HCMC CBD Market Report | Apr 2016 (EN)

APRIL 2014 | HCMC CENTRAL BUSINESS DISTRICT

CBD MARKET REpoRTHO CHI MINH CITY

www.colliers.com/vietnam

TABLE oF CoNTENTSHCMC CBD MARKET REpoRT | ApRIL 2014

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Market Highlights

oFFICE MARKET

• Market overview

• outlook

• Table

• Map

RETAIL MARKET

• Market performance

• outlook

• Map

• Table

HoTEL MARKET

• Map

• Table


• outlook

SERVICED ApARTMENT


• outlook

• Table / Map

CoNTACTS

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HCMC CBD MARKET REpoRT

APRIL 2014 | COMMERCIAL OFFICE MARKET

p.2 | Colliers International

The combination of occupiers seeking consolidation and cost containment, with limited availability of large floor plate in CBD,

lead to a growing demand for coming CBD developments and current supply in non-core CBD covering Financial Hub, Northern

CBD also Southern CBD.

In the near future, an incredible gain from inflow of indirect foreign capital (FDI) in the first quarter of 2014 (US$687.7 million)

foresee a promising growth for commercial office market.

Outlook

GRADE A pERFoRMANCE

Source: Colliers International

CBD AVERAGE ASKING RENT, ApRIL 2014



Grade AAR Occupancy rate Supply

A ↔ ↔

B ↔ ↔

B ↔ ↔

B ↔ ↔

B ↔ ↔ ↔

CITY CENTRAL

FINANCIALHUB

NORTHERN CBD

SOUTHERN CBD

Market PerformanceCurrent median rental for Grade A remained flat while

the occupancy rate saw a steady gain m-o-m, staying at

90.7% in March.

Meanwhile, Grade B buildings within CBD areas showed

sign of upward tendency given ascending office expansion

demand. However, they still get tough encounter to the

supply from outer districts at competitive rentals including

Blue Sky office Tower at Saigon Airport plaza in Tan Binh

District; petroland, and IpC Tower in District 7.

Under-construction buildings in District 1 covering

Vietinbank Tower, Vietcombank Tower, Le Meridien, and

Times Square still actively exhibit in good progress,

expected adding new prime office spaces in the next 6

months.






No Name AddressCom-pletion Year

NLA (sq m)

Service Charges (*)

occupancy rate

NFA asking rent (*)

1 Saigon Centre 65 Le Loi 1996 11,650 6.5 90% 42.72 Saigon Tower 29 Le Duan 1997 13,950 6.0 100% 37.03 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 90% 42.54 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 95% 41.35 Diamond plaza 34 Le Duan 1999 15,936 8.0 98% 41.06 Kumho Asiana plaza 39 Le Duan 2009 26,000 7.5 98% 49.37 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 85% 34.08 president place 93 Nguyen Du 2012 8,330 6.0 87% 32.0

9 Times Square 22-36 Nguyen Hue 2012 9,000 7.0 60% 50.0

Grade A 187,841 7.0 90.7% 39.4

1 oSIC 8 Nguyen Hue 1993 6,500 6.0 98% 20.02 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 100% 16.03 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 98% 21.04 Central plaza 17 Le Duan 1997 6,094 5.0 100% 26.05 Saigon Riverside office 2A-4A Ton Duc Thang 1997 10,000 5.0 98% 20.06 Saigon Trade Center 37 Ton Duc Thang 1997 31,416 6.0 96% 23.07 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 93% 20.0

8 MeLinh point Tower 02 Ngo Duc Ke 1999 17,600 6.0 100% 24.09 Zen plaza 54-56 Nguyen Trai 2001 11,037 5.0 97% 21.010 Bitexco office Building 19-25 Nguyen Hue 2003 6,000 5.0 100% 22.011 The Landmark 5B Ton Duc Thang 2005 8,000 5.0 82% 21.012 opera View 161-167 Dong Khoi 2006 3,100 7.0 95% 26.013 Indochina park Tower 4Bis Nguyen Dinh Chieu 2006 2,145 3.0 96% 10.014 petro Tower 1-5 Le Duan 2007 13,304 5.0 99% 30.015 City Light 45 Vo Thi Sau 2007 10,000 5.0 98% 15.016 The Landcaster 22Bis Le Thanh Ton 2007 7,000 5.0 100% 24.017 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 100% 23.018 Fideco Tower 81-85 Ham Nghi 2008 15,000 6.0 100% 20.019 Havana Tower 132 Ham Nghi 2008 7,326 6.0 99% 21.020 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 98% 26.021 Royal Center 235 Nguyen Van Cu 2008 14,320 5.0 100% 23.022 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 23.023 Bao Viet Tower 233 Dong Khoi 2010 10,650 6.0 100% 21.024 Green power Tower 35 Ton Duc Thang 2010 15,600 6.0 96% 22.025 Vincom Center 68-70-72 Le Thanh Ton 2010 56,600 5.0 72% 25.026 Saigon Royal 91 pasteur 2010 5,340 4.0 100% 19.027 A&B Tower 76 Le Lai 2010 17,120 6.0 99% 28.028 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19.596 5.0 89% 23.029 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 87% 26.030 Lim Tower 9-11 Ton Duc Thang 2013 29,265 6.0 97% 28.031 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 12% 22.0

Grade B 377,596 5.5 89.3% 23.0

* US$/ sq m/ month (on net area)

Office Market Overview


APRIL 2014 | CBD OFFICE MAP



APRIL 2014 | RETAIL MARKET


APRIL 2014 | CBD OFFICE MAP




We saw unchanged average rental rate from all three segments

including retail podium, department store and shopping mall

during March.

only department store retained flat occupancy rate while other

segments recorded an approximately fall of 2%, a drop for the

second consecutive month in 2014.

Last month saw another slump period of retail market in

downtown areas. Besides low footfall, a moving-out trend

negatively influenced current tenants in CBD shopping spaces.

While trying to get more visits by recent promotional programs,

the tenants expect proper reactions from landlords in this

gloomy time.

Market Performance

Outlook

SHoppING CENTER MARKET pERFoRMANCE, ApRIL 2014

SALE oFF BANNERS @ UNIoN SQUARE IN ApRIL 2014


The General Statistics office reported that Consumer price Index (CpI) in HCMC decreased 0.46% in March, an expected periodical

drop after holiday season.

Local consumer demand shows no sign of recovery while operators of CBD retail places keen on holding high rentals. According

to research of Colliers International, closure of store chains is a preferred choice in optimising business from retailers given

depressing turnover. They will alternatively opt for brand consolidation and store relocation.

As a result of that, we expect a significant lift in vacancy rate of shopping malls within city central in the following months.


RETAIL poDIUM MARKET pERFoRMANCE, ApRIL 2014



APRIL 2014 | CBD RETAIL MAP



APRIL 2014 | HOTEL MARKET


APRIL 2014 | CBD RETAIL MAP

KUMHo MoNTHLY MARKET REpoRTAPRIL 2014 | RETAIL MARKET HCMC CBD MARKET REPORT


No Name of project /Building Address Location Comple-

tion YearNLA

(sq m)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 750 125 100%5 opera View Lam Son Square District 1 2006 1,260 85 100%6 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100%7 ICoN 68 45 Ngo Duc Ke District 1 2011 8,000 30 85%8 president place 93 Nguyen Du District 1 2012 800 70 71%9 Times Square 22-36 Nguyen Hue District 1 2013 9,000 90 72%

Retail podium 23,161 69.9 82.9%

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%4 Kumho Asiana plaza 35 Le Duan District 1 2009 6,830 35 100%

Department Store 39,647 72.4 100%

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 68%

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 77%

Shopping Centre 113,450 66.9 78%

No Name of Hotel Address Location Comple-tion Year Total Room occupancy ARR(*)

1 Caravelle 19 Lam Son Square District 1 2000 335 74% 1692 New World Saigon 76 Le Lai District 1 2000 533 76% 1103 Sofitel plaza Saigon 17 Le Duan District 1 2000 290 64% 1834 Rex 141 Nguyen Hue District 1 2000 289 87% 1085 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 77% 1446 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 65% 1217 Sheraton 88 Dong Khoi District 1 2002 480 85% 2228 park Hyatt Saigon 02 Lam Son Square District 1 2005 259 85% 3139 Majestic Saigon 1 Dong Khoi District 1 2007 175 77% 12310 InterContinental Asiana 39 Le Duan District 1 2009 305 91% 18011 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 77% 12012 pullman Hotel 146 Tran Hung Dao District 1 2013 306 69% 101

5 Star 3,633 77% 157

1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 80% 882 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 76% 853 Duxton 63 Nguyen Hue District 1 1996 203 74% 824 Royal City 133 Nguyen Hue District 1 2000 135 77% 655 palace Saigon 56-66 Nguyen Hue District 1 2000 146 93% 626 oscar 68A Nguyen Hue District 1 2000 108 77% 417 Liberty Central 179 Le Thanh Ton District 1 2010 140 78% 788 Grand 08 Dong Khoi District 1 2011 107 79% 799 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 78% 79

4 Star 1,161 78% 76.9

APRIL 2014 | HOTEL MARKET HCMC CBD MARKET REPORT


APRIL 2014 | CBD HOTEL MAP



APRIL 2014 | CBD HOTEL MAP




HCMC recorded a sharp increase in the number of international

arrivals in the first quarter of 2014, gain as much as 19% y-o-y

which mostly contributed by major markets including China

(22% y-o-y), Malaysia (20% y-o-y) and followed by Russia,

Australia and Japan. In 1Q 2014, foreign tourists spent more

than VND22.5 billion, raised 8% over the same period last year.

According to Vietnam National Administration of Tourism,

HCMC targets to achieve a number of 4.4 million international

visitors in 2014. Approximately US$4.4 billion revenue, 15%

gain y-o-y, is expected from the city tourism sector.

Hotel Market Overview

OutlookThere is no new supply of 4- and 5-star hotel developments

within CBD area in the first quarter of 2014.

We expect slight fall of occupancy rate from both top-graded

hotel segments in HCMC during April before downward

tendency as the beginning of rainy season.

NUMBER oF INTERNATIoNAL VISIToRS To HCMC, ApRIL 2014

Source: Statistical Office in HCMC, Colliers International

NUMBER oF INTERNATIoNAL VISIToRS To VN vs. HCMC


HCMC VISIToR GRoWTH RATE BY CoUNTRY, ApRIL 2014


SHERAToN HoTEL UNDER RENoVATIoN, ApRIL 2014

Source: Collliers International




Both top-graded hotel segments experienced an increase in

occupancy rate during March 2014 given a jump in the number of

international arrivals to HCMC recently.

The average room rate of 5-star hotels made a gain of around

1% while that of 4-star segment declined 2% m-o-m last month.

Market Performance

pERFoRMANCE oF 5-STARS HoTEL


APRIL 2014 | SERVICED APARTMENT MARKET

Serviced Apartment OverviewCBD SERVICED ApARTMENTS pERFoRMANCE


FUTURE SUppLY BY YEAR, ApRIL 2014


pERFoRMANCE oF 4-STARS HoTEL


HCMC HoTEL pERFoRMANCE BY GRADE, ApRIL 2014









No project Name Address Location Comple-tion Year

Total Room

Average occupancy ARR(*)

1 The Landmark 5B Ton Duc Thang District 1 1995 66 93% 312 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 95% 363 Sedona Suites 65 Le Loi District 1 1996 89 88% 354 Nguyen Du park Villas 111 Nguyen Du District 1 2004 41 90% 305 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 93% 376 InterContinental Asiana Saigon 39 Le Duan District 1 2009 260 98% 36

Grade A 701 95% 35

1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 85% 252 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 87% 263 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 93% 314 Diamond plaza 34 Le Duan District 1 1999 42 93% 295 Garden View Court 101 Nguyen Du 2000 76 91% 316 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 70% 237 Vincom Center 72 Le Thanh Ton District 1 2010 60 32% 26

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 78% 18

10 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 55% 28

11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 100% 30

Grade B 738 81% 27

* US$/sq m/month** Not including VAT and service charge*** Buildings are sorted by Year of Completion


Grade A serviced apartment segment showed positive indicators

after several downturn months whereas Grade B retained

sufficient occupancy rate with slight adjustment in rents.

Given prospective forecast on Vietnam economy, especially FDI

inflow to hi-tech industry, we expect an increasing demand of

foreign expatriates for 2014. That will lift accomodation needs in

big cities like HCMC during this year, which stablising residential

for lease sector.

Outlook

Grade A serviced apartments saw a gain in both monthly average rental rate and occupancy rate in March. A 1% increase in

occupancy supported recover of asking rents of Grade A segment during last month.

The occupancy rate of Grade B serviced apartment buildings remained unchanged while average offered rent dropped almost 2%

last month.

Market Performance

GRADE A SERVICED ApARTMENT pERFoRMANCE, ApRIL 2014



APRIL 2014 | CBD SERVICED APARTMENT MAP



APRIL 2014 | CBD SERVICED APARTMENT MAP

HCMC CBD MARKET REPORT | APRIL 2014

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