Hanoi Quarterly Knowledge Report | Q1 2016

Accelerating success
www.colliers.com/vietnam
HANOI QUARTERLY KNOWLEDGE REPORT
Q1 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 GDP .....................................................................................................................
Figure 2: Interest Rate and Exchange Rate of Vietnam ......................................................................
Figure 3: FDI Capital of HCMC and Hanoi ..........................................................................................
Figure 4: GDP Growth Rate of HCMC and Hanoi ................................................................................
HANOI MARKET OVERVIEW
Figure 5: Office, Average Asking Rent...............................................................................................
Figure 6: Office, Occupancy Rate ......................................................................................................
Figure 7: Retail, Total Supply ...........................................................................................................
Figure 8: Retail, Occupancy Rate .....................................................................................................
Figure 9: Retail, Market Performance ...............................................................................................
Figure 10: Condominium, Launch Supply by Year ...............................................................................
Figure 11: Condominium, Sales by Quarter and Segment ...................................................................
Figure 12: Condominium, Changes in Secondary price by Quarter ......................................................
Figure 13: Villa and Townhouse, Supply by Quarter ............................................................................
Figure 14: Villa and Townhouse, Secondary Price by District .............................................................
Figure 15: Villa and Townhouse, Q-o-Q changes in Secondary Price ..................................................
Figure 16: Serviced Apartment, Total supply ......................................................................................
Figure 17: Serviced Apartment, Occupanvy Rate by Grade .................................................................
Figure 18: Serviced Apartment, Average Asking Rent by Grade ..........................................................
Figure 19: Industrial, Net Absorption .................................................................................................
Figure 20: Industrial, Supply by District .............................................................................................

LIST OF TABLES
Table 1: Macroeconomic Indicators of HCMC and Hanoi ......................................................................
Table 2: Office, New Supply in Q1 2016 .............................................................................................
Table 3: Significant Office Projects ...................................................................................................
Table 4: Significant Retail Projects ...................................................................................................
Table 5: Condominium, New Projects Launched in Q1 2016 ...............................................................
Table 6: Villa and Townhouse, New Projects Launched in Q1 2016 ....................................................
Table 7: Significant Serviced Apartment Projects .............................................................................
Table 8: Industrial, Future Supply .....................................................................................................
Table 9: Hanoi Industrial Market Overview ........................................................................................
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GDP
Vietnam’s GDP has grown 5.46% in Q1 2016. This was a noticeable reduction from a rate of 6.12% in Q1 2015
but still higher than GDP growth rate of the same periods in 2012, 2013 and 2014. The three main compositions
of the GDP which are agriculture–forestry-fishery, industry-construction and services had growth rates of
-1.23%, 6.72% and 6.13% y-o-y respectively. Financial, banking and insurance sectors increased slightly over
the same period, reaching 5.99%. Real estate trading rose 3.43% y-o-y which achieved the highest growth rate
from 2012 to date.
CPI
In Q1 2016, the Consumer Price Index (CPI) increased 1.25% y-o-y while the core CPI grew 1.76% y-o-y. Factors
that contributed to the increase in CPI in Q1 2016 were an upward in energy prices on the world market and
the El Nino’s impact in Vietnam which cut down the supply and inflated up the price of livestock and agricultural
products such as rice or sugarcanes.
An increase in health care fees scheduled in July 2016 and school fees scheduled in September 2016 would
expectedly push the CPI to increase even higher in the coming quarters.
FDI
As of 20th March, there have been about 473 new foreign investment projects in Vietnam with total registered
investment worth USD2.74 billion, an increase of 125.2% y-o-y. In addition, 203 other projects registered to
increase its investment by USD1.285 billion, an increase of 107% compared to the same period last year. In
total, foreign investment in the first quarter of 2016 reached USD4.02 billion, up 119.1% compared to Q1-2015.
Disbursement from FDI projects also grew 14.8% over last year’s period with USD3.5 billion were paid out.
RETAIL SALES
Vietnam’s retail sales of goods and services in Q1 2016 achieved USD38.2 billion, a 0.99% increase compared to
Q4-2015 and 9.1% y-o-y growth (or 7.9% y-o-y growth if price increase is excluded). The proportions of four main
compositions are as follows: retail sales 76.4%, accommodation and catering services 11.3%, travel 0.8% and
other services 11.5%. The four sectors all witnessed significant growths compared to last year’s periods, which
were 9.2%, 8.5%, 8.8% and 8.9% y-o-y respectively.
INTERNATIONAL ARRIVALS
The number of international visitors to Vietnam in Q1 2016 reached 2.459 million, 19.9% increase y-o-y. China
and Korea were the two countries which accounted for highest number of visitors to Vietnam in the review
period with 580,000 and 408,100 visitors respectively.
EXCHANGE RATE
In contrast to the intense volatility in 2015, the exchange rate USD/VND in the first quarter of 2016 was relatively
calm. The exchange rate did not increase as many predicted in 2015, but decreased slightly from VND22,500
to around VND22,382 VND per USD1. The stability of the exchange rate in recent months has been partly
contributed by favorable condition on the international financial market.
According to forecasts of the International Monetary Fund (IMF), world economic growth trends have been
slowed and this would further contribute to the slowing of the Fed’s rate hikes in the coming months. In the next
quarters, if the dollar does not rise sharply and the Yuan is not significantly devalued, pressure on the exchange
rate USD/USD in 2016 should not be too big.
Q1 2016 | ECONOMIC OVERVIEW
©2016 Colliers International Research
VIETNAM QUARTERLY KNOWLEDGE REPORT
Page 4
Q2 2016 forecast
Figure 1: Vietnam GDP
Source: World Bank | Colliers International Research
Figure 2: Interest rate and Exchage rate of Vietnam
Source: Asian Development Bank (ADB) | Colliers International Research
VIETNAM
0
500
1,000
1,500
2,000
2,500
0
1
2
3
4
5
6
7
8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016
USD/capita
%
GDP per capita (nominal) GDP growth rate
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
4
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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1
2016
VND/USD
%perannum
Interst Rate Exchange Rate

Q1 2016 | ECONOMIC OVERVIEW
Page 5
Figure 4: GDP Growth Rate of HCMC and Hanoi
Source: General Statistics Office | Colliers International Research
Table 1: Marcoeconomic Indicators of HCMC and Hanoi
HCMC Hanoi
Q1 2016 Q2 2016F Q1 2016 Q2 2016F
GDP (billion) 9.86 5.33
FDI (million) 275.3 269.6
Retail sales (billion) 7.78 5.29
Export (billion) 6.69 2.56
Import (billion) 7.87 5.72
HO CHI MINH CITY
The Gross Regional Domestic Product (GRDP) of Q1 2016
achieved USD9.9 billion, an increase of 7.1% y-o-y. In more
detail, the services sector had the highest growth rate of 7.8%,
reaching USD5.7 billion. The industrial and construction sector
came second with a growth rate of 6.25%, equivalent to USD2.7
billion. The agriculture-forestry-fishery sector achieved USD79
million, up 5.8% y-o-y.
Total newly registered and supplementary FDI reached USD275.3
million. There are 147 new projects worth of USD190.3 million
and 36 supplementary projects worth of USD 85 million. The
amount of FDI of Q1 2016 significantly decreased, equivalent to
18.5% q-o-q and 49.5% y-o-y. This is a downside for HCMC as in
the same period Vietnam witnessed an increase of 125.2% y-o-y
in FDI. Three nations with the highest new capital investments
are Japan, Singapore and Korea, accounting for 34.4%, 22.3%
and 7% of the FDI respectively.
Total retail sales of consumer goods and services reached
USD7.8 billion, up 11.6% y-o-y. The four compositions, namely
retail sales, accommodation & catering, travelling services and
other services, accounted for 79.2%, 12.1%, 2.4% and 6.4% of
the total sales of goods consequentially. Compared to the same
period last year, travelling services had the highest growth rate
of 14.4% while accommodation and catering had a slowest
growth rate of 6.8%.
Consumer Price Index (CPI) had a growth rate of -0.03%, 0.05%
and 0.09% from January to March subsequently which pushed
the CPI of Q1 2016 to 0.11%.
Export values were USD 6.688 billion, equivalent to an increase
of 0.1% q-o-q. Import values were USD7.873 billion equivalent
to a growth of 8.2% y-o-y. In the previous quarter, the values of
export and import were USD363 million and USD417.8 million
respectively.
HANOI
The GRDP in Q1-2016 achieved USD5.3 billion which was
equivalent to a rise of 6.95% y-o-y. Industrial & construction
sector had the highest growth rate of 7.54% which was followed
by growth rate of 7.05% y-o-y of services sector. In contrast,
Agricultural-forestry-fishery industry suffered a negative growth
rate of -0.69% y-o-y.
The CPI in January and February climbed to 0.12% and 0.47%
m-o-m. The Statistical Office of Hanoi did not publish CPI for
March but it was reported to be slightly increased from February
level. Compared with the previous quarter, the CPI of the Q1 2016
would be much higher due to increases in prices of energy and
agricultural products.
The city attracted USD269.6 million of new and supplementary
FDI capital in the first quarter of 2016. Total retail sales of
consumer goods and services extended 9% y-o-y to achieve
USD5.3 billion. Compared with the previous quarter, this was a
drop of 11.5%.
Export values went up 2.3% y-o-y to achieve USD2.558 billion.
Import values were USD5.715 billion which experienced a
moderate reduction of -2% y-o-y. This brought about a trade
deficit of USD3.157 billion in the review quarter.
In Q1 2016, the capital city welcomed 761,000 tourists. This was
a remarkable uptrend of 28.7% 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 Q1
2016
HCMC Hanoi
0
500
1000
1500
2000
2500
3000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014 2015 2016
millionUSD
HCMC Hanoi

Q1 2016 | HA NOI | OFFICE
©2016 Colliers International Research Page 6
PERFORMANCE
The overall market experienced a downward trend in both rents
and occupancy. Average occupancy across all grades dropped
1.82ppts over the quarter, staying at 86.4% while net asking
rents were reduced to USD22.8/sqm/month on average, down
2.57ppts q-o-q.
Due to new supply entering the market, Grade A’s occupancy and
rents decreased 5.98 ppts and 3.77ppts respectively compared
to the previous quarter. In contrast, Grade B’s performance
recorded improvements, reaching 91% in occupancy and
USD17.65/sqm/month in average net asking rents.
SUPPLY
The supply pipeline grew significantly in the first quarter of
2016 with five new office completions, providing approximately
133,921 sqm NLA. There is only one Grade A project coming
online while the other four are of Grade B standard.
From now until 2018, there is approximately 330,000sqm GFA
of office space entering the market. Most of new supply will be
decentralised in the West and Midtown area, creating intense
competition with the existing CBD.
DEMAND
Expansion and relocation are two key demand drivers of Hanoi
office market. The city west is an ideal option for tenants
looking to reduce operational costs while still securing high
quality office space.
Due to an oversupply, the market has been favorable for
occupiers, which enables them to negotiate for better terms
and incentives.
OUTLOOK
It is forecasted that the overall market performance will continue
to witness imbalance between supply and demand. With ample
supply entering the market, vacancy is expected to be on the
rise while rent will be on downward trend. To attract new
tenants, landlords have to think of various marketing strategies
and promotional incentives.
Figure 5: Office, Average Asking Rent
Source: Colliers International Research
Figure 6: Office, Occupancy Rate
Table 2: Office, New Supply in Q1 2016
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
Grade A Grade B
Project name District Grade NLA (sqm)
TNR Dong Da A 37,411
789 Hoang Quoc Viet Cau Giay B 39,419
Hadico Tu Liem B 19,091
Diamond Flower Tower Thanh Xuan B 18,000
MD Complex My Dinh Tu Liem B 20,000
0
5
10
15
20
25
30
35
40
2012 2013 2014 2015 2016
US$/sqm/month
Grade A Grade B

Q1 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 - 100% 47
2 International Centre 17 Ngo Quyen 1995 6,500 7 90% 25
3 Hanoi Tower 49 Hai Ba Trung 1997 9,000 7 96.7% 28
4 63 Ly Thai To Building 63 Ly Thai To 1998 6,753 - 100% 47
5 Sun Red River Building 23 Phan Chu Trinh 1999 13,459 - 90.9% 38
6 Vietcombank Tower 198 Tran Quang Khai 2000 19,563 - 100% 29
7 Opera Business Centre 60 Ly Thai To 2007 3,787 included 85.1% 25
8 Pacific Palace 83B Ly Thuong Kiet 2007 16,600 7 66.1% 20
9 Asia Tower 2 Nha Tho 2007 3,100 included 76.7% 35
10 Sun City Building 13 Hai Ba Trung 2007 6,400 - 100% 45
11 BIDV Tower 194 Tran Quang Khai 2010 10,120 - 95% 39
12 Sentinel Place Hang Da 2010 8,000 - 76% 35
13 Corner Stone 16 Phan Chu Trinh 2013 26,500 7 70% 30
14 Hong Ha Center 25 Ly Thuong Kiet 2013 11,000 5 27.3% 19
Grade A 144,435 81% 31
1 Tungshing Square 2 Ngo Quyen 1996 8,306 - 89% 20
2 Melia Hotel 44B Ly Thuong Kiet 1997 8,500 - 90% 38
3 Prime Centre 53 Quang Trung 1998 7,600 - 95.8% 27
4 VIB Hai Ba Trung 59 Quang Trung 2006 3,000 - 68% 16
5 Capital Tower 109 Tran Hung Dao 2010 21,089 7 93.3% 21
6 Hanoi Tourist Building 18 Ly Thuong Kiet 2010 7,600 - 100% 24
7 Capital Building 72 Tran Hung Dao 2013 5,800 - 86.2% 25
8 Coalimex Building 33 Trang Thi 2013 5,071 5 79.3% 13
9 VID Building 115 Tran Hung Dao 2013 4,930 - 88.6% 23
10 Artex Port 31-33 Ngo Quyen 2014 4,725 - 100% 23
Grade B 76,621 91% 23.5

Q1 2016 | HA NOI | RETAIL
Table 3: Significant Office ProjectsPERFORMANCE
Overall occupancy rate decreased 0.9ppts q-o-q, stabilizing at
88.5% due to weak business performance of some retail centers.
The average net asking rents nominally increased 0.2ppts q-o-q.
The CBD and non CBD sub-markets recorded large variances
with rent, staying at USD81.44/sqm/month and USD28.89/sqm/
month respectively
SUPPLY
The retail stock remained stable in the review quarter as no
new project came online. Currently, Hanoi market has more than
600,000sqm NLA from 50 buildings.
In terms of retail format, shopping centers take the largest share
in the supply pipeline, accounting for nearly 80% of the total net
lettable area. The market share of department stores and retail
podiums are 10% and 11% respectively.
By location, the CBD is home of 4% of total retail supply, providing
a majority of small-scale podiums. The remaining supply is
located in non-CBD districts, including large-scale shopping
centers and department stores.
DEMAND
Vietnam’s young population and rising urban middle-class result
in strong consumer-spending potentials. However, given relatively
low average income across the nation, demand for affordable
goods and services outweighs luxury branded products.
To achieve higher footfall in all retail developments, retailers
should focus on selling mid-end items to customers.
OUTLOOK
The general outlook for Hanoi retail in the short term is continued
oversupply, particularly those outside of the CBD. The market will
become more competitive, resulting in pressure on both rents
and occupancy rates. To attract more shoppers and satisfy their
diversified demand, landlords should organize special marketing
events and festivals in their retail centers.
Figure 7: Retail, Total Supply
Figure 9: Retail, Market Performance
Figure 8: Retail, Occupancy Rate
75
80
85
90
95
100
2011 2012 2013 2014 2015 2016
%
CBD Non-CBD
0
10
20
30
40
50
60
70
80
75%
80%
85%
90%
95%
100%
2008 2009 2010 2011 2012 2013 2014 2015 Q1
2016
US$/sqm/month
Rental rate Occupancy
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2010 2011 2012 2013 2014 2015 Q1 2016
sqm
CBD Non-CBD

Q1 2016 | HA NOI | RETAIL
Table 4: 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 85-100 100%
2 Hanoi Tower 49 Hai Ba Trung Hoan Kiem 1997 2,056 43 73%
3 63 Ly Thai To Building 63 Ly Thai To Hoan Kiem 1998 594 145-200 45%
4 ICC Building 71 Nguyen Chi Thanh Dong Da 2006 2,900 40-50 100%
5 Pacific Place 83b Ly Thuong Kiet Hoan Kiem 2007 2,000 45 90%
6 Opera Business Center 6b Trang Tien Hoan Kiem 2007 1,070 90-150 100%
7 Golden Westlake 151 Thuy Khue Tay Ho 2007 1,000 25-70 68%
8 Sun City 13 Hai Ba Trung Hoan Kiem 2008 861 85-95 100%
9 Asia Tower 6 Pho Nha Tho Hoan Kiem 2008 500 100-120 100%
10 Sentinel Place 41A Ly Thai To Hoan Kiem 2010 550 49-85 -
11 Sky City Tower 88 Lang Ha Dong Da 2010 5,400 20-80 100%
12 Han Viet Tower 203 Minh Khai Hai Ba Trung 2012 600 20-31 50%
13 Rainbow Tower 19/5 KDT Van Quan Ha Dong 2012 900 8-24 56%
14 Hapumedicenter 85 Vu Trong Phung Thanh Xuan 2012 18,500 10-21 81%
15 The Lancaster Hanoi 20 Nui Truc Ba Dinh 2013 3,123 25-45 100%
16 Madarin Garden Residential 1 Hoang Minh Giam Cau Giay 2013 11,000 20-40 55%
Retail Podium 51,604 78%
1 Vincom Center Ba Trieu - Tower A&B 191 Ba Trieu Hai Ba Trung 2004 17,000 55 98%
2 Vincom Center Ba Trieu - Tower C 191 Ba Trieu Hai Ba Trung 2004 10,974 18-100 100%
3 Ruby Plaza 44 Le Ngoc Han Hai Ba Trung 2007 5,200 29 100%
4 Syrena 51B Xuan Dieu Tay Ho 2008 5,000 23 96%
5 Trang Tien Plaza 24 Hai Ba Trung Hoan Kiem 2008 14,000 10 85%
6 Savico MegaMall 7-9 Nguyen Van Linh Long Bien 2011 54,900 18 68%
7 Keangnam Palace Landmark Lot E6, Pham Hung Tu Liem 2011 60,771 20-53 80%
8 Vincom Center Long Bien KDT Vincom Long Bien 2012 45,000 19 46%
9 Indochina Plaza Hanoi 241 Xuan Thuy Cau Giay 2012 19,929 18 70%
10 SapoMart Ha Dong 8 Quang Trung Ha Dong 2012 12,000 12-30 60%
11 Ocean Mall 5 Hoang Dao Thuy Cau Giay 2013 10,000 10-30 100%
12 Vincom Mega Mall - Royal City 72A Nguyen Trai Thanh Xuan 2013 230,000 30 92%
13 Vincom Mega Mall - Time City 458 Minh Khai Hai Ba Trung 2014 200,000 27 92%
14 Aeon Mall Long Bien 2 Co Linh Long Bien 2015 72.000 45 98%
15 Vincom Nguyen Chi Thanh 54A Nguyen Chi Thanh Dong Da 2015 34,500 40 96%
Shopping Centre 719,346 86%
1 Parkson (Viet Tower) 198 Tay Son Dong Da 2007 15,761 28 85%
2 The Garden (Bitexco) Me Tri Tu Liem 2007 23,700 25 58%
3 Ho Guom Plaza Ha Dong Ha Dong 2013 23,380 16 75%
4 Lotte Department Store 54 Lieu Giai Ba Dinh 2014 38,709 43 91%
Department Store 101,550 79%
(*) ARR (Average Rental Rate): All rents are stated in net rents per sqm, inclusive service charge but exculding VAT

Q1 2016 | HA NOI | CONDOMINIUM
PERFORMANCE
The review quarter recorded 3,980 successful transactions,
down 34% compared to the previous quarter. Sales momentum
continued to be strong in high-end and mid-end segments.
On the primary market, price growth of 2.9% q-o-q was recorded
in the mid-end segment. Asking price was soften in high-end and
low-end projects, a drop of 0.3% and 7.8% q-o-q respectively.
Projects with convenient traffic & location, reputable developers
and well-established facilities and amenities tend to increase
their sale price.
SUPPLY
New supply was ample in Q1 2016 with approximately 4,479
units from 13 projects. Ha Dong, Tu Liem and West Lake are top
three locations for new condominium developments during the
review quarter.
With the ongoing establishment of new townships in sub-urban
districts, Hanoi residential market will be abundant with more
launches in coming quarters of 2016.
DEMAND
According to Hanoi Statistics Office, the capital city’s population
was 7.21 million in 2013. The number is expected to reach 8
million in 2020 and young population of less than 35 years old
will account for 50%. This trend reflects strong potential for the
apartment market.
In terms of size, small and medium apartments of 45-90sqm are
sought after by owner-occupiers who having limited budgets.
OUTLOOK
As buyers and investors have regained their market confidence,
demand for mid-end and high-end segment is expected to
remain higher in the next quarters. Affordable units will achieve
stable sales volume on the back of reasonable price and strong
demand from end-users.
Figure 10: Condominium, Launch Supply by Year
Figure 11: Condominium, Sales by Quarter and Segment
Figure 12: Condominium, Changes in secondary prices by Quarter
-8
-6
-4
-2
0
2
4
6
8
2008 2009 2010 2011 2012 2013 2014 2015 2016
%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2012 2013 2014 2015 2016
units
Luxury High-end Mid-end Affordable
0
5000
10000
15000
20000
25000
30000
2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1
2016
sqm

Q1 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 2015
Table 5: Condominium, New projects launched in Q1 2016
No Name of Project/Building Developer Location
Completion
Year
Number of
units
Asking Price
(US$/sqm)
1 FLC Star Tower FLC Group Ha Dong 2017 235 900-950
2 FLC Garden City FLC Group Tu Liem 2017 200 700
3 Tu Hiep Plaza Vinh Hanh Group Thanh Tri 2017 300 650
4 Gemek Premium Geleximco Hoai Duc 2017 200 670-760
5 Tincom - Phap Van Tincom Group Thanh Tri 2017 600 700
6 Ecolife Tay Ho Thu Do Invest Tay Ho 2017 200 1,300
7 An Binh City Geleximco Cau Giay 2017 300 1,200
8 E4 Yen Hoa VTIC Cau Giay 2017 500 1,300
9 Vinata Tower Vinaconex - Taisei Cau Giay 2017 480 800
10 FLC Green Tower FLC Group My Dinh 2017 500 1,300-1,400
11 Sun Legacy Sungroup Tay Ho 2017 500 3,800
12 Star Tower
Vietnam Construction&
Investment - Design
Thanh Xuan 2017 264 1,133
13 Ngoai Giao Doan Hancorp Tu Liem N/A 200 1,000-1,100
New launches in Q1 2016 4,479

Q1 2016 | HA NOI | VILLA & TOWNHOUSE
PERFORMANCE
Townhouses dominated sale transactions as 70% of launched
dwellings were sold in the first quarter of 2016.
On the primary market, sale price remained stable. The average
secondary price dropped 0.8% q-o-q for villas but increased
1.3% q-o-q for townhouses. By location, projects in decentralised
districts witnessed higher sale price. Compared to the previous
quarter, Ha Dong District recorded the highest price growth of
5.5% while Cau Giay and Hoai Duc district had positive price
increases of under 5%.
SUPPLY
The stock increased 1.9% q-o-q in the first quarter of 2016 with
the launch of five new projects, providing 859 dwellings. Due to
large land availability, Ha Dong district takes the largest market
share, representing 27% of supply pipeline. Well-established
infrastructure and convenient traffic connection has attracted
homebuyers to settle in this area.
DEMAND
Landed properties are preferred by Vietnamese people as
this type of accommodation is believed to increase value over
time. Investors and end-users are key demand drivers of the
market with purposes of rental income and owner occupation.
Speculators who buy a property for capital appreciation account
for a small proportion in the buyer profile.
Demand for landed houses is expected to become stronger on
the back of high urbanization rate and rapid development of
infrastructure in Hanoi.
OUTLOOK
Next quarters of 2016 is expected to have 10 projects coming
online and approximately 40 projects under planning stage. Some
projects that have been delayed for a long time will be restarted
to catch the new market cycle. Projects with reasonable price
and good supporting infrastructure will potentially achieve
stronger sales volume than others.
Figure 13: Villa and Townhouse, Supply by quarter
Figure 14: Villa and Townhouse, Secondary price by District
Figure 15: Villa and Townhouse, Q-o-Q changes in secondary price
-15
-10
-5
0
5
10
15
20
0
1000
2000
3000
4000
5000
6000
7000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014 2015 2016
%
USD/sqm
Market average price Q4 2015 Q-o-Q changes
0
20
40
60
80
100
120
140
160
180
200
Thanh
Xuan
Cau
Giay
Tay Ho Tu Liem Hoang
Mai
Ha
Dong
Long
Bien
Thanh
Tri
Hoai
Duc
Gia LamMe Linh
USD/sqm
Q4-2015 Average Q1-2016 Average Market average price Q4 2015
95
100
105
110
115
120
125
130
26,000
27,000
28,000
29,000
30,000
31,000
32,000
33,000
34,000
Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
dwellings
No. of Dwellings No. of Projects

Q1 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 2015
Table 6: Significant new projects launched in Q1 2016
No Name of Project/Building Developer Location
Completion
Year
Number of
units
Asking Price
(US$/sqm)
1 The Green Manor Geleximco Ha Dong 2018 300 670-900
2 Vinhomes Gardenia VinGroup Tu Liem 2017 192 1,400-1,700
3 MonCity Hai Dang Real Estate Corporation Tu Liem 2016 147 5,600
4 The Phoenix Garden DIA Corporation Dan Phuong 2016 200 600
5 Five Star My Dinh GFS Corporation Tu Liem 2016 20 900
New launches in Q1 2016 859

Q1 2016 | HA NOI | SERVICED APARTMENT
Table 3: Significant Office ProjectsPERFORMANCE
Grade A dropped 1.9ppts q-o-q in rents and 2.4ppts q-o-q in
occupancy rates, averaging at USD31.4/sqm/month and 84%
respectively. Grade B slightly increased 0.45ppts q-o-q in rents
and remained stable in occupancy rates, reaching at USD22.1/
sqm/month and 84% respectively.
The highest average asking rent for both two Grades was
recorded in West Lake and Hoan Kiem district, followed by Cau
Giay District and Ba Dinh District.
SUPPLY
Hanoi serviced apartment market consists of approximately
3,567 units from 43 projects.
Grade A accounts for 58% of the total supply, providing 2,070units
from 15 projects. The majority of Grade A supply was located in
Ba Dinh, West Lake and Tu Liem district. Grade B takes 41% of
the market share with 1,497 units from 28 projects. A significant
proportion of Grade B is located in Ba Dinh and Hai Ba Trung
districts.
DEMAND
Expatriates working for multinational enterprises, embassies
and consulates, international schools and universities are major
occupiers in Hanoi serviced apartments.
With increasing FDI inflows to industrial parks scattered around
the capital city and Bac Ninh, there is growing demand for
serviced accommodation for foreign experts. Despite having to
commute everyday between the two cities, expatriates still prefer
to stay in Hanoi due to its convenient facilities and attractive
social entertainments.
OUTLOOK
Due to large existing supply from the market, landlords will be
under pressure of reducing asking rents in the coming period.
Demand for this type of accommodation will sustainably grow
thanks to the rising number of foreign skilled workers in industrial
zones in Hanoi and neighboring provinces.
Figure 18: Serviced Apartment, Average asking rent by grade
Figure 16: Serviced Apartment, Total supply
Figure 17: Serviced Apartment, Occupancy rate by grade
0
5
10
15
20
25
30
35
40
2012 2013 2014 2015 2016
USD/sqm/month
Grade A Grade B
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016
Grade A Grade B
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2000 2005 2010 2011 2012 2013 2014 Q4 2015 Q1 2016
Grade A Grade B
units

Q1 2016 | HA NOI | SERVICED APARTMENT
Table 3: Significant Office ProjectsTable 7: Significant Serviced Apartment Projects
No. Project Name Address Location
Total
Units
Average
Occupancy
ARR(*)
(**)
1 Hanoi Daewoo 360 Kim Ma Ba Dinh 193 85% 28.0
2 Fraser Suites Hanoi 51 Xuan Dieu Tay Ho 184 97% 39.0
3 Hanoi Club 76 Yen Phu Tay Ho 70 90% 28.0
4 Hanoi Somerset Grand 49 Hai Ba Trung Hoàn Kiem 185 80% 32.0
5 Pacific Place 83B Ly Thuong Kiet Hoan Kiem 47 85% 19.0
6 Sendona Suites 96 To Ngoc Van Tay Ho 170 87% 34.0
7 Sofitel Plaza 1 Thanh Nien Ba Dinh 56 100% 40.0
8 Somerset Hoa Binh 106 Hoang Quoc Viet Cau Giay 206 87% 30.0
9 Somerset West Lake 254D Thuy Khue Tay Ho 90 82% 33.0
10 Sun Red River 23 Phan Chu Trinh Hoan Kiem 46 94% 23.0
11 Intercontinental Ha Noi 13 Nghi Tam Tay Ho 25 90% 33.0
12 Hanoi Lake View 28 Thanh Nien Tay Ho 26 88% 30.0
13 Crown Plaza 36 Le Duc Tho Tu Liem 136 100% 33.0
14 Calidas E6 Pham Hung Tu Liem 378 70% 30.0
15 Lotte Center Dao Tan - Cong Vi Ba Dinh 258 87% 35.0
Grade A 2,070 85% 31.9
1 Atlanta 49 Hang Chuoi Hai Ba Trung 50 95% 16.0
2 Flower Village Hanoi 14 Thuy Khue Tay Ho 131 70% 24.0
3 Elegant Suites 19B Ha Hoi Hoan Kiem 39 95% 21.0
4 Elegant Suites Westlake 10C Dang Thai Mai Tay Ho 131 80% 26.0
5 Hanoi Lake 11-13 Nam Trang Ba Dinh 10 90% 21.0
6 Hoa Binh Green No. 14, Ally 376 Buoi Ba Dinh 40 90% 14.0
7 Lakeside Garden 56 Xuan Dieu Tay Ho 8 90% 14.0
8 May Fair 34B Tan Phu Ba Dinh 48 98% 17.0
9 Oriential Palace 33 Tay Ho Tay Ho 59 80% 23.0
10 Park View 9 Nguyen Binh Khiem Hai Ba Trung 6 100% 15.0
11 Rainbow 7 Trieu Viet Vuong Hai Ba Trung 26 81% 15.0
12 Rose Garden 170 Ngoc Khanh Ba Dinh 96 70% 22.0
13 Swan Lake 3/61/31 Xuan Dieu Tay Ho 6 100% 21.0
14 Skyline Tower 4 Dang Dung Ba Dinh 79 96% 19.0
15 V-Tower 649 Kim Ma Ba Dinh 36 100% 28.0
16 DC Building 144 Doi Can Ba Dinh 9 70% 17.0
17 Hoa Binh Hotel 27 Ly Thuong Kiet Hoan Kiem 9 100% 22.0
18 Palace de Thien Thai 2 Tho Nhuom Hoan Kiem 16 100% 18.0
19 The City Residences 37 Phan Dinh Phung Ba Dinh 15 96% 19.0
20 Candle Hotel 287-301 Doi Can Ba Dinh 69 84% 26.0
21 Pan Horizon 157 Xuan Thuy Cau Giay 86 70% 22.0
22 Jana Garden Terrace 6 Kim Dong Hoang Mai 72 50% 19
23 DMC Lake View 535 Kim Ma Ba Dinh 66 85% 14
24 Time City 485 Minh Khai Hai Ba Trung 150 95% 14
25 Royal City 72 Nguyen Trai Thanh Xuan 100 65% 16
26 My Way 4, Alley 86, Duy Tan Cau Giay 39 90% 30
27 Dolphin 28 Tran Binh Tu Liem 70 80% 13
28 Lancaster Hanoi 20 Nui Truc Ba Dinh 31 87% 27
Grade B 1,497 81.6% 20.0
(*) US/sqm/month (**) ARR (Average Rental Rate): All rents are stated in gross rents per sqm, not including VAT and serviced charge

Q1 2016 | HA NOI | INDUSTRIAL
PERFORMANCE
Average gross asking rent in Hanoi’s IPs reached USD83/sqm/
term and the remaining Land Use Right was 34.8 years.
IPs in Hanoi had the average occupancy rate of 61.6%. Hoa Lac
High- tech park has the lowest occupancy rate of 18%-22%. If
the 1,586ha high tech park is being excluded from the calculation,
the average occupancy rate would be 91% while the average rent
would be increased to USD103.5/sqm/term. Rent of ready- built
factory- in Hanoi range from USD1.5 – USD2.5/sqm/month.
SUPPLY
Hanoi has 11 IPs and more than 3,800ha of industrial area.
Under the socioeconomic development plan by 2020 with visions
until 2030, Hanoi will be home of 33 industrial and hi tech parks.
DEMAND
According to the Ministry of Planning and Investment, the city
attracted USD303 million of new and supplementary FDI capital
in the first quarter of 2016. The majority of investments are flown
into industries such as intermediate goods, machinery, spare
parts & accessories, electronics..
Infrastructures are being developed to connect Northern provinces
with Hanoi which will significantly reduce time and costs of
transportation and commercial traffic. These will positively
contribute to improve the occupancy rate and asking rate of IPs.
OUTLOOK
Prices and occupancy rate are expected to increase steadily in
the next coming quarters as the inflow of foreign investments is
expected to continue. In the master plan for Hanoi, the capital city
will have 24 industrial parks in 2020 and 33 industrial parks in
2030. The industrial area at that time will also be increased to
6,100ha and 8,000ha respectively.
In general, infrastructure and associated services of Hanoi’s IPs
are not as satisfactorily as those of HCMC’s IPs. Therefore, IPs’
developers should concentrate on building more associated in-
frastructures and utilities as banks, shopping malls, schools,
hospitals, in order to improve the quality of life of IP’s employees.
Figure 19: Industrial, Net absorption
Figure 20: Industrial, Supply by District
Table 8: Industrial, Future Supply
-15
-10
-5
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
ha
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
Dong Anh
35%
Thach That
23%
Chuong My
12%
Me Linh
12%
Tu Liem
9%
Others
9%

Q1 2016 | HA NOI | INDUSTRIAL
Table 3: Significant Office ProjectsTable 9: 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 99% 2048
2 Noi Bai Soc Son 31 116 140 100% 2044
3 Dai Tu Long Bien 12 40 140 36% 2045
4 Quang Minh Me Linh 24 344 70 95% 2053
5 Phu Nghia 1 Chuong My 24 170 95 100% 2058
6 Phu Nghia 2 Chuong My 24 238 95 65% 2058
7 Hanssip (phase 1) Phu Xuyen 44 72 120 25% 2060
8 Dong Anh Dong Anh 19 470 100 95% 2057
9 Sai Dong B (Phase I&II) Long Bien 11 97 95 100% 2046
10 Thang Long Dong anh 16 302 95 100% 2047
11 Thach That Thach That 24 150 100 100% 2056
12 Hoa Lac Hi-Tech Thach That 39 1,586 55 20% 2048
Total 3,847 83 62%

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Hanoi Quarterly Knowledge Report | Q1 2016

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