HCMC MARKET INSIGHTS Q2/2013 - Viet Nam Supply...

HCMC MARKET INSIGHTS Q2/2013Presented by: Dung Duong (Ms.)July 8, 2013

2 CBRE MARKET INSIGHTS | Q2/2013

Q2 2013 ECONOMIC OVERVIEWVIETNAM ECONOMY

Source: Vietnamese General Statistics office

Q2/2012

Y-o-Y

Q1/2013

Q-o-QQ2/2013

GDP (% y-o-y) 4.8% 4.8% 5.0%

CPI (% y-o-y, e-o-p) 6.9% 6.6% 6.7%

Exchange rate (e-o-p) 20,828 20,828 21,036

Export (US$ Bn) 28.6 29.7 32.4

Import (US$ Bn) 29.0 29.2 34.3

FDI Implemented (US$ Bn) 2.9 2.7 3.0

International Tourist Arrivals (million arrivals) 1.5 1.8 1.7

Retail and Services Turnover (tril. dong) 567.7 636.1 639.3

20,700

20,800

20,900

21,000

21,100

Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13

Inte

rban

k ex

chan

ge ra

te

1% adjustmentStable exchange rate


GOVERNMENT POLICIES

Expansion Monetary PoliciesFiscal Policies - Tax Cut

Devaluation of the dong 1% versus the dollar ( to VND21,036)

The interest-rate ceilings on short-term dong-denominated bank deposits: lowered to 7.0% from 7.5%

The ceiling on dollar deposits:• For institutional depositors: fall to

0.25% from 1.0%• For individual depositors: fall to

1.25% from 2.0%.

For social housing:• Corporate tax rate: 10%; VAT: cut from 10%

to 5%. Personal income tax:

• The level of deduction: increased to VND9 million/per month from VND4 million/ month;

• The level of deduction for each dependent: increased to VND3.6/ month from VND1.6 million per month for one. dependent.

• Boost domestic consumption and production

• Improve trade balance• Reduce banks' funding costs => Lend at

lower rates• Encourage to exchange USD for VND• Bolster its foreign-exchange reserves


Q2 2013 ECONOMIC OVERVIEWGold Price And Bank Deposits Become Less Attractive

Global gold price: decrease 24% YTD.

Local gold price: reached its trough in June (22%) and currently downed 19% YTD

Policy rates: 800bps reduction over the last 18 months.

-1

0

1

2

3

4

0

5

10

15

20

25

Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

CPI (%

m-o-

m)

CPI (%

y-o-y

) / In

terest

rates

(%)

CPI (y-o-y, Vietnam) Rediscounting Rate Refinancing Rate CPI (m-o-m, Vietnam)

Monetary contraction

Inflation surged

Monetary expansion

Inflation controlled

1,000

1,200

1,400

1,600

1,800

2,000

30

34

38

42

46

50

09/2011 12/2011 03/2012 06/2012 09/2012 12/2012 03/2013 06/2013

Globa

l gold

price

(US$

)

Loca

l gold

sell p

rice (

VND m

illion

)

LOCAL GOLD GLOBAL GOLD

Source: SJC

Source: State Bank of Vietnam


0

500

1,000

1,500

2,000

2,500

3,000

300

350

400

450

500

550

Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13

Trad

ing

Val

ue (B

illio

ns V

ND

)

VN

Inde

x

Trading value VNIndex

Q2 2013 ECONOMIC OVERVIEW

Regional stock markets, 1 year return as of July 05, 2013: Thailand (SET) up 21.1%;

Singapore (SGX) up 15.2%;

Indonesia (JCI) up 15.8%;

Vietnam (VNINDEX) peaked at 528 points in June, up 26%, currently up 21.1%.

Stock Market Recovers, Real Estate Will Come Back To Focus

REAL ESTATE INDEX 2Y 1Y 6M 3M 1M Current

Real Estate Holding & Development Listed Companies

55.5 44.8 39.5 41.9 42.2 45.4

Real Estate Services Listed Companies 84.4 25 23.8 25.3 22.3 26.1

Source: Stockbiz

Source: FPTS, gold.org

Source: Bloomberg


SnapshotHCMC RESIDENTIAL MARKET

CONDOMINIUM LUXURY HIGH-END MID-END AFFORDABLE TOTAL

Total completion supply (units) 504 19,256 13,944 16,184 49,888

New completion (units) 313 286 263 558 1,420

Total launch supply (units) 1,278 28,255 26,743 39,90096,176

New launch (units) 0 598 425 161 1,184

Secondary market – Average price (US$ psm) $3,756 $1,650 $857 $694

Q-o-q change (%) -2.1% -0.4% -0.2% -0.3%

Y-o-y change (%) -5.2% -5.0% -3.9% -1.7%

All prices are quoted exclusive of VAT and service charges.“New completion”: the total number of units that were completed and started to be delivered to buyers in the review quarter.“New launch”: the number of units that were launched to the market by developers (official start of sales for a project) in the review quarter. Source: CBRE


HCMC RESIDENTIAL MARKETUnsold stock improved

Source: CBRE

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

New launch Unsold inventory Paused/On-hold/Distressed

Q2 2012 Q1 2013 Q2 2013

by ~400 units

by ~260 unitsdue to some projects converted to social housings or changed to other components

by ~400 unitsthanks to flexible payment terms plus incentives


03%

30%

26%

42%

Luxury High-end Mid-end Affordable

High-end segment saw more sales y-o-yHCMC RESIDENTIAL MARKET

Units Sold by Quarter

Units Sold by Segment, Q2/2012 Units Sold by Segment, Q2/2013

“ “High-end” has become middle-class housing.

“Affordable” is now truly affordable.

”Source: CBRE

00%

40%

17%

43%


$0

$500

$1,000

$1,500

$2,000

$2,500

01,0002,0003,0004,0005,0006,0007,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2011 2012 2013

Aver

age p

Price

(US$

/m2)

Sold

Units


HCMC RESIDENTIAL MARKETPrices

Imperia An Phu – District 2

• 700 units• Current asking price: $1,500-$1,800/sm

• Excellent payment terms• Free parking• Furniture package• Gym free for 1 year

The Estella – District 2


• Good payment terms

Him Lam Riverside – District 7

• 314 units• Current asking price: $1,357 - $1,457/sm

• Good payment term: 50% hand-over, the rest payable in 2 years with 0%

Sunrise City (North – District 7)

• 554 units• Current asking price: $1,119 - $1,428/sm

•Smaller unit size, lower price than P1, •Good payment term (54 months) –Central towers

Tropic Garden– District 2


• Good payment term

Xi Riverview Palace – District 2


• High discount: 18% if 98% payable

Happy Valley – District 7

• 541 units• Current asking price: $1,500 - $1,700 /sm

• Longest payment schedule in PMH NUA• Free parking

“ No direct price cut BUT long payment schedules with 0% rate increase sales

”

Source: CBRE


HCMC RESIDENTIAL MARKETInfrastructure development will ramp up property values

Thao DienPearl

The Vista

Imperial An Phu

CantavilPremier

Estella

Future projects

Existing projects

Metro line 1

Metro stationSource: CBRE


Advertising activities increaseHCMC RESIDENTIAL MARKET

Residential Projects Advertised by Month, HCMC, 2013

0

5

10

15

20

25

30

March April May June MTD July

No

of P

roje

ct

Newspapers tracked:Tuoi Tre; Mua & Ban; Tap chi Bat Dong San (Property Magazine);; Thanh Nien; Nhip Cau Dau Tu; Doanh nhan Sai Gon; Saigon Times Daily; Vietnam Investment Review; Vietnam News.


HCMC RESIDENTIAL MARKETNew launches Up

“New launches increased by 51.0% q-o-q and 234.5% y-o-y y.

Some delayed projects were resumed and introduced to the market: New Pearl (D1), Central Plaza (Tan Binh). Others starting to prepare for construction or launch.

Some developers continued launching their second phase.

”Source: CBRE

Units Launched by Year

Units Launched in Q2/2013 (% by Segment)

0%

51%36%

14%


High-end – largest proportion in Q2/2013

0

5,000

10,000

15,000

20,000

2008 2009 2010 2011 2012 2013

Num

ber o

f Uni

t

Annual launch Q2 launch


New Launches – High-end Segment, Q2/2013HCMC RESIDENTIAL MARKET

Happy Valley (2nd&3rd launch) – District 7

• Location: Phu My Hung NUA • Developer: Phu My Hung Corp.• Launched Unit: 266•Launch: June• Current asking price: $1,500-$1,700 psm• Sale rate: 80% of launched units.

Sunrise City (North) – District 7

• Location: Nguyen Huu Tho Street • Developer: Novaland• Launched Unit: 182 (total 554 units)• Launch: Early April •Current asking price: $1,119 - $1,428/sm• Sale rate: 65% of launched unit.

Dragon Hill Residence & Suite – Nha Be

• Location: Nguyen Huu Tho Street • Developer: Phu Long Real Estate Corp.• Launched Unit: ~150 (~200 wholesale)• Launch: late June, early July • Current asking price: $1,190 - $1,286/sm• Sale rate: N/A.


New Launches – Mid-end and Affordable, Q2/2013 HCMC RESIDENTIAL MARKET

Homyland 2 – District 2

• Location: Nguyen Duy Trinh Street • Developer: Bao Son Co., Ltd• Launched Unit: 425 units•Launch: 29 June• Current asking price: $761 - $881/sm• Sale rate: ~17%• Segment: Mid-end.

Ehome 3 P2 – Binh Tan District

• Location: Ho Ngoc Lam Street• Developer: Nam Long• Launched Unit: 161 (block A5)• Launch: 22 June•Current asking price: $794/sm• Sale rate: 40% of launched unit• Segment: Affordable.

Dream Home – Go Vap District

• Location: Street 59• Developer: Dream Home Co., Ltd.• Launched Unit: 518• Launch: introduce model house• Current asking price: $567• Sale rate: to officially launch in July• Segment: Affordable.


HCMC RESIDENTIAL MARKET

No further cut is expected BUT more flexible payment terms.

More sales for projects with upfront payment of 30% - 50% to move in;

Free of charge (management, parking) in the first one or two years to share buyers’ financial burdens;

Unit size preferred: <65sm (affordable), and <100sm (high-end);

Changes in personal income tax resulted in disposable income increase => more budget for housing;

CBRE is cautiously optimistic about a limited high end recovery in Q4 2013

Outlook

50% upfront -> hand over


SnapshotHCMC OFFICE

OFFICE GRADE A GRADE B GRADE C TOTAL

Number of properties 10 53 267 330

Total supply (GFA, sm) 315,855 847,418 922,723 2,085,996

New supply (properties) 0 1 5 6

New supply ( GFA, sm) 0 14,000 25,661 39,661

Net absorption (NLA,sm) – Q2/2013 2,252 18,888 21,140

Net absorption (NLA,sm) – Q1/2013 10,504 15,368 25,873

Q-o-q change (%) -78.6% 22.9% -18.3%

Y-o-y change (%) - 53.2% 91.1% 43.9%

Vacancy rate (%) 12.5% 12.1% 12.2%

Q-o-q change (pp) -0.6 -1.5 -1.2

Y-o-y change (pp) -4.3 -1.1 -2.0

Average asking rents (US$ psm per month) $31.53 $18.06 $21.79

Q-o-q change (%) 0.5% -0.2% 0.0%

Y-o-y change (%) 2.4% 5.9% 4.3%

All rents are the average rents quoted on the NLA basic, exclusive of VAT and service charge.Source: CBRE


New supply Saigon Airport PlazaHCMC OFFICE

“ Only one new office building for leased completed inQ2/2013

A sky blue office building emerging in the decentralised area, creating more availability for tenants, especially those work in logistics industry. ”

Saigon Airport PlazaDeveloper SSG Group

Address 1 Bach Dang, Tan Binh

Total GFA 14,000sm


HighlightsHCMC OFFICE

“85 office leases signed in 6 months by CBRE Vietnam, up 20% on 2012.

Healthy absorption as market sentiment improves and Average Grade A office rents rise 0.5% q-o-q. Oversupply a misconception !

Major occupiers FLIGHT TO QUALITY in 1H 2013 and CONSOLIDATION taking advantage of available opportunities in new buildings.

Local banking sector emerging as the largest occupiers of prime District 1 office buildings.

New office buildings showing strong commitment, while major delayed projects have seen no movement. ”CBRE

24%

16%

16%13%

13%

10%

8%Finance

Pharmaceutical

Others

Technology

Manufacturing

Retail

Legal

Tenant breakdown – 1H/2013 (based on CBRE deals)

$15

$17

$19

$21

$23

$25

0

200,000

400,000

600,000

800,000

1,000,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2011 2012 2013

Leased Area Vacant Area Asking Rent

HCMC Office market performance – Grade A&B


HCMC OFFICEOversupply is beginning to disappear

“ Number of successful deals during the first half of 2013 done by CBRE Vietnam went up 20% on 2012.

”CBRE

-

30,000

60,000

90,000

120,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2011 2012 2013

Grade A Grade B

Office Vacancy Spaces – NLA (sm) Office supply (Grade A &B) – NLA (sm)

0

200,000

400,000

600,000

800,000

1,000,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2011 2012 20

Gro

ss F

loor

Are

a (s

m)

Leased Area Vacant Area


LEED Office building achieved noticeable performance.HCMC OFFICE - PRESIDENT PLACE

Key facts

More than 75% of total spaces occupied after 3 months of official opening with the remaining 25% under offer.

100% of Tenants are international brands with 66% of committed occupiers technology based clients

Key tenants:

• Canon

• Diageo Vietnam Limited

• Microsoft Vietnam LLC

• Hiring Boss

• Schindler Vietnam

“ A pioneering office development becoming Ho Chi Minh City's first LEED Gold accredited office building. ”

President PlaceDeveloper Sapphire Vietnam

Address 93 Nguyen Du, D1

Total GFA 11,475 sm

Note: Leadership in Energy and Environmental Design (LEED) consists of a suite of rating systems for the design, construction and operation of high performance green buildings, homes and neighborhoods.


Projects Showed Good Construction Progress in Review QuarterHCMC OFFICE

Vietin Bank TowerLocation Ham Nghi, D1, HCMC

Floor 24 floors

Total GFA 24,315 sm

Status Under construction

Vietcombank TowerLocation Melinh Square, D1,

HCMC

Floor 35 floors

Total GFA 55,000 sm


Q1/2013

Q2/2013

Q1/2013

Q2/2013

MB Sunny TowerLocation Tran Hung Dao, D1,

HCMC

Floor 22 floors

Total GFA 16,500 sm


Q1/2013

Q2/2013

LimTowerLocation Ton Duc Thang, D1,

HCMC

Floor 34 floors

Total GFA 34,300 sm

Status Fitting out

Q2/2013

Q1/2013


HCMC OFFICENew supply from developed projects

TIMESSQUARE22-36 Nguyen Hue, D1GFA: 14,076 sm

Expected completion: Q3/2013

LE MERIDIEN3C Ton Duc Thang, D1GFA: 13,560 sm

Expected completion: 2014


OutlookHCMC OFFICE

Some project s are on its completion –Providing 602,933

sm office space until 2015

Rents keepstable

Constant demand

cometo the market

Stable office market

for whole year of 2013

OFFICE MARKET WILL BE IN TEMPORARY STABLE SITUATION THROUGH 2013

Given tightening supply and existing demand, the market wide average asking rent is expected to be stable or increase marginally through 2013, however the effective rent will be stable.

Gradual source of demand coming to the market will result in the absorption of available space in the market.

Tenants and landlord will become closer when more flexible leasing packages and higher quality services are offered in the market to satisfy the clients’ needs.

Major half complete / unfinished projects unlikely to come online in 2013 or even early 2014 which is likely to create further upward pressure on rentals until the next wave of major new supply

Market regain confidence


SnapshotHCMC RETAIL

Retail Department store Shopping centre

Retail arcade/podium Total

Total supply (NLA, sm) 96,754 243,396 60,454 400,604

New supply (NLA, sm) 0 0 0 0

Vacancy rate (%) 8.4% 12.9% 9.8%

Q-o-q change (pp) 0.7 pp 4.0 pp -1.5 pp

Y-o-y change (pp) 8.2 pp -6.3 pp -17.5 pp

CBD – Average rents (US$ psm per month) $81.84 $106.96 $61.49

Q-o-q change (%) 0.6% 0.0% -1.6%

Y-o-y change (%) 0.5% -3.0% NA

Non-CBD – Average rents (US$ psm per month) $48.32 $32.97 $17.09

Q-o-q change (%) -1.5% -3.7% 0.0%

Y-o-y change (%) -1.4% -4.7% NA

All rents are the average rents quoted on the ground floor and first floor, exclusive of VAT and service charge.Source: CBRE


Vacancy rate increased due to decrease in tenant turnover, i.e. withdrawal of big tenants at VincomCenter A like Home One (1,200 sm), Gloria Jean’s (100 sm), Nike (150 sm), Banana Leaf (100 sm)and Givral (100 sm). Unsustainable high rental rate and low foot traffic are two main observed obstacles.

Rents of Shopping Centres in CBD: stable as developers’ will is either not to decrease rent nor accept weak tenant.

Rents of Department Stores in CBD: slightly increased due to Diamond Plaza’s annual renovation.

In non-CBD, rents continued to decrease to attract new tenants.

HighlightsHCMC RETAIL

Performance of 5 selected shopping centres, HCMC

- 30 60 90

120 150 180

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Aver

age

Ren

t(U

S$/

sm/m

onth

)

Vacancy rate

Crescent Mall

Vincom Center A (Eden A)Vincom Center BDiamond Plaza

Icon 68 Shopping Centre

Source: CBRE


Taxation and Infrastructure cost burden retail operator, creating deadweight loss for both retailers and consumers.

HCMC RETAIL

Net absorption (NLA, sm)

Source: CBRE

-7%

-1%

5%

11%

17%

23%

-40,000

-20,000

0

20,000

40,000

60,000

2010 2011 2012 2013

Net Absorption (sm) Vacancy Rate (%)


HCMC RETAIL

Asia Pacific will continue to drive global retail growth in 2013.

Slower economic growth poses significant obstacles for retailers planning to expand.

Retailer expansion: fewer easy wins but still a strategy

Top Cities for New Retailer Entries, 2012

Source: CBRE Global Research & Consulting

2013 50th store opening


Rental Decline Accelerating

Rental decline Slowing

Rental Growth Accelerating

Rental Growth Slowing

Definition 1. Rents are at their peak and are expected to decline over the next 6-12 months.

2. Rents have started to fall, and the rate of decline is expected to accelerate over the next 6-12 months.

3. The rate of rental decline is at its peak. Rents are expected to continue declining but at a slower rate.4. The rate of rental decline has slowed. Rents are not yet at their trough, and are expected to decline further, but at a slower rate.

5. Rents are at their trough. The next movement is expected to be upwards.6. Rents have started to rise, and the rate of increase is expected to accelerate over the next 6-12 months.

7. The rate of rental growth is not yet at its peak. Rents are expected to continue rising but at a slower rate.8. The rate of rental growth has slowed. Rents are not yet at their peak, and are expected to increase further, but at a slower lower rate.9. Rents are at their peak and are considered to have reached a plateau. Marginal further growth still possible, but a significant decline not yet expected.

RENTAL CYCLEHCMC RETAIL

Vietnam


Confidence remains in Vietnam retail market despite bridle in spending with expansion plan of Aeon (expand to 20 shopping malls in 2020), Fairprice (and Saigon Coop jointly open CoopXtraplus in May), Lotte Group (plan to expand further 60 supermarkets and shopping centres).

Low consumer demand together with tighten spending budget will continue in the next two quarters.

Future supply will be limited in the next four quarters.

Large projects are facing difficulties in maintaining tenants. Decrease in rents or incentive terms including rent free period, turnover share, well-defined marketing strategy are two recommendedsolutions.

Future supply in the next two quarters include:

OutlookHCMC RETAIL

CantavilPremier 30,000 sm NLAExpected open year: 2013

Times Square4,000 sm GFAExpected open year: 2013

Saigon Airport Plaza6,980 smGFA Expected open year: 2013

ThaoDienPearl20,400 sm GFAExpected open year: 2013


SnapshotHCMC SERVICED APARTMENTS

SERVICED APARTMENTS GRADE A GRADE B GRADE C TOTAL

Total supply (units) 782 2,462 1,146 4,390

New supply (units) 0 80 10 90

Vacancy rate (%) 4.0% 18.7%

Q-o-q change (pp) -5.5 pp -7.2 pp

Y-o-y change (pp) -13.3 pp -2.3 pp

Average asking rents (US$ psm per month) $31.76 $23.95

Q-o-q change (%) 0.0% -1.3%

Y-o-y change (%) -6.0% -5.7%All rents are quoted inclusive of VAT and service charge.Source: CBRE


HCMC SERVICED APARTMENTSHighlights

New supply - SAIGON AIRPORT PLAZA

Scale: 84 units

57-sm 1-bedroom

Near Tan Son Nhat International Airport

Developer: SSG Group

Exclusively leased by CBRE Vietnam

First Grade B serviced apartment in Tan Binh

Demand: EnquiriesDECENTRALISED

• Towards D.2 villas• Improved budget

(US$2,000 - $3,000)• Long-term stay: 85%

New SupplyDECENTRALISED

• D.2• D.7• Tan Binh

RentsDOWNWARDS• New bottom

• At slower rate

VacancyDOWNWARDS• Approaching

Q3/2011low levels again

“PRICING IS KEY FACTOR. After rents kept decreasing for EIGHT quarters, vacancy was improved and reached the lowest levels seen in Q3/2011.

”CBRE


$15

$20

$25

$30

$35

$40

$45

2010 2011 2012 2013

Ren

t (U

S$/

sm/m

onth

)

Grade A Grade B

PerformanceHCMC SERVICED APARTMENTS

Rents (US$/sm/month)

Occupancy (%) – Best performers Vacancy (%)

Source: CBRE

41.6%

15.3%14.9%

12.4%

7.5%

3.8%4.5% District 1

District 7District 3District 2Binh Thanh Tan BinhOthers

1,827

502

480

495

330

84197

1,827

672652

544

330

168197 District 1

District 7District 3District 2Binh Thanh Tan BinhOthers

Q1/2012 Q2/2013

Supply (units) – Decentralised to D.2, D.3, D.7, Tan Binh

91%

92%

93%

94%

95%

96%

97%

$0 $10 $20 $30 $40 $50

Norfolk Mansion

InterContinental Asiana Saigon

Indochine Park Tower Diamond Plaza 0%

5%

10%

15%

20%

25%

30%

2010 2011 2012 2013

Vac

ancy

(%)

Grade A Grade B

Slower decrease

strong take-up

Grade ACBD


HCMC SERVICED APARTMENTS

Rents are expecting to bottom out as they are decreasing at a slower rate.

Vacancy will continue to decrease as there will be no significant completions through year-end.

As pricing is key factor, landlords are increasingly more flexible in benefits (parking, laundry, electricity and water allowance) for tenants and commission scheme for agents.

Outlook

Laundry

1FURNITURE

2GYMNASIUM

3SWIMMING POOL

4LAUNDRY

5HOUSEKEEPING

6MINIMART

7RESTAURANT

Tenant’s preference

“ Opportunity continues to be at the CBD: Although decentralisation is a notable trend, best performers with highest occupancy are still those at the CBD.

”CBRE


INDUSTRIAL AND LOGISTICSSmall and medium ready-built-factories draw more attention

FOREIGN TENANTS

LOCAL TENANTS

“ Demand for small and medium ready-to-move-in factory with rents about $3-$5 psm per month are recorded increasingly in the first two quarters.

Amata high tech park in Quang Ninh / VSIP active promotion in Central Vietnam, Quang Ngai.

Samsung / LGE as major magnets to draw investment from Korea / Japan vendors to North Vietnam.

Logistics continue to expand aggressively i.e. DHL.Enquiries from US / Europe stabilizes / pick up, focusing on RBF for both North and South Vietnam.

US IT / chip design seriously expands in HCMC and explore Danang as the 2nd tier city presence. ”CBRE


INVESTMENT

Transferring realty projects has been much more transparent than before:

Vincom Center A, developed by Vingroup, was reported to have been sold to VIPD Group at VND9.8 trillion in Q1/2013 (US$460 mil)

In May 2013, Vingroup entered into an agreement to transfer 20% of Vincom Retail JSC, to Warburg Pincus, a global private equity firm focused on growth investing. The value of the transfer is expected of US$250 million.

In a further sign of increased capital markets liquidity, VinGroupappear to be re-structuring the ownership of the office component of Vincom Centre B, HCMC, in preparation for a further asset sale.

In Q1/2013, Mapletree Investments, owned by Temasek Holdings of Singapore, successfully bought Centre Point, an office building of the total GFA of 38,610 sm in Phu Nhuan District.

As the first project that is calling for sale publicly, Saigon Link marks a notable change in the behaviors as well as the mindset of developers. Transparent transactions and information will help to re-liquidate the market.

Thawing of Investment Market

SAIGON LINK

For more information regarding this presentation please contact:DUNG DUONG (Ms.)Associate DirectorT +84 8 3824 6125 – Ext. 1224F +84 8 3823 [email protected]

HCMC MARKET INSIGHTS Q2/2013 - Viet Nam Supply...

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