1 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Presented by:
Hieu Le, Office Advisory and Transactional Director, CBRE Vietnam
Richard Colville. Asset Management Director, CBRE Vietnam
Wednesday, 21st June 2017
HO CHI MINH CITY
2 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETNAM IN THE FOREIGN PRESS
3 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Public Transportation UpdateINFRASTRUCTURE
Metro line no. 1
Water bus
Underground packagestarted on 26 May 2017
Trial ride at the end of JuneFirst route operates in July
Bicycle
Possibility to Develop a Bike - Sharing System in Ho Chi Minh City
Short of capital for Metro line no. 1
4 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Public Facilities INFRASTRUCTURE
Flood prevention project
Bui Vien Pedestrian street
Source: VNExpress, Baomoi.
5 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Airport UpdateINFRASTRUCTURE
Tan Son Nhat airport - expansion
Long Thanh International airport
Finalising expansion plan in December 2017.
3B3
Expansion plan -group 3Construction in: 2-3 yearsTotal investment:VND 19,350 billion
Source: VNExpress, CafeF, Baomoi.
Da Nang airport – International terminal
3 phasesConstruction in: 2017-2030 yearsTotal investment:VND 336,630 billion
Construction in: 1.5 years
Total investment:VND 3,500 billionSite area: 2.1 haGFA: 48,000 sm
Ready for operating
6 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
HCMC CBD to Tan Son Nhat Airport by Helicopter INFRASTRUCTURE
Source: VNExpress.
Helicopter type: EC-155B1Range: 671 kmCapacity: 2 pilots and 12 passengersRoute: Times Square to Tan Son Nhat airport
Other Helicopter pads in HCMC CBD
HH
H
H
H
H
7 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
FDIStable Flow of FDI into Real Estate
51%
23%
7%4%
15%Manufacturing
Mining
Real Estate
Retail and wholesale,vehiclesOthers
25%
75%
1. Samsung increased US$2.5billion of capital in Bac Ninh Province.
2. Japanese JV with PVN and PVGas. in a project in Kien Giang worth US$1.27 billion
3. Taiwan invested US$485.8million in a polyester manufacturing company in Binh Duong Province.
4. Coca-Cola Vietnam had increased capital of US$319.8million.
5. Singaporeans investor committed US$285 million in Vietnam-Singapore IP III in Binh Duong Province.
2007
Source: Vietnamese General Statistics Office.
5M 2017
Vietnam Newly Registered FDI in 5M 2017: USD5.6 billion
Top FDI Investors, USD million, 5M 2017 Major FDI projects in 5M 2017
Total FDI 5M 2017:
• Newly Registered: USD5.6 billion• Increased Capital: USD4.7 billion• Shares Purchase: USD1.8 billion
USD12.1 billion, up 10.4% y-o-y
4,420
1,945
1,239
1,008
828
South Korea
Japan
Singapore
China
Taiwan
8 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
DASHBOARD – PRODUCED MONTHLY
(*) Current lending rate is the average lending rate surveyed at ten banks, and only applicable for home loan. However, the back-dated numbers were the average rate announced publicly at that point of time, applied for all sectors and all banks. The average lending rate is for reference only.(**) Deposit rate is the average deposit rate from a sample comprised of ten banks, in which the rates are announced publicly on their websites and can be tracked backwards.
Source: Stockbiz, May 2017
Source: GSO, Jun, 2017 Source: GSO, SBV, SJC & HSX, Jun, 2017
NEW LAUNCHES 2Y 1Y 6M 3M 1M Current
HCMC New launches (unit) 71,935 38,007 17,896 12,470 7,219 3,352
HN New launches (unit) 54,872 35,422 19,324 10,612 5,073 2,282
Source: CBRE, Jun, 2017
ECONOMIC INDICATORS 2Y 1Y 6M 3M 1M Current
CPI (%) y-o-y 1.0 2.3 4.5 5.0 4.3 3.2
Trade balance (US$, bil) (1.2) (0.4) (0.4) (1.2) (0.8) (0.8)
Retail & services Turnover (VND, tril) 199.1 286.2 302.9 309.3 317.5 323.5
BANKING & FINANCE 2Y 1Y 6M 3M 1M Current
VN-Index 569.6 616.0 672.7 717.4 716.9 738.2
USD/VND (inter-bank) 21,673 22,352 22,067 22,350 22,350 22,396
Local gold (VND mil/tael) 34.9 33.3 35.6 36.8 36.7 36.3
Lending Rate (%)* 8.1% 7.3% 7.8% 9.1% 9.5% 9.5%
Deposit rate (%)**(1-year term) 6.4% 6.7% 6.7% 6.7% 6.7% 6.7%
REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current
Real Estate Holding & Development Listed Companies
45.20 50.29 47.77 51.20 49.47 51.10
Real Estate Services Listed Companies 54.8 29.48 33.74 45.8 44.69 45.30
9 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Real Estate Index OCCUPIERS DASHBOARD
HCMC REAL ESTATE INDEX
2015 2016 2017
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Total supply (thousand sm GFA) 2,228 2,307 2,326 2,377 2,377 2,377 2,377 2,421 2,429 2,493
Rental Grade A(US$/sm/mth) $34.2 $34.9 $35.0 $35.9 S35.7 $38.7 $35.7 $36.6 $37.0 $36.3
Rental Grade B(US$/sm/mth) $19.1 $19.2 $19.7 $19.8 $19.7 $19.9 $19.9 $21.0 $22.0 $21.0
Source: CBRE Vietnam , Q1 2017
10 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
OFFICE MARKET UPDATE
11 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
2017 is the year of Decentralization OFFICE
Viettel Complex Q2 2017 Mapletree
Business Center Q1 2017
Saigon Giai Phong Newspaper Q1 2017
Deustches Haus Q3 2017
Saigon Centre P2 Q3 2017
Etown Central Q4 2017
Lao Dong News Q3 2017
12 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Etown Central – GFA: 67,760 sm
New Supply In 2017OFFICE
The First ever large scale Grade B office complex in District 10
Q1 2017
Q3 2017
Q4 2017
211. Deustches Haus – GFA: 38,621 sm
2. Saigon Centre Phase 2 – GFA: 40,000 sm
3. Lao Dong News – GFA: 5,000 sm
Viettel Complex – GFA: 65,971 smQ2 2017
Viettel ComplexOfficially Opened: 21st June, 2017GFA: 65,971 sm
Source: CBRE Vietnam , Q2 2017
SGGP Newspaper –GFA: 8,000 sm
3
13 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Limited To No New Supply For The Past Two Years OFFICE
New Grade A & B supply by Quarter, HCMC Office
Source: CBRE Vietnam , Q2 2017
Current Supply by Grade, Q2 2017 Current Supply by District, Q2 2017
0200,000400,000600,000800,000
1,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
NLA
(sm
)
Grade A Existing Supply Grade A New Supply Grade B Exising Supply Grade B New Supply
29%
71%
Grade A
Grade B58%
11%
9%
7%2%
13% District 1
District 7
Tan Binh
District 3
District 10
Others
14 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Rents and Vacancy OFFICE
Grade B4.0%
Grade A5.3%
+1.7% y-o-y
+5.7% y-o-y
-1.7% q-o-q
-4.0% q-o-q
Grade BUS$ 21.0
Grade AUS$ 36.3
Source: CBRE Vietnam , Q2 2017
0%
2%
4%
6%
8%
10%
0
10
20
30
40
50
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22015 2016 2017
Vaca
ncy
Rat
e (%
)
Ask
ing
Ren
t (U
S$/
sm/m
onth
)
Grade A Vacancy Grade B VacancyGrade A Asking Rent Grade B Asking Rent
15 CBRE TỔNG QUAN THỊ TRƯỜNG VĂN PHÒNG | Q2 2017
Net Absorption
Grade B to continue good absorption momentum OFFICE
Net Absorption, HCMC Office, Q2 2017
-10,0000
10,00020,00030,00040,00050,00060,00070,00080,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
NLA
(m2)
Grade A Grade B
Nguồn: CBRE Vietnam Quý 2 2017
16 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Decentralized Districts to perform well when there’s new supply OFFICE
Rents and Vacancy, Decentralized Districts, Q2 2017
Source: CBRE Vietnam , Q2 2017
(4,000) (2,000)
- 2,000 4,000 6,000 8,000
10,000 12,000 14,000 16,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
Net
Abs
ortio
n (N
LA s
m)
District 3 District 7 Tan Binh Phu Nhuan District 10
17 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Demand Largely From Asia OFFICE
New letting
Relocation & Expansion
9%
91%
Q2 2017Q1 2017
21%
79%
Source: based on CBRE’s enquiries, 2017 y-t-d
Demand by OriginsDemand by Purposes
Local tenants 29%International tenants
APAC 55%
EMEA 12%
AMERICAS 5%
18 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Preferred Leasing Space is getting Larger OFFICE
Source: based on CBRE’s enquiries, 2017 y-t-d
0%
20%
40%
60%
80%
100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2015 2016 2017
0 - 249 sm 250 - 499 sm 500 - 1000 sm 1000+ sm
Manufacturing, Real Estate and Telecommunication to step up
Enquired Size
Manufacturing24%
Real Estate/ Construction 19%
Telecommunication/ Media 10%
19 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Major TransactionsOCCUPIERS DASHBOARD
MAJOR TRANSACTIONS IN
HCMC MARKETQ2 2017
Building Sector Size in sqm Rent(US$ sqm)
Service Charge (US$ sqm)
TNR Energy 350 $21.00 $6.00
Viettel Complex IT 317 $20.50 $5.50
Diamond Plaza Aviation 174 $32.00 $8.00
Viettel Complex IT 197 $20.00 $5.50Diamond Plaza Media 172 $31.00 $8.00
Lim 1 Pharmaceutical 390 $28.00 $6.00
Viettel Complex Business Center 638 $19.00 $5.50
Bitexco Financial Tower Business Center 1,000 $40.00 $8.00
Landmark Real Estate 600 $20.00 $6.00
Mapletree Business Center Service (Transportation) 2,400 $16.00 $6.00
Green Power Media 173 $26.00 $6.00
Viettel Complex Pharma 639 $19.00 $5.50A&B Tower Trading 450 $33.00 $6.00
Source: CBRE Vietnam , Q2 2017
20 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Future Supply OFFICE
Source: CBRE Vietnam , Q2 2017
2018 - 2019
1. Spirit of Saigon – GFA: 15,000 sm
2. Saigon M&C – GFA: 49,000 sm
3. VietCapital Center – GFA: 38,621 sm
4. The Khai – GFA: 15,000 sm
5. The Prince – GFA: 15,000 sm
1 2
3
4
5
3
2020 1
1. SJC Tower – GFA: 38,000 sm
2. Tax Center – GFA: 35,000 sm
3. Nexus Tower – GFA: 133,834 sm
4. Capitaland at Vinhome Golden River – GFA: N/A sm
5. One Hub – GFA: 159,462 sm
6. Tan Son Nhat Plaza – GFA: 128,190 sm
7. Crescent Hub – GFA: 36,297 sm
7
42
3
6
5
21 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
“Co-working spaces are large occupiers capable to generating stable revenue over a long period of time,” – Primed for Growth, Co-working Space in Vietnam
Co-working Space: Alternative Supply and Anchor Tenant OFFICE
Source: CBRE Vietnam , Q2 2017; CBRE Vietnam Major Report: Primed for Growth, Co-working Space in Vietnam
22 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
Lim 2 Tower
OFFICE Supply Trend: Build – Occupy – Lease
Total Building NLA: 15,964 sm
Owner Occupied: 47%
Public Leasing NLA: 8,400 sm
Vietcombank Tower
Developer: Cho Dui co., Ltd.
Year Completed: Q2 2015
Developer: Vietcombank –
Bonday – Ben Thanh Tourist
JV Co., Ltd.
Year Completed: Q3 2015
Total Building NLA: 44,000 sm
Owner Occupied: 47%
Public Leasing NLA: 23,100 sm
Source: CBRE Vietnam , Q2 2017
Viettel Complex
Total Building NLA: 40,600 sm
Owner Occupied: 41%
Public Leasing NLA: 23,000 sm
Developer: Viettel
Year Completed: Q2 2017
SGGP Building
Developer: Saigon Giai
Phong Newspaper
Year Completed: Q1 2017
Total Building NLA: 13,810 sm
Owner Occupied: 42%
Public Leasing NLA: 5,404 sm
23 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017*Hanoi skyline
VIETTEL TOWER
24 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
CBRE is proud to manage and lease this project
Biggest Office complex in HCMC this year Biggest ever in District 10 District 10: central location, high population, investor
interest Convenient Amenities: both onsite and nearby Retail: Bac Binh Mall & Berjaya Mall opening in
neighborhood Benefits from future infrastructure improvement: Metro &
Road
VIETTEL TOWER
25 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWER
Viettel Tower
26 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWER
27 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWEREAST & SOUTH DIRECTION – DISTRICT 1 & 3
Viettel Group
BitexcoFinancial
TowerTimes Square
Lim 2 Tower Nam A
Bank
Thien Hoa Electrical Supply
Store
District 1 (CBD) / D3 Fringe
10-15 minutes from Viettel
Vietcombank
New Pacific Hotel (4-star)
New Epoch Hotel (3-
star)
28 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWERNORTH DIRECTION – TAN BINH & PHU NHUANDISTRICT
Viettel Group
Cach Mang Thang Tam
Lan Anh Stadium
District 10
Phu Nhuan District
Saigon Railway Station5 minutes from Viettel Tower
Tan Binh District
Tan Son Nhat Airport15-20 minutes from Viettel
Tower
29 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWERWEST DIRECTION – DISTRICT 10
Viettel Group
Children’s Hospital 1
Ky Hoa HotelHa Do Centrosa –
Apartment ($2.100/sqm) & from
$600.000 for Townhouse
Managed by CBRE
Bac Binh Mall
People’s Hospital 115
Pham Ngoc Thach University of
Medicine
30 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
CBRE is selected to set up operation and deliver ongoing management
Construction Completion Transition from Project Support Tenants for their fitting out Bring local & international experience to benefit occupiers CBRE manages 45 active projects in Vietnam (1.5million
sqm) This is our biggest single building: commitment to quality
VIETTEL TOWER
31 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
CBRE team onsite for you Property Management
Office Retail
Customer Service – Q&A, maximize your experience Leasing Support – guide you through process Back of House – for a smooth operation Welcome
VIETTEL TOWER
32 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
CBRE can also help outsource your non core activities
Reception – switchboard & mail handling Pantry & Catering provision Janitorial – cleaning & pest control Transportation & Messenger service Handyman – keep your fitout in good condition Offsite storage Contingency planning
VIETTEL TOWER
33 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWERRETAIL PODIUM– TOWER A
Viettel Group
Highland CoffeeGround Floor
Viettel StoreGround Floor
BankGround Floor
Training Center & Education
Level 1 –1,795sqm
Food & BeverageLevel 2 –2,000sqm
Gym/FitnessLevel 3 –3,080sqm
34 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWERTYPICAL FLOOR PLAN
Viettel Group
35 CBRE OFFICE OCCUPIER OUTLOOK | Q2 2017
VIETTEL TOWERHANDOVER STANDARD
Viettel Group
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 8418
Email: [email protected]