vietnam research & forecast report - sa | q32014 (en)
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KNOWLEDGE REPORT | 3Q 2014 | HCMC | SERVICED APARTMENT
Accelerating success
VIETNAM 3Q14 Y-O-Y 4Q14FGDP Growth 6.19% 0.7%
Total Registered FDI (US$ billion) 4.33 -4%
Exports (US$ billion) 38.7 12.5%
Imports (US$ billion) 37.6 13.6%
CPI 4.3% -2.7%
Total retail sales (VND billion) 706.5 11.1%
International Visitors (million) 1.05 16.0%
Base Rate 9% 0.0%
Exchange Rate (US$) 21,246 -0.9%
VN-Index 630.34 24.9%
Gold Price (VND million/ tael) 35.9 -6.51%
3Q14 4Q14F*
Average asking rent
Occupancy rate
Supply
Improving performance from top-tier segments
By the end of 3Q2014, Grade A serviced apartment recorded
monthly average rental rate at US$34.2 per sq m while that of
Grade B developments reached almost US$22.1/ sq m/ month.
Meanwhile, occupancy rate of Grade A and B increased
strongly around 89% and 85% accordingly.
GRADE A MARKET PERFORMANCE, 3Q14
Source: Colliers International
Efficient-sized serviced unit is forecasted to surge
VIETNAM | 3Q14 | ECONOMIC UPDATEFollowing Colliers inspection, there will be no new top-tier
serviced apartment supply in HCMC to the end of the first
quarter of 2015.
Colliers ViewThe serviced residence market saw an upward trend from
Asian clients given growing cash flow from Asia investors due
to similar market nature and better investment yields.
Whilst, under recent global recession, it could be seen
that demand from US and Eurozone markets decreased
moderately. However, Western clients remain to be a
noticeable target group who willing to spend money for
high class and large-sized apartment.
Regarding significant increase of Asian customers, requirement for
central convenient and efficient-sized serviced unit is forecasted to
surge in the future.
Research &
HCMC | Serviced Apartment
Forecast Report
3Q 2014
KNOWLEDGE REPORT | 3Q 2014 | HCMC | SERVICED APARTMENT
Colliers InternationalHo Chi Minh CityBitexco Office Building, 7th Floor19-25 Nguyen Hue StreetDistrict 1, HCM City, VietnamTel: + 84 8 3827 5665
Accelerating success
QUANG NGUYENResearch [email protected]+84 938 056 603
YEN NGUYENResearch [email protected]+84 915 478 778
www.colliers.com/vietnam
Publication Coverage Frequency Availability
Research & Forecast Report
Vietnam Cities Quarterly Publicly available
CBD Report HCMC CBD Monthly Publicly available
Asia Pacific Office Report
Asia Pacific in-cluding Vietnam
Quarterly Publicly available
Vietnam Property Market Report
Vietnam cities Quarterly On subscription
Development Recommendation
Vietnam cities At request On subscription
Authors:
Colliers View
As a result of supply shortage in coming time, both average rental
and occupancy rate of top-tier serviced apartment is expected to
be stable with possibility of change at larger margin in response to
business strategy of the developers.
Beside, private flat together with convention buildings will remain
the direct competitive sector to serviced residence in HCMC in
not only price but also location.
TOP-TIER SERVICE RESIDENCE UNIT TYPE, 3Q14
Source: Colliers International
No Project Name Address LocationComple-tion Year
Total Room
Average Occupancy
ARR(*)
1 The Landmark 5B Ton Duc Thang District 1 1995 66 87% 31
2 Somerset Chancellor Court21-23 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
6InterContinental Asiana Saigon
39 Le Duan District 1 2009 260 98% 36
Grade A 701 89% 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 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 60% 28
Grade B 738 85% 22
Copyright © 2014 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the materials contained in this report.