Hanoi Quarterly Knowledge Report | Q4 2016

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www.colliers.com/vietnam
HANOI QUARTERLY KNOWLEDGE REPORT
Q4 2016

TABLE OF CONTENTS

ECONOMIC OVERVIEW...............................................................................................................
VIETNAM ....................................................................................................................................
HO CHI MINH CITY ......................................................................................................................
HA NOI ........................................................................................................................................

HA NOI MARKET OVERVIEW ................................................................................................
OFFICE ........................................................................................................................................
RETAIL ........................................................................................................................................
CONDOMINIUM ............................................................................................................................
VILLA & TOWNHOUSE .................................................................................................................
SERVICED APARTMENT ..............................................................................................................
INDUSTRIAL ................................................................................................................................
Cover Page: Hanoi Skyline
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LIST OF FIGURES
Figure 1: Vietnam Exports - Imports in 2016.......................................................................................
Figure 2: International Arrivals to Vietnam in 2016 ............................................................................
Figure 3: FDI Capital of HCMC and Hanoi ..........................................................................................
Figure 4: GDP Growth Rate of HCMC and Hanoi ................................................................................
HA NOI MARKET OVERVIEW
Figure 5: Office, Average Asking Rent.................................................................................................
Figure 6: Office, Occupancy Rate .......................................................................................................
Figure 7: Retail, Market Performance .................................................................................................
Figure 8: Retail, Total Supply .............................................................................................................
Figure 9: Condominium, Primary Sale Price ......................................................................................
Figure 10: Condominium, New Launches by Year ...............................................................................
Figure 11: Condominium, Sold Units by Segment and Year ..................................................................
Figure 12: Villa and Townhouse, Supply by Quarter ............................................................................
Figure 13: Villa and Townhouse, Supply by District .............................................................................
Figure 14: Villa and Townhouse, Q-o-Q changes in Secondary Price ..................................................
Figure 15: Serviced Apartment, Average Asking Rent by Grade ..........................................................
Figure 16: Serviced Apartment, Current Grade A&B supply ................................................................
Figure 17: Industrial, Market Performance by Distrtict ........................................................................
Figure 18: Industrial, Supply by District ..............................................................................................

LIST OF TABLES
Table 1: Macroeconomic Indicators of HCMC and Hanoi ......................................................................
Table 2: Office, Future Supply.............................................................................................................
Table 3: Significant CBD Office Projects ...........................................................................................
Table 4: Retail, Future Supply ...........................................................................................................
Table 5: Significant Retail Projects ...................................................................................................
Table 6: Condominium, New Projects Launched in Q4 2016 ..............................................................
Table 7: Villa and Townhouse, New Projects Launched in Q4 2016 ....................................................
Table 8: Serviced Apartment, Future Supply .....................................................................................
Table 9: Significant Serviced Apartment Projects .............................................................................
Table 10: Industrial, Future Supply ....................................................................................................
Table 11: Hanoi Industrial Market Overview ........................................................................................
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GDP
Vietnam’s GDP was estimated to grow by 6.2% in 2016, driven mostly by industrial expansion and growth in construction
and services. This year recorded a decrease in the country’s economic growth rate compared to the growth of 6.68% in
2015. The service sector grew by 7.57% y-o-y while the industrial and construction increased by 6.98% y-o-y. The whole
year witnessed a big slowdown in agriculture-forestry-fishing with a modest growth rate of 1.36% y-o-y mainly due to
natural disasters. Although 2016’s GDP was below the 6.7% target set by the National Assembly, the country remained one
of the strongest performers in the region. We expect next year’s GDP to remain on a positive trajectory with our full year
forecast standing at 6.5% on the back of increasing global integration and local production recovery.
CPI
The last month of 2016 saw a slight increase of 0.73% m-o-m in CPI index, despite purchasing needs at the year end. For
the whole year, average CPI rose by 2.7% y-o-y. Six out of eleven major goods and service groups saw price rises with
the highest growth recorded in medicine and healthcare services, at 5.3%. Main reasons for the CPI hike in 2016 were
determined to be the government’s upward price adjustment of healthcare services and natural disasters’ effects on crops.
With the target CPI of 4% set by National Assembly, price adjustment methods should be implemented for key commodity
groups such as healthcare services, electricity and water, as well as a close supervision process should be kept on the world
oil price to prevent the domestic price from shooting up.
FDI
As of the end of 2016, the country attracted 2,556 new foreign investment projects with total investment of both newly
registered and supplementary capital reaching USD24.37 billion, representing an increase of 7.1% y-o-y in capital. Of the
total, there are 1,225 already-operating projects raising their capital by more than USD5.7 billion. Investment in real estate
accounted for 10.1%, which is equivalent to USD1.52 billion. South Korea was the largest foreign investor with USD5.5
billion, accounting for 36.6% of total capital, followed by Singapore and China with USD1.59 billion and USD1.26 billion,
respectively.
RETAIL SALES
Vietnam’s retail sales of goods and services reached USD156 billion, up 10.2% y-o-y. If the price factor was excluded, the
growth rate would be 7.8% y-o-y, lower than the increase of 8.5% y-o-y in 2015. By sector, retail sales of goods achieved
USD118.4 billion, accounting for 75.9% of total sales, up 10.2% y-o-y. Retail sales of accommodation and catering services
reached USD18.3 billion, accounting for 11.3% of total sales, representing an increase of 10.7% y-o-y. Retail sales of tourism
services, comprising 1% of total sales, reached USD 1.5 billion, up 12% y-o-y. Retail sales of other services, accounting for
11.4% of total sales, were estimated at USD17.8 billion, equivalent to 9.3% increase y-o-y.
INTERNATIONAL ARRIVALS
In 2016, Vietnam welcomed 10.01 million international visitors, equivalent to a significant increase of 26% y-o-y. Thanks
to visa exemption policy for citizens from five European countries and various tourism marketing strategies, this is the
first time the country attracted such a high number of international tourists, a twofold increase compared to the number of
2010. Asian visitors took the lead with more than 7.2 million arrivals, mainly from traditional markets such as China, South
Korea and Japan, comprising 72.5% of total visitors, followed by European visitors with 1.6 million arrivals and American
tourists with 0.7 million arrivals, respectively.
TRADE BALANCE
In 2016, Vietnam earned roughly USD175.9 billion from exports, reporting an increase of 8.6% y-o-y. Import turnovers
reached USD173.3 billion, up 4.6% against the previous year. As a result, the whole country registered a USD2.6 billion
trade surplus. Of the total, the domestic economic sector reported a trade deficit of USD21.02 billion with USD50 billion
in exports and USD71.1 billion in imports. On the contrary, the FDI sector enjoyed a trade surplus of USD23.7 with export
revenues of USD125.9 and import revenues of USD102.1. While the United States took the lead in export revenues with
USD38.1 billion, China remained the country’s largest import market with USD49.8 billion. By product, phones and phone
parts, electronic goods, textile and garments, computers, machinery and equipment are the major foreign currency earners.
Q4 2016 | ECONOMIC OVERVIEW
©2017 Colliers International Research
VIETNAM QUARTERLY KNOWLEDGE REPORT
Page 4
2017 forecast
Figure 1: Exports - Imports in Vietnam in 2016
Source: General Statistics Office | Colliers International Research
Figure 2: International arrivals to Vietnam in 2016
VIETNAM
-50
0
50
100
150
200
20052006200720082009 2010 2011 2012 2013 2014 2015 2016
USDbillion
Exports Imports Trade Balance
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
200520062007200820092010 2011 2012 2013 2014 2015 2016
thousandarrivals
International tourist arrivals Average

Q4 2016 | ECONOMIC OVERVIEW
Page 5
Figure 4: GDP Growth Rate of HCMC and Hanoi
Table 1: Marcoeconomic Indicators of HCMC and Hanoi
HCMC Hanoi
2016 2017 2016 2017
GDP (billion) 45.3 21.2
FDI (million) 1443.8 2800
Retail sales (billion) 30.1 22.3
Export (billion) 31.8 24.8
Import (billion) 37.9 14.2
HO CHI MINH CITY
In 2016, GRDP of Ho Chi Minh City achieved USD45.29 billion
with the growth rate of 8.05% y-o-y. In particular, the service
sector was the dominant contributor with USD24.8 billion,
comprising 54.8% of the city’s economy, followed by the industrial
& construction sector and the agriculture-forestry-fishery sector,
accounting for 0.84% and 28.76% respectively.
Of the whole year, total newly registered and supplementary FDI
achieved USD1.44 billion in which there were 177 supplementary
projects, worth of USD529.2 million. Investment in real estate took
the lead with 24 projects and USD357.4 million, accounting for
39.1% of total inflows. Cayman Islands was recorded as the biggest
foreign investor in the city, with USD270.5 million in registered
capital, accounting for 29.6%, followed by Japan (USD190.2
million) and Singapore (USD110.9 million).
Retail sales achieved USD30.1 billion, up 9.1% y-o-y. Highest
growth rates were seen in products which help to improve the
quality of life and traveling demand such as motor vehicles,
household appliances, building materials and gasoline.
The city’s export values reached USD31.8 billion, up 5.2% y-o-y.
Garments, agricultural products and computers & electronic
devices contributed the most to export values. The United States
was the largest export market with nearly USD5.4 billion, up 5%
y-o-y. Import values increased by 12.4% y-o-y, worth of USD37.85
billion, resulting in the city’s trade deficit of USD6 billion. The top
segments of import values were milk and dairy products, fuel,
garment material, plastics and iron & steel.
HANOI
In 2016, Hanoi’s GRDP achieved USD21.18 billion with the growth
rate of 8.2%. The industrial-construction sector and the service
sector had the highest growth rates, up 9% and 8.3% y-o-y
respectively, while the agriculture-forestry-fishery sector saw a
modest growth rate of 2.21% y-o-y.
Of the whole year, the capital city’s CPI increased 2.66% y-o-y. Out
of 11 sectors in the CPI basket, food and transportation witnessed
a slight fall in price.
As of the end of 2016, FDI inflows of both newly registered and
supplementary capital reached USD2.8 billion, up 46.4% in number
of projects and 164% in capital compared to the same period last
year. Disbursed capital was USD1.2 billion.
Retail sales of the capital city were up 8.8% compared to last year,
reaching USD22.3 billion.
In 2016, the city achieved USD10.61 billion in export revenues and
USD24.83 billion in import revenues, causing a trade deficit of
USD14.22 billion in the whole year.
The capital city welcomed 2.8 million international visitors in 2016,
equivalent to an increment of 19.9% y-o-y.
Figure 3: FDI Capital of HCMC and Hanoi
6%
8%
10%
12%
14%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
HCMC Hanoi
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014 2015 2016
USDmillion
HCMC Hanoi

Q4 2016 | HA NOI | OFFICE
©2017 Colliers International Research Page 6
PERFORMANCE
The last quarter of 2016 witnessed a fall in rents across all
grades due to continued oversupply, staying at USD22.5/sqm/
month, down 1.7% q-o-q. Average net asking rent of Grade A
declined 3% q-o-q to USD27.2/sqm/month while Grade B’s rent
remained relatively static at USD17.9/sqm/month.
Average occupancy rate continued to show a downward trend
because of an oversupply, standing at 78.7%, which was a
decline of 4.5 ppts q-o-q. Grade A’s occupancy rate was down
3 ppts to 80% while Grade B experienced a significant decrease
of 6 ppts q-o-q, staying at 78%.
The diminishing trend in both rents and occupancy rates is
expected to continue in 2017 since a huge gap exists between
supply and demand in Hanoi’s office marke.
SUPPLY
The last quarter of 2016 recorded no new supply entering the
market. The capital city currently has approximately 410,000
sqm NLA of Grade A and 770,000sqm NLA of Grade B office
buildings. On a yearly basis, the city saw a surge in supply in
both Grade A and Grade B buildings with growth rates of nearly
14% y-o-y and 5% y-o-y, respectively.
Despite an existing oversupply, it is predicted that a large
amount of additional supply would be coming in the future as
many office projects which were due for completion in 2016
rescheduled their construction progress for 2017.
DEMAND
Recently, the Federal Reserve decided to raise its key interest
rate by a quarter point, which is forecasted to widely affect
the global economy. Theoretically, once US rates rise, global
investors are more likely to move their money out of emerging
markets like Vietnam and back to less risky countries like
US. Nevertheless, in the short and medium run, this small
change will not be enough to dramatically affect capital flows,
suggesting that the impact on property market and demand for
office space as well will be limited. Economic recovery, coupled
with improvements in business environment in previous years
are expected to fuel the demand for establishing a new office or
expanding current premises of foreign and domestic enterprises,
proving a supportive landscape for the office market in Hanoi in
the upcoming period.
OUTLOOK
By 2017, the capital city’s office market will welcome 8 new
projects which are currently under construction, providing
approximately 331,122 sqm of new space. Given the huge
pipeline, the office market in Hanoi will remain as the tenant-
oriented market, indicating that rental rates will maintain their
downward trend in the coming years. As rents and vacancy
rates are continuing to come down, we will see tight competition
between landlords in CBD and non-CBD areas. In order to
attract more tenants, property owners need to apply appropriate
marketing and pricing strategy as well as to maintain their
properties with good management services.
Figure 5: Office, Average Asking Rent
Source: Colliers International Research
Figure 6: Office, Occupancy Rate
Table 2: Office, Future Supply
Project name Grade
NLA
(sqm)
Expected
completion
Horison Tower B 8,000 Q1 2017
Discovery Complex B 93,320 Q2 2017
Comatce Tower B 43,100 Q2 2017
Eurowindow Building B 16,592 Q3 2017
Vinacomin Tower B 103,100 Q4 2017
DSD Building B 6,860 Q4 2017
Handi Resco Tower B 24,190 Q4 2017
FLC Twin Tower B 35,960 Q4 2017
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016
US$/sqm/month
Grade A Grade B
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2012 2013 2014 2015 2016
Grade A Grade B

Q4 2016 | HA NOI | OFFICE
Page 7
(*) US$/sqm/month (NLA)
Table 3: Significant CBD Office Projects
No Name Address
Completion
Year
NLA
(sqm)
Service
Charges
(*)
Occupancy
rate
Average
asking rent
(**)
1 Central Building 31 Hai Ba Trung 1995 3,653 9.0 100% 33.0
2 International Centre 17 Ngo Quyen 1995 6,500 - 90% 24.0
3 Hanoi Tower 49 Hai Ba Trung 1997 9,000 - 100% 27.0
4 63 Ly Thai To Building 63 Ly Thai To 1998 6,753 included 100% 47.0
5 Sun Red River Building 23 Phan Chu Trinh 1999 13,459 7.0 97% 28.0
6 Vietcombank Tower 198 Tran Quang Khai 2000 19,563 included 100% 29.0
7 Opera Business Centre 60 Ly Thai To 2007 3,787 included 98% 22.0
8 Pacific Palace 83B Ly Thuong Kiet 2007 16,600 7.4 85% 36.8
9 Asia Tower 2 Nha Tho 2007 3,100 7.7 87% 38.0
10 Sun City Building 13 Hai Ba Trung 2007 6,400 - 100% 45.0
11 BIDV Tower 194 Tran Quang Khai 2010 10,120 7.0 96% 29.3
12 Sentinel Place Hang Da 2010 8,000 8.5 98% 35.0
13 Corner Stone 16 Phan Chu Trinh 2013 26,500 7.0 96% 31.0
14 Hong Ha Center 25 Ly Thuong Kiet 2013 11,000 5.0 93% 20.0
Grade A 144,435 7.0 96% 31.1
1 Tungshing Square 2 Ngo Quyen 1996 8,306 5.7 90% 28.7
2 Melia Hotel 44B Ly Thuong Kiet 1997 8,500 - 90% 38.0
3 Prime Centre 53 Quang Trung 1998 7,600 - 100% 27.0
4 VIB Hai Ba Trung 59 Quang Trung 2006 3,000 - 68% 16.0
5 Capital Tower 109 Tran Hung Dao 2010 21,089 7.0 99% 35.0
6 Hanoi Tourist Building 18 Ly Thuong Kiet 2010 7,600 - 100% 24.0
7 Capital Building 72 Tran Hung Dao 2013 5,800 - 100% 25.0
8 Coalimex Building 33 Trang Thi 2013 5,071 5.0 79% 18.0
9 VID Building 115 Tran Hung Dao 2013 4,930 - 89% 23.0
10 Artex Port 31-33 Ngo Quyen 2014 4,725 - 100% 23
Grade B 76,621 6.0 94% 28.6

Q4 2016 | HA NOI | RETAIL
Table 3: Significant Office ProjectsPERFORMANCE
Average net asking rents in 2016 dropped 5% y-o-y, staying at
USD38/sqm/month. While rents of the CBD recorded a nominal
rise by 2% y-o-y, reaching USD81/sqm/month, those of non-CBD
declined 6% y-o-y, staying at USD30/sqm/month.
Due to weak purchasing power and considerable new supply,
retail centers in Hanoi are suffering from increasing vacancy
space. Average occupancy rates in 2016 decreased 2%, staying
at 87% across all segments.
SUPPLY
In Q4 2016, three new retail centers, Vincom Center Pham
Ngoc Thach, Vincom Plaza Bac Tu Liem and Trang An Complex
entered the market, providing an additional 64,500sqm GFA.
With a prominent retail mix of shopping, entertainment and F&B
services, Vingroup has expanded its network across the capital
city through its 6th and 7th shopping mall. Trang An Complex
includes 10,500sqm GFA of retail space which has been fully
occupied.
After eight years of operation, Parkson Viet Tower was closed in
December 2016, withdrawing 11,000sqm GFA. With the closure
of two department stores within a two-year period, Parkson
officially decided to leave Hanoi.
DEMAND
According to a recent survey in Vietnam by Nielsen, as of Q3 2016,
Consumer Confidence Index in Viet Nam remained strong at 107
points, unchanged from the previous quarter and stayed among
the top 10 most optimistic globally. Compared to neighboring
countries, Vietnam’s consumer confidence level ranked fourth out
of six South East Asia countries, lagging behind the Philippines,
Indonesia and Thailand, while other regional peers experienced
below 100 points over the same period. The continued strong
consumer confidence index may have positive impacts on retail
sales and in turn spur demand for retail space in Hanoi.
OUTLOOK
There are a number of developments which were under
construction, or being proposed, which include quality retail
facilities that will provide more shopping centres over the coming
years. A steady supply of new developments is expected to
enter the market from 2017 onwards, and overall the long-term
outlook is positive on the back of improved economic growth and
benefits from the liberalization of retail sector under conditions
of Vietnam’s WTO membership and the recent participation in the
Trans-Pacific Partnership.
Figure 7: Retail, Market Performance
Table 4: Retail, Future Supply
Figure 8: Retail, Total Supply
Project Name District GFA (sqm)
Expected
completion
Horizon Tower Tu Liem 6,719 Q1 2017
Discovery Complex Cau Giay 38,144 Q2 2017
Ecolife Capital Nam Tu Liem 20,000 Q3 2017
Artemis Thanh Xuan 27,000 Q3 2017
Loc Ninh Singashine Chuong My 14,800 Q4 2017
FLC Twin Towers Cau Giay 25,000 Q4 2017
Handi Resco Thanh Xuan 4,769 Q4 2017
Eco Green City Hoang Mai 7,000 Q4 2017
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010 2011 2012 2013 2014 2015 2016
sqm
CBD Non-CBD
0
10
20
30
40
50
60
70
75%
80%
85%
90%
95%
100%
2010 2011 2012 2013 2014 2015 2016
US$/sqm/month
Rental rate Occupancy

Q4 2016 | HA NOI | RETAIL
Table 5: Significant Retail Projects
No
Name of Project /
Building
Address Location
Completion
Year
NLA
(sq m)
ARR (*)
Occupancy
Rate
1 Central Building 31 Hai Ba Trung Hoan Kiem 1995 550 90-100 100%
2 Hanoi Tower 49 Hai Ba Trung Hoan Kiem 1997 2,515 50-60 73%
3 63 Ly Thai To Building 63 Ly Thai To Hoan Kiem 1998 650 150 100%
4 ICC Building 71 Nguyen Chi Thanh Dong Da 2006 2,900 19 87%
5 Pacific Place 83b Ly Thuong Kiet Hoan Kiem 2007 2,300 72 100%
6 Opera Business Center 6b Trang Tien Hoan Kiem 2007 370 90-150 100%
7 Asia Tower 6 Pho Nha Tho Hoan Kiem 2008 300 95 41%
8 Sentinel Place 41A Ly Thai To Hoan Kiem 2010 700 45 100%
9 Sky City Tower 88 Lang Ha Dong Da 2010 5,400 20-80 100%
10 The Lancaster Hanoi 20 Nui Truc Ba Dinh 2013 3,123 26-33 74%
11 Madarin Garden Residential 1 Hoang Minh Giam Cau Giay 2013 11,000 25-30 97%
Retail Podium 29,808 92%
1 Vincom Center Ba Trieu - Tower A&B 191 Ba Trieu Hai Ba Trung 2004 17,700 90-100 99%
2 Vincom Center Ba Trieu - Tower C 191 Ba Trieu Hai Ba Trung 2004 10,974 80 100%
3 Ruby Plaza 44 Le Ngoc Han Hai Ba Trung 2007 2,400 18 99%
4 Syrena 51B Xuan Dieu Tay Ho 2008 4,153 30 100%
5 Trang Tien Plaza 24 Hai Ba Trung Hoan Kiem 2008 12,000 10 85%
6 Savico MegaMall 7-9 Nguyen Van Linh Long Bien 2011 43,500 20-25 99%
7 Vincom Center Long Bien KDT Vincom Long Bien 2012 29,000 20 70%
8 Indochina Plaza Hanoi 241 Xuan Thuy Cau Giay 2012 17,000 27 97%
9 Vincom Mega Mall - Royal City 72A Nguyen Trai Thanh Xuan 2013 181,317 70 99%
10 Vincom Mega Mall - Time City 458 Minh Khai Hai Ba Trung 2014 83,950 50 100%
11 Aeon Mall Long Bien 2 Co Linh Long Bien 2015 72,000 45 100%
12 Vincom Nguyen Chi Thanh 54A Nguyen Chi Thanh Dong Da 2015 65,328 70-80 99%
Shopping Centre 539,322 97%
1 The Garden (Bitexco) Me Tri Tu Liem 2007 24,063 28-35 90%
2 Ho Guom Plaza Ha Dong Ha Dong 2013 23,380 16 94%
3 Lotte Department Store 54 Lieu Giai Ba Dinh 2014 21,480 43 97%
Department Store 68,923 94%
(*) ARR (Average Rental Rate): All rents are stated in net rents per sqm, inclusive service charge but exculding VAT

Q4 2016 | HA NOI | CONDOMINIUM
PERFORMANCE
The year 2016 recorded 20,900 successful transactions across
all segments, down 1.9% compared to the previous year. Mid to
high-end segments dominated sales with 9,700 and 6,800 sold
units, accounting for 46% and 32% of market share respectively.
Price growth on the primary market was at 3-5% y-o-y on
average. Prices in high-end segments registered the strongest
growth at 9% y-o-y while those in mid-end and affordable
segments were static at 2% and 1% growth on yearly basis.
SUPPLY
The total number of newly launched units in 2016 reached
approximately 30,000 which were lower 10% than those of
2015.
By segment, mid-end and high-end segment recorded the highest
number of new launches with more than 80% of total new supply.
The luxury segment was revived with two new projects in the
Westlake while the affordable segment significantly decreased in
its stock. Large land bank and upgrading infrastructure enabled
the West and South West to provide largest supply among other
areas of the city.
DEMAND
Hanoi currently has a population of approximately 7.5 million,
comprising 12.2% of the whole nation’s population of 91.7
million people. The population growth rate is proportionally
high compared to the country average of 1.07% between 2010
and 2015. The number of residents in the city is forecasted to
continue to rise at a constant rate to an estimated figure of 7.9
million at the end of 2020. Steady population growth is the main
driver of the condominium market in the city.
OUTLOOK
Vingroup, a leading property developer, recently unveiled
Vin City, a brand-new project aimed at providing affordable
apartments in seven major cities and provinces throughout the
country. To meet the demand of middle and low income buyers,
more developers in Hanoi have begun to tap into this potential
market segment. It is expected that the shortage of affordable
housing will be resolved in coming years.
Figure 9: Condominium, Primary Sale Price
Figure 10: Condominium, New Launches by Year
Figure 11: Condominium, Sold Units by Segment and Year
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
2010 2011 2012 2013 2014 2015 2016
Luxury High-end Mid-end Affordable
US$/sqm
0
5000
10000
15000
20000
25000
30000
35000
40000
2010 2011 2012 2013 2014 2015 2016 2017F 2018F2019F
units
0
5,000
10,000
15,000
20,000
25,000
2010 2011 2012 2013 2014 2015 2016
units
Luxury High-end Mid-end Affordable

Q4 2016 | HA NOI | CONDOMINIUM
Table 3: Significant Office ProjectsTable 3: Significant Office Projects
* Excluding all kinds of tax, promotions and management fee
The information is updated as at the end of Q4 2016
Table 6: Condominium, New projects launched in Q4 2016
No Name of Project/Building Developer Location
Completion
Year
Number of
units
Asking Price
(US$/sqm)
1 Tu Hiep Plaza Vinh Hanh Corp Thanh Tri 2016 648 700
2 Anland Complex Nam Cuong Corp Ha Dong 2017 533 1,100
3 Roman Plaza Hai Phat Corp Ha Dong 2017 804 1,000
4 The Legend Nguyen Tuan Dai Viet Tri Tue Thanh Xuan 2017 400 1,520
5 Sunshine Garden Sunshine Group Hai Ba Trung 2017 1,278 1,150
6 Sunshine Boulevard Sunshine Group Thanh Xuan 2017 500 1,400
7 Sunshine Center Sunshine Group Nam Tu Liem 2017 398 1,300
8 Sunshine Riverside Sunshine Group Tay Ho 2017 168 1,600
9 Ha Noi Paragon VT Corp Cau Giay 2017 495 1,400
10 Sunshine Palace Sunshine Group Hoang Mai 2017 396 1,200
11 D’.Capitale - C1, C6 Tan Hoang Minh Cau Giay 2018 1,800 1,850
12 D’.Eldorado 1 Tan Hoang Minh Tay Ho 2018 340 1,700
13 D’.Eldorado 2 - Phu Thanh complex Tan Hoang Minh Tay Ho 2018 136 1,600
14 Rivera Park Long Giang Land Thanh Xuan 2018 666 1,250
15 The Golden Palm HDIS Nam Tu Liem 2018 400 1,500
16 An Bình City - block A2 Geleximco Thanh Xuan 2018 276 1,000
17 Legend Park VIG Nam Tu Liem 2018 318 1,800
New launches in Q4 2016 9,556

Q4 2016 | HA NOI | VILLA & TOWNHOUSE
PERFORMANCE
Thanks to improved year-end sentiment, the last quarter of
2016 witnessed the highest transaction volumes in two years
with more than 750 successful deals, up 129% compared to the
previous quarter. By type of property, townhouses dominated
sales activities with 64% of total transactions. Tu Liem and Ha
Dong took the lead with nearly 50% of sales owning to their
large land availability.
Market secondary price saw a decrease of 2% q-o-q and 3%
y-o-y, averaging at USD3,238.6 for completed properties. Cau
Giay District had the highest average price, up 4.2% q-o-q.
Meanwhile, most of other districts recorded a decline in price
on the secondary market.
SUPPLY
The supply pipeline in the last quarter of 2016 saw approximately
370 dwellings from 5 projects coming to the market. Ha Dong,
Nam Tu Liem and Bac Tu Liem Districts were the dominant
contributors, cumulatively accounting for more than 80% of the
market share. Townhouse was the most popular product with
275 units, accounting for nearly 75% of total newly launched
supply. Some of notable launches in Q4 2016 were Belleville,
Foresa Villa, Mai Son Du Parc and 24h Van Phuc.
DEMAND
While pricing is the most determinant element for buyers in
affordable segment, the villa and townhouse segment targets
affluent customers who initially focus their spending on
improving living conditions. With the growing middle and affluent
class in Vietnam, the demand for landed properties is expected
to be on the rise.
In addition, landed property is considered as an investment
vehicle, which ensures the highest profitability possible and
protects investors’ assets against currency devaluation. The
preferred choice of landed housing among Vietnamese people is
also supporting the segment.
OUTLOOK
Given the current construction status, the market will see 8
projects coming online, providing some 2680 units in the next
coming years, with the number of townhouses expected to
dominate the market share.
The villa and townhouse performance in the Hanoi City market
is predicted to remain strong in the short term owning to the
positive sentiment in both demand and supply. Thanks to better
land availability, landed property projects tend to be developed
in suburban districts. The success of these projects is closely
linked to infrastructure development.
Figure 12: Villa and Townhouse, Supply by quarter
Figure 13: Villa and Townhouse, Supply by District
Figure 14: Villa and Townhouse, Q-o-Q changes in secondary price
0
20
40
60
80
100
120
140
160
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2014 2015 2016
No.ofprojects
units
Units No. of Projects
-10
-8
-6
-4
-2
0
2
4
0
1000
2000
3000
4000
5000
6000
2012 2013 2014 2015 2016
%
USD/sqm
Market Average Price Q4 2015 Q-o-Q changes
Ha Dong
31%
Nam Tu Liem
26%
Bac Tu Liem
25%
Cau Giay
18%

Q4 2016 | HA NOI | VILLA & TOWNHOUSE
Table 3: Significant Office ProjectsTable 3: Significant Office ProjectsTable 3: Significant Office Projects
* Excluding all kinds of tax, promotions and management fee
The information is updated as at the end of Q4 2016
Table 7: Significant new projects launched in Q4 2016
No Name of Project/Building Developer Location
Completion
Year
Number
of units
Asking Price
(US$/sqm)
1 Roman Plaza Hai Phat Tu Liem 2019 59 4,000
2 24h Van Phuc Hai Phat Ha Dong 2017 125 5,300
3 Foresa Villa Tasco Nam Tu Liem 2017 35 1,400
4 Belleville Vimedimex Group Cau Giay 2017 66 9,200
5 Mai Son Du Parc Geleximco Bac Tu Liem 2016 94 4,200
New launches in Q4 2016 379

Q4 2016 | HA NOI | SERVICED APARTMENT
Table 3: Significant Office ProjectsPERFORMANCE
The market in the capital city saw a slight increase of 1ppt
q-o-q in the average occupancy rate, staying at 85%, but also
witnessed a slight decrease of 2% q-o-q in average rental rates,
staying at USD26.1/sqm/month. On a yearly basis, the city’s
average occupancy rate remained unchanged, whilst the decline
of average rental price was about 3.3%, equivalent to a drop of
USD0.9/sqm/month.
By segment, Grade A’s rent stayed unchanged q-o-q, at USD32/
sqm/month and its occupancy rate dipped slightly by 1ppt, at
84%. Grade B dropped 5% q-o-q in rents but climbed 3.5ppts
in occupancy rates, staying at 84% and USD20.2/sqm/month
respectively.
SUPPLY
The market, with no new supply last quarter, has 41 buildings
providing 2,200 serviced apartments from studios to
four-bedroom units and penthouses.
By type of apartments, two-bedroom units continued to dominate
the market share with more than 50% of total supply. The asking
rent of this type of apartments usually falls into a range of
USD1,600-USD2,000 per unit.
In terms of location, Ba Dinh District was the largest source of
supply in Hanoi serviced apartment, accounting for 28% of all
units in the market, followed by Tay Ho District with 24% of total
supply.
DEMAND
Serviced apartments can be seen as hybrid properties filling the
gap between leased residences and hotel rooms as they offer
flexibility, modern conveniences and value-added services to
tenants. According to the General Statistics Office, the annual
growth rate of international visitors to Vietnam is about 20% per
year. The fact that serviced apartments are now more preferred
by travelers as opposed to hotels due to their additional space and
amenities will push upward pressure on demand for this sector.
OUTLOOK
In the near to medium term, the market will see further supply
expansion as developers rush to meet the high demand. There
will be 571 units coming on stream in the next two years from one
project located in Tay Ho District and the other two located in Cau
Giay District.
The facts that buy-to-let trend is becoming more popular and
some hotels are converting part of them into serviced apartments
will create more pressure on serviced apartment market, resulting
in a more competitive playing field going forward.
Table 8: Serviced Apartment, Future Supply
Figure 15: Serviced Apartment, Average Asking Rent by Grade
Figure 16: Serviced Apartment, Current Grade A&B supply
Project Name District
Expected
units
Expected
completion
Trang An Complex Cau Giay 42 Q1 2017
Somerset West Point Tay Ho 247 Q1 2017
Somerset West Central Hanoi Cau Giay 252 2018
0
5
10
15
20
25
30
35
40
2012 2013 2014 2015 2016
USD/sqm/month
Grade A Grade B
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2000 2005 2010 2011 2012 2013 2014 2015 2016
units
Grade A Grade B

Q4 2016 | HA NOI | SERVICED APARTMENT
Table 3: Significant Office ProjectsTable 9: Significant Serviced Apartment Projects
No. Project Name Address Location
Total
Units
Average
Occupancy
ARR(*)
(**)
1 Hanoi Daewoo 360 Kim Ma Ba Dinh 194 85% 28.0
2 Hanoi Somerset Grand 49 Hai Ba Trung Hoan Kiem 185 70% 30.0
3 Sedona Suites 96 To Ngoc Van Tay Ho 181 90% 34.3
4 Somerset West Lake 254D Thuy Khue Tay Ho 90 82% 33.0
5 Sofitel Plaza 1 Thanh Nien Ba Dinh 56 100% 38.0
6 Sun Red River 23 Phan Chu Trinh Hoan Kiem 46 96% 27.0
7 Hanoi Lake View 28 Thanh Nien Tay Ho 26 100% 25.0
8 Pacific Place 83B Ly Thuong Kiet Hoan Kiem 35 55% 23.0
9 Intercontinental Ha Noi 13 Nghi Tam Tay Ho 25 88% 35.0
10 Somerset Hoa Binh 106 Hoang Quoc Viet Cau Giay 206 87% 31.0
11 Fraser Suites Hanoi 51 Xuan Dieu Tay Ho 184 95% 40.5
12 Crown Plaza 36 Le Duc Tho Tu Liem 136 95% 35.0
13 Calidas E6, Pham Hung Tu Liem 378 99% 38.0
14 Lotte Center Dao Tan, Cong Vi Ba Dinh 258 87% 44.0
15 Hanoi Club 76 Yen Phu Tay Ho 54 96% 29.0
Grade A 2,054 89% 34.9
1 Oriental Palace 33 Tay Ho Tay Ho 59 88% 30.0
2 Pan Horizon 157 Xuan Thuy Cau Giay 86 80% 30.0
3 Rose Garden 170 Ngoc Khanh Ba Dinh 96 91% 24.0
4 Jana Garden Terrace 6 Kim Dong Hoang Mai 72 83% 20.0
5 V-Tower 649 Kim Ma Ba Dinh 36 100% 28.0
6 DMC Lake View 535 Kim Ma Ba Dinh 66 82% 16.0
7 Atlanta 49 Hang Chuoi Hai Ba Trung 50 92% 24.0
8 Elegant Suites Hahoi 19B Ha Hoi Hoan Kiem 39 92% 23.0
9 Hoa Binh Green No. 14, Ally 376 Buoi Ba Dinh 40 92% 22.0
10 Times City 485 Minh Khai Hai Ba Trung 150 85% 19.0
11 Royal City 72 Nguyen Trai Thanh Xuan 100 70% 17.0
12 My Way 4, Alley 86, Duy Tan Cau Giay 39 93% 25.0
13 Rainbow 7 Trieu Viet Vuong Hai Ba Trung 26 88% 14.0
14 Dolphin 28 Tran Binh Tu Liem 70 93% 15.0
15 Lancaster Hanoi 20 Nui Truc Ba Dinh 31 90% 24.0
16 Elegant Suites Westlake 10C Dang Thai Mai Tay Ho 131 94% 27.0
17 May Fair 34B Tran Phu Ba Dinh 48 95% 17.0
18 Hanoi Lakes Residences 11-13 Nam Trang Ba Dinh 10 100% 9.0
19 Skyline Tower 4 Dang Dung Ba Dinh 79 80% 30.0
20 Candle Hotel 287-301 Doi Can Ba Dinh 69 74% 27.0
21 Park View 9 Nguyen Binh Khiem Hai Ba Trung 6 100% 14.0
22 Flower Village Hanoi 14 Thuy Khue Tay Ho 131 90% 23.0
23 Palace de Thien Thai 2 Tho Nhuom Hoan Kiem 16 98% 23.0
24 The City Residences 37 Phan Dinh Phung Ba Dinh 15 67% 15.0
25 Swan Lake 3/61/31 Xuan Dieu Tay Ho 6 99% 16.0
26 Lakeside Garden 56 Xuan Dieu Tay Ho 8 62% 14.0
Grade B 1,479 87% 22.6
(*) US/sqm/month (**) ARR (Average Rental Rate): All rents are stated in gross rents per sqm, not including VAT and serviced charge

Q4 2016 | HA NOI | INDUSTRIAL
PERFORMANCE
Rental rates in Hanoi are generally lower compared to Ho Chi
Minh City. Average asking rent in Q4 2016 surged 20% on a
yearly basis but remained stable on a quarterly basis, recorded at
USD99.5/sqm/term. Remaining lease term is from 30-45 years.
Nam Thang Long industrial park offered the highest asking rent at
USD155/sqm/term. In spite of such a high rental rate, the 261ha
industrial park was fully occupied. Rents of ready-built factory in
Hanoi is USD1.5-2.5/sqm/month,approximately 40% lower than
those of Ho Chi Minh City.
The average occupancy rate increased by 15ppts on both quarterly
and yearly basis, reaching 77.3%. There are five out of 11 IPs fully
occupied, namely Nam Thang Long, Phu Nghia 1, Sai Dong B,
Thach That-Quoc Oai and Thang Long. Tu Liem and Long Bien are
two districts in which IPs were 100% leased out.
SUPPLY
The total stock was unchanged compared to the previous quarter
as there was no new supply in Q4 2016. Currently there are 11
operating IPs in Ha Noi, covering total land area of over 2,700 ha.
Chuong My, Thach That, Dong Anh districts are main suppliers
to the market, comprising of approximately 54% of the market
share.
DEMAND
Japan, China and Hong Kong are three leading investors at Hanoi’s
IPs, focusing on supporting industries, mechanical technology
and electronics.
The recent US interest rate hike is expected to bring some negative
effects on foreign investment to emerging markets like Vietnam.
However, with such a small change, this impact on capital inflows
will be insignificant in the short run. Foreign manufacturing firms
will continue to expand their operation and set up their factories
in the country on the back of relative low labor costs and young
dynamic workforce. Hence, demand for industrial properties in
the coming years will continue to be strong.
OUTLOOK
The future IP supply in Ha Noi is relatively higher than in HCM
City. By 2020, it is estimated to have 14 new IPs, with about 6,100
ha of total land area, equivalent to a 250% increase against the
current number.
Recently, Ha Noi’s government has agreed to switch functions and
implement the relocation plan for many IPs in order to deal with
the environmental pollution. As only 60% of industrial parks have
wastewater treatment systems, most of wastewater is discharged
directly into the environment. Thus, heavy metal concentrations
in soil in some villages have exceeded the allowed standards. It
is crucial that the establishment of industrial parks should pay
attention to environmental issues sustainable development.
Figure 17: Industrial, Market Performance by District
Figure 18: Industrial, Supply by District
Table 10: Industrial, Future Supply
Industrial Park Name District
GFA
(ha)
Quang Minh II Industrial Park Me Linh 266
Phuc Tho Industrial Park Phuc Tho 74
Phu Xuyen Industrial Park Phu Xuyen 488
Thanh My - Xuan Son Industrial Park Son Tay 108
Soc Son Industrial Park Soc Son 340
Soc Son II Industrial Park Soc Son 204
Soc Son III Industrial Park Soc Son 180
Soc Son IV Industrial Park Soc Son 216
Thanh Oai II Industrial Park Thanh Oai 480
Habeco Industrial Park Thuong Tin 300
Ha Noi Hi-BioTech Park Tu Liem 200
Chuong My
15%
Thach That
25%
Dong Anh
28%
Others
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
20
40
60
80
100
120
140
160
180
200
Tu Liem Soc Son Chuong
My
Me Linh Long Bien Thach
That
Dong Anh Phu
Xuyen
USD/sqm/term
Average asking rent Occupancy rate

Q4 2016 | HA NOI | INDUSTRIAL
Table 3: Significant Office ProjectsTable 11: Hanoi Industrial Market Overview
No. Name of Industrial Park Location
Distance to
CBD (km)
Total Area
(ha)
Asking Rent
(US$/sqm)
Occupancy LUR Term
1 Nam Thang Long Tu Liem 15 261 155 100% 2048
2 Noi Bai Soc Son 31 116 135 90% 2058
3 Phu Nghia 1 Chuong My 24 170 95 100% 2058
4 Phu Nghia 2 Chuong My 24 238 95 65% 2058
5 Quang Minh Me Linh 24 344 130 95% 2052
6 Sai Dong B (Phase I&II) Long Bien 11 97 95 100% 2046
7 Thach That Thach That 24 150 100 100% 2056
8 Thang Long Dong anh 16 302 95 100% 2047
9 Hanssip (phase 1) Phu Xuyen 44 72 120 25% 2060
10 Hoa Lac Hi-Tech Thach That 39 549 50 20% 2048
11 Dong Anh Dong Anh 19 470 100 95% 2057
Total 2,770 99.5 77.3%

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