hcmc cbd market report | oct 2014

OCTOBER 2014 | HCMC CENTRAL BUSINESS DISTRICT

CBD MARKET REPORTHO CHI MINH CITY

www.colliers.com/vietnam

TABLE OF CONTENTSHCMC CBD MARKET REPORT | OCTOBER 2014

Market Highlights

OFFICE MARKET

Market Overview Market Performance Outlook Table

RETAIL MARKET


HOTEL MARKET


SERVICED APARTMENT

Market Performance Outlook Table

CONTACTS

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HCMC CBD MARKET REPORT

OCTOBER 2014 | COMMERCIAL OFFICE MARKET

P.2 | Colliers International

Foreign direct investment (FDI) registered in HCM City have increased by 6.9% to more than US$1.18 billion as of September 2014.

Figures from HCM City Statistics Office also showed that the southern City granted licenses to 277 new foreign-invested projects

worth US$1.1 billion, with the real estate sector attracting 7 projects worth US$450.4 million and industry/ trade areas welcome

100 projects worth US$452 million.

City Authorities said investors from countries and territories such as South Korea, Mainland China, Hong Kong and Taiwan were

accelerating their investments in HCMC that has endevoured to remain a promising investment destination for foreign investors in

the future.

Outlook

HCMC FDI GROWTH, OCTOBER 2014

Source: Colliers International

CBD OFFICE PERFORMANCE BY ZONE, OCTOBER 2014



Grade AAR Occupancy rate Supply

A

B

B

B

B

CITY CENTRAL

FINANCIALHUB

NORTHERN CBD

SOUTHERN CBD

Market PerformanceIn September, Grade As asking rent remained at US$40/

sq m/ month while occupancy rate went up 93% with

m-o-m increase of 3%.

Meanwhile, Grade B properties in South and North CBD

experienced healthy leasing activities from moving of

tenants from City Central given recent commencement

of a big infrastructure construction site. As a result of

that, both average asking rent and occupancy rate in these

areas gained moderately compared to previous months.

At the same time, Grade Bs buildings in Financial Hub

continued to ease their asking rent to match the clients

budget.






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

Office Market OverviewNo Name Address

Com-pletion Year

NLA (sq m)

Service Charges (*)

Occupancy rate

NFA asking rent (*)

1 Saigon Centre 65 Le Loi 1996 11,650 6.5 98% 38.02 Saigon Tower 29 Le Duan 1997 13,950 6.0 96% 37.03 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 95% 40.04 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 93% 40.05 Diamond Plaza 34 Le Duan 1999 15,936 8.0 99% 37.06 Kumho Asiana Plaza 39 Le Duan 2009 26,000 8.0 93% 50.07 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 91% 35.08 President Place 93 Nguyen Du 2012 8,330 6.0 88% 33.0

9 Times Square 22-36 Nguyen Hue 2012 9,000 7.0 86% 50.0

Grade A 158,576 7.0 93% 40.2

1 OSIC 8 Nguyen Hue 1993 6,500 6.0 92% 24.02 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 95% 22.03 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 90% 22.04 Central Plaza 17 Le Duan 1997 6,094 5.0 99% 24.05 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 77% 23.07 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 88% 18.0

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 94% 21.010 Bitexco Office Building 19-25 Nguyen Hue 2003 6,000 5.0 100% 24.011 The Landmark 5B Ton Duc Thang 2005 8,000 5.0 94% 22.012 Opera View 161-167 Dong Khoi 2006 3,100 7.0 93% 26.013 Petro Tower 1-5 Le Duan 2007 13,304 5.0 99% 30.014 City Light 45 Vo Thi Sau 2007 10,000 5.0 96% 16.015 The Landcaster 22Bis Le Thanh Ton 2007 7,000 5.0 89% 25.016 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 98% 24.017 Fideco Tower 81-85 Ham Nghi 2008 15,000 6.0 91% 18.018 Havana Tower 132 Ham Nghi 2008 7,326 6.0 96% 20.019 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 96% 24.0

20 Royal Center 235 Nguyen Van Cu 2008 14,320 5.0 100% 23.021 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 23.022 Bao Viet Tower 233 Dong Khoi 2010 10,650 6.0 99% 21.023 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 98% 22.024 Vincom Center 68-70-72 Le Thanh Ton 2010 56,600 5.0 92% 23.025 Saigon Royal 91 Pasteur 2010 5,340 4.0 92% 20.026 A&B Tower 76 Le Lai 2010 17,120 6.0 95% 28.027 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19.596 5.0 98% 21.028 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 97% 30.029 Lim Tower 9-11 Ton Duc Thang 2013 29,265 6.0 98% 28.030 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 97% 25.0

Grade B 399,596 6.0 95.5% 23.4



OCTOBER 2014 | CBD OFFICE MAP



OCTOBER 2014 | RETAIL MARKET


OCTOBER 2014 | CBD OFFICE MAP




September recorded an upward trend of all three CBD retail

market sectors including retail podium, shopping center and

department store since June 2014.

Department store retained fully occupancy condition and stable

average rental rate for the sixth consecutive months.

Retail podium and shopping center also saw positive growth in

both rental and occupancy rate during last month.

Since early of October, Saigon Tax Center will be closed. The

developer, SATRA Group, has announced a development plan

of a new complex consist of hotel and retail components on

this land area. Situated at the crossroad of Nguyen Hue and

Le Loi Street and considered as one of the most prime location

in HCMC, the new development is expected to be a high end

shopping destinations in town.

Market Performance

Outlook

SHOPPING CENTER MARKET PERFORMANCE, OCT 2014

SAIGON TAX CENTER IS OFFICIALLY CLOSED SINCE OCT 2014

Source:Public Domain

The HCM Citys Statistics Office reported that the CPI in

September was up 1.13% against August, with a y-o-y increase

of 3.16%.

According to the Office, the cost of educational goods and

services acheived greatest growth of 19% compared to August,

as the consumers in HCM City stocked up on school supplies for

the new academic year.


RETAIL PODIUM MARKET PERFORMANCE, OCT 2014


RETAIL & SERVICE REVENUE GROWTH, OCT 2014

Source: GSO, Colliers International



OCTOBER 2014 | CBD RETAIL MAP



OCTOBER 2014 | HOTEL MARKET


OCTOBER 2014 | CBD RETAIL MAP

KUMHO MONTHLY MARKET REPORTOCTOBER 2014 | RETAIL MARKET HCMC CBD MARKET REPORT


OCTOBER 2014 | HOTEL MARKET HCMC CBD MARKET REPORT

No Name of Project /Building Address LocationComple-tion Year

NLA (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 60 93%4 Sheraton Saigon 88 Dong Khoi District 1 2002 750 125 67%5 Opera View Lam Son Square District 1 2006 1,260 85 100%6 Kumho Asiana Plaza 35 Le Duan District 1 2009 6,830 35 100%7 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100%8 ICON 68 45 Ngo Duc Ke District 1 2011 8,000 40 80%9 President Place 93 Nguyen Du District 1 2012 800 70 71%10 Times Square 22-36 Nguyen Hue District 1 2013 9,000 90 80%

Retail Podium 29,990 65.3 87%

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%

Department Store 30,200 82.6 100%

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 40 100%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 65 80%

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 60%

Shopping Centre 113,450 67.2 77%

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

1 Caravelle 19 Lam Son Square District 1 2000 335 60% 1772 New World Saigon 76 Le Lai District 1 2000 533 57% 1023 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 49% 1264 Rex 141 Nguyen Hue District 1 2000 289 54% 1045 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 68% 1056 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 54% 1207 Sheraton 88 Dong Khoi District 1 2002 480 68% 1838 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 73% 2359 Majestic Saigon 1 Dong Khoi District 1 2007 175 65% 12810 InterContinental Asiana 39 Le Duan District 1 2009 305 80% 18111 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 60% 9812 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 38% 92

5 Star 3,633 61% 137

1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 70% 832 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 73% 763 Duxton 63 Nguyen Hue District 1 1996 203 74% 794 Royal City 133 Nguyen Hue District 1 2000 135 63% 705 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 80% 626 Oscar 68A Nguyen Hue District 1 2000 108 69% 397 Liberty Central 179 Le Thanh Ton District 1 2010 140 63% 708 Grand 08 Dong Khoi District 1 2011 107 66% 829 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 60% 68

4 Star 1,161 65% 65



OCTOBER 2014 | CBD HOTEL MAP



OCTOBER 2014 | CBD HOTEL MAP




According to the Viet Nam National Administration of Tourism

(VNAT), Vietnam has welcomed more than 6 million foreign

arrivals over the past nine months, a y-o-y increase of 10%.

It has also served 32 million domestic holidaymakers, up

8% compared to the same period last year. Over the period,

tourism revenue was posted over VND179 trillion, representing

a y-o-y rise of 19%.

Meanwhile, some 3.1 million international tourists came to

HCMC in the nine months, generating revenue of around VND67

trillion. The figures climbed by 10.7% and 10.5% against the

corresponding period last year, respectively.

Hotel Market Overview

OutlookWith a total investment of VND2,311 billion, an expansion of International Terminal 2 in Tan Son Nhat International Airport project

was approved by Ministry of Transportation last month that will be started in November 2014 and completed after 26 months. After

finishing, it will cover an area of 115,834 sq. m with capacity of serving more than 13 million passengers per year.

NUMBER OF INTERNATIONAL VISITORS TO HCMC, OCT 2014

Source: Statistical Office in HCMC, Colliers International

During last month, the average room rate of high class hotels

in HCMC saw a notable decline as a consequence of discount

programs offered by the hostel owners.

Therefore, despite the fact that tourists came to HCMC

increased significantly in reviewed month, revenue of tourism

market went down sharply, an m-o-m decrease of 14.2%.

The occupancy rate of 5-star hotel segment dropped for the

third consecutive months, staying at 65%.

The rental of 4-star segment also decreased by 9% over

August, but thanks to its lessening, occupancy rate went up by

1% comparing with last month.

Market Performance PERFORMANCE OF TOP-GRADED HOTELS IN HCMC , OCT 2014

Source: Statistical Office in HCMC, Colliers International





OCTOBER 2014 | SERVICED APARTMENT MARKET


PERFORMANCE OF 5-STARS HOTEL, OCTOBER 2014


PERFORMANCE OF 4-STARS HOTEL, OCTOBER 2014


Given a few change of new supply would come on line till the end of this year, we expect insignificant change for the top-graded serviced

apartment market in HCMC CBD area. Both average rental and occupancy rate of top-tier segment would be stable regarding to steady

performance throughout this year so far. These figures of some developments would record changes at larger margin in response to

business strategy of the developer / operator.

Beside new supply, private flat for lease remains the major competitive sector to serviced apartment in HCMC in both term of price

and location.

Outlook

Top-tier serviced apartment market in HCMC CBD area witnessed reverse movement in September.

Grade A serviced apartments recorded a decline in occupancy rate after upward trend of the last three months while average asking

rent remained unchanged.

Meanwhile, occupancy rate of Grade B developments gained 2% to reach 82% given stable rent at US$27 per sq. m per month.

Market Performance





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


SEPTEMBER 2014 | SERVICED APARTMENT HCMC CBD MARKET REPORT


Serviced Apartment OverviewGRADE A CBD SERVICED APARTMENTS PERFORMANCE


GRADE B CBD SERVICED APARTMENTS PERFORMANCE


No Project Name Address Location Comple-tion YearTotal Room

Average Occupancy ARR(*)

1 The Landmark 5B Ton Duc Thang District 1 1995 66 87% 312 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 91% 343 Sedona Suites 65 Le Loi District 1 1996 89 85% 304 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 92% 305 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 68% 376 InterContinental Asiana Saigon 39 Le Duan District 1 2009 260 98% 36

Grade A 701 91% 34

1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 75% 262 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 90% 263 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 94% 334 Diamond Plaza 34 Le Duan District 1 1999 42 92% 295 Garden View Court 101 Nguyen Du District 1 2000 76 90% 316 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 93% 187 Vincom Center 72 Le Thanh Ton District 1 2010 60 34% 26

8 Lafayette De Saigon 08 Phung Khac Khoan District 1 2010 18 100% 29

9 Spring Court 1Bis Phung Khac Khoan District 1 2011 14 86% 19

10 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 60% 28

11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 95% 34

Grade B 738 82% 27


OCTOBER 2014 | CBD SERVICED APARTMENT MAP


HCMC CBD MARKET REPORT | OCTOBER 2014

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hcmc cbd market report | oct 2014

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