Q.1 2013 Cushman & Wakefield Market beat report

Cushman & Wakefield Vietnam
Unit 602, Asia Tower
6 Nha Tho Str., Hoan Kiem Dist
Hanoi
www.cushmanwakefield.com/knowledge
For more information, contact:
Minh Nguyen, Senior Manager
Tel: (84-4) 39381786
minh.nguyen@ap.cushwake.com
The market terms and definitions in this report are based on NAIOP standards. No warranty or
representation, express or implied, is made to the accuracy or completeness of the information
contained herein, and same is submitted subject to errors, omissions, change of price, rental or other
conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.
© 2012 Cushman & Wakefield, Inc. All rights reserved.
ECONOMIC OVERVIEW
CPI in Q1 2013 was recorded at a relatively
low level, increasing by 6.91% compared with
Q1 2012. However, inflation may still
accelerate. In regard to GDP, this quarter
grew by 4.89% as compared with the same
period in 2012 (according to General Statistics Office of Vietnam –
GSO)
Total new registered and additional FDI in this quarter reached
around US$6.0 billion, increasing 63.6% Y-o-Y. The property sector
still ranks second in total FDI, after manufacturing, with nearly
US$250 million, accounting for approximately 4.1% of total
investment. This figure has reduced significantly compared to Q1
2012. Japan remains the leading investor in Vietnam, contributing
more than 50% of total investment in Vietnam; followed by
Singapore, then Korea.
INCREASE IN GRADE A STOCK
In first quarter 2013, one Grade A office project, Corner stone,
came into the market which raised the total stock of Grade A to
approximately 330,000 square meters (sq.m.)—an increase of 9.0%
quarter-on-quarter.
The total Grade B stock remains at roughly 557,000 sq.m.,
unchanged compared with the previous quarter.
ASKING RENT REMAIN STABLE
Asking rents for Grade A this quarter remained unchanged q-o-q.
The average asking rent for Grade A is around VND660,000
(equivalent to approximately US$31.5 per sq m per month (all
rents are quoted with VAT excluded, service charge included).
Grade B, average asking rent also remained unchanged q-o-q at
around VND400,000 (equivalent to approximately US$19.5) per
sqm per month (VAT excluded, service charge included).
Grade A occupancy rate reached around 72%, down 4% q-o-q but
up 8% y-o-y . Meanwhile Grade B occupancy stood at about 78%,
which is stable y-o-y but down 2% q-o-q.
OUTLOOK
In Q2, we expect to see two more office projects come online -
one in the CBD and one in the CBD-fringe area. Thus, total supply
in the market will continue to increase and as a result, we expect
rental rates to witness further compression, with Grade A offices
at the forefront of these decreases.
From a demand perspective, an increase in inquiries on tenant
relocation is forecast throughout the rest of 2013 as firms seek to
take advantage of low rental rates offered in the West of the city.
With increases in office supply predicted to continue in the short
to medium term, 2013 will remain a tenant’s market.
STATS ON THE GO
Q1 2013 Q-O-Q
CHANGE
Y-O-Y
CHANGE
12
MONTH
FORECA
ST
Grade A Overall Vacancy 28% 4% -8%
Grade A Overall Rents $31.5 0% -7 %
Grade A Absorption (sqm) 8,000 165% -65%
ECONOMIC INDICATORS
VIETNAM 2011 2012 2013F
GDP Growth 5.89% 5.6% 5.9%
CPI Growth 18.58% 10% 6.2%
Unemployment 5% 5% 4.5%
SOURCE: GSO, IMF
DIRECT RENTAL VS. VACANCY RATES
Q1 2013HANOI, VIETNAM
OFFICE SNAPSHOT
MARKETBEAT
A Cushman & Wakefield Research Publication
0%
5%
10%
15%
20%
25%
30%
35%
40%
30
32
34
36
38
40
42
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
US$/sqm/mth
Grade A overall rent Vacancy

Hanoi
Tel: (84-4) 39381786
contained herein, and same is submitted subject to errors, omissions, change of price, rental or other
conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.
© 2012 Cushman & Wakefield, Inc. All rights reserved.
HANOI, VIETNAM
SUBMARKET INVENTORY
(SQM)
OVERALL
VACANCY
RATE
UNDER
CONSTRUCTION
(SQM)
YTD
CONSTRUCTION
COMPLETIONS
(SQM)
OVERALL
NET
ABSORPTION
(SQM)
AVERAGE GROSS RENT
(US$/SQM/MTH)
US$SF/YR EURO SF/YR
Q4 2012 Q1 2013 Q1 2013 Q1 2013
CBD A - Grade 152,000 14% 0 25,853 12,000 40 38 42.4 32.9
CBD B - Grade 56,000 7% 28,000 0 0 27.3 28.5 31.8 24.6
CBD TOTALS 208,000 12% 28,000 25,853 12,000 36.2 35.4 39.5 30.6
Non- CBD A-Grade 178,000 36% 205,000 0 -4,000 25.3 26 29 22.5
Non-CBD B-Grade 501,000 21% 412,000 0 -10,500 18.8 18.6 20.7 16
NON-CBD
TOTALS
679,000 28% 617,000 0 -14,500 20.7 20.5 22.9 17.7
* RENEWAL NOT INCLUDED IN LEASING ACTIVITY STATISTICS
MARKET HIGHLIGHTS
Significant Q1 2013 Lease Transactions
SUBMARKET TENANT BUILDING CLASS SQUARE METER
Cornerstone
Cornerstone
Cornerstone
Cornerstone
Indochina Plaza
Vinafor
Hoan Kiem
Hoan Kiem
Hoan Kiem
Hoan Kiem
Cau Giay
Hai Ba Trung
VIB
Vietnamese Lottery Company
Grass Savoye
Fuji Electric
I-Global
Diageo
A
A
A
A
A
B
6,000
6,500
307
700
145
200
Significant Projects Under Construction
SUBMARKET AREA (SQM) COMPLETION DATE STATUS
Tuan Duc Tower CBD 8,000 2013 Finishing
Hong Ha Building CBD 12,000 2013 Finishing
EVN Twin Tower Ba Dinh 45,261 2013 Finishing
Apex Tower My Dinh 26,000 2013 Under construction
Handico Tower My Dinh 17,400 2013 Under construction
Lotte Center Hanoi Ba Dinh 43,835 2014 Under construction

Hanoi
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete.
Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the
accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other
conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2012 Cushman & Wakefield, Inc. All rights reserved..
ECONOMY
CPI in Q1 2013 was recorded at a
relatively low level, increasing by 6.91%
compared with Q1 2012. However,
inflation may still accelerate. In regard to
GDP, this quarter grew by 4.89% as
compared with the same period in 2012 (according to General
Statistics Office of Vietnam – GSO)
around US$6.0 billion, increasing 63.6% Y-o-Y. The property
sector still ranks second in total FDI, after manufacturing, with
nearly US$250 million, accounting for approximately 4.1% of total
SUPPLY
Currently, Hanoi has around 700,000 sqm of retail space
including shopping centres/department stores, retail podiums,
supermarkets, electronic marts and wholesales markets. In which,
shopping centres/department stores account for the highest
market share of 67%. Q1 2013 witnessed the re-launching of one
shopping centre in the CBD area, which increased the total
supply of this sector to nearly 420,000 sqm.
MARKET PERFORMANCE
In Q1 2013, the average asking rent of the whole retail market in
Hanoi, including both CBD and non-CBD area stays at around
US$50/sqm (VAT excluded, service charge included). CBD area
has the highest asking rent, with a range of US$40 – US$220/sqm,
depending on the area, location and tenants’ brand. Rents tend to
decrease on upper levels compared to ground floor space in the
same shopping center. Roughly 88% of retail space (shopping
centre/department stores and retail podium only) was occupied
in this quarter.
This quarter still witnessed the trend of low & medium fashion
brands such as Topshop, Topman, and Oasis entering the retail
market.
OUTLOOK
It is forecasted that there will be no uptrend in retail market
performance in 2013. Vincom Mega Mall Royal City - one of the
largest scale retail projects is expected to be completed end of
this year and will add to the retail market 230,000sqm.
Up to 2015, approximately 1.3 million sqm from 66 projects is
planned to enter the retail market.
ECONOMIC INDICATORS
NATIONAL 2010 2011 2012
GDP Growth 6.8% 5.89% 5.03%
CPI Growth 11.8% 18.6% 9.2%
Retail Turnover 24.5% 24.2% 16%
PRIME RETAIL RENTS – Q12013
MAINSTREETS MIL VND
SQM/MTH
EURO
SF/MTH
US$
SF/MTH
Q-O-Q CHANGE
Y-O-Y CHANGE
Trang Tien 1.6 - 4.2 5.7 - 14.3 7.4 -18.6 0.0% 0.0%
Ba Trieu 1.05 - 1.6 3.5 - 14.3 4.6 -18.6 -10% -20%
Pho Hue 1.05 - 1.6 3.5 -14.3 4.6 -18.6 -10% -20%
Thai Ha 1.05 - 1.6 3.5 - 14.3 4.6 -18.6 -10% -20%
Lang Ha 0.8 - 1.2 2.8 - 4.3 3.7 - 5.6 -10% -30%
MALLS MIL VND
SQM/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q CHANGE
Y-O-Y CHANGE
Vincom City
Towers
Trang Tien Plaza
2.06
4.6
7.04
15.7
9.14
20.4
0%
-
-2%
-
Parkson Viet
Tower
Savico Megamall
2.16
0.68
7.4
2.31
9.6
3.0
0%
0%
0%
-7%
SIGNIFICANT LEASING TRANSACTIONS
PROPERTY LOCATION TENANT SQUARE FEET
Opera Business
Centre
6 Trang Tien Maison 840
13-15 Ngoc Khanh
Building
13-15 Ngoc
Khanh
Hi-way
supermarket
5,000
SIGNIFICANT PROJECTS UNDER CONSTRUCTION
PROPERTY LOCATION SQUARE
METERS
COMPLETION
DATE
Vincom Mega Mall Royal
City
Thanh Xuan 230,000 2013
Cho Mo Plaza
Lotte Center Hanoi
Vicom Mega Mall –
Times City
Hai Ba Trung
Ba Dinh
Hai Ba Trung
23,000
34,682
230,000
2013
2014
2014
HANOI/VIETNAM
MANCHESTER
MANCHESTER
RETAIL SNAPSHOT
RETAIL SNAPSHOT
MARKETBEAT
Q1 2013

Hanoi
Research & Consultancy
Tel: (84-4) 39381786
This report has been produced by Cushman & Wakefield LLP for use by those with an interest in commercial
property solely for information purposes. It is not intended to be a complete description of the markets or
developments to which it refers. The report uses information obtained from public sources which Cushman &
Wakefield LLP believe to be reliable, but we have not verified such information and cannot guarantee that it is
accurate and complete. No warranty or representation, express or implied, is made as to the accuracy or
completeness of any of the information contained herein and Cushman & Wakefield LLP shall not be liable to any
reader of this report or any third party in any way whatsoever. All expressions of opinion are subject to change.
Our prior written consent is required before this report can be reproduced in whole or in part. Should you not
wish to receive information from Cushman & Wakefield LLP or any related company, please email
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1
Q1 2013
HANOI, VIETNAM
SERVICED APARTMENT
MARKETBEAT
ECONOMY
CPI in Q1 2013 was recorded at low level,
increasing by 6.91% in comparison with Q1
2012. However, inflation may still rise.
Regarding GDP, IMF forecast that Vietnam
will achieve around 5.9% growth in 2013.
around US$6.0 billion, and increase of 63.6% compared to the same
period of last year. FDI into the property sector still ranked second
after manufacturing, with nearly US$250 million, accounting for
approximately 4.1% of the total investment. This figure reduced
significantly compared to Q1 2012. Japanese investors remained the
leading nationality of investors into Vietnam, making up more than
50% of the total investment in the country; followed by Singapore,
then Korea.
NEW GRADE B SUPPLY COMING ONLINE
Total stock in all grades this quarter stayed at approximately 3,000
units, an increase of 1% compared to Q4 2012.
Total stock for Grade A has no change in comparison with the
previous quarter. Meanwhile, Grade B has witnessed an additional
supply from 2 new projects namely Dolphin Plaza located in Tu
Liem District (70 units) and My Way situated in Cau Giay District
(39 units). However, one Grade B project in Tay Ho District
stopped to lease for renovation, supply still increased by 9% q-o-q.
The market witnessed a more common trend of converting
apartments for sale into serviced apartments so supply will keep
increasing.
BIG CHANGE IN GRADE B RENTS AND OCCUPANCY
RATE
The average asking rent in the Grade A segment in this quarter on
par with Q4 2012, at roughly VND672,000 per sqm per month,
that equates to US$32/sqm/month (VAT excluded but service
charge included).
Due to the new projects in the Grade B segment offering
competitive terms, average quoting rents stood at VND407,000
per sqm per month, that equates to US$19.4/sqm/month, (VAT
excluded but service charge included), a decrease of 14% q-o-q and
8% y-o-y.
Grade A maintained occupancy rates of 83%, an increase of 6% in
comparison with the previous quarter. Lunar New Year might have
impacted on expatriate relocations and can explain the increase in
occupancy. Meanwhile, Grade B’s occupancy rate stood at 79%, a
decrease of 12% in comparison with that in Q4 2012 due to
additional supply entering the market.
OUTLOOK
Conversion of Residential Sales units to serviced apartments or
apartments available for lease is set to continue in the medium
term as owners try different strategies to dispose of their stock.
In the next 3-5 years, nearly 1,200 serviced apartments are
forecasted to reach the market. There are four districts which will
see the most significant new supply: Ba Dinh, Tay Ho, Cau Giay and
Tu Liem.
STATS ON THE GO
RENTAL VALUES AS OF Q1 2013
SUBMARKET AVERAGE
RENT
VND/SQM/MTH
% CHANGE SHORT TERM
OUTLOOKQ-O-Q Y-O-Y
GRADE A
CBD 660,000 3% -6%
Non – CBD 684,000 -2% 0%
GRADE B
CBD 357,000 -12% -12%
Non - CBD 453,000 -5% 1%
Grade A & B Overall Rental Vs. Occupancy Rate Q1 2013
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
VND/sqm/month
Grade A - Rent Grade B - Rent
Grade A - Occupancy Grade B - Occupancy

Hanoi
Research & Consultancy
Tel: (84-4) 39381786
2
CURRENT SUPPLY BY GRADE IN Q1 2013
GRADE NO. OF BUILDINGS NO. OF UNITS
A
B
C
13
18
17
1,750
957
257
BUILDING LOCATION DEVELOPER EST. NUMBER OF UNITS EXPECTED
COMPLETION
Candeo Hotel
Viet Tower
Ba Dinh District
Dong Da District
Nhan Nghia Co.
Hoa Binh Corp.
70
50
Q2 2013
Q4 2013
Elegant Tay Ho
Lotte Center Hanoi
Tay Ho District
Ba Dinh District
Duy Hoang Minh
Lotte Coralis
96
240
2014
2014
Vietinbank Tower
Le Roi du Soleil
HD Westlake
Tay Ho District
Tu Liem District
Tay Ho District
Vietinbank
Tan Hoang Minh Corp.
HD Group
N/A
N/A
N/A
2015
Onward
Onward
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F
No.ofunits
Accumulated Supply by Year - Grade A&B
Grade A Grade B

Hanoi
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minh.nguyen@cushwake.com
1
Q1 2013
HANOI, VIETNAM
RESIDENTIAL FOR SALE
MARKETBEAT
ECONOMIC OVERVIEW
low level, increasing by 6.91% compared
with Q1 2012. However, inflation may still
GSO)
INCREASING SUPPLY CONCERNS
Q1 2013 witnessed several mid-end and low-end projects launching
new apartments into the market, with sale price from VND14
million/sqm (VAT included). Accordingly, Grade C primary supply
went up considerably to around 5,000 units. Grade B continued
occupying the highest market share, with over 50% of the total
primary supply for all grades. Grade A primary supply stayed the
same as Q4 2012.
POOR PERFORMANCE CONTINUES
After the Lunar New Year holidays, developers of many projects
started offering incentives for buyers such as gifts (cars, ipad, saving
book, etc.) or reducing the price directly. However there was little
positive impact on sales volumes.
Average asking prices for Grade A condominiums are roughly
VND48 million/sqm (equivalent to US$2,286/sqm), Grade B around
VND30 million/sqm (equivalent to US$1,429/sqm) and circa
VND16million/sqm (equivalent to US$762/sqm) for Grade C
apartments. These asking prices include VAT. It is common for
developers to include furniture packages in deals now and this
would show an increase of VND5-10 million/sqm.
OUTLOOK
2013 is expected to see a more common trend in converting
commercial houses into social houses and dividing large apartments
into smaller ones. Hanoi People’s Committee put in place a
residential development moratorium preventing the approval of
more commercial residential development until December 2014
aimed at cooling the market.
With the Resolution 02/NQ-CP dated 7th January 2013 and the
current surplus supply, condominium market continues seeing
further cutting price trend. Buyers, particularly low and middle
income ones will have more opportunities to approach.
ECONOMIC INDICATORS
NATIONAL 2011 2012 2013F
GDP Growth 5.89% 5.03% 5.9%
CPI Growth 18.13% 9.21% 6.2%
ASKING PRICE OF ALL SEGMENTS Q1 2013
PRIMARY MARKET PERFORMANCE Q1 2013
0
10
20
30
40
50
60
70
Grade A Grade B Grade C
mil VND/sqm
Lowest primary asking price (VAT incl.)
Highest primary asking price (VAT incl.)
0
1000
2000
3000
4000
5000
6000
7000
Units
Primary supply No. of units sold
MARKETBEAT

Hanoi
Tel: +(84-4) 3938 1786
Tel: +(84-4) 3938 1786
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2
STATES ON THE GO
Significant Residential Projects Launched in Q1 2013
Ha Do Park View
LOCATION
Cau Giay
COMPLETION YEAR
2014
UNITS LAUNCHED
50
SALE PRICE ((VND
MILLION, VAT EXCL.)
22.7
Phuc Thinh Tower Tu Liem 2014 400 12-13
OCT2 Tu Liem 2014 204 13
CT3C Hoang Quoc Viet Residential Cau Giay 2014 84 24-25
Significant Projects Under Construction LOCATION DEVELOPER EST. NUMBER OF UNITS EXPECTED COMPLETION
Mandarin Garden
D’.Palais de Louis
Cau Giay
Cau Giay
Hoa Phat Group
Tan Hoang Minh
Group
1,008
2014
2013
2014
Mulberry Lane
Golden Land Building
Ha Dong
Thanh Xuan
Capital Land – Hoang
Thanh
Hoang Huy Group
1,478
730
2014
2014
Golden Palace Me Tri Tu Liem Mai Linh Group 1,000 2014
Significant Q1 2013 Construction Completions LOCATION DEVELOPER EST. NUMBER OF UNITS UNIT SIZE (SQM)
Song Hong Park View Dong Da Song Hong Land 336 60-165

Hanoi
Tel: +(84-4) 3938 1786
Minh Nguyen
Tel: +(84-4) 3938 1786
minh,nguyen@cushwake.com
This report has been produced by Cushman & Wakefield LLP for use by those with an interest in commercial property solely for
information purposes. It is not intended to be a complete description of the markets or developments to which it refers. The report
uses information obtained from public sources which Cushman & Wakefield LLP believe to be reliable, but we have not verified such
information and cannot guarantee that it is accurate and complete. No warranty or representation, express or implied, is made as to
the accuracy or completeness of any of the information contained herein and Cushman & Wakefield LLP shall not be liable to any
reader of this report or any third party in any way whatsoever. All expressions of opinion are subject to change. Our prior written
consent is required before this report can be reproduced in whole or in part. Should you not wish to receive information from
Cushman & Wakefield LLP or any related company, please email unsubscribe@eur.cushwake.com with your details in the body of
your email as they appear on this communication and head it “Unsubscribe”. ©2012 Cushman & Wakefield LLP All rights reserved.
Q1 2013
HANOI, VIETNAM
INDUSTRIAL SNAPSHOT
MARKETBEAT
ECONOMY
low level, increasing by 6.91% compared with
Q1 2012. However, inflation may still
GSO)
MARKET OVERVIEW
No new industrial supply was launched into the market in Q1 2013.
Total land area of industrial parks in Hanoi remained at around
1,389 hectares. However, land available for lease was limited to
approximately 182 hectares, coming from three industrial parks
(IPs), namely Hoa Lac Hi-tech Park, Phu Nghia IP and Noi Bai IP
Phase II. Almost all IPs in Hanoi have been fully occupied.
Up to now, Hoa Lac Hi-tech Park has the lowest occupancy rate
among industrial parks operating in Hanoi (around 60%). According
to the Management Board of Hoa Lac Hi-tech Park, they have
licensed 68 projects with a total registered investment capital of
52,241 billion, of which 20 projects have been put into operation
and13 projects are in the construction process. In 2012, seven
projects have been licensed for investment to this Hi-tech park
with total registered investment capital of VND 20,809 billion.
STABLE RENTAL RATE
Q1 2013 witnessed no change in rental rate in comparison with Q4
2012, remaining at around US$109/sqm/period (equivalent to
nearly VND2.3 million/sqm/period), VAT excluded.
The average asking rent of IPs in Hanoi is still much higher than
that in neighboured provinces like Hung Yen, Bac Ninh and Hai
Phong.
The occupancy rate of all IPs in Hanoi is estimated to reach 87%.
OUTLOOK
By 2020, the industrial market in Hanoi is expected to see an
additional supply of roughly 3,000 hectares from eight identified
projects.
Hanoi city will actively establish and expand industrial parks and
clusters to ensure the industrial growth target at 7.5% - 7.8% in
2013. In addition, the city will continue focusing on improving the
infrastructure and site clearance as well as implementing programs
to promote industrial development.
MARKET STATISTICS
SUBMARKET
TOTAL
AREA (HA)
LEASABLE AREA
(HA)
NO. OF IPS
Gia Lam 97 78 1
Long Bien 40 32 1
Soc Son 100 70 1
Me Linh 344 240 1
Tu Liem 30 24 1
Chuong My 170 111 1
Dong Anh 274 206 1
Thach That & Quoc Oai 705 619 2
SIGNIFICANT FUTURE PROJECTS
IP NAME
Hanssip
DISTRICT
Phu xuyen
AREA (HA)
640
STATUS
Ground breaking
Phung Hiep Chuong My 401 Site clearance
North Thuong Tin Thuong Tin 470 Site clearance
Dong Anh Dong Anh 470 Planning
PERFORMANCE BY DISTRICT
0%
20%
40%
60%
80%
100%
120%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
US$/sqm/term
Rent Occupancy

Cushman & Wakefield Viet Nam
Level 14, Vincom Center Building
72 Le Thanh Ton, District 1, HCMC
Christopher Brown, General Manager
+(84) 90 343 8000
chris.brown@ap.cushwake.com
The market terms and definitions in this report are based on NAIOP standards. No warranty
or representation, express or implied, is made to the accuracy or completeness of the
information contained herein, and same is submitted subject to errors, omissions, change of
price, rental or other conditions, withdrawal without notice, and to any special listing
conditions imposed by our principals. © 2012 Cushman & Wakefield, Inc. All rights reserved.
ECONOMIC OVERVIEW
Y-o-Y. However, inflation may still
grew by 4.89% as compared with the
same period in 2012 (according to General Statistics Office of
Vietnam – GSO)
Total new registered and additional FDI in this quarter
reached around US$6.0 billion, increasing 63.6% Y-o-Y. The
property sector still ranks second in total FDI, after
manufacturing, with nearly US$250 million, accounting for
approximately 4.1% of total investment. This figure has
reduced significantly compared to Q1 2012. Japan remains
the leading investor in Vietnam, contributing more than 50%
of total investment in Vietnam; followed by Singapore, then
Korea.
GRADE B SUPPLY INCREASED
Four Grade B office buildings entered the market this quarter,
of which, one is returning to the market after it temporarily
stopped leasing. This pushed the total stock of Grade B
spaces up to approximately 618,000 sqm from 46 buildings,
an increase of 7% quarter-on-quarter.
No new Grade A office buildings came online this quarter.
Currently, there are 9 Grade A office buildings, supplying
approximately 157,000 sq m of office space to the market.
RENT CONTINUED ITS DOWNWARD TREND
While average rent for Grade A remained stable, standing at
around 1,027,000VND/Sqm/Month (equivalent to 49 US$
/Sqm /Month
(*)
), Grade B rent continued its downward trend,
decreasing by nearly 1% Q-o-Q and by some 2.5% Y-o-Y,
standing at 544,000 VND/Sqm/Month (26US$ /Sqm/Month
(*)
)
Grade A occupancy rate increased slightly by nearly 1% Q-o-
Q, at around 83%, but decreased by some 1% Y-o-Y. Grade
B decreased by some 2% Q-o-Q but increased approximately
3% Y-o-Y, to around 86.5%. The main reason was the overall
low occupancy of the new buildings.
Total net absorption of both grades increased 118% Q-o-Q,
standing at 50,400 sqm. Net absorption of Grade A space
stands near 9,700 sqm, accounting for around 19% of total
space absorbed in Q1 and Grade B was approximately
40,700 sqm, accounting for 81% of the total space absorbed.
(*)SERVICE CHARGE INCLUDED, VAT EXCLUDED
OUTLOOK
Substantial increases in the supply of Grade A and B office
space has been forecast in the short to medium term, in and
surrounding the CBD. However, many office development
sites are suffering from construction delays and in some
cases construction has stopped altogether due to financing
problems.
During the past 12 months multinational tenants have
gradually been migrating back to the CBD, taking advantage
of the favourable market conditions and the superior build
quality of the new office supply. This trend is predicted to
continue for the time being.
Headline rents look to be stabilizing, although improved lease
incentives continue to be offered to tenants. The HCMC office
market is expected to remain a tenant’s market for 2013 but
some market recovery is predicted in 2014 as the economy
recuperates and competition in the office market grows.
STATS ON THE GO
1Q13 Q-O-Q
CHANGE
Y-O-Y
CHANGE
12 MONTH
OUTLOOK
Overall Vacancy 16.8% -0.8% 1.2%
Grade A Overall Rents $49 -0.5% -0.4%
Absorption (sqm) 9,720 15% 20 %
ECONOMIC INDICATORS
VIETNAM 2011 2012 2013F
GDP Growth 5.89% 5.6% 5.9%
CPI Growth 18.58% 10% 6.2%
Unemployment 5% 5% 4.5%
SOURCE: GSO, World bank
GRADE A OVERALL RENTAL VS. VACANCY RATES
0%
10%
20%
30%
40%
0
20
40
60
80
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Q4 Q1
2010 2011 2012 2013
US$/sq.m/mth
Grade A overall rent Vacancy
Q1 2013HO CHI MINH CITY, VIETNAM
OFFICE SNAPSHOT
MARKETBEAT

Christopher Brown, General Manager
+(84) 90 343 8000
contained herein, and same is submitted subject to errors, omissions, change of price, rental or
other conditions, withdrawal without notice, and to any special listing conditions imposed by our
principals. © 2012 Cushman & Wakefield, Inc. All rights reserved.
SUBMARKET INVENTORY OVERALL
VACANCY
RATE
UNDER
CONSTRUC
TION
YTD
CONSTRUCTION
COMPLETIONS
OVERALL
DIRECT NET
ABSORPTION
GRADE A & B AVERAGE
GROSS (SERVICE
CHARGED INCL., VAT
EXCLUDED)
(US/SQM/MTH)
US$
SF/YR
EURO
SF/YR
CBD A - Grade 157,000 16.8% 281,000 0 9,720 $49 $54.6 €42
CBD B - Grade 387,800 16% 126,600 14,400 5,310 $30.13 $33.6 €25.8
Non - CBD
B - Grade
230,200 10% 200,300 23,000 35,340 $17.5 $19.5 €15
TOTALS 775,000 14% 607,900 37,400 50,400 $31 $34.5 €26.5
MARKET HIGHLIGHTS
Significant Q1 2013 Lease Transactions SUBMARKET TENANT BUILDING CLASS SQUARE
METER
President Place CBD Canon A 1,100
President Place CBD Microsoft A 774
Bitexco Financial Tower CBD Murphy Oil A 800
An Phu Plaza Non CBD PPF B 2,500
Empress Tower CBD Shinhan Bank B 3,000
Saigon Airport Plaza Non-CBD DHL B 2,000
Significant Q1 2013 Construction
Completions
SUBMARKET MAJOR TENANT COMPLETION DATE SQUARE
METER
Empress Tower CBD Shinhan Bank Q1 2013 14,400
Pico Plaza Non CBD N/A Q1 2013 9,000
Saigon Airport Plaza Non CBD KFC Q1 2013 14,000
Significant Projects Under Construction SUBMARKET MAJOR TENANT COMPLETION DATE SQUARE
METER
Lim Tower CBD N/A Q2/2013 33,000
Le Meridien CBD N/A Q2 2013 9,000
Vietcombank Tower CBD N/A Q4 2014 55,000
DB Tower Non CBD N/A Q2 2013 18,860
HO CHI MINH, VIETNAM
* RENTAL RATES REFLECT ASKING $PSQM/MONTH

This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete.
Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the
accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other
conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. ©2012 Cushman & Wakefield, Inc. All rights reserved..
ECONOMY
relatively low level, increasing by 6.91% Y-
o-Y. However, inflation may still accelerate.
In regard to GDP, this quarter grew by
4.89% as compared with the same period in
2012 (according to General Statistics Office of Vietnam – GSO)
around US$6.0 billion, increasing 63.6% Y-o-Y. The property
sector still ranks second in total FDI, after manufacturing, with
nearly US$250 million, accounting for approximately 4.1% of total
SUPPLY
Currently, there are eight Retail podiums, seven Department
stores, 21 shopping centres, 60 supermarkets and three
wholesale centres in the city with a total area of approximately
791,000 sq m.
One shopping centre and one supermarket joined the market this
quarter, supplying an additional 27,000 sq m of retail space to the
market. Both are located in the suburban area.
District 1 always has the most crowded retail market in the city
and currently accounts for 24% of the total supply.
MARKET PERFORMANCE
The CBD area always performs well, with the highest occupancy
rate at 90%, despite it having the highest rent at VND2,235,000
per sqm per month (equivalent to US$107 per sqm per
month).This rent is considered 1.6 times higher than in the
secondary area, at VND1,430,000 per sqm per month (equivalent
to US$69 per sqm per month) with average occupancy of 89%;
and 3 times higher than in the suburban area, at VND749,000 per
sqm per month (equivalent to US$36 per sqm per month), and
83% occupied.
In terms of retail type; Department Stores achieved the highest
average asking rent, at VND1,410,000 per sqm per month
(equivalent to US$67 per sqm per month), followed by Shopping
Centres at VND1,392,000 per sqm per month (equivalent to
US$66 per sqm per month) and finally Retail Podiums at
VND1,020,000 per sqm per month (equivalent to US$49 per sqm
per month). Occupancy rates are 89%, 86%, and 97%,
respectively.
OUTLOOK
In 2012, Vietnam went off the list of 30 most attractive retail
markets in the world (A.T Kearney). However, the Vietnam retail
market is still considered to be appealing to foreign retailers with
a population of about 90 million people, more than 60% of whom
are in the high-consuming age category from 20 to 59.
In HCMC, demand for retail space in the CBD is expected to
remain high in at least the short to medium term. However, due
to the land limitation and high land price, the majority of future
stock will be concentrated in the suburban area.
Over the next 5-7 years, approximately 1.5 million sq m of new
supply will enter the market. This represents nearly a 200%
increase in retail supply between now and then.
ECONOMIC INDICATORS
NATIONAL 2011 2012 2013
GDP Growth 5.89% 5.03% 5.9%
CPI Growth 18.6% 9.2% 6.2%
Retail Turnover 24.2% 16% 18%
SOURCE: GSO, World bank
PRIME RETAIL RENTS – Q12013
MAINSTREETS MIL VND
SQM/MTH
EURO
SF/MTH
US$
SF/MTH
Q-O-Q CHANGE
Y-O-Y CHANGE
Dong Khoi 1.9 6.8 8.8 - -
Nguyen Hue 2 6.9 8.9 - -
Le Loi 1.9 6.8 8.8 - -
MALLS MIL VND
SQM/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q CHANGE
Y-O-Y CHANGE
Vincom Center A
Parkson Saigon
Tourist
3.4
2.2
139
90
181
117
-
-
-
-
Diamond Plaza
Rex Arcade
Tax Plaza
3.1
2.1
1.8
128
86
73
162
112
94
-
-
-
-
-
-
PROPERTY LOCATION SQUARE
METERS
COMPLETION
DATE
Time Square CBD 9,000 2013
Leman CT Plaza Secondary Area 12,000 2013
Aeon Celadon City Suburban 82,000 2014
HO CHI MINH CITY/VIETNAM
MANCHESTER
MANCHESTER
RETAIL SNAPSHOT
RETAIL SNAPSHOT
MARKETBEAT
Q1 2013

Christopher Brown, General
Manager
+(84) 90 343 8000
The market terms and definitions in this report are based on NAIOP standards. No warranty or representation,
express or implied, is made to the accuracy or completeness of the information contained herein, and same is
submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to
any special listing conditions imposed by our principals. © 2012 Cushman & Wakefield, Inc. All rights reserved.
Q1 2013
INDUSTRIAL SNAPSHOT
MARKETBEAT
ECONOMY
grew by 4.89% as compared with the same period in 2012
(according to General Statistics Office of Vietnam – GSO)
Total new registered and additional FDI in this quarter
reached around US$6.0 billion, increasing 63.6% Y-o-Y. The
property sector still ranks second in total FDI, after
manufacturing, with nearly US$250 million, accounting for
approximately 4.1% of total investment. This figure has
reduced significantly compared to Q1 2012. Japan remains
the leading investor in Vietnam, contributing more than 50%
of total investment in Vietnam; followed by Singapore, then
Korea.
SUPPLY REMAINED UNCHANGED
No new supply came online this quarter. Currently there are
18 operating IPs providing a total area of more than 3,600
hectares. The leasable area is estimated to be about 62% of
the total industrial land scale, or more than 2,200 hectares.
The remaining LUR years range from 27 - 44 years, with the
average number being 36.
Most IPs are located in suburban districts, and are mainly
focused toward the western districts. Cu Chi and Hoc Mon are
the two districts/ new locations for IPs as there are large
available tracks of land.
AVERAGE RENTS KEEP GOING DOWN
Average asking rent in Q1 2013 decreased by 3% Q-o-Q, at
VND 2,620,000 per sqm per term (equivalent to US$125 per
sqm per term). The rental rate is about two times higher than
Long An and Binh Duong, and nearly three times higher than
Dong Nai and Ba Ria-Vung Tau.
Majority of the IPs in HCMC report occupancy rates at above
90% as they are established and have been operating for
some 11 - 21 years. IPs in Binh Chanh and Cu Chi District
that have just started to operate report occupancy rates under
50% which results in the average HCMC occupancy rate to be
about 72%, unchanged q-o-q.
The industrialization process has created air and water
pollution. This provides practical reasoning for Industrial
zones in the city to recently re-focus to attract hi – tech and
environment friendly enterprises.
Currently, developers are turning from long term land lease to
factory construction for lease with areas of about 2,000 –
3,000 sqm. Continuing issue is that industrial parks need
supporting and policies from government authorities to attract
investment must continue.
OUTLOOK
It is predicted that the total increase in industrial land in
HCMC up to 2020 will be approximately 2,700 hectares,
increasing some 75% from 1Q 2013. In terms of the number
of IPs, it is forecasted that 29 IPs will operate by 2020, which
equates to an additional 11 IPs between now and then.
Majority of the future projects are in clearance and
compensation progress and waiting for government approval.
MARKET STATISTICS
SUBMARKET TOTAL
AREA (HA)
LEASABLE
AREA (HA)
NUMBER
OF IPS
District 2 112 79 1
District 7 300 195 1
District 12 29 22 1
Binh Tan District 584 321 2
Tan Phu District 134 92 2
Thu Duc District 151 110 3
Nha Be District 908 506 2
Binh Chanh District 260 190 2
Cu Chi District 1,137 719 4
SIGNIFICANT FUTURE PROJECTS
IPS AREA (HA) STATUS
Phong Phu 148 Under construction
Phu Huu 114 Under construction
MARKET FORECAST
0
20
40
60
80
100
120
VND 0
VND 1,000,000
VND 2,000,000
VND 3,000,000
VND 4,000,000
VND 5,000,000
VND 6,000,000
sqm/term %
Rent Occupancy

Manager
+(84) 90 343 8000
This report has been produced by Cushman & Wakefield LLP for use by those with an interest in
commercial property solely for information purposes. It is not intended to be a complete description of
the markets or developments to which it refers. The report uses information obtained from public
sources which Cushman & Wakefield LLP believe to be reliable, but we have not verified such
information and cannot guarantee that it is accurate and complete. No warranty or representation,
express or implied, is made as to the accuracy or completeness of any of the information contained
herein and Cushman & Wakefield LLP shall not be liable to any reader of this report or any third party
in any way whatsoever. All expressions of opinion are subject to change. Our prior written consent is
required before this report can be reproduced in whole or in part. Should you not wish to receive
information from Cushman & Wakefield LLP or any related company, please email
unsubscribe@eur.cushwake.com with your details in the body of your email as they appear on this
communication and head it “Unsubscribe”. ©2012 Cushman & Wakefield LLP All rights reserved.
1
Q1 2013
SERVICED APARTMENT
MARKETBEAT
ECONOMY
accelerate. In regard to GDP, this
quarter there was growth of 4.89%
Total new registered and additional FDI in Q1 reached around
US$6.0 billion, increasing 63.6% Y-o-Y. The property sector
investment. This figure has reduced significantly compared to
Q1 2012. Japan remains the leading investor in Vietnam,
contributing more than 50% of total investment in Vietnam;
followed by Singapore, then Korea.
SUPPLY
64 new Grade B apartments from one active project entered
the market this quarter. Grade B stock increased around 3.5%
Q-o-Q and 21% Y-o-Y.
Total supply is recorded at approximately 2,630 apartments
from 28 buildings. More than 700 are Grade A and 1,920 units
Grade B, accounting for 27% and 73% of the market share
respectively. District 1 makes up 47% of all total supply.
The serviced apartment market is facing competition from
some projects that are transferring their use/purpose from
apartments for sale, to apartments for lease and this trend is
forecast to continue in 2013.
RENTS OF GRADE A WAS STABLE
There was a slight decrease in occupancy rate for Grade A by
1% Q-o-Q and 2%Y-o-Y, achieving 89%. Grade B occupancy
decreased nearly 1.5% Q-o-Q and 6%Y-o-Y, standing at 82%.
Average asking rent for Grade A remained unchanged Q-o-Q
and decreased by approximately 1% Y-o-Y, standing at VND
630,000 per sqm per month(equivalent to US$30 per sqm per
month). Grade B is quoted at VND 473,500 per sqm per
month (equivalent to US$22.6 per sqm per month), increasing
by some 1.5%Q-o-Q and decreasing around 10% Y-o-Y.
Grade A and B serviced apartments in District 1 always
perform well with a high occupancy rate at nearly 90% despite
having the highest rents at VND 593,500 per sqm per month
(equivalent to US$28.3 per sqm per month) (service charge
included and VAT excluded).
OUTLOOK
Huge supply from approximately more than 280 serviced
apartment units is expected to enter the market this year -
along with stagnation in the apartment for sale market causing
many developers to transfer the use/ purpose into apartment
for lease - there will be expected pressure on serviced
apartment rents.
Due to poor economic performance, many multi-national
companies have cut costs on staff accommodation. Hence,
occupancy rate is expected to decrease in the short to
medium term.
Serviced apartment tenants are service orientated and the
quality of management is a critical driver in this sector.
RENTAL VALUES AS OF 1Q 2013
LOCATION AVERAGE
RENT
SQM/MTH
%CHANGE SHORT
TERM
OUTLOOKMTH
AGO
YEAR
AGO
GRADE A
CBD 664,800 -0.04% -0.2%
Non - CBD 413,250 -0.9% -11%
GRADE B
CBD 524,300 -0.5% -14%
Non - CBD 472,000 8% -0.5%
GRADE A & B OVERALL RENTAL VS. OCCUPANCY
RATE 1Q 2013
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
VND/sqm/month
Grade A- Rent Grade B- Rent Grade A- Occupancy Grade B- Occupancy

Manager
+(84) 90 343 8000
commercial property solely for information purposes. It is not intended to be a complete description of the
markets or developments to which it refers. The report uses information obtained from public sources
which Cushman & Wakefield LLP believe to be reliable, but we have not verified such information and
cannot guarantee that it is accurate and complete. No warranty or representation, express or implied, is
made as to the accuracy or completeness of any of the information contained herein and Cushman &
Wakefield LLP shall not be liable to any reader of this report or any third party in any way whatsoever. All
expressions of opinion are subject to change. Our prior written consent is required before this report can
be reproduced in whole or in part. Should you not wish to receive information from Cushman & Wakefield
LLP or any related company, please email unsubscribe@eur.cushwake.com with your details in the body
of your email as they appear on this communication and head it “Unsubscribe”. ©2012 Cushman &
Wakefield LLP All rights reserved.
2
STATES ON THE GO
Significant Projects Under Construction LOCATION DEVELOPER EST. NUMBER OF
UNITS
EXPECTED
COMPLETION
Time Square 22-36 Nguyen Hue,
District 1
Quang Truong Thoi
Dai JSC
100 2013
Saigon Plaza 24 Le Thanh Ton Viet Lien A JSC N/A 2014
* RENEWAL - NOT INCLUDED IN LEASING ACTIVITY STATISTICS

Manager
+(84) 90 343 8000
1
Q1 2013
RESIDENTIAL SNAPSHOT
MARKETBEAT
ECONOMY
accelerate. In regard to GDP, this
quarter there was growth of 4.89%
Total new registered and additional FDI in Q1 reached around
US$6.0 billion, increasing 63.6% Y-o-Y. The property sector
investment. This figure has reduced significantly compared to
Q1 2012. Japan remains the leading investor in Vietnam,
contributing more than 50% of total investment in Vietnam;
followed by Singapore, then Korea.
GRADE C STOCK DOMINATES
Total primary supply recorded an increase of about 8.5% q-o-
q but suffered a decrease of more than 21% y-o-y. This
quarter witnessed an entrance of 740 new Grade A units from
three projects, 355 grade B units from one active project and
500 Grade C units from three projects. Grade C remained the
core product, accounting for 61% of total stock.
Nearly 90% of total primary stock is concentrated in the outer
districts. Districts 7, Binh Tan, Tan Phu are the three largest
accounting for some 51% of the total stock.
PRICE OF GRADES A DECREASED SIGNIFICANTLY
The residential market is still experiencing low levels of
activity with poor sales performance occurring mostly in the
high-end segment.
Amongst the three segments, Grade C recorded the most
transactions with an absorption rate of 8%, with average
prices at approximately 15,500,000VND per sqm (equivalent
to 740US$ per sqm)
*
a fall of nearly 1% q-o-q. Approximately
63% of all units absorbed this quarter were Grade C.
Grade A and B had absorption rates of circa 2% and 13%,
respectively. Average price of Grade A was at 38,200,000
VND per sqm (equivalent to US$1,825 per sqm)
*
, which is a
significant 7% reduction q-o-q. The main reason for this was
the overall low pricing of the new units. Grade B was at
31,600,000VND per sqm (1,510US$ per sqm)
*
, a decrease of
nearly 2% q-o-q.
(*): All prices are VAT excluded
OUTLOOK
According to government circular 02/2013, 30,000 billion VND
will be used for lending to home buyers, with a low 6%
interest rate. This is aimed at warming up the apartment
market in 2013.
The apartment market has been overcast for a long time, and
some developers have subdivided large scale units into
smaller units in order to attract low and average income
earners. Substantial increases in supply have been forecast in
the short to medium term. While current supply is still very
high, this will put strong pressures on price.
2013 is expected to remain a buyer’s market and the
downward pricing trend is predicted to continue.
ECONOMIC INDICATORS
NATIONAL 2011 2012 2013F
GDP Growth 5.89% 5.6% 5.9%
CPI Growth 18.58% 10% 6.2%
0
10
20
30
40
50
60
70
80
90
100
mil VND/sqm
Lower asking price Upper asking price
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Accumulated Primary supply Unit sold
Units

Manager
+(84) 90 343 8000
2
STATES ON THE GO
Significant Residential Projects Launched in Q1
2013
LOCATION EXPECTED
COMPLETION
UNITS LAUNCHED SALE PRICE
(VND/SQ M)
Sunrise City – North Tower District 7 2013 297 30,300,000
Happy Valley District 7 2013 163 29,500,000
Dragon Hill District 7 2013 355 27,255,000
The Prince Residence Phu Nhuan 2013 277 46,700,000
Nhat Lan 3 Binh Tan 2013 240 12,500,000
Screc II Metro Apartment District 2 2013 104 17,400,000
Tanibuilding Son Ky 2 Tan Phu 2013 150 12,000,000
Significant Projects Under Construction LOCATION EXPECTED
COMPLETION
EST. NUMBER OF
UNITS
EXPECTED
COMPLETION
Star Hill District 7 Phu My Hung 175 2014
Thai Binh Plaza District 2 Binh Duong Ltd 364 2014
Happy Valley District 7 Phu My Hung 163 2013
Khang Thong District 7 Khang Thong Group 2014 2014
The Prince Residence Phu Nhuan Novaland 277 2014
* RENEWAL - NOT INCLUDED IN LEASING ACTIVITY STATISTICS

MARKETBEAT
A Cushman & Wakefield Alliance Research Publication
Publication
Q1 2013
HANOI OFFICE:
Room 602, Asia Tower, 6 Nha Tho
Street, Hoan Kiem District, Hanoi,
Vietnam
Tel: (84) 4 3938 1786
Fax: (84) 4 3938 1781
HO CHI MINH CITY OFFICE:
Unit 16, 14 FI, Vincom Centre, 72 Le
Thanh Ton Street, Ben Nghe Ward,
District 1, Ho Chi Minh City, Vietnam
Tel: (84-8) 3823 7968
Fax: (84-8) 3823 7969

Q.1 2013 Cushman & Wakefield Market beat report

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