Colliers International Vietnam Monthly Market Report in CBD of HCMC

1. MARCH 2014 | HCMC CENTRAL BUSINESS DISTRICT
CBD MARKET Report
HO CHI MINH CITY
www.colliers.com/vietnam

2. TABLE OF CONTENTS
HCMC CBD MARKET REPORT | MARCH 2014
Market Highlights
OFFICE MARKET
• Market Overview
• Outlook
• Table
• Map
RETAIL MARKET
• Market Performance
• Outlook
• Map
• Table
HOTEL MARKET
• Map
• Table
• Market Performance
• Outlook
SERVICED APARTMENT
• Market Performance
• Outlook
• Table / Map
CONTACTS
Page
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3. HCMC CBD MARKET REPORT
MARCH 2014 | COMMERCIAL OFFICE MARKET
P.2 | Colliers International
According to Asia Pacific Office Rents Map in 4Q13 from Colliers International, HCMC is expected to keep up with rental growth,
though moderate, in emerging South East Asia cities during this year.
Although showing steady gain in recent years, Vacancy Rate of HCMC still stays at double digit figure. However, given promising
on efficient absorption and limited new supply of top graded office buildings in CBD area, this rate is expected to fall in 2014-
2015 period.
The average asking rent of Grade A and B office
buildings was unchanged during last month. Owners
of developments of both segments also succeeded
in retaining occupancy rate at approximately 90% on
average.
Construction resumed at Le Meridien, one of the
major Grade A supply of 2014, and it is expected to
put in operation this April.
Outlook
GRADE A PERFORMANCE
Source: Colliers International
GRADE B PERFORMANCE
Source: Colliers International
Prime Office Rent in
CBD, 4Q2013
(US$/sq ft/annum)
Forecast
Direction 2014
Forecast
Direction 2015
Vacancy Rate, 2013
Forecast
Direction 2014
Forecast
Direction 2015
Supply Forecast 2014 (million sq ft)
Supply Forecast 2015 (million sq ft)
Asia Pacific Office Rents Map, 4Q 2013
Source: Colliers International
Market Performance

4. P.3 | Colliers International
HCMC CBD MARKET REPORT
MARCH 2014 | COMMERCIAL OFFICE MARKET
No Name Address
Com-
pletion
Year
NLA
(sq m)
Service
Charges (*)
Occupancy
rate
NFA asking rent
(*)
1 Saigon Centre 65 Le Loi 1996 11,650 6.5 90% 42.7
2 Saigon Tower 29 Le Duan 1997 13,950 6.0 100% 37.0
3 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 90% 42.5
4 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 95% 41.3
5 Diamond Plaza 34 Le Duan 1999 15,936 8.0 98% 41.0
6 Kumho Asiana Plaza 39 Le Duan 2009 26,000 8.0 98% 49.3
7 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 85% 34.0
8 President Place 93 Nguyen Du 2012 8,330 6.0 87% 30.0
9 Times Square 22-36 Nguyen Hue 2012 9,000 7.0 60% 47
10 Lim Tower 9-11 Ton Duc Thang 2013 29,265 6.0 89% 28.0
Grade A 187,841 7.0 90% 39.1
1 OSIC 8 Nguyen Hue 1993 6,500 6.0 99% 20.0
2 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 100% 16.0
3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 98% 21.0
4 Central Plaza 17 Le Duan 1997 6,094 5.0 100% 26.0
5 Saigon Riverside Office 2A-4A Ton Duc Thang 1997 10,000 5.0 98% 20.0
6 Saigon Trade Center 37 Ton Duc Thang 1997 31,416 6.0 97% 23.0
7 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 93% 20.0
8 MeLinh Point Tower 02 Ngo Duc Ke 1999 17,600 6.0 100% 24.0
9 Zen Plaza 54-56 Nguyen Trai 2001 11,037 5.0 97% 21.0
10 Bitexco Office Building 19-25 Nguyen Hue 2003 6,000 5.0 100% 22.0
11 The Landmark 5B Ton Duc Thang 2005 8,000 5.0 82% 21.0
12 Opera View 161-167 Dong Khoi 2006 3,100 7.0 95% 26.0
13 Indochina Park Tower 4Bis Nguyen Dinh Chieu 2006 2,145 3.0 96% 10.0
14 Petro Tower 1-5 Le Duan 2007 13,304 5.0 99% 30.0
15 City Light 45 Vo Thi Sau 2007 10,000 5.0 98% 15.0
16 The Landcaster 22Bis Le Thanh Ton 2007 7,000 5.0 100% 24.0
17 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 100% 23.0
18 Fideco Tower 81-85 Ham Nghi 2008 15,000 6.0 99% 20.0
19 Havana Tower 132 Ham Nghi 2008 7,326 6.0 99% 21.0
20 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 99% 25.0
21 Royal Center 235 Nguyen Van Cu 2008 14,320 5.0 100% 23.0
22 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 23.0
23 Bao Viet Tower 233 Dong Khoi 2010 10,650 6.0 100% 21.0
24 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 96% 22.0
25 Vincom Center 68-70-72 Le Thanh Ton 2010 56,600 5.0 72% 25.0
26 Saigon Royal 91 Pasteur 2010 5,340 4.0 100% 19.0
27 A&B Tower 76 Le Lai 2010 17,120 6.0 99% 28.0
28 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19.596 5.0 89% 23.0
29 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 87% 26.0
30 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 12% 22.0
Grade B 377,596 5.5 90.1% 23.1
* US$/ sq m/ month (on net area)
Office Market Overview

5. HCMC CBD MARKET REPORT
MARCH 2014 | CBD OFFICE MAP
P.4 | Colliers International

6. HCMC CBD MARKET REPORT
MARCH 2014 | RETAIL MARKET
P.5 | Colliers International
Average rental rate and occupancy rate of both retail podium
and department store were generally flat during last month.
Department store remained fully occupied while retail podium
retained vacant rate around 13% given limited available prime
space.
Owners of shopping mall in CBD areas stayed strong with high
offered rents regardless significant drop of 6% in occupancy
rate in February. Increasing vacant spaces can be found
in central shopping mall including VinCom Center B and
Unionsquare.
Market Performance
Outlook
SHOPPING CENTER MARKET PERFORMANCE, FEB14
VACANT SPACES @ VINCOM CENTER IN MARCH 2014
Source: Colliers International
According to the General Statistics Office, Consumer Price Index (CPI) in Ho Chi Minh City (HCMC) rise slightly by 0.24% in February,
the lowest increase in the past decade because of the pull back in purchasing power.
A weak consumer spending and unchanged high rental pressure tenants of CBD retail centers to relocate or consolidate their
brands.
Fashion and baby products are major categories moving out since early of the year, especially those located in back-front plots.
As of our expectation at the end of last year, there is an increasing numbers of tenants relocating from CBD malls to high street
shops. Affordable rents and convenient accessibility are major driving factors although finding site with sufficient floor spaces
within central districts is not easy actually.
Although there are new take-ups of new brand fashions and spa and clinic stores, the inadequate replacements will soon influence
the operator’s pricing strategy of prime retail areas.
Source: Colliers International
RETAIL PODIUM MARKET PERFORMANCE, FEBRUARY 2014
Source: Colliers International

7. HCMC CBD MARKET REPORT
MARCH 2014 | CBD RETAIL MAP
P.6 | Colliers International

8. KUMHO MONTHLY MARKET REPORTMARCH 2014 | RETAIL MARKET HCMC CBD MARKET REPORT
P.7 | Colliers International
No
Name of Project /
Building
Address Location
Comple-
tion Year
NLA
(sq m)
Average Rental
(US$/sq m/month)
Occupancy Rate
1 Hotel Continental Saigon 132-134 Dong Khoi District 1 2000 200 91 100%
2 Caravelle Hotel 19 Lam Son Square District 1 2000 150 90 100%
3 New World Hotel 79 Le Lai District 1 2000 1,000 40 100%
4 Sheraton Saigon 88 Dong Khoi District 1 2002 750 125 100%
5 Opera View Lam Son Square District 1 2006 1,260 85 100%
6 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100%
7 ICON 68 45 Ngo Duc Ke District 1 2011 8,000 30 90%
8 President Place 93 Nguyen Du District 1 2012 800 70 71%
9 Times Square 22-36 Nguyen Hue District 1 2013 9,000 90 72%
Retail Podium 23,161 69.9 84.7%
1 Diamond Plaza 34 Le Duan District 1 1999 9,000 83 100%
2 Zen Plaza 54-56 Nguyen Trai District 1 2001 6,817 52 100%
3 Parkson Saigon Tourist 35 Le Thanh Ton District 1 2002 17,000 90 100%
4 Kumho Asiana Plaza 35 Le Duan District 1 2009 6,830 35 100%
Department Store 39,647 72.4 100%
1 Saigon Center 65 Le Loi District 1 1996 3,500 75 100%
2 City Plaza 230 Nguyen Trai District 1 2000 5,250 25 100%
3 Tax Center 135 Nguyen Hue District 1 2003 7,000 75 100%
4 Saigon Square 1 77-89 Nam Ky Khoi Nghia District 1 2006 1,300 167 100%
5 Nowzone Nguyen Van Cu District 1 2008 9,000 35 95%
6 Saigon Square 2 7-9 Ton Duc Thang District 1 2009 1,400 90 80%
7 Vincom Center B 72 Le Thanh Ton District 1 2010 45,000 63 70%
8 Taka Plaza 102 Nam Ky Khoi Nghia District 1 2011 1,000 90 100%
9 Union Square Dong Khoi District 1 2012 38,000 73 79%
Shopping Centre 113,450 66.9 80%
No Name of Hotel Address Location
Comple-
tion Year
Total Room Occupancy ARR(*)
1 Caravelle 19 Lam Son Square District 1 2000 335 73% 163
2 New World Saigon 76 Le Lai District 1 2000 533 75% 103
3 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 64% 124
4 Rex 141 Nguyen Hue District 1 2000 289 82% 122
5 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 77% 109
6 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 62% 133
7 Sheraton 88 Dong Khoi District 1 2002 480 85% 223
8 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 83% 330
9 Majestic Saigon 1 Dong Khoi District 1 2007 175 74% 128
10 InterContinental Asiana 39 Le Duan District 1 2009 305 85% 244
11 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 75% 105
12 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 61% 94
5 Star 3,633 75% 155
1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 76% 92
2 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 72% 97
3 Duxton 63 Nguyen Hue District 1 1996 203 74% 81
4 Royal City 133 Nguyen Hue District 1 2000 135 72% 55
5 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 89% 67
6 Oscar 68A Nguyen Hue District 1 2000 108 72% 64
7 Liberty Central 179 Le Thanh Ton District 1 2010 140 78% 78
8 Grand 08 Dong Khoi District 1 2011 107 69% 95
9 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 73% 85
4 Star 1,161 75% 78
MARCH 2014 | HOTEL MARKET HCMC CBD MARKET REPORT

9. HCMC CBD MARKET REPORT
MARCH 2014 | CBD HOTEL MAP
P.8 | Colliers International

10. P.9 | Colliers International
HCMC CBD MARKET REPORT
MARCH 2014 | HOTEL MARKET
Vietnam welcomed 842,026 overseas arrivals, grown
dramatically 47.6% over the same period. Germany visitors
have posted the highest rise of 266.9%, followed by China and
Cambodia. During the time, the domestic tourists were around
9.5 million, a y-o-y increase of 21.8%, gathering in VND47
trillion (US$2.2 billion) in revenue.
In the first two months of the years, HCMC welcomed 778,000
foreign guests, increased 11% over the same period last year.
Market Overview
Outlook
We expect moderate new supply of top-graded hotel segments
located in prime CBD area during this year.
Le Meridien Saigon is announced to open this June whereas
operation time of Reverie Times Square is undisclosed.
Stayed on top of Unionsquare shopping malls, Vinpearl Luxury
Hotel Saigon has been converted into office function by new
owner.
TRAVEL PURPOSES OF INTERNATIONAL VISITORS TO VN
Source: Statistical Office in HCMC, Colliers International
FUTURE SUPPLY BY CONSTRUCTION, MARCH 2014
Source: Statistical Office in HCMC, Colliers International
HOSPITALITY REVENUE BY TYPE, MARCH 2014
Source: Statistical Office in HCMC, Colliers International
RENDER OF CT HOTEL LE LOI ON PASTEUR STREET, D1
Source: Public Domain

11. P.10 | Colliers International
HCMC CBD MARKET REPORT
MARCH 2014 | HOTEL MARKET
5-star hotels in CBD showed positive figures for both average rental and occupancy rate during February. The average rent reached
US$155 while occupancy rate slightly rised 2%.
Meanwhile, 4-star segment also gained in occupancy rate though offered rate dropped 2% last month.
After gradual growth in occupancy rate of top-graded hotels in CBD locations since last quarter of 2013, we expect a downward trend
from this month regarding the end of peak holiday season.
Market Performance
PERFORMANCE OF 5-STARS HOTEL
Source: Colliers International
FEBRUARY 2014 | SERVICED APARTMENT MARKET
Serviced Apartment Overview
CBD SERVICED APARTMENTS PERFORMANCE
Source: Colliers International
SERVICED APARTMENTS SUPPLY BY DISTRICT
Source: Colliers International
PERFORMANCE OF 4-STARS HOTEL
Source: Colliers International

12. P.11 | Colliers International
HCMC CBD MARKET REPORT
* US$/sq m/month
** Not including VAT and service charge
*** Buildings are sorted by Year of Completion
MARCH 2014 | SERVICED APARTMENT MARKET
It is expected that CBD serviced apartments sector will experience
slow activity in short term as this is not preferred time for house
transfer or relocation.
Both average occupancy rate and asking rent of top-tier serviced
apartments in central area are expected to fall in second half of
2014 driven by new available supplies from Times Square.
Outlook
Both Grade A and B serviced apartments were almost flat during last month in monthly average rental rate as well as occupancy rate.
In February, developers of Grade A serviced apartment buildings retained average occupancy rate at 94% and asking rent at monthly
US$33.8 per sq. m. That of Grade B segment was 79% and US$26.5 respectively.
Market Performance
SERVICED APARTMENT FUTURE SUPPLY BY YEAR
Source: Colliers International
No Project Name Address Location
Comple-
tion Year
Total
Room
Average
Occupancy
ARR(*)
1 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 95% 36
2 Sedona Suites 65 Le Loi District 1 1996 89 88% 30
3 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 90% 30
4 The Landmark 5B Ton Duc Thang District 1 2005 66 95% 26
5 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 93% 37
6 InterContinental Asiana Saigon 39 Le Duan District 1 2009 260 97% 36
Grade A 701 94% 34
1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 85% 26
2 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 87% 26
3 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 92% 33
4 Diamond Plaza 34 Le Duan District 1 1999 42 93% 29
5 Garden View Court 101 Nguyen Du District 1 2000 76 91% 31
6 Spring Court 1Bis Phung Khac Khoan District 1 2006 14 78% 18
7 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 75% 25
8 Vincom Center 72 Le Thanh Ton District 1 2010 60 32% 26
9 Lafayette De Saigon 08 Phung Khac Khoan District 1 2010 18 100% 30
10 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 50% 28
11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 100% 30
Grade B 738 79% 26.5

13. HCMC CBD MARKET REPORT
MARCH 2014 | CBD SERVICED APARTMENT MAP
P.12 | Colliers International

14. HCMC CBD MARKET REPORT | MARCH 2014
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