Bat dong san VN

8/7/2019 Bat dong san VN

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REDISCOVERING VIETNAMS REALESTATE POTENTIAL

1 st March, 2007Renaissance Hotel, Kuala Lumpur, Malaysia

Presented by:Marc Townsend Managing Director


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CB Richard Ellis | Page 2

Client LogoGoes Here

WHAT HAS BEEN DRIVING THE PROPERTY MARKETSINCE 2003?

Limited capital markets

An emerging condo market in Hanoi and HCMC

Conspicuous consumption

Ability to borrow from local banks at 10-11% per annum

Consistently rising GDP and FDI

China + 1, APRC, the Stock Market and entry to WTO has put Vietnam on the radar

screen, coupled with the ML report in Feb and the Euro Money Conference in Mar 2006

Saturation in other South East Asian markets


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4/76



HO CHI MINH CITY


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VIETNAM TODAY

No Starbucks and No MacDonalds

World leaders in pepper, coffee, cashew, shoes, fish/prawns, oil & gas exports

No shortage of land, just good sites

If you build it, they will come still exists but may not last much longer

Many similarities to China in the early 90s in terms of work ethic, chaos on the

streets, migration of work force and market driven decisions

Traffic, complete absence of infrastructure, MRT/MTR, bridges and tunnels


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HCMC OFFICE MARKET

HC M C Pr ime O ffi ce S tock End o f Q 1 .2007

200,000

250,000

300,000

350,000

Q 1/0

4

Q 2/0

4

Q 3/0

4

Q 4/0

4

Q 1/0

5

Q 2/0

5

Q 3/0

5

Q 4/0

5

Q 1/0

6

Q 2/0

6

Q 3/0

6

Q 4/0

6

Q 1/0

7

s q m

Office Stock at the beginning of the quarter New supply during the quarter


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HCMC OFFICE MARKET

Prime Office Rental Index

0

20

40

60

80

100

120

140

160

Q1 98

Q2 98

Q3 98

Q4 98

Q1 99

Q2 99

Q3 99

Q4 99

Q1 00

Q2 00

Q3 00

Q4 00

Q1 01

Q2 01

Q3 01

Q4 01

Q1 02

Q2 02

Q3 02

Q4 02

Q1 03

Q2 03

Q3 03

Q4 03

Q1 04

Q2 04

Q3 04

Q4 04

Q1 05

Q2 05

Q3 05

Q4 05

Q1 06

Q2 06

Q3 06

Q4 06

Q1.07

Index (Q1 1998 = 100)

And the upward trend will continue due to: Growing demand

Delays in new supply

US-VN BilateralTrade Agreement


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Major BuildingsExisting - Future

Centec

EVN

Vietcombank

Times Square

M&C Tower

Financial Tower

VPBank

Sailing Tower

Pacific Place Asiana Plaza

Metropolitan

Saigon Tower

Sun Wah

Saigon Center

Diamond Plaza

Gemadept

Saigon Trade Center

Me Linh Point

PetroVietnam9 DTH

Vimedimex

Sacombank

Bao Viet

Golden Tower


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HCMC OFFICE MARKET

SOME OF THE NEW OFFICE BUILDINGS COMPLETED INQ1. 2007

Opera View, Dist. 1 Lancaster, Dist. 1 Rosaco, Dist. 1

Petro Vietnam,Dist. 1 E Town 2, Tan Binh District

Estimated Total Supply inQ1. 2007: 47,843 sqm


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HCMC OFFICE MARKET

Take up and vacancy rate ofHC MC office buildings

-2,000

4,0006,0008,000

10,00012,00014,000

16,00018,000

Q1.04 Q2.04 Q3.04 Q4.04 Q1.05 Q2.05 Q3.05 Q4.05 Q1.06 Q2.06 Q3.06 Q4.06

s q m

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%8.0%

%

Take-up (Sqm) Vacancy Rate (%)


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HCMC OFFICE MARKET Rental Rates

Rental growth of Grade A2006 - 2007

2329.5

Q1/2006 Q1/2007

*Note: Rents excluding S. C and VAT

unit: US$growth rate 28%

Q1 - 2006 $23.00

Q1 - 2007 $29.50

Increase of 28%

Occupancy 100%


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Rental Growth of Grade B2006 - 2007

2126.5

Q1/2006 Q1/2007

* Note: rents excluding S.C and VAT

unit:US$ growth rate 26%

Q1 - 2006 $21.00

Q1 - 2007 $26.50

Increase of 26%

Occupancy 99%


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Rental Growth of Grade C2006 - 2007

17.5 20.5

Q1/2006 Q1/2007

*Note: rents excluding S .C and VAT

unit: US$ growth rate 17%

Q1 - 2006 $17.50

Q1 - 2007 $20.50

Increase of 17%

Occupancy 95%


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HCMC OFFICE MARKET

Market Outlook in 2007:

Limited grade A office space stillremains.

Some new supply of Grade B officespace expected to come on line during2007.

Factors driving demand: Strongeconomic growth, FDI growth, WTO

access, new multi-national companies,expansion of existing multi-nationalcompanies, Vietnam companiesupgrading, safety & quality Issues

Grade A office rental rates reflects

upward momentum and growing demandvis--vis tight supply

Vacancy rate remains low, grade A (0%)and B (


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HCMC OFFICE MARKET

HCMC MAJOR UNDER CONSTRUCTION OFFICE DEVELOPMENTS IN Q1&Q2/07

3,100

8,000

27,000

1,600

10,143

10,780

3,960

7,600

6,000

11,945

6,000

0 5,000 10,000 15,000 20,000 25,000 30,000

Opera View - Dist. 1

Rosaco Tower - Dist. 1

E-Town 2 - Tan Binh

Lancaster

Petro VN, Dist. 1

Vimedimex - Dist. 1

E-Star, Dist. 3

ITAXA, Dist. 3

N'Orch - Dist. 1

Cetpa - Tan Binh

Manulife - Dist. 7

Q1.2007

Q2.2007

(Source: C BRE)

sqm


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HCMC OFFICE MARKETE X P E C T E D F U T U R E S U P P LY O F F I C E S PA C E

( 2 0 0 7 - 2 0 1 0 )

2 7 3 , 1 4 6

1 8 7 , 8 2 41 8 0 , 6 5 7

1 5 8 , 7 9 8

E x p e c te d c o m p l e t io n i n

2 0 0 7


2 0 0 8


2 0 0 9


2 0 1 0

( u n i t s q m )

Rosaco Tower Petro VN VP Bank Tower Sacom Bank Centec AsianaPlaza

Financial Tower Vietcombank

Tower

2007 2008 2009 2010


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THE MARKETS TIMING LARGER BUILDINGS

Bao Viet20,000 sqm(owner occupied)

VPBank 20,000 sqm(12,000 sqmfor lease)

Times Square31,000 sqm

HCMC Power Head Office20,000 sqm(10,000 sqmfor lease)

Centec25,000 sqm

Asiana Plaza32,000 sqm

Vietcombank 77,000 sqm

Financial Tower 100,000 sqm

M&C Tower 35,000 sqm

2008 2009 2010

113,000 sqm 212,000 sqm

2010

2011Gemadept

16,500 sqm(10,000 sqmfor lease)

A & B25,000 sqm

2010

76,500 sqm

(32,000 sqmfor lease)


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Client Logo

Goes Here

RESIDENTIAL CONDO HCMC

N u m b e r o f C o n d o s a n d P r o j e c t s l a u n c he d y e a r-b y - y e a r

0

3,000

6,000

9,000

12,000

C

ondos

0

10

20

30

40

50

Projects

U n i t s 648 0 0 0 150 0 0 124 1,234 3,418 7,644 10,37 11,47 7,270

P r o j e c t s 1 0 0 0 1 0 0 1 3 16 27 42 33 9

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


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Client Logo

Goes Here


Com pleted C ondomin ium U ni ts yea r-by -yea r

0

500

1000

1500

2000

2500

O v er U S $ 2 , 0 0 0 1 4 1 2 5 2

U S $ 1 , 5 0 1 - U S $ 2 , 0 0 0 5 2 6

U S $ 1 , 0 0 1 - U S $ 1 , 5 0 0 9 7 6 6 2 7 0 4 0 5

U S $ 6 0 0 - U S $ 1 , 0 0 0 7 9 8 1 2 4 1 , 11 0 1 , 9 6 5 1 , 3 3 0

L es s U S $ 6 0 0 5 5 2 1 , 5 9 4 8 8 1

1 9 9 9 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 Q 1 / 0 7


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Client Logo

Goes Here


Aver age Se l l i ng P r i ce Change o f Ty p ica l H igh -end CondoPr o jec t s i n D i st r i c t 1

Indo china P arkTower

US$ 1800Indo china P ark

TowerUS$ 1,500

T he LancasterUS$ 3,45 0

T he LancasterUS$ 2,05 0

Ava lonUS$2,800

Ava lonUS$ 2,08 9

Hor izonUS $ 1,300Hor izon

US 850

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2003 2004 2005 Q1/ 06 Q2 / 06 Q3/ 06 Q4/ 06 Q1/ 07


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Client Logo

Goes Here


Average Se l l i ng Pr ice Change of Typica l High-end CondoProje c ts in Dis t r ic t 2 and Binh Thanh

R iver Garden

US$ 900

River Ga rdenUS$ 1,400

Saigon P earlUS$ 1,100

Saigon P earlUS$ 1,500

T he M anorUS$2,200

T he M anorUS$ 1,00 0

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2003 2004 2005 Q1/ 06 Q2/ 06 Q3/ 06 Q4/ 06 Q1/ 07


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Client Logo

Goes Here


Ratio betwee n launched and sold units year -by-y ear

0

9000

180 00

27000

36000

45000

0%

20 %

40 %

60 %

80 %

100%

Accumulation of remaining units

648 798 922 3226 6284 12082 22755 36909

Acummulation of soldunits

0 72 100 708 2,609 6,913 12,810 19,517

Average ratio betweensold and available

0% 9% 11% 22% 42% 57% 56% 53%

1994 1998 2001 2002 2003 2004 2005 2006


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Client Logo

Goes Here

RESIDENTIAL CONDO HCMC FUTURE SUPPLY

Projects will be completed in 2007 2009

Central Garden-D.1 Hung Vuong Plaza-D.5 Cantavil-D.2 River Garden-D.2 Capitaland Vista-D.2 Ben Thanh Orient

Plaza-D.1

New Development year-by-year

0

3,000

6,000

9,000

12,000

0

10

20

30

40

50

Condo uni ts 10,152 11,081 10,995

P r o j e c t s 44 33 12

2007 2008 2009


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Client Logo

Goes Here


TRENDS:

New money flow from stock market into property.

Strong investment wave from Asia: Korea, Japan,Singapore. Keen on buying projects already licensed andunder construction instead of leasing land, developing from thebeginning.

Hot market with more money from foreign institutionaland individual investors activated by Land Law effectivefrom 1 Jul 06 and Property Trading Law from 1 Jan 07.

With encouraging Government policies, more developersinvesting in low income projects.


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Client Logo

Goes Here


TRENDS:Price of low to mid end projects expected to be stable.

Price of high end projects with good zoning andinfrastructure remain high.

More buyers have real needs and there will not be as many as speculators as previously.

Demand forecasted to be increased 6-7% in a few years tocome partly thanks to loan flexibility of banks.

Buyers become more and more savvy, so developersbrand plays a more and more important role.


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Client Logo

Goes Here

RESIDENTIAL VILLA HCMC

Phu GIa PMH town Thao Nguyen SG-D.9 Thu Duc Garden Home-TD Villa Riviera D.2 An Phu Dong Villa D.12

P r i c e T r e n d o f P h u G i a , V i ll a R i v ie r a a n d T h u D u c G a r d e n H o m e( f r o m l a u n c h t o Q 4 / 0 6 )

U S $ 1 , 0 0 0

3 0 %

U S $ 2 , 0 0 02 1 0 %

9 0 %7 0 %

5 0 %

U S $ 1 , 5 0 0

U S $ 2 , 4 0 03 3 %

2 0 %

U S $ 6 8 0U $ S 7 0 0

3 %0%

50%

100%

150%

200%

250%

2001 2002 2003 2004 2005 2006

Phu Gia - PMH town(launched in 2001)

Villa Riviera - D.2(launched in 2004)

Thu Duc Garden Home(launched in 2005)


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Client Logo

Goes Here

HCMC RESIDENTIAL FOR LEASE MARKET OVERVIEW

Ho Chi Minh City Serviced Apartments

Positives:

No Maintenance

Facilities Gym, Pool

Security

Fully Furnished

Negatives:

Difficult Termination

Higher Rental Cost

Generic Appearance

Less Usable Area

Current Ser viced Apar tments

0

4 0

8 0

1 2 0

1 6 0

2 0 0

Diamo

nd Pl

aza

Shera

ton ( O

cean P

lace)

Norfo

lk Ma

nsion

Sedon

a Suit

es

Some

rset C

hance

llor C

ourt

Some

rset H

CMC

Landm

ark

LTT Co

urt

HBT C

ourt

City V

iew

Units

0

1 0

2 0

3 0

4 0

5 0

S upply Ave r age Re nt ($ US /sqm /m th)


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Client Logo

Goes Here

District 1 & 3Highest demand for serviced apartmentsVery limited supply, especially for International quality projects. There are 7 grade A serviced apartment projectsprovide over 500 units from 1 to 4 bedrooms.Average occupancy rate is now 96% (both grade A and B)with most marketable size of 1 & 2 bedrooms, from 50 80sqmThe rent for most of the serviced apartments are up by 10 20%, from US$22 to US$31 per sqm per month in January 2006 to US$25 to US$35 in December 2006Due to the limited supply and growing demand, rent areexpected to keep rising during 2007.

RESIDENTIAL FOR LEASE HCMC


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Client Logo

Goes Here

RESIDENTIAL FOR LEASE HCMC

An Phu, An Khanh, District 2Still an attractive area for tenants with family

Limited good quality villas and servicedapartmentsFew new developing projects in apartments andgated compound (River View and River Garden)Average rent of US$2,500 to 3,500 per month.With a 15% - 20% increase in rental prices withinthe past year.


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Client Logo

Goes Here

RESIDENTIAL FOR LEASE HCMC IN DISTRICT 2

$11$5,0004504Nguyen UDi

$4.50$9002002Thao DienVilla

$6.25$2,5004004Thao DienCompound

$9$3,3003503Le Van Mien

$12$7,0006005Nguyen VanHuong

Rent/SQMAskingRent/MonthSQMBedroomsPictureLocation


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Client Logo

Goes Here

RESIDENTIAL FOR LEASE HCMC - 2007 NEW SUPPLY

1,160

11,300

3,300

27,531

Totalsqm

10 12

11 - 20

30 - 38

21 - 32

Target Rent$/sqm/mth UnittypesNo of UnitsCompletionLocationProject

4-5 bdrs11January 2007

Saigon Queen VillaNguyen Van

Huong, An Phu,District 2,

15 minutes to CBD

1-4 bdrs100February 2007

Green HillsLot 25, QuangTrung Software

Park, District 12, 40minutes to CBD

1-3 bdrs40 - 50February/ March2007

The LancasterLe Thanh Ton

Street, District 1,CBD

2-4 bdrs228February/March2007

Pasteur CourtPasteur Street,

District 3, 5 minutes

to CBD


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Client Logo

Goes Here

An Phu Small SA

The Manor 2

Kumho Asiana Plaza Times Square

Saigon Riverview Apartments Saigon Pearl

RESIDENTIAL FOR LEASE HCMC - FUTURE PROJECTS


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Client Logo

Goes Here

VN STOCK MARKET

VN Index from 18 July 2000 to 27 February 2007


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Client Logo

Goes Here

VN STOCK MARKET

0

200

400

600

800

1000

2000 2007

VN index

28/7/2000:2 listed companies - VN Index: 100 Daily turnover Avg. $45m

27/2/2007:107 listed companies & 2 funds- VN Index: 1167.36 - Market capitalisation:$15b

VN Index: increased by 9.5 times

0

2,000

4,000

6,0008,000

10,000

12,000

14,000

16,000

2000 2007

Market cap

Market cap: increased by 300 times

100 RICHEST PEOPLE IN VIETNAM


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Client Logo

Goes Here

100 RICHEST PEOPLE IN VIETNAM(Till 3rd Jan 2007)

71,625,500MPCDeputy DirectorChu Th Bnh - Deputy Director5

71,625,500MPCMinh Ph FisheriesL V n Quang - Chairman &General

Director4

74,562,500FPTFPT- Technology Investment andDevelopment Co.

Bi Quang Ng c - Vice Chairman &Deputy Director3


L Quang Ti n Vice Chairman &Deputy Director2


Tr ng Gia Bnh Chairman &General Director1

Value (US$)CodeListed companiesNameRank


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Client Logo

Goes Here

HCMC RETAIL MARKET

2004 RANK2005 RANK2006 RANKCOUNTRY

8910TURKEY579CROATIA458SLOVENIA667LATVIA--6CHILE345CHINA

1134UKRAINE783VIETNAM122RUSSIA211INDIA

Source: AT Kearny

Top 10 Countries for Retail Investment


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Client Logo

Goes Here

HCMC RETAIL MARKET

HCMC Shopp ing Centre Existing Suppl y

6,252

5,700

8,000

1,366

6,810

21,797

17,000

14,670

18,000

5,000

5,000

Saigon CentreDist. 1

Saigon SuperbowlTan Binh

Diamond PlazaDist. 1

Lucky PlazaDist. 1

Zen PlazaDist. 1

Thuan Kieu PlazaDist. 5

ParksonDist. 1

Tax PlazaDist. 1

An Dong PlazaDist. 5

Saigon Square

Eden MallDist. 1

19

96

1999

2000200220032004

2006

(Source: CB Richard Ellis)


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Client Logo

Goes Here

HCMC RETAIL MARKET

AV ER A G E O C C U PA N C Y & R E N TAL R AT ESO F H C M C C B D R E TA IL C E N TR E S

0%

20%

40%

60%

80%

100%

%

$0

$30

$60

$90

$120

$150

CBD prime occupancy rate100% 100% 100% 100% 98% 95% 95% 95% 94% 100% 100%

CBD prime average rents $32.40 $32.40 $32.40 $35.33 $36.67 $39.95 $43.03 $45.11 $49.21 $59 .68 $80.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006


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Client Logo

Goes Here

HCMC RETAIL MARKET

unit: US$/sqm/month

COMP AR IS ON OF R E T AIL R E NT S IN CIT IE S IN S OUT H E AS T AS IA

727

560

290

191

185

133

70

80

48

20

Hong Kong

Bangkok

Singapore

Taipei

Shanghai

Beijing

Jakarta

Ho Chi Minh City

New Delhi

Manila

(Source: CBR E)


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Client Logo

Goes Here

HCMC RETAIL MARKET

Source: CB Richard Ellis

G rowth in pr im e re ta i l ra tes in H C MCfrom 2006 to 2007

140170

Q 1/ 2006 Q 1/ 2007

*Note: Rents excluding S. C and VAT

unit:

US$/sqm/monthg r o w t h r a t e 2 1%


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Client Logo

Goes Here

Eden Mall

106 Nguyen Hue St, Dist.1Size: 5,000 sqm

Launch December 2006

Rents: $30 - $70 per sqm

Occupancy 90%

HCMC RETAIL MARKET NEW RETAIL CENTRES



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SAIGON SQUARE

3 Le Van Huu, Dist. 1

Launch January 2007

Size: 5,000 sqm

Rents: 66 - $100 per sqmOccupancy 100%

HCMC RETAIL MARKET FUTURE SUPPLY


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HC MC Future Supply

1,280

4,300

15,000

33,000

2,560

12,367

11,882

6,880

8,292

30,000

Opera ViewDist. 1

Tan Da CourtDist. 5

Saigon ParagonDist. 7

Hung Vuong PlazaDist. 5

Sailing TowerDist. 1

Times SquareDist. 1

Happiness SquareDist. 5

Kumho AsianaDist. 1

SJC TowerDist. 1

Saigon PearlBinh Thanh

2007

2008

2009

2010

( S o u r c e : C B R E )

s q m



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COMING NEXT IN EARLY 2007OPERA VIEW 161 167 Dong Khoi, Dist. 1

Retail GFA: 1,280 sqm

Rents: US$80 to US$130 per sqm

Occupancy: 100%

Major tenant: Louis Vuitton



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COMING IN 2008

SAIGON PARAGONNguyen Luong Bang, Dist.7Retail area: 7,984 sqmEntertainment area: 7,016 sqm



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HUNG VUONG PLAZALocation: 126 Hung Vuong St. Dist 5.Developer : M&C and Kinh Do

Mixed use development with 6 levelsof retail inc. cinema and 2 basementparking.

Leasable Area : 17,000sqmOpening : Q1/2008Major tenants: Parkson and Megastar

Hotel Market HCMC


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Hotel Market HCMC

416,785TOTAL

83231,9033 - star18181,4474 - star

344103,4355 star

ROOMSPER

HOTELHOTELSROOMSHOTEL

HOTELS FROM FIVE TO THREE STARS, 2006

(Source: CBRE)

No. ofNo. ofHotelsHotels

No. ofNo. of

RoomsRooms

57.50%17.50%

25.00%

28.05%

21.33%

50.63%

5 star 4 - star 3 - star

Hotel Market HCMC


49/76



Hotel Market HCMC

0.00

20.00

40.00

60.00

80.00

100.00

120.00140.00

5 star 108.00 128.204 star 80.00 94.96

3 star 45.00 53.42

2005 2006(Est.)

AVERAGE ROOM RATE (US$), 2005-2006

Average % Increase from2005

5 Star - 15.76%4 Star - 15.75%3 Star - 15.79%

D1 5 Star Hotel Rates onaverage range from: $77 -$165 per night

Hotel Market HCMC


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Hotel Market HCMC

68.00%

70.00%

72.00%

74.00%

76.00%

78.00%

80.00%

82.00%

84.00%

5 star

4 star

3 star

5 star 77.00% 73.92%4 star 81.50% 77.43%

3 star 82.50% 83.33%

2005 2006(Est.)

AVERAGE OCCUPANCY RATE 2005 -2006Est

Average Occupancygrowth rate +/-

5 Star - 3.08% -4 Star - 4.07% -3 Star - 0.83 +

D1 5 Star Hotels areshowing an average8% growth increaseoverall

Hotel Market HCMC


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Hotel Market HCMC

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%40.00%

50.00%

60.00%

70.00%

80.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%40.00%

50.00%

60.00%

70.00%

80.00%

VN - Domestic 12.00% 4.46% 11.11% 3.85% 7.41% 11.03% 8.70% 5.71%

VN - International 20.11% 8.91% 12.76% -7.56% 20.51% 18.44% 3.81% 22.22%

HCMC - Domestic -0.12% 73.35% 6.91% 22.00% 30.39% 20.00% 26.67% 18.42%

HCMC - International 72.55% 12.99% 16.85% -9.14% 21.35% 26.58% 17.50% 12.77%

2000 2001 2002 2003 2004 2005 2006 2007P

InternationalTouristarrivals up350,000from 2005

Growthdown from2006 by

9.08 %

Hotel Market HCMC


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Hotel Market HCMC

7 7 6

6 9 2

5 1 9

8 0

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

2007F

2008F

2009F

2010F

Existing Supply New Supply

Times Square, SaigonHappiness

2010F

Asiana Plaza andInternational TradeCentre (Tax Plaza)

2009F

Grand, Majestic,Continental, MajesticUpgrade. In PMH District7 of Saigon Tourist

2008FRex Upgrade2007F

DEVELOPMENTYEAR

EXISTING AND FUTURE SUPPLY OF 4 AND 5EXISTING AND FUTURE SUPPLY OF 4 AND 5--STAR ROOMSSTAR ROOMS

HANOI OFFICE MARKET


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HANOI OFFICE MARKET

Supply - Demand

Pre-lease in Q4/2006:

- 2 Grade A Buildings: Opera Business Centre & PacificPlace (to be completed in Q1/2007)

- 2 Grade B buildings: North Asia Tower & ViglaceraTower (to be completed in Q1/2007)

- High commitment rate

- Factors driving demand: Economic growth; FDI growth;

WTO accession; Newly established MNCs; Expansion of existing MNCs; Local companies upgrading;

- Increasing demand on Grade A & B office space

- Low vacancy rate remains on Grade A &B office space

Take-up and Vacancy of Grade A&B Office Properties

-5,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2004 Q1

2004 Q2

2004 Q3

2004 Q4

2005 Q1

2005 Q2

2005 Q3

2005 Q4

2006 Q1

2006 Q2

2006 Q3

2006 Q4

Sqm

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Take-up

Vacancy Rate (%)

Hanoi Cumulative Stock and New Supply of Grade A&BOffice Properties

141,459

141,459

146,184

169,184

199,184

199,184

199,184

199,184

199,184

213,812

226,681

226,681

4,725 2

3,000

30,000

14,628

12,869

18,820

0

50,000

100,000

150,000

200,000

250,000

2004 Q1

2004 Q2

2004 Q3

2004 Q4

2005 Q1

2005 Q2

2005 Q3

2005 Q4

2006 Q1

2006 Q2

2006 Q3

2006 Q4

Sqm

New supply as at quarter-end

Stock as at begining of the quarter

HANOI OFFICE MARKET


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HANOI OFFICE MARKET

Rental

Q3-Q4/2006: Sharp increase in Grade A & Grade B office rentals

- Grade A Office: 9.5% and 7.5% increase q-o-q, respectively in Q3 and Q4

- Grade B Office: 10.7% and 7.9% increase q-o-q, respectively in Q3 and Q4

Av e r a g e R e n t a l o f H a n o i G r a d e A O ff i c e P r o p e r t ie s

20.00

22.00

24.00

26.00

28.00

30.00

32.00

2004 Q1

2004 Q2

2004 Q3

2004 Q4

2005 Q1

2005 Q2

2005 Q3

2005 Q4

2006 Q1

2006 Q2

2006 Q3

2006 Q4

US$ PSQMPM

Average Rental of Hanoi Grade B Office Properties

16.00

18.00

20.00

22.00

24.00

26.00

28.00

30.00

2004 Q1

2004 Q2

2004 Q3

2004 Q4

2005 Q1

2005 Q2

2005 Q3

2005 Q4

2006 Q1

2006 Q2

2006 Q3

2006 Q4

US$ PSQMPM

HANOI OFFICE MARKET


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O O C

Future Supply

- 22,350sqm GFA of Grade A Office space will come on stream in Q1/2007

- Significant amount of Grade B office space will be launched during 2007

Estimated new stock of Grade A,B&C Office

239,022

92,900 87,500

58,000

0

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010

S qm

Es t ima ted new s tock of Hano i Grade A O ff i ce

22,350

33,000

71,000

58,000

0

20,000

40,000

60,000

80,000

100,000

2007 2008 2009 2010

S qm

HANOI OFFICE MARKET


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Location:

6B Trang Tien Str., Hoan Kiem Dist., HanoiDeveloper:Opera Business Centre JVCProject:3 level retail podium attached to 10 level office buildingGrade A Mixed-used of Retail / Office

Completion Date & Opening Date:Q1/2007Leasable Area:Land Area 888sqmOffice GFA 3,550sqmRetail NLA 1,070sqm

OPERA BUSINESS CENTRE

Opening date

Q1/2007


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HANOI SERVICED APARTMENT MARKET


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Supply

- 61 units of Somerset Westlake Hanoi has been closed for renovation for Q2-Q4/2006- 39 units of Elegant Suites come on stream in Q3/2006

Hanoi Cumulative Stock of Grade A&B Serviced Apartments

61

347

519

84

31 3934

146

0

200

400

600

800

1,000

1,200

1,400

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Units

Stock as at begining of the period New supply as at end of the period



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Demand

- Low vacancy rate- High demand

Rentals

- Rental rate: US$18 - US$45/sqm/month

Av e r a g e A s k i n g R e n t p e r s q m p e r m o n t h ( U S $ )

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

Co Co Village

Daeha Complex

Oriental Palace

Golden Lodge

Somerset Grand Hanoi

Mayfair

Pan Horizon

Sedona Suites

Jana Garden Terrace

Rose Garden

Sun Red River

V- Tower

Hanoi Lake View

Sofitel Plaza

Elegant Suites

Take-up & Vacancy Rate Q4/2006

-20

-10

0

10

20

30

Q3/2004

Q4/2004

Q1/2005

Q2/2005

Q3/2005

Q4/2005

Q1/2006

Q2/2006

Q3/2006

Q4/2006

Units

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

Vacancy Rate (%)

Take-up

Vacancy Rate



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Future Supply

- Strong growth- Increasing demand- Limited supply- Vacancy rate still remains low- Rental will increase slightly- Increasing number of expatriates in Hanoi

Outlook S e r v i c e d A p a r t m e n t s - F u t u r e S u p p l y ( 2 0 0 7 - 2 0 1 0 )

559

386352

0

100

200

300

400

500

600

2007 2008 2010

U n i t s

DMC Tan Long

SkylineAtlanta

Somerset Hoa Binh

Syrena



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Location:49 Hang Chuoi St., Hai Ba Trung Dist., Hanoi

Developer:Green Globe Co., Ltd.Marketing:CB Richard Ellis Vietnam- Exclusive MarketingAgentProject:Serviced Apartment Building15 storey building with 2 basements for parkingCompletion Date & Opening Date:Q1/2007Leasable Area:

NLA: 5,000sqm52 Apartments

Opening date

Q1/2007

ATLANTA


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HOTEL & TOURISM MARKET


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Y-o-Y Visitor Arrivals to Vietnam

- Low fair airlines: AsiaAir, Jetstar & Tiger Airlines

- 20% of 3.6 million intl visitors was MICE tourists

Number of Foreign Visitor Arrivals to Vietnam

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

arrivals

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Number of foreign tourist arrivals y-o-y change

HANOI HOTEL & TOURISM MARKET


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Tourist ProfileInternational Visi tor Arrivals to Vietnam

0

100

200

300

400

500

600

700

800

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Thous.Arrivals

Taiwanese JapaneseFrench AmericanBritish Chinese

International Visi tor Arrivals by Purposes

0

200

400

600

800

1,000

1,200

1,4001,600

1,800

2,000

2,200

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Thous.Arrivals

Tourism Business

Visitting Other



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Room Supply: 4,924 (5, 4 and 3 star hotels)Number of Hotels

5-star23.53%

4-star14.71%

3-star61.76%

Number of Hotels' rooms

5-star48.01%

4-star

17.75%

3-star34.24%

- 1.15 million intl visitor arrivals to Hanoi in 2006

- 4,924 rooms, including 5, 4 and 3 star hotel rooms

- 5 star hotels: 2,364 rooms/ 8 hotels

- 4 star hotels: 874 rooms/ 5 hotels

- 3 star hotels: 1,686 rooms/ 21 hotels

NUMBER OF FOREIGN VISITOR ARRIVALS

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

1990

1992

1994

1996

1998

2000

2002

2004

2006

arrivals

To Vietnam To Hanoi



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Room Supply: 3,238 rooms (5 and 4 star)

- Most of 5 and 4 star hotelscame on stream in 1990s

- No new supply over last few

years- Lack of quality hotel rooms

C u m u l a t iv e S t o c k & N e w S u p p ly o f 5 & 4 s t a r H o te l r o o m s

218

102

250

1,131

1,131

102

299

0

500

1,000

1,500

2,000

2,500

3,000

3,500

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Rooms

New supply as at year-end

Stock as at beginning of the year



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ADR & Occupancy rate of 5 star hotels

- Stably high occupancy rate over years

- Occupancy rate as at end Q4/2006:

5 star hotels: approx 84.28%

4 star hotels: approx 90.00%

3 star hotels: approx 80%

- High demand

- Limited supply - High occupancy rate, approximately 84% in Q4/2006

- 5 star hotels: ADR of US$128.26 as at end of Q4/2006

Average Occupancy Rate & ADR of 5-star Hotels

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

$110.00

$120.00

$130.00

$140.00

Q2/2005 Q3/2005 Q4/2005 Q1/2006 Q2/2006 Q3/2006 Q4/200650.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Ave. Room rate Ave . Occupancy rate

Monthly Occupancy Rate of Hanoi's 5- star Hotels

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06 Aug-06

Sep-06

Oct-06

Nov-06

Dec-06



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Requirement for Hotel Rooms (2005 - 2020)

4,924 6,285 4,170

11,076

20,715

5,530

0

5,000

10,000

15,000

20,000

25,000

30,000

3- to 5-star 1- to 2-star Others

Rooms

Actual Hotel Rooms as at 2005 Hotel Rooms Requirement as at 2020-2005

Hotel Market Outlook :- Hot market for investors, foreign investment funds - High occupancy rate

- Limited supply - High demand- Increasing number of intl visitor arrivals- More high quality hotels required- Tourism industry has significant impacts on property sector (hotel, retail & second-home projects)

Market Highlights:- High occupancy rate- 390 new 3 to 5 star hotel rooms in 2007

- 2 licenses were granted in early Q1/2007 to build 25-star hotels in My Dinh area

Hotel - Future Supply

Dan Chu Hotel

Hoan Kiem Hotel

Dong Loi Hotel

Hanoi SofitelMetropole

Inter-Continental

0 50 100 150 200 250 300 350

2007

2007

2007

2007

2008

Rooms

HANOI RETAIL MARKET


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N u m b e r o f s u p e r m a r k e t s b y d i s t r i c ts

23.91%

13.04%

8.70%10.87%

8.70%

17.39%

6.52%6.52% 2.17% 2.17%

Dong Da Hai Ba Trung Cau Giay Hoan Kiem Hoang Mai

Ba Dinh Thanh Xuan Tu Liem Dong Anh Thanh Tri

No. DistrictNumber of

Supermarkets GFA (sqm)Trading area

(sqm)

1 Dong Da 11 17,140 11,5332 Hai Ba Trung 6 8,480 5,5803 Cau Giay 4 24,027 9,310

4 Hoan Kiem 5 10,280 5,8705 Hoang Mai 4 2,554 1,0046 Ba Dinh 8 7,865 3,5207 Thanh Xuan 3 1,702 1,7028 Tu Liem 3 63,585 11,7259 Dong Anh 1 440 300

10 Thanh Tri 1 250 250Total 46 136,323 50,794

HANOI SUPERMARKETS

Total trading areas of Supermarkets in Hanoi (by district)

11,533

5,580

9,310

5,870

1,004

3,520

1,702

11,725

300

250

0 3,000 6,000 9,000 12,000 15,000

Dong Da

Hai Ba Trung

Cau Giay

Hoan Kiem

Hoang Mai

Ba Dinh

Thanh Xuan

Tu Liem

Dong Anh

Thanh Tri

sqm

Major players:-Intimex

-Fivimart

-Citimart

-Hapro Mart

HANOI RETAIL MARKET


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SHOPPING CENTRES

Future Supply of Hanoi Shopping Centres

The Manor

Viglacera

Ruby Plaza

Thai Thinh Plaza

N

goc Khanh Plaza

Cau Giay Comlex

The Garden

Viet Tower

Ciputra Mall

Hanoi City Complex

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q1/2007

Q1/2007

Q1/2007

Q3/2007

Q4/2007

Q4/2007

Q1/2008

Q1/2008

2009

2010

sqm

Market highlights:- High occupancy

- Strong & increasing demand

- Limited supply

- Increasing rental

N e t A r e a a n d Av e r a g e R e n t o f H a n o i S h o pp i n g C e n t r e s

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Trang Tien Plaza

Hanoi Tower

V - Tower

VKO

Vincom City

Towers

BigC Thang Long

Me Linh Plaza

Hoa Binh Int'l

Towers

Opera Business

Centre

Pacific Place

sq m

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00Leasable Area (sqm)

Gross Rent per sqm

HANOI RETAIL MARKET


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Market Outlook:

WTO accession & the entry of foreign retailers

New high- quality supply

Increasing Demand

New international brand-names coming to Vietnam

Rental rate increase for high- quality spaces

FUTURE PROJECTS:Opera Business Centre : 6B Trang Tien Str.

GFA: 1,070sqmCompletion date: Q1 2007

Pacific Place: 83B Ly Thuong Kiet Str.GFA: 7,500sqmCompletion date: Q1/2007

Ruby Plaza: 44 Le Ngoc Han Str.GFA: 3,300sqmCompletion date: Q1/2007

The Manor: My DinhGFA: 6,000sqmCompletion date: Q1/2007

The Garden : My DinhGFA: 20,500sqmCompletion date: Q1/2008

Viet Tower: 1 Thai Ha Str.GFA: 12,250sqmCompletion date: Q1/2008

Ciputra Mall : Ciputra Hanoi Intl City

4 levels 130,000sqm and 1 basementCompletion date: 2009Hanoi City Complex: Lieu Giai Dao Tan

GFA: 50,000sqmCompletion date: 2010

CIPUTRA SHOPPING MALL

HANOI RESIDENTIAL MARKET


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Trend of Apa r tmen t Supply 2007-2020(By cur ren t p roposed and u nder-cons t ruc t ion NUA pro jec t s

in Hano i & an ad jacen t r eg ion)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year

No. of apartments

Trend of Villa Supply 2007-2020(By current proposed and under-construction NUA projects

in Hanoi & an adjacent region)

-

1,000

2,000

3,000

4,000

5,000

6,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year

No. of villas

Hous ing : % of apa r tmen t

26 2

9

24 2

6

5

24

15

11

84

60 1 1

14 14 14 14 14 14 14 14 14 14 14 14 14 14

0

5

10

15

20

25

30

35

Ba Dinh

Hoan Kiem

Hai Ba Trung

Dong Da

Tay Ho

Thanh Xuan

Cau Giay

Hoang Mai

Long Bien

Tu Liem

Thanh Tri

Soc Son

Dong Anh

Gia Lam

0

5

10

15

20

25

30

35

Districts Hanoi City

(Source: HAIDEPstudy)(Source: CBRE)

Hous ing : % of de tached , semi -de tached & te r race

69

54

72

72

92

75 8

384 8

8 91

91 9

594

94

82 82 82 82 82 82 82 82 82 82 82 82 82 82

0

10

20

30

40

50

60

70

80

90

100

Ba Dinh

Hoan Kiem

Hai Ba Trung

Dong Da

Tay Ho

Thanh Xuan

Cau Giay

Hoang Mai

Long Bien

Tu Liem

Thanh Tri

Soc Son

Dong Anh

Gia Lam

0

10

20

30

40

50

60

70

80

90

100

Districts Hanoi City



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Market Highlights:

- Foreign developers are interested in large projects

- Korean developers are very active and will be key players in future; Japanese developersare also active

-Local developers dominate small and medium projects

Future Supply of Condos for sale

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Units

Sale Price - Condos for sale

1,800

1,500

800

1,200

800

1,900

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

PacificPlace

The Manor ChelseaPark

Hoa BinhInt'l Towers

Ciputra GoldenWestlake

US$/sqm



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Market outlook:Strong sales outlook for quality projects

Growing demand

High demand for quality projects in

prime locationPurchase finance

Infrastructure improvement

Housing Supply Vs. Actual Demand in Hanoi

-

10,000

20,000

30,000

2006 2007 2008 2009 2010

housing units

Actual demand for housing Supply (housing units)

HANOI RETAIL MARKET


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CBRE GLOBAL OFFICE LOCATIONS


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