The document provides a market report on the central business district of Ho Chi Minh City covering the office, retail, hotel, and serviced apartment markets in November 2013. For the office market, average asking rents and occupancy rates increased slightly for both Grade A and B buildings. The retail market saw marginal economic growth and stable consumer prices. Rents for retail podiums and shopping centers declined slightly while occupancy also decreased. The hotel market maintained high occupancy rates around 80% on average.

1. NOVEMBER 2013 | HCMC CENTRAL BUSINESS DISTRICT
HO CHI MINH CITY
CBD MARKET Report
www.colliers.com/vietnam

2. TABLE OF CONTENTS
HCMC CBD MARKET REPORT | NOVEMBER 2013
Market Highlights
OFFICE MARKET
................................................................
2-4
...............................................................
2
...............................................................
3
...............................................................
3
...............................................................
4
...............................................................
4-5
Market Overview
...............................................................
4
Market Performance
...............................................................
4
Outlook
...............................................................
5
Table
...............................................................
6
...............................................................
8-10
Market Overview
...............................................................
7
Market Performance
...............................................................
7
Outlook
...............................................................
8
Table
...............................................................
6
...............................................................
8-9
Market Performance
...............................................................
8
Outlook
...............................................................
9
Table
...............................................................
9
...............................................................
10
• Market Overview
• Market Performance
• Outlook
• Table
RETAIL MARKET
•
•
•
•
HOTEL MARKET
•
•
•
•
SERVICED APARTMENT
•
•
•
Page
CONTACTS

3. HCMC CBD MARKET REPORT
NOVEMBER 2013
Economic Overview
FDI IN HCMC BY MONTH, NOVEMBER 2013
According to the report from Statistical Office, foreign direct
investment (FDI) in Ho Chi Minh City (HCMC) in the first 10
months of this year increased by 24.8% compared to the same
period last year.
In the year to date, city authorities licensed 363 FDI projects
with a combined capital of 847.4 million USD, a rise of 12.4%
in the number of projects and 69.6% in capital. Furthermore,
they also allowed 108 existing projects to increase their capital
by 639.3 million USD.
Source: Statistical Office in HCMC, Colliers International
FDI IN HCMC BY SECTORS, NOVEMBER 2013
So far, FDI can be considered a bright spot in the economic
picture of 2013. However, there is no room for complacency
as Vietnam faces fierce competition from several neighboring
countries; notably Myanmar, which is emerging as a new
attractive destination for investors. Meanwhile, Vietnam’s
competitive advantages, such as cheap labor and resources,
are wearing thin.
In this context, it is urgent for HCMC to develop new competitive
advantages; specifically, high quality human resources,
modern infrastructure and an effective legal system. These
advantages cannot be gained overnight, but require an effort,
money and a long-term process.
Source: Statistical Office in HCMC, Colliers International
FDI BY COUNTRY HCMC NOVEMBER 2013
But if HCMC hesitates and fails to improve its investment
environment, it will miss opportunities to attract new FDI
flows. Only when the investment climate becomes more
competitive can HCMC shift from attracting as much FDI as
possible to selecting high-tech, advanced and environmentally
friendly projects.
Source: Statistical Office in HCMC, Colliers International
P.1 | Colliers International

4. HCMC CBD MARKET REPORT
NOVEMBER 2013 | COMMERCIAL OFFICE MARKET
Market Performance
VIETCOMBANK TOWER
The commercial office market in HCMC Central Business
District (CBD) over the past few months has seen a slight
increase in rental asking rates and occupancy in both Grade A
and Grade B’s buildings.
The average asking rent of Grade A properties increased 2%
m-o-m to US$38.4/ sq m, while occupancy rates increased by
3.1% from 86.9% in previous month to 89.6% in October.
Grade B’s average asking rents also increased slightly to
US$22.1/ sq m and average occupancy rates seen in Grade B
are around 93.9%
Source: Public Domain
Outlook
VIETCOMBANK TOWER
With limited commercial space available in the future and
a slight increase in demand growing from tenants due to
economic recovery and healthy FDI flows, it is expected that
landlords in the CBD will start to push back on rental offerings
and predict to increase rental prices offered and decrease
incentives.
New projects will enter the market in 2014 creating some
downward pressure on Grade B asking rental prices but it
is thought that premier Grade A developments will not be
significantly influenced by this.
Source: Public Domain
MARKET PERFORMANCE BY GRADE
GRADE A PERFORMANCE
Source: Colliers International
Source: Colliers International
MAJOR TRANSACTIONS
BUILDING
SG Airport Plaza
Times Square Building
Empress Tower
LEASE (L) / SALE (S)
L
L
L
TENANT / PURCHASER
Pepsi Co
Sumitomo Bank Corp
Budweiser
AREA (sq m)
1,400
1,800
600
P.2 | Colliers International

5. HCMC CBD MARKET REPORT
NOVEMBER 2013 | COMMERCIAL OFFICE MARKET
Office Market Overview
No
1
2
3
4
5
6
7
8
9
10
Name
Saigon Tower
Diamond Plaza
Kumho Asiana Plaza
Saigon Centre
Sunwah Tower
The Metropolitan
Bitexco Financial Tower
President Place
Times Square
Lim Tower
Address
29 Le Duan
34 Le Duan
39 Le Duan
65 Le Loi
115 Nguyen Hue
235 Dong Khoi
45 Ngo Duc Ke
93 Nguyen Du
22-36 Nguyen Hue
9-11 Ton Duc Thang
Grade A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Petro Tower
Central Plaza
Opera View
Bao Viet Tower
Saigon Riverside Office
The Landmark
Green Power Tower
Saigon Trade Center
Gemadept Tower
Vincom Center
OSIC
Bitexco Office Building
Harbour View Tower
MeLinh Point Tower
Fideco Tower
Havana Tower
Somerset Chancellor Court
Yoco Building
Sailing Tower
Saigon Royal
TMS
Indochina Park Tower
City Light
A&B Tower
Zen Plaza
Maritime Bank Tower
Royal Center
The Landcaster
Empress Tower
1-5 Le Duan
17 Le Duan
161-167 Dong Khoi
233 Dong Khoi
2A-4A Ton Duc Thang
5B Ton Duc Thang
35 Ton Duc Thang
37 Ton Duc Thang
5 Le Thanh Ton
68-70-72 Le Thanh Ton
8 Nguyen Hue
19-25 Nguyen Hue
35 Nguyen Hue
02 Ngo Duc Ke
81-85 Ham Nghi
132 Ham Nghi
21-23 Nguyen Thi Minh Khai
41 Nguyen Thi Minh Khai
51 Nguyen Thi Minh Khai
91 Pasteur
172 Hai Ba Trung
4Bis Nguyen Dinh Chieu
45 Vo Thi Sau
76 Le Lai
54-56 Nguyen Trai
192 Nguyen Cong Tru
235 Nguyen Van Cu
22Bis Le Thanh Ton
138 Hai Ba Trung
Grade B
13,950
15,936
26,000
11,650
20,800
15,200
37,710
8,330
9,000
29,265
Service
Charges
(*)
6.0
8.0
8.0
6.0
6.0
6.0
8.0
6.0
7.0
6.0
187,841
6.9
89%
38.4
13,304
6,094
3,100
10,650
10,000
8,000
15,600
31,416
14,000
56,600
6,500
6,000
8,000
17,600
15,000
7,326
3,200
5,000
16,910
5,340
4,000
2,145
10,000
17,120
11,037
19.596
14,320
7,000
19,538
5.0
5.0
7.0
6.0
5.0
6.0
6.0
6.0
6.5
5.0
6.0
5.5
6.0
6.5
6.0
6.0
5.0
5.0
5.0
4.0
4.0
4.0
5.0
6.0
6.0
5.0
5.0
5.0
5.0
97%
100%
87%
100%
98%
100%
97%
98%
98%
75%
96%
100%
100%
99%
100%
100%
97%
94%
99%
100%
97%
80%
96%
99%
97%
98%
100%
100%
85%
31.0
26.0
26.0
21.0
20.0
16.0
22.0
21.0
23.0
24.0
20.0
22.0
18.0
24.0
20.0
21.0
21.0
16.0
25.0
19.0
23.0
11.0
10.0
28.0
20.0
19.0
19.0
24.0
25.0
364,396
5.5
93%
22.1
NLA
(sq m)
Occupancy
rate
NFA asking rent
(*)
99%
100%
98%
92%
98%
99%
85%
92%
60%
75%
37.0
40.0
51.3
40.0
42.5
41.3
32.0
33.0
50.0
28.0
* US$/ sq m/ month
P.3 | Colliers International

6. HCMC CBD MARKET REPORT
NOVEMBER 2013 | RETAIL MARKET
Retail Market Overview
CPI RETAIL & SERVICES REVENUE
The socio-economic situation is considered to be fairly stable in
the CBD with marginal growth month on month in the Consumer
Price Index (CPI) and Retail Sales Revenue.
While the Government continues to try to combat against
inflation and stabilize the macro-economy, Ho Chi Minh City’s
consumer price index (CPI) in October increased by 0.17%
against the previous month and increased by 4.89% year on year.
According to the municipal Statistic Office, this increase
was attributable to
a
total
office
eleven
to
price increases in seven out of
categories
monitor
public
monitored
spending
by the
such
as
Source: Statistical Office in HCMC, Colliers International
statistical
food
and
RETAIL SALES REVENUE BY SECTORS
beverage; oil and gas; housing costs etc. over this period.
Last month saw the highest price increase Month on Month of
0.41% in the food and beverage services category. This increase
was attributable to a 0.85% increase in the cost of supply in
meat and vegetables due to transportation difficulties due to
adverse weather conditions.
The prices of transportation, telecommunication, cultureentertainment and other commodities & services also declines.
Ho Chi Minh City was estimated to have generated VND 52.26
trillion worth of retail sales and service revenues in October, up
Source: Statistical Office in HCMC, Colliers International
12.5% from last year’s figure.
This year’s total figure to date is VND 493.23 trillion, up 12.2%
RETAIL SALE REVENUE GROWTH RATE
y-o-y.
Market Performance
Lucky Plaza on Nguyen Hue street in District 1, re-opened in
October after a re-fit and period of closure.
Retailers are still suffering the pinch between high rentals
from the landlords and limits in consumer spreading patterns.
Source: Colliers International
However, in some cases in the CBD, namely the bigger Retail
centers, where tenants are not getting the footfall required and
rental payments have been delayed, the landlord takes notice
and offers reduction in rentals rather than declines in outlets.
This can be seen in the rents of retail podiums and shopping
centres generally in CBD which continue to decrease by –1.6%
and -4.5% respectively. m-o-m. Occupancy rates are also in
decline by –1.5% and 8% m-o-m, standing at 85% and 82%
respectively.
P.4 | Colliers International

7. HCMC CBD MARKET REPORT
NOVEMBER 2013 | RETAIL MARKET
RETAIL MARKET OCTOBER 2
DEPARTMENT STORE
Source: Colliers International
Source: Colliers International
RETAIL PODIUM
SHOPPING CENTRE
Source: Colliers International
Source: Colliers International
Outlook
Despite a slight decrease in rent in some of the CBD’s retail
a movement that will see increases in the provision of
podiums, the demand for prime retail space generally remains
external shopping outlet locations where rentals will be more
high due to a continued push from big name brands looking for
reasonable to attract the business outside of the CBD .i.e.
key central locations. Companies such as Givral; Starbucks;
Cantavil; Celadon City; City Garden.
Burger King and other international brands still look to increase
market share over the next year.
Consumer spending will increase over the next quarter with
people preparing for the up coming festive season.
Rents will continue to remain high in the CBD while companies
compete for key locations but in the wider market there is
P.5 | Colliers International

8. NOVEMBER 2013 RETAIL MARKET
KUMHO MONTHLY |MARKET REPORT
Name of Project /
Building
No
1
Caravelle Hotel
HCMC CBD MARKET REPORT
Address
Location
19 Lam Son Square
District 1
NLA
(sq m)
Average Rental (US$/sq
m/month)
Occupancy Rate
150
95
94%
2
New World Hotel
79 Le Lai
District 1
1,000
50
95%
3
Opera View
Lam Son Square
District 1
1,260
85
100%
4
Rex Arcade
141 Nguyen Hue
District 1
2,000
120
100%
5
Sheraton Saigon
88 Dong Khoi
District 1
750
125
100%
6
Bitexco Financial Tower
45 Ngo Duc Ke
District 1
8,000
42
95%
7
Hotel Continental Saigon
132-134 Dong Khoi
District 1
200
90
100%
8
Times Square
22-36 Nguyen Hue
District 1
9,000
90
70%
9
President Place
93 Nguyen Du
District 1
1
Parkson Saigon Tourist
35 Le Thanh Ton
District 1
800
30
100%
23,161
Retail Podium
73.1
86%
17,000
90
100%
2
Zen Plaza
54-56 Nguyen Trai
District 1
6,817
52
100%
3
Diamond Plaza
34 Le Duan
District 1
9,000
83
100%
4
Kumho Asiana Plaza
35 Le Duan
District 1
6,830
35
100%
39,647
72.4
100%
Department Store
1
Saigon Center
65 Le Loi
District 1
3,500
75
100%
2
Saigon Square 1
77-89 Nam Ky Khoi Nghia
District 1
1,300
167
100%
3
Saigon Square 2
7-9 Ton Duc Thang
District 1
1,400
75
75%
4
Vincom Center B
72 Le Thanh Ton
District 1
45,000
55
90%
5
Vincom Center A
Dong Khoi
District 1
38,000
70
85%
6
City Plaza
230 Nguyen Trai
District 1
5,250
25
100%
7
Nowzone
Nguyen Van Cu
District 1
9,000
48
88%
8
Tax Center
135 Nguyen Hue
District 1
7,000
75
100%
9
Taka Plaza
102 Nam Ky Khoi Nghia
17,600
1,000
90
100%
111,450
61.9
90%
Shopping Centre
NOVEMBER 2013 | RETAIL MARKET
No
Name of Hotel
HCMC CBD MARKET REPORT
Address
Location
Total Room
Occupancy
ARR(*)
80%
333
1
Park Hyatt Saigon
02 Lam Son Square
District 1
259
2
Sheraton
88 Dong Khoi
District 1
480
81%
205
3
Caravelle
19 Lam Son Square
District 1
335
75%
150
4
New World Saigon
76 Le Lai
District 1
533
71%
148
5
Renaissance Riverside
8-15 Ton Duc Thang
District 1
350
70%
140
6
Legend
2A-4A Ton Duc Thang
District 1
283
68%
142
7
Sofitel Plaza Saigon
17 Le Duan
District 1
290
75%
144
8
Majestic Saigon
1 Dong Khoi
District 1
175
72%
148
9
Rex
141 Nguyen Hue
District 1
289
80%
136
10
InterContinental Asiana
39 Le Duan
District 1
305
79%
206
11
Nikko Saigon
235 Nguyen Van Cu
District 1
334
64%
140
12
Pullman Hotel
146 Tran Hung Dao
District 1
306
10%
128
3,633
5 Star
69%
167
103
1
Duxton
63 Nguyen Hue
District 1
203
72%
2
Grand
08 Dong Khoi
District 1
107
65%
89
3
Kim Do Royal City
133 Nguyen Hue
District 1
135
70%
48
4
Continental Saigon
132-134 Dong Khoi
District 1
86
74%
85
5
Palace Saigon
56-66 Nguyen Hue
District 1
146
88%
54
6
Oscar
68A Nguyen Hue
District 1
108
62%
41
7
Liberty Central
179 Le Thanh Ton
District 1
140
72%
104
8
Golden Central Saigon
140 Ly Tu Trong
District 1
132
70%
78
9
Norfolk Hotel
117-119 Le Thanh Ton
District 1
104
71%
92
1,161
70%
84.6
4 Star
P.6 | Colliers International

9. HCMC CBD MARKET REPORT
NOVEMBER 2013 | HOTEL MARKET
Hotel Market Overview
INTERNATIONAL VISITORS TO HCMC
The total existing supply of luxury hotels in Central Business
District is 5,396 hotels rooms, among that, the total supply of
5-star hotels is 3,939 (increased by 8% y-o-y) and the total
room of 4-star hotel is 1,457 rooms (increased by 25% y-o-y).
Vietnam welcomed over 6.1 million overseas arrivals over the
past 10 months of 2013, up 10.4% against the same period
last year. According to the General Statistics Office, arrivals
consisted 66.1% from Russia, followed by China 36.2%,
Thailand 21%, and Malaysia 12.7%. However, a decline is
Source: Statistical Office in HCMC, Colliers International
observed in the number of international arrivals from the
US, Taiwan, and France during the same period. In October
alone, the country received around 630,000 foreign visitors,
INTERNATIONAL ARRIVALS
representing a yearly increase of 15.1%.
Ho Chi Minh City itself welcomed over 419,650 international
tourists in October, 9% more than in October 2012.
The city’s total tourism revenue reached VND 6,651 billion
(US$332 million) in October, up 20% from 2012 figures.
Market Performance
Source: Statistical Office in HCMC, Colliers International
On October 26, a visa exemption agreement for ordinary passport
holders signed between the Governments of Vietnam and Myanmar
had taken effect. According to the document, the two countries’
FUTURE SUPPLY BY STATUS
citizens who hold ordinary passports valid for at least six months
will not require visas for stays of up to 14 days in each other’s
territories. Vietnam’s ordinary passport holders can now enter the
other nine ASEAN member countries without a visa. It is hoped that
this policy will attract more foreign visitors to Vietnam.
October is normally the beginning of the high tourist season.
The performance of 4 and 5 star hotels in this month was better
than previous months and both occupancy rates and average
room rates increased as a result of the increase in arrivals.
The occupancy rate of 4 and 5 star hotels increased in by 3%
and 1.5% respectively. Both 4 and 5 star hotels’s average room
rate went up slightly, remaining at 69% and 71% respectively.
Source: Colliers International
P.7 | Colliers International

10. HCMC CBD MARKET REPORT
NOVEMBER 2013 | HOTEL MARKET
Outlook
PERFORMANCE OF 4 & 5 STARS HOTEL
The fact that multiple small investors have been racing to build
low-end hotels in recent years in spite of low demand has resulted
in oversupply for budget accommodation which has increased
competitive rates in this market.
From now to April 2014, it will be a high season to travel for
foreigners to HCMC, both HCMC authorities and the host of
hotels need to prepare for this time to make the visitors have
best memories and want to comeback again. It should be noted
number of Asian visitors come to Vietnam increased month by
month, so the staff who can speak Japanese, Korean, etc. should
be hired and trained to have best services for the visitors.
Source: Colliers International
PERFORMANCE OF 5 STARS HOTEL
PERFORMANCE OF 4 STARS HOTEL
Source: Colliers International
Source: Colliers International
NOVEMBER 2013 | SERVICED APARTMENT MARKET
Serviced Apartment Overview
GRADE A SERVICED APARTMENTS
GRADE B SERVICED APARTMENTS
Source: Colliers International
Source: Colliers International
P.8 | Colliers International

11. HCMC CBD MARKET REPORT
NOVEMBER 2013 | SERVICED APARTMENT MARKET
Market Performance
The average asking rent of Grade A and Grade B serviced
apartments increased slightly by 1.3% and 0.5% respectively.
During this time, the occupancy rate of Grade A dropped off
PERFORMANCE OF GRADE A & B
again, standing at 90%; and Grade B’s occupancy rate declined
in 0.4%, remaining at 80%.
Outlook
The lack of supply of serviced apartment’s in the CBD keeps
rental levels high. However limited customer’s budgets in recent
months show that people move away from high end apartments
and the costs associated with them. Landlords in CBD should
Source: Colliers International
prepare if they want to maintain high rental levels they will
probably see a drop in occupancy.
No
1
2
3
4
5
6
7
Address
Location
Total
Room
Average
Occupancy
ARR(*)
65 Le Loi
39 Le Duan
22 Bis Le Thanh Ton
111 Nguyen Du
21-23 Nguyen Thi Minh Khai
08 Phung Khac Khoan
5B Ton Duc Thang
District 1
District 1
District 1
District 1
District 1
District 1
District 1
89
260
55
41
172
18
66
85%
96%
67%
95%
93%
50
88%
35
35
36
30
43
36
30
855
90%
36.0
30
54
60
154
76
165
14
18
17
42
126
77%
50%
60%
90%
76%
83%
85%
84%
94%
93%
91%
20
25
24
29
24
26
19
18
20
26
28
699
92%
28.9
Project Name
Sedona Suites
InterContinental Asiana Saigon
The Landcaster
Nguyen Du Park Villas
Somerset Chancellor Court
Lafayette De Saigon
The Landmark
Grade A
1
2
3
4
5
6
7
8
9
10
11
Ben Thanh Luxury
Nikko Saigon
Vincom Center
Saigon Sky Garden
Garden View Court
Somerset HCM
Spring Court
Lafayette De Saigon
Saigon City Residence
Diamond Plaza
Norfolk Mansion
172-174 Ky Con
235 Nguyen Van Cu
72 Le Thanh Ton
20 Le Thanh Ton
101 Nguyen Du
8A Nguyen Binh Khiem
1Bis Phung Khac Khoan
8 Phung Khac Khoan
8A/3D2 Thai Van Lung
34 Le Duan
17-21 Ly Tu Trong
Grade B
District 1
District 1
District 1
District 1
District 1
District 1
District 1
District 1
District 1
District 1
District 1
(*) US$/sq m/month (**) Not including VAT and service charge
P.9 | Colliers International

12. HCMC CBD MARKET REPORT | NOVEMBER 2013
About Colliers International
Colliers International is a leader in global real estate services, defined by our spirit of
enterprise.
Through a culture of service excellence and a shared sense of initiative, we integrate the
resources of real estate specialists worldwide to accelerate the success of our partners.
We connect through a shared set of values that shape a collaborative environment throughout
our organization that is unsurpassed in the industry.
With more than 100 professionals in 2 offices in Vietnam, the team is market driven and
has proven and successful track record with both international and local experience.
From Hanoi to Ho Chi Minh City, we provide a full range of real estate services
• Research
>>Market research across all sectors
>>Market analysis, advisory, and strategy
482 offices in
62 countries on
6 continents
United States
Canada
Latin America
Asia Pacific
EMEA
: 140
: 42
: 20
: 195
: 85
$2
billion in
annual revenue
• Valuation & Advisory Services
13,500
professionals
and staff
2.5
>>Valuation for land, existing property or development sites
>>Feasibility studies to determine NPV, IRR and highest & best use
billion square feet
under management
• Office Services
>>Tenant Representation
>>Landlord Representation
COLLIERS INTERNATIONAL
• Residential Sales & Leasing
HO CHI MINH CITY
Bitexco Office Building, 7th Floor
19-25 Nguyen Hue Street
District 1, HCM City, Vietnam
Tel: + 84 8 3827 5665
• Retail Services
• Investment Services
• Real Estate Management Services
• Corporate Services
• Industrial Leasing
The foundation of our services is the strength and depth of our experience.
HANOI
Capital Tower, 10th Floor
109 Tran Hung Dao Street,
Hoan Kiem District, Hanoi, Vietnam
Tel: +84 4 3941 3277
Please contact, If you would like to recieve our other research reports
Publication
Coverage
Frequency
Content
Availability
DAVID JACKSON
Deputy General Director
david.jackson@colliers.com
+84 1223 719 7184
Research & Forecast
Report
Vietnam Cities
Quarterly
All market sectors
Publicly available
CBD Report
HCMC CBD
Monthly
Office, Retail, Hotel and
Serviced Apartment
Publicly available
Asia Pacific Office
Report
Asia Pacific including Vietnam
Quarterly
Office market
Publicly available
Vietnam Property
Market Report
Vietnam cities
Quarterly
All market sectors
On subscription
Development
Recommendation
Vietnam cities
At request
All market sectors
On subscription
www.colliers.com/vietnam
YEN NGUYEN
Research Analyst
yen.nguyen@colliers.com
+84 915 478 778
This document/email has been prepared by
Colliers International for advertising
Accelerating success