VIETNAM REAL ESTATE - NOW OR NEVER · 2018-10-12 · 2015 Source: CBRE Vietnam, Q2 2015. Highest...

VIETNAM REAL ESTATE -NOW OR NEVER

Presented by: Marc TownsendManaging Director, CBRE Vietnam

18th July, 2015

2 CBRE | VIETNAM REAL ESTATE – TIME TO RECALIBRATE | JULY 2015

*All the above articles were retrieved in June 2015..

1Infrastructure Investment


HCMC METRO LINES

• Metro Line 1 is the first one to be kicked-off in 2012 and scheduled to operate by 2020.

• Metro Line 2 also broke ground in January 2015 and is expected to be operational by 2020.


METRO LINE 1 TRIGGERS RESIDENTIAL LAUNCHES

Vista Verde

The Vista

PARCSpring

The Krista

2Regulation Changes


1) Background:• Legal basis for foreign ownership of residential units (and

whether this varies as value and or number of units increases)• Typical legal and agent fees upon purchase/ sale• Likely taxes/stamp duty etc. including capital gains tax, tax on

rental income. Typical insurance costs2) Deal:

• Available properties and typical asking prices• A view on best locations for our purpose• Likely realisable rents and demand for properties• Property management fees3) Deal exit:

• Tax rules upon sale (as individual entity)• Restrictions on sale e.g. property holding period• Restrictions on repatriating capital or profits out of Vietnam

EFFECTIVE FROM 1ST JULY, 2015

FAQs

Buying a condo in Vietnam –A guide for foreigners

All you need to know…

LAW | ACCOUNTS | TRANFERRING FUNDS | DOCUMENTS REQUIRED | KEY TIPS


POSITIVE INTEREST LEVELSFROM FOREIGNERS FOR VIETNAM PROPERTY

3Condominium Market


Optimism ahead of regulation changesCONDOMINIUM FOR SALE

Developers and buyers remain bullish

Absorption Rate

15,715 units launched in 1H 2015

174% y-o-y

10,494 units (of new launches)

sold in 1H 2015

67%

HCMC HANOI

10,187 units launched in 1H 2015

91% y-o-y

50%

5,130 units (of new launches)

sold in 1H 2015

Source: CBRE Vietnam, Q2 2015.


Busy Launches in Q2 2015: 19 projects – 8,528 units launchedCONDOMINIUM FOR SALE

~57% sold

1450

Project(s)Units

1285

1408

1740

1352

1250 2

3,054

1136

1335 6

1,653

1500

1209

1156

Highest number of launches ever for a single quarter

Continued to move to the East!


19% q-o-q126% y-o-y

Implication for districts only, not exact project location

1H 2015: 15,715 unitsWhole year 2010: ~20,000

unitsWhole year 2007: ~10,300

units

HCMC


Optimism ahead of anticipation on regulation changesCONDOMINIUM FOR SALE

Sold Units, HCMC

0

5,000

10,000

15,000

20,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 1H2015


Highest take-up for a single quarter

Q2 2015: ~10,000 units(both new and previous launches)


Take-up per period, HCMC

0%

20%

40%

60%

80%

100%

2012 2013 2014 1H 2015

High-end Mid-end Affordable


New vs. Old Products – HCMC CONDOMINIUM FOR SALE

Primary vs. Secondary Price of Typical Condominiums in HCMC

Primary Asking Price

Secondary Asking Price


Absorption Rate67%

HCMC1H 2015

Launched15,715 units

Sold10,494 units(for only new launches in the review period)

$1,400

$1,600

$1,800

$2,000

$2,200

Q4 2014 Q1 2015 Q2 2015

Sel

ling

Pric

e (U

S$

psm

)

The Manor-Phase 1

Saigon Pearl - Sapphire

The Vista An Phu

Thao Dien Pearl

Cantavil Premier

Masteri Thao Dien

Estella Heights

Vinhomes Central Park

Gateway Thao Dien


Unit Type/ Size ChangesCONDOMINIUM FOR SALE

Condominium Unit Type Change, HCMC

9%

7%

12%

3%

63%

59%

45%

35%

27%

27%

28%

45%

1%

7%

14%

16%

After 2012

Before 2012

After 2012

Before 2012

Sec

ond

tier

Firs

t tie

r

1BR 2BR 3BR 4BR+

45

50

48

65

62

91

78

110

80

110

100

125

120 sm

250 sm

200 sm

300 sm

After 2012

Before 2012

After 2012

Before 2012

Sec

ond

tier

Firs

t tie

r

1BR 2BR 3BR 4BR+

Condominium Unit Size Change, HCMC

(*): First tier: Luxury and high-end products; Second tier: Mid-end and affordable productsSource: CBRE Vietnam, Q2 2015.

Vista Verde• 1BR: 63.62 sm• 2BR: 85.89 – 92.29 sm• 3BR: 135.02 – 139.72 sm• 4BR: 159.96 – 212.79 sm

The Krista:• 2BR: 70.58 – 71.53 sm• 3BR: 91.72 – 91.88 sm• Duplex: 152.5 sm

Estella Heights• 1BR: 54 sm• 2BR: 80 – 94 sm• 3BR: 118 – 137 sm


Vietnam’s Price CompetitivenessCONDOMINIUM FOR SALE

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Hanoi HCMC Phnom Penh Manila Jakarta Bangkok

Luxury High-end Mid-end Affordable


Primary Asking Price (US$ psm)


OutlookCONDOMINIUMS FOR SALE

Potential higher prices for projects located in District 2, District 7 and developed by well-known developers

Singaporean and Korean developers are starting design, development plans and get ready to kick-off huge projects while Japanese investors and Joint Venture are looking for residential development sites.

Sales volumes are expected to continue improve as the market has seen the return of not only end-users but also investors (and speculators).

New launches will continue their strong run, esp. in Districts 2, 9, Thu Duc and Binh Thanh thanks to the improving infrastructure. The high-end segment will increase more strongly than the last 2 years

4District 2 Condominium Market


DISTRICT 2 – ACCESSIBILITY & INT’L SCHOOLS

District 1 CBD

To Vung Tau

BIS

AIS ISH

AIS


DISTRICT 2 – IP LINKSTAN AN

THIEN TAN

THANH PHU

SONG MAY

AMATA

AGTEX LOTECOHO NAI

BAU XEODAU GIAY

CAM MY

PHUOC BINH

GO DAU

ONG KEO

BIEN HOA IBIEN HOA II

BINH ANSONG THAN

BINH DUONGLINH TRUNG 1

SAIGON HI-TECH PARK

GIANG DIEN

TAM PHUOC

AN PHUOC

LONG DUC

LOC AN - BINH SON

LONG THANH

NHON TRACH I

NHON TRACH II – NHON PHU

NHON TRACH II – LOC KHANG

NHON TRACH IV

NHON TRACH V

NHON TRACH III


British International School Australian International School Hoan My Thao Dien International Clinic Metro An Phu

Facilities and AmenitiesDISTRICT 2

Existing local facilities and amenities

……Within 20 minutes ride

International schools: AIS, HIS, BIS

Shopping centres: Parkson, Lotte cinema, Megastar

Supermarkets: Big C, Metro An Phu, An Phusuppermarket

Metroline

Metro An Phu

Saigon Bridge

City centre

Thu Thiemtunnel

ParksonCantavil

DISTRICT 2

5 m

ins

4 min

s


High rental yield encouraging investorsCONDOMINIUMS FOR SALE

(*) Selected projects:•District 7: Sunrise City, Sky Garden, Panorama;•District 2: Xi Riverview Palace, The Estella – phase 1, The Vista An Phu.

Source: CBRE Vietnam.

Rental yield at selected high-end projects

7.4%

7.5%

7.7%

7.80%7.8%

8.0%

8.1%8.05%

7.0%

7.2%

7.4%

7.6%

7.8%

8.0%

8.2%

2012 2013 2014 Q2 2015

District 7 District 2


DISTRICT 2 CONDOMINIUM FOR SALEA Green Living

Prime location of District 2

• Established high-end community;

• Low population density;

• Good supported facilities and amenities: easy to access to supermarkets, international schools.

IP Link• Suitable living place for executives working at the

surrounding industrial parks

Security • Good management – Gated and guarded

development

Easy Connectivity

• In proximity to D1 via Saigon Bridge, Thu ThiemTunnel/Bridge and Metro Line No. 1;

• Two marinas: Riverside and Thao Dien Village.


AT CBRE, WE LIVE AND BREATHE THE BUSINESS OF REAL ESTATEEvery quarterQUARTERLY REPORT

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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 8418Email: [email protected]

VIETNAM REAL ESTATE - NOW OR NEVER · 2018-10-12 · 2015 Source: CBRE Vietnam, Q2 2015. Highest...

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Transcript of VIETNAM REAL ESTATE - NOW OR NEVER · 2018-10-12 · 2015 Source: CBRE Vietnam, Q2 2015. Highest...