba Dinh IT 5,000
Hanoi Tu Liem Manufacturing 1,300
Hanoi Tu Liem Manufacturing 1,300
Hanoi Ba Dinh Logistics 1,000
Hanoi Hoan Kiem Real Estate 1,000
Hanoi Tu Liem Construction 800
Hanoi Tu Liem IT 800
Hanoi Ba Dinh Pharmaceuticals 800
47
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
HCMC – Future Supply
Source: CBRE Vietnam.
2018 - 2020
1. Saigon M&C, D1 – GFA: 49,000 sm
2. VietCapital Center, D1 – GFA: 38,621 sm
3. CapitaLand at VGR, D1 – GFA: N/A sm
4. SJC Tower, D1 – GFA: 38,000 sm
5. Tax Center, D1 – GFA: 35,000 sm
6. Nexus Tower, D1 – GFA: 133,834 sm
7. One Hub, D9 – GFA: 13,000 sm
8. Crescent Hub, D7 – GFA: 36,297 sm
9. Spirit of Saigon, D1 – GFA: 12,000 sm
1. Deutsches Haus, D1 – GFA: 38,621 sm
2. Saigon Centre Phase 2, D1 – GFA: 40,000 sm
3. Etown Central, D4 – GFA: 67,760 sm
2017
21 3
1
2
3 4
5
6
7
8
9
48
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7O F F I C E
Hanoi – Future Supply
Source: CBRE Vietnam.
2017
1. HUD Tower (2nd tower)
2. Discovery Complex – GFA: 49,000 sm
3. DSD Building – GFA: 20,000 sm
4. Richy Tower – GFA: 9,790 sm
4
2018 - 2019
11. Vietinbank Tower – GFA: 100,000 sm
2. FLC Twin Tower - GFA: 35,960
3. Oriental Sun Tower – GFA: 23,300 sm
4. Eurowindows – GFA: 16,592 sm
5. Office building at Metropolis
1 2 3
2
4
5
3
49
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7
020,00040,00060,00080,000
100,000120,000140,000
20
14
20
15
20
16
1H
20
17
20
17
E
20
18
F
20
19
F
New
Sup
ply,
NLA
(sm
)
O F F I C E
Market Outlook
Source: CBRE Vietnam, REIC.2017E: 2H of 2017
HANOIHCMC
Annual New Supply Forecast
Major Anchor Tenants still prefer to renew rather than relocate
New Supply in Grade B will continue to have better absorption than New Supply in Grade A
Build – Occupy – Lease will continue to be a recurring theme
Annual New Supply Forecast
020,00040,00060,00080,000
100,000120,000140,000
20
14
20
15
20
16
1H
20
17
20
17
E
20
18
F
20
19
F
New
sup
ply,
NLA
(sm
)
Co-working spaces become potential tenants and partners for landlords
Limited Grade A supply; Grade A’s performance to further improve
Higher competition in Grade B due to continued new supply
50
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
Market Snapshot Q2 2017
CBDNON-CBD
HANOIHCMC
No new supply
▲ 1.0% y-o-y
0% q-o-q
▲ 0.3 ppts y-o-y
▲ 0.1 ppts q-o-q
▲ 7.1% y-o-y
▼ -0.2% q-o-q
▼ 0.2 ppts y-o-y
▼ 1.1 ppts q-o-q
US$98.1 psm pm
1.9% Vacancy
No new supplyUS$137.1 psm pm
11.8% Vacancy
33,400 sm NLA New Supply
US$28.1 psm pm
11% Vacancy
37,389 sm NLA New Supply
US$37.4 psm pm
8% Vacancy
▼ 6.2% y-o-y
▲ 1.8% q-o-q
▲ 0.4 ppts y-o-y
▼ 0.3 ppts q-o-q
▲ 2.6% y-o-y
▲ 1.7% q-o-q
▼ 0.1 ppts y-o-y
▲ 1.1 ppts q-o-q
Source: CBRE Vietnam.
51
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
HCMC – Map of New Supply
Source: CBRE Vietnam.
RomeADepartment Store
(District 3)9,600 sm
Pearl Centre(District 2)20,000 sm
(Binh Thanh)5,800 sm
(District 2)1,400 sm
52
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
Hanoi – Map of New Supply
Artemis Shopping Center
(Thanh Xuan District)27,000 sm
Artemis Shopping Center
(Thanh Xuan District)27,000 sm
Hanoi Center Point(Thanh Xuan District)
6,400 sm
Hanoi Center Point(Thanh Xuan District)
6,400 sm
53
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
Vacancy stable in both cities
Source: CBRE Vietnam.
HANOIHCMC
0%
13%
25%
38%
50%
0
40
80
120
160
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Vaca
ncy
Rent
al (U
SD/m
2/m
onth
)
CBD Rental Rate Non-CBD Rental Rate CBD Vacancy Rate Non-CBD Vacancy Rate
0%
10%
20%
30%
40%
50%
0
40
80
120
160
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Vaca
ncy
Rent
al (U
SD/s
m/m
onth
)
54
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
Youth focused mass fashion and F&B still dominate
Source: CBRE Vietnam.
Fashion
F&B
Cosmetics
Convenience Store
New tenants To be coming or considering…
55
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
What Local Retailers and Developers are Planning
Source: CBRE Vietnam.
2013
2016
2004
2013
2016
Shopping centre
VinmartVinmart+
2017
Co.opFood 100
Co.opmart 87
Co.opSmile 200 (Plan)
Sense City 3
New format???Number of locations
56
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
Becoming More Attractive
Source: A.T. Kearney 2017
Rank CountryMarket attractive-ness
(25%)Country risk
(25%)Market saturation
(25%)Time pressure
(25%) GRDI score
1 India 63.4 59.1 75.7 88.5 71.7
2 China 100.0 64.5 24.4 92.5 70.4
3 Malaysia 77.1 87.1 23.3 56.2 60.9
4 Turkey 75.8 60.4 31.7 71.4 59.8
5 United Arab Emirates
92.3 100.0 0.9 44.4 59.4
6 Vietnam 26.7 25.4 72.4 100.0 56.1
7 Morocco 34.6 55.4 64.5 69.8 56.1
8 Indonesia 49.3 45.5 52.1 76.7 55.9
Global Retail Development Index (GRDI)
NOTEMarket
attractiveness Country risk Market saturation Time pressure
0 Low attractiveness High risk Saturated No time pressure
100 High attractiveness Low Risk Not Saturated Urgent to enter
57
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
HCMC – Future Supply
1. Viettel Project, D10 – 15,000 sm
2. Golden Plaza, D5 – 15,000 sm
3. The Garden Mall, D5 – 19,000 sm
4. Xi Grand Court, D10 – 42,000 sm
Source: CBRE Vietnam, REIC.
1. Su Van Hanh Shopping Center, D10 – 80,000 sm
2. Spirit of Saigon, D1 – 48,000 sm
3. Crescent Mall Phase 2, D7 - 18,000 sm
4. Sala Shopping Centre, D2 - 60,000 sm
5. OneHub Saigon, D9 - 70,000 sm
6. Saigon Tax Trade Centre, D1 - 25,000 sm
7. Vincom Central, Binh Thanh District – 60,000 sm
4
1 2
5
3 4
2
37
6
2017
2018 – 2020
1
58
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
Hanoi – Future Supply
1. Truong Dinh Plaza, Hoang Mai Dist. – 15,000 sm
2. Discovery Complex, Cau Giay Dist. – 22,000 sm
3. Central Field, Cau Giay Dist. – 20,000 sm
Source: CBRE Vietnam, REIC.
1. Lotte Mall, Tay Ho – 130,000 sm
2. D’Capitale, Nam Tu Liem – N/A
3. Aeon Mall Ha Dong - 95,000 sm
4. Vietinbank Tower, Tay Ho – N/A
5. Vinhomes Gallery Giang Vo, Ba Dinh – N/A
6. Sun Grand City Thuy Khue, Tay Ho – 28,000 sm
7. FLC Twin Towers, Cau Giay – 19,000 sm
8. Vinhomes Metropolis, Ba Dinh – 41,000 sm (est.)
3
4
1
2 56
2017 2018 – 2020
1
2
3
7 8
59
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7R E TA I L
Source: CBRE Vietnam, REIC.2017e: 2H of 2017
Market Outlook
-
50,000
100,000
150,000
200,000
250,000
2014 2015 2016 2017 2017 E 2018F 2019F
NLA
, sm
HCMC
Annual New Supply Forecast
HANOI
0
50,000
100,000
150,000
200,000
250,000
2014 2015 2016 2017 2017E 2018F 2019F
NLA
, sm
Annual New Supply Forecast
Market is not saturated, urging international retailers to enter and capture growth opportunity
Millennials continue to drive the market
Rental rate to be stable in CBD and slightly up in the non-CBD locations
A surge of retail podiums, especially in condominium projects to be handed soon in the decentralized area
Large pipeline for the coming quarters, putting pressure on rental and occupancy rates
RESIDENTIAL MARKETHow demand is shifting
61
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Thanh My Loi area
Diamond Island1,275 units
Sold rate: 93% of launched products
The Sun Avenue1,288 condos Sold rate: 65%
Landed properties site
Palm Heights816 condos
Sold rate: 97%
Waterina suites86 condos
Feliz En Vista873 condos
Sold rate: 93%
Vista Verde1,152 condosSold rate: 95%
Victoria Village420 condos
Sold rate: 70%
Lakeview City963 townhouse/villas
Sold rate: 86%
Condo site (High-end)
Palm Residences135 townhouse/villas
Sold rate: 100%
Photo credit to One World
Condo site (High-end)
Current supply
Future supply
62
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Thu Thiem area
Sala Dai Quang Minh 529 townhouse/villas
Sold rate: 100%
Sala Dai Quang Minh 2,596 condos
Sold rate: 73% of launched products
Khanh Hoi siteMixed-use
Empire City3,000 condos
Sold rate: 94% of launched products
Saigon M&C180 condos
Thu Thiem EcoSmart CityMixed-use
GS Thu ThiemMixed-use
Thu Thiem Lake ViewMixed-use
VHGR5,050 condosSold rate: 88%
Marina BayMixed-use
VHGR63 villas
Sold rate: N/A
Sunwah Pearl789 condos
Sold rate: N/A
New City1,229 condos
Current supply
Future supply
63
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
District 7
LaVida +1,200 CondosSold rate: N/A
RichLane Residences243 Condos
Sold rate: N/A
Sunrise City2,083 Condos
Sold rate: 100%
Sky Garden - PMH3,187 Condos
Sold rate: 100%
PMH shophouse644 shophousesSold rate: 100%
Sunrise City View703 Condos
Sold rate: 79%
Development site Condos
Current supply
Future supply
Him Lam Riverside758 Condos
Sold rate: 100%
CitizenTS300 Condos
Sold rate: 98%
64
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Nha Be District
Sunrise Riverside1,846 condos
Sold rate: 60% of launched products
Kenton Node1,640 CondosSold rate: N/A
Phu Hoang Anh802 Condos
Sold rate: 100%
Dragon Hill350 Condos
Sold rate: 100%
Kim Long43 townhouse/villas
Sold rate: 100%
Ngan Long60 townhouse/villas
Sold rate: 100%
HAGL 31,104 Condos
Sold rate: 100%
Hung Phat Silver Star447 Condos
Sold rate: 86%
Current supply
Future supply
The Park Residence928 condos
Sold rate: 100%
Golden House498 Condos
Sold rate: 100%
Nine South Estate381 townhouse/villas
Sold rate: 100%
Galleria Nam Sai Gon58 Townhouse/villas
Sold rate: 98%
MARKET INSIGHTREAL ESTATE
Q 2 / 2 0 1 7
65
C O N D O M I N I U M
South Tu Liem and Cau Giay Districts
Vinhomes Green Bay1,424 condos
– Sales rate:72%390 villas/shophouses
- Sales rate: 100%
Vinata Tower384 condos
Sales rate: N/A
Current supply
Future supply
West
D’Capitale1,692 condos
Sales rate: 68%
Condo Site VinhomesSkylake
1,826 condosSales rate: 89%
Mixed –use
Project
My Dinh Pearl984 condos
– Sales rate: 60% of unit launched
Mixed - useProjects
MARKET INSIGHTREAL ESTATE
Q 2 / 2 0 1 7
66
C O N D O M I N I U M
North Tu Liem and Tay Ho Districts
Current supply
Future supply
West
An Binh City2,732 condos
Sales rate: 60% of unit launched
Condos Site
Discovery Complex 3
Condos Site
Starlake300 villas launched
Sales rate: N/A
Diplomatic Quarters (Ngoai Giao Doan)
D’El Dorado
Kosmo Tay Ho
MARKET INSIGHTREAL ESTATE
Q 2 / 2 0 1 7
67
C O N D O M I N I U M
South Hai Ba Trung and Hoang Mai Districts.
Sunshine Palace299 condos
Sales rate: N/A
Current supply
Future supply
Times City
Imperia Sky Garden342 condos (Sky B)
Sales rate: 70% of unit lauched
Minh KhaiPlaza
Green Pearl
South
CBD Fringe
536A Minh Khai200 condos
Sales rate: 95%
Landed Properties
Site
Sunshine Garden
T&T Vinh Hung310 condos Sales rate:
65% of unit lauched
MARKET INSIGHTREAL ESTATE
Q 2 / 2 0 1 7
68
C O N D O M I N I U M
Long Bien District
East
Hanoi Garden City
VinhomesRiverside
VinhomesThe Harmony
Eco City412 condos
Sales rate: 73%
Northern Diamond192 condos
Sales rate: 38%
Mixed-use
Valencia Garden366 condos
Sales rate: 38%
Ecohomes Phuc Loi680 condos
Sales rate: 53%
Current supply
Future supply
69
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Market Snapshot Q2 2017
HANOIHCMC
8,086 unitsLaunched
4,650 unitsSold
Primary Price: $1,324 psm
9,580 unitsLaunched
9,522 unitsSold
Primary Price: $1,578 psm
▼ 4% y-o-y
▼ 24% q-o-q
▲ 4% y-o-y
0% q-o-q
▲ 59% y-o-y
▲ 40% q-o-q
▲ 9% y-o-y
▼ 1% q-o-q
▼ 7% y-o-y
▲ 80% q-o-q
▲ 23% y-o-y
▼ 14% q-o-q
West32%
South West36%
South3%
East20%
North5%
Midtown0%
CBD0%
North5%
East36%
South25%
West34%
Central0%
* Units sold: including number of units sold in new launch and unsold stock in pervious quarters* Primary price: average price in the primary marketSource: CBRE Vietnam.
70
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Source: CBRE Vietnam.
New Launches by Segment
Project
Total First launch
31 16
Q-o-Q55% 166%
HCMC
Total First launch
27 8
Q-o-Q
25% 47%
Project
Hanoi
- Affordable: <US$800 psm- Mid-end: US$800 – 1,500 psm- High-end: US$1,500 - $3,500 psm- Luxury: >US$3,500 psm
HCMC with first-time launches; Hanoi busy with follow-on launches
04,0008,000
12,00016,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Uni
ts
- 4,000 8,000
12,000 16,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Uni
ts
71
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
• Bubble size: size of new launch supply in that district • Number in the bubble illustrates the number of
projects launched in the perioed
Jamila
Ha Do Centrosa
Sunwah Pearl The Parkland
HCMC – Supply spreads across the city
4
1
1
1
5
Source: CBRE Vietnam.
733
1
2
2
72
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Source: CBRE Vietnam.
Hanoi – New supply across districts, expanding to one new rural district
Booyoung
Vinhomes Green Bay
Imperia Sky Garden
Central Lake Ecopark
12
3
2
4
2
6
2
2HA DONG
• Bubble size: size of new launch supply in that district • Number in the bubble illustrates the number of
projects launched in the perioed
73
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Source: CBRE Vietnam.
Hanoi
Sold units
Q2 2017: • Mid-end products accounted for 55% of total new launch in Hanoi and 56% in HCMC• Also, making up 54% of total sales in Hanoi and 51% in HCMC.
HCMC
Mid-end Segment Continues to Dominate the Market
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
No.
of So
ld U
nits
02,0004,000
6,0008,000
10,00012,00014,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
No.
of so
ld u
nits
74
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Source: CBRE Vietnam.
Thu Thiem projectTotal investment: US$ 114.4 millionScale: 9.6 haTimeline: 2018 – 2020
Mizuki Park projectTotal investment: US$ 325 millionScale: 26 haTimeline: 2017 – 2024Components: condominium, land plots, townhouse, villa
CII + Hongkong Land Nam Long + Hankyu Realty + Nishi Nippon Railroad
CENINVEST + Hi Brand
The K - ParkTotal investment: N/AComponents: condominium, landed properties
Condominium Developers – Stronger Together
75
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
(*) Note: The analysis above is based on CBRE Vietnam’s residential closed deals and should not be used as a marketwise benchmark
Source: CBRE Vietnam.
1H 20171H 2016
Buyers by Origin
13%
41%
13%
11%
10%
8%
63%
13%
Owner-occupierOwner-occupier
Buy-to-gain InvestorsBuy-to-gain Investors
Buy-to-let InvestorsBuy-to-let Investors
Buyers by Purpose
1H 20171H 2016
20%
74%
6%
29%
53%
18%
CBRE Sales: More Foreign Buyers*
76
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7
0% 20% 40% 60% 80%
<60sm
60-90sm
>90sm
1H 2016 1H 2017
C O N D O M I N I U M
Buyers by unit type
8%
Studio 1BR 2BR 3BR 4BR Office-tel
38% 37%
14%7%
3%1%
71% 21%
0% 0% 0%
Buyers by unit size (sm)
(*) Note: The analysis above is based on CBRE Vietnam’s residential closed deals and should not be used as a marketwise benchmark
Source: CBRE Vietnam.
CBRE Sales: larger in unit sizes*
1H 20171H 2016
MARKET INSIGHTREAL ESTATE
Q 2 / 2 0 1 7
77
$-
$2,000
$4,000
$6,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Pric
e (U
S$ p
sm)
$0
$2,000
$4,000
$6,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Pric
e (U
S$ p
sm)
Luxury High-end Mid-end Affordable
C O N D O M I N I U M
Price: excluded VAT and maintenance fee, base on NSA and fully-fitted handover conditionSource: CBRE Vietnam.
Primary price Secondary price
Hanoi
HCMC
Pricing: Stable in Hanoi – Up in HCMC
78
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
HCMC - Rental market
Source: CBRE Vietnam.
2BR unit rental rates in selected high-end projects. Rents quote on US$/unit/Month.
$830 - $1,200
$800 - $1,300
$1,200 - $3,500
$810 - $1,050
$850 - $1,100
$800 - $1,000
$950 - $1,100
$810 - $1,500
$760 - $1,400
$1,100-$3,300
$720-$1,050
$771 - $900
2017
2016
79
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Rental yield in selected high-end projects.Source: CBRE Vietnam.
0%
2%
4%
6%
8%
10%
2015 2016 2017
Rent
al y
ield
(%)
District 1 District 3 District 2 Binh Thanh District 4 District 7
Rental Yield by District
HCMC – Rental Market Cool Down in D2 While Still Attractive in Core Area
80
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
HCMC – Notable Future Supply1. Viet Capital Centre, D1 – 36 units
2. D’Edge, D2– 300 units
3. G-Home, D2 – 300 units
4. Vincity, D9 – 10,000 units
5. Empire City, D2 – 500 units
6. Saigon Sport City, D2 – 3,900 units
7. Evergreen, D7 – 200 units
8. Masteri An Phu, D2 – 800 units
9. Dragon Riverside City, D5 – 1,208 units
Source: CBRE Vietnam.
2017
2018 – 2020
1. Lavenue Crown, D1 – 200 units
2. Springlight City, D1 – 892 units
3. The Spirit of Saigon, D1 – 495 units
4. NEXUS, D1 – 300 units
5. Raemian City, D2 – 2,500 units
31
41 2
5
3
2
6
7
9
8
4
5
81
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Source: CBRE Vietnam.
1. My Dinh Pearl
2. Minh Khai Plaza
3. BooYoung
4. Vinhomes Smart City
5. Vinhomes Gallery Giang Vo
6. Petrowaco Lang Ha
7. Sunshine Center
8. Vincity
2017 2018 – 2020
1
1. The Manor Central Park
2. D'. Jardin Royal
3. Aquabay Grand Park
4. Avenue Park
5. Park City
6. D'.El Dorado
7. Sunshine Boulevard
2
5
6
7
3
4
1 5 6
Hanoi – Notable Future Supply
82
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
High-end and Luxury segment will be more active in the 2H 2017 with higher quality. The introduction of super luxury projects.
Larger in unit size.
Condominium market continues to receive high interest from foreign buyers.
Affordable and Mid-end are still attractive to end-user buyers.
Market Outlook - HCMC
Annual New Supply Forecast
0
10,000
20,000
30,000
40,000
50,000
2012 2013 2014 2015 2016 2017F 2018F 2019F
New
laun
ch s
uppl
y (u
nits
)
Source: CBRE Vietnam.
83
MARKET INSIGHTSREAL ESTATE
Q 2 / 2 0 1 7C O N D O M I N I U M
Market Outlook - Hanoi
Annual New Supply Forecast
Source: CBRE Vietnam.
Large-scaled projects of high-end segment at prime locations soon to be launched
Unit sizes becoming increasingly efficient
Foreign buyers to show a greater presence
-
10,000
20,000
30,000
40,000
50,000
2012 2013 2014 2015 2016 2017F 2018F 2019F
New
Lau
nch
Supp
ly
(uni
ts)
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For more information regarding this presentation please contact:CBRE Vietnam Co., Ltd. – Research & Consulting
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