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APRIL 2015 | HCMC CENTRAL BUSINESS DISTRICT
CBD MARKET REPORT
HO CHI MINH CITY
www.colliers.com/vietnam
TABLE OF CONTENTS
HCMC CBD MARKET REPORT | APRIL 2015
Market Highlights
OFFICE MARKET
•	Market Performance
•	Outlook
•	Table
•	Map
RETAIL MARKET
•	 Market Performance
•	 Outlook
•	 Map
•	 Table
HOTEL MARKET
•	 Table
•	 Map
•	 Market Performance
•	 Outlook
SERVICED APARTMENT
•	 Market Performance
•	 Outlook
•	 Table
•	 Map
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HCMC CBD MARKET REPORT
APRIL 2015 | COMMERCIAL OFFICE MARKET
P.2 | Colliers International
It is expected that District 1 will welcome two new Grade A office buildings which add approximately 65,000 sqm GFA to the market.
However, this new supply is expected not to sharply deteriorate the current occupancy rate as over 60% of the office space from the new
supply was leased although these projects have not been officially opened. The continued economic improvements will be supporting
factors for the recovery of the office sector.
In terms of asking rents, significant changes are not expected in the next couple of months. However, the not-so-good performance
office buildings may adjust their rents to compete with new quality buildings.
Outlook
HCMC FDI BY MONTH
Source: Colliers International
CBD OFFICE PERFORMANCE BY ZONE, APRIL 2015
Source: Colliers International
Source: Colliers International
Grade AAR Occupancy rate Supply
A ↔  ↔
B  ↔ ↔
B   ↔
B   ↔
B   ↔
CITY CENTRAL
FINANCIAL
HUB
NORTHERN CBD
SOUTHERN CBD
Market Performance
The positive macroeconomic performance in Q1 2015 and
the increasing newly established enterprises had positive
impacts on the property market, particularly the office
sector. Moreover, the newly opened Nguyen Hue Boulevard
has notably improved the image of Grade A office buildings
surrounding. The fast-flowing traffic helped the occupancy
rate of these buildings slightly increase to 93.0%, 0.7
percentage points higher than the previous month. However,
the average asking prices remained flat compared to the
preceding month given the not-yet-fully recovered market.
It stood at US$39.9/sqm/month (on net area).
Grade B did not show significant changes in the review
month. The occupancy rate reached 95.1% while the
average asking rent was US$23.1/sqm/month.
P.3 | Colliers International
HCMC CBD MARKET REPORT
APRIL 2015 | COMMERCIAL OFFICE MARKET
* US$/ sq m/ month (on net area)
No Name Address
Com-
pletion
Year
NLA
(sq m)
Service
Charges (*)
Occupancy
rate
NFA asking rent
(*)
1 Saigon Centre 65 Le Loi 1996 11,650 6.5 99% 37.0
2 Saigon Tower 29 Le Duan 1997 13,950 6.0 90% 37.0
3 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 98% 47.0
4 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 91% 40.0
5 Diamond Plaza 34 Le Duan 1999 15,936 8.0 100% 37.0
6 Kumho Asiana Plaza 39 Le Duan 2009 26,000 7.5 97% 46.0
7 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 91% 35.0
8 President Place 93 Nguyen Du 2012 8,330 6.0 96% 31.0
9 Times Square 22-36 Nguyen Hue 2012 9,000 7.0 86% 45.0
Grade A 158,576 7.0 93% 40.0
1 OSIC 8 Nguyen Hue 1993 6,500 6.0 100% 18.0
2 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 100% 22.0
3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 100% 21.0
4 Central Plaza 17 Le Duan 1997 6,094 5.0 100% 24.0
5 Saigon Riverside Office 2A-4A Ton Duc Thang 1997 10,000 5.0 100% 20.0
6 Saigon Trade Center 37 Ton Duc Thang 1997 31,416 6.0 78% 23.0
7 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 95% 20
8 MeLinh Point Tower 02 Ngo Duc Ke 1999 17,600 6.0 99% 22.0
9 Zen Plaza 54-56 Nguyen Trai 2001 11,037 5.0 94% 21.0
10 Bitexco Office Building 19-25 Nguyen Hue 2003 6,000 5.0 95% 25.0
11 The Landmark 5B Ton Duc Thang 2005 8,000 5.0 98% 20.0
12 Opera View 161-167 Dong Khoi 2006 3,100 7.0 85% 27.0
13 Petro Tower 1-5 Le Duan 2007 13,304 5.0 98% 30.0
14 City Light 45 Vo Thi Sau 2007 10,000 5.0 100% 15.0
15 The Landcaster 22Bis Le Thanh Ton 2007 7,000 5.0 90% 25.0
16 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 97% 24.0
17 Fideco Tower 81-85 Ham Nghi 2008 15,000 6.0 100% 22.0
18 Havana Tower 132 Ham Nghi 2008 7,326 6.0 98% 19.0
19 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 99% 26.0
20 Royal Center 235 Nguyen Van Cu 2008 14,320 5.0 100% 23.0
21 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 23.0
22 Bao Viet Tower 233 Dong Khoi 2010 10,650 6.0 100% 21.0
23 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 96% 23.0
24 Vincom Center 68-70-72 Le Thanh Ton 2010 56,600 5.0 95% 23.0
25 Saigon Royal 91 Pasteur 2010 5,340 4.0 100% 20.0
26 A&B Tower 76 Le Lai 2010 17,120 6.0 91% 29.0
27 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19.596 5.0 97% 22.0
28 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 100% 30.0
29 Lim Tower 9-11 Ton Duc Thang 2013 29,265 6.0 100% 28.0
30 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 97% 25.0
Grade B 399,596 6.0 95% 23.1
P.4 | Colliers International
HCMC CBD MARKET REPORT
APRIL 2015 | CBD OFFICE MAP
* US$/ sq m/ month (on net area)
HCMC CBD MARKET REPORT
APRIL 2015 | RETAIL MARKET
P.5 | Colliers International
Market Performance
Outlook
SHOPPING CENTER PERFORMANCE, APRIL 2015
Source: Colliers International
RETAIL PODIUM PERFORMANCE, APRIL 2015
Source: Colliers International
Source: Colliers International
While department stores maintained its stable performance,
shopping centres and retail podium showed mixed stories in
terms of both asking rent and occupancy rate. The department
stores reached the occupancy rate of almost 100% with the
average asking rent of US$82.4/sqm/month.
The asking rents of retail podium unexpectedly increased by
4.2% m-o-m to US$69.4/sqm/month. This was mainly driven
by high rent of small available space at Caravelle Hotel. As
retailers did not take the whole space as planned, the occupancy
rate of this retail format slowed to 95.7% in April.
Shopping centres performed differently from the retail
podiums. The occupancy rate remained unchanged from the
previous month, 82.3%, the asking rents slightly dropped by
5.2% m-o-m to US$65.8/sqm/month as some retail centres
had to adjust down the rent to keep their tenants.
AVERAGE RENT BY TYPE, APRIL 2015
Source: Colliers International
Rapid growth of online retail will adversely affected the traditional
retail format. Luxury products will continue to see challenges
meanwhile mid-end retail segment will be promising. Therefore,
asking rents are unlikely to increase in the short-term. However,
the retail sector is still attractive to foreign retailers in the APC
in the long-run.
DEPARTMENT STORE PERFORMANCE, APRIL 2015
P.6 | Colliers International
HCMC CBD MARKET REPORT
APRIL 2015 | CBD RETAIL MAP
* US$/ sq m/ month (on net area)
P.7 | Colliers International
APRIL 2015 | HOTEL MARKET HCMC CBD MARKET REPORT
No
Name of Project /
Building
Address Location
Comple-
tion Year
NLA
(sq m)
Average Rental
(US$/sq m/month)
Occupancy Rate
1 Hotel Continental Saigon 132-134 Dong Khoi District 1 2000 200 200 87%
2 Caravelle Hotel 19 Lam Son Square District 1 2000 150 90 100%
3 New World Hotel 79 Le Lai District 1 2000 1,000 60 100%
4 Sheraton Saigon 88 Dong Khoi District 1 2002 750 125 80%
5 Opera View Lam Son Square District 1 2006 1,260 85 94%
6 Kumho Asiana Plaza 35 Le Duan District 1 2009 6,830 45 96%
7 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100%
8 ICON 68 45 Ngo Duc Ke District 1 2011 8,000 45 90%
9 President Place 93 Nguyen Du District 1 2012 800 70 71%
10 Times Square 22-36 Nguyen Hue District 1 2013 9,000 90 100%
Retail Podium 29,990 69.4 96%
1 Diamond Plaza 34 Le Duan District 1 1999 9,000 83 100%
2 Zen Plaza 54-56 Nguyen Trai District 1 2001 6,817 50 100%
3 Parkson Saigon Tourist 35 Le Thanh Ton District 1 2002 17,000 90 100%
Department Store 30,200 82.4 100%
1 Saigon Center 65 Le Loi District 1 1996 3,500 75 100%
2 City Plaza 230 Nguyen Trai District 1 2000 5,250 25 100%
3 Saigon Square 1 77-89 Nam Ky Khoi Nghia District 1 2006 1,300 167 100%
4 Nowzone Nguyen Van Cu District 1 2008 9,000 55 100%
5 Saigon Square 2 7-9 Ton Duc Thang District 1 2009 1,400 90 30%
6 Vincom Center B 72 Le Thanh Ton District 1 2010 45,000 55 95%
7 Taka Plaza 102 Nam Ky Khoi Nghia District 1 2011 1,000 90 100%
8 Union Square Dong Khoi District 1 2012 38,000 65 60%
9 Lucky Plaza Dong Khoi District 1 2013 1,000 160 77%
Shopping Centre 105,450 65.8 82%
No Name of Hotel Address Location
Comple-
tion Year
Total Room Occupancy ARR(*)
1 Caravelle 19 Lam Son Square District 1 2000 335 59% 180
2 New World Saigon 76 Le Lai District 1 2000 533 60% 115
3 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 53% 149
4 Rex 141 Nguyen Hue District 1 2000 289 55% 110
5 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 62% 143
6 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 56% 150
7 Sheraton 88 Dong Khoi District 1 2002 480 61% 185
8 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 Renovation Renovation
9 Majestic Saigon 1 Dong Khoi District 1 2007 175 78% 130
10 InterContinental Asiana 39 Le Duan District 1 2009 305 83% 220
11 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 50% 105
12 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 44% 118
5 Star 3,633 60% 146
1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 76% 73
2 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 74% 89
3 Duxton 63 Nguyen Hue District 1 1996 203 76% 80
4 Royal City 133 Nguyen Hue District 1 2000 135 58% 57
5 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 65% 73
6 Oscar 68A Nguyen Hue District 1 2000 108 60% 40
7 Liberty Central 179 Le Thanh Ton District 1 2010 140 65% 94
8 Grand 08 Dong Khoi District 1 2011 107 64% 83
9 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 75% 88
4 Star 1,161 70% 77
HCMC CBD MARKET REPORT
APRIL 2015 | HOTEL MARKET
P.8 | Colliers International
HCMC CBD MARKET REPORT
APRIL 2015 | CBD HOTEL MAP
* US$/ sq m/ month (on net area)
P.9 | Colliers International
HCMC CBD MARKET REPORT
APRIL 2015 | HOTEL MARKET
According to the Vietnam National Administration of Tourism
(VNAT), international arrivals to Vietnam in April continued
to decrease by 7.4% y-o-y to 690,400 arrivals. Cumulatively,
Vietnam welcomed approximately 2.7 million arrivals, dropping
by 12.2% y-o-y in the first four months of 2015. Foreign arrivals
from China and Cambodia witnessed strongest decrease,
33.2% y-o-y and 28.1% y-o-y respectively.
The falling international arrivals to Vietnam negatively impacted
the hotel performance especially the 5- and 4- star hotels. The
occupancy rate of 5-star hotels dropped from 67.8% in March
to 59.5% in April. Steep decrease in room rents were reported
in the review month. The average room rates of 5-star hotels
slowed to US$146.4 per room per night, a 6.8% m-o-m drop.
Similar story is reported at 4-star hotels in the city centre. The
average room rates declined by 13.2% m-o-m to US$77.4 per
room per night while the occupancy rate reached only 70.1%,
8.1 percentage points lower than March.
Hotel Market Overview
Despite the not-so-good performance in April, the occupancy
is expected to keep stable as some hotels such as Sheraton,
Continental and New World Hotel will be renovated.
In terms of new supply, The Reveria Saigon on Nguyen Hue
Boulevard which had the soft-launch in January is expected to
be officially launched in Q3 2015.
REVENUE FROM TOURISM BUSINESS IN HCMC , APRIL 2015
Source: Statistical Office in HCMC, Colliers International
Outlook
PERFORMANCE OF TOP-GRADED HOTELS IN HCMC , APRIL 2015
Source: Colliers International, (*) Excluding Park Hyatt
THE REVERIA SAIGON, DISTRICT 1
Source: Colliers International
P.10 | Colliers International
HCMC CBD MARKET REPORT
APRIL 2015 | HOTEL MARKET
APRIL 2015 | SERVICED APARTMENT MARKET
PERFORMANCE OF 5-STARS HOTEL, APRIL 2015
Source: Colliers International
PERFORMANCE OF 4-STARS HOTEL, APRIL 2015
Source: Colliers International
According to the current construction status, it is expected that District 1 will witness two new projects completed in the second half of
2015. These include Times Square (100 units) and Waterfront (approximately 181 units). If they are opened as schedule, rents of Grade
A serviced apartment is expected to increase slightly due to high rent from these two projects.
Due to the new supply, the occupancy rate of Grade A serviced apartment may be affected while Grade B will remain relatively stable in
the coming months.
Outlook
Grade A serviced apartment remained flat compared with the previous month in terms of asking rent and occupancy rate. Compared
to the previous month the average rent remained unchanged US$33.5 per sqm per month and the occupancy rate stood at 89.0%.
The occupancy rate of Grade B decreased to 83.2%, 3.5 percentage points lower than March meanwhile the average asking rent was
US$27,0 per sqm per month.
Market Performance
P.11 | Colliers International
HCMC CBD MARKET REPORT
* US$/sq m/month
** Not including VAT
*** Buildings are sorted by Year of Completion
APRIL 2015 | SERVICED APARTMENT MARKET
APRIL 2015 | SERVICED APARTMENT HCMC CBD MARKET REPORT
Serviced Apartment Overview
GRADE A CBD SERVICED APARTMENTS PERFORMANCE
Source: Colliers International
GRADE B CBD SERVICED APARTMENTS PERFORMANCE
Source: Colliers International
No Project Name Address Location
Comple-
tion Year
Total
Room
Average
Occupancy
ARR(*)
1 The Landmark 5B Ton Duc Thang District 1 1995 66 89% 26
2 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 93% 34
3 Sedona Suites 65 Le Loi District 1 1996 89 85% 30
4 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 98% 30
5 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 71% 37
6 InterContinental Asiana Saigon 39 Le Duan District 1 2009 267 90% 36
Grade A 707 89% 34
1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 74% 26
2 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 87% 26
3 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 98% 33
4 Diamond Plaza 34 Le Duan District 1 1999 42 93% 29
5 Garden View Court 101 Nguyen Du District 1 2000 76 80% 31
6 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 90% 18
7 Vincom Center 72 Le Thanh Ton District 1 2010 60 34% 26
8 Lafayette De Saigon 08 Phung Khac Khoan District 1 2010 18 90% 28
9 Spring Court 1Bis Phung Khac Khoan District 1 2011 14 86% 19
10 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 100% 27
11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 94% 34
Grade B 738 83% 27
* US$/sq m/month
** Not including VAT
*** Buildings are sorted by Year of Completion
HCMC CBD MARKET REPORT
APRIL 2015 | CBD SERVICED APARTMENT MAP
P.12 | Colliers International
HCMC CBD MARKET REPORT | APRIL 2015
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HCMC CBD Market Report | Apr 2015 (EN)

  • 1. APRIL 2015 | HCMC CENTRAL BUSINESS DISTRICT CBD MARKET REPORT HO CHI MINH CITY www.colliers.com/vietnam
  • 2. TABLE OF CONTENTS HCMC CBD MARKET REPORT | APRIL 2015 Market Highlights OFFICE MARKET • Market Performance • Outlook • Table • Map RETAIL MARKET • Market Performance • Outlook • Map • Table HOTEL MARKET • Table • Map • Market Performance • Outlook SERVICED APARTMENT • Market Performance • Outlook • Table • Map Page 2-4 2 2 3 4 5-7 5 5 6 7 7-9 7 8 9 9 10-12 10 10 11 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • 3. As you focus on your customer, we focus on you. You’re an expert in knowing what your customers want—often before they do. We bring the same approach to your business. Colliers International is built on an enterprising culture of collaboration and innovation. We provide creative, strategic solutions to all our clients. Whether you need sales and leasing brokerage, property marketing, research and demographics, or asset and property management, we have retail professionals across Vietnam who can meet the real estate needs of retail tenants, landlords and developers. Today’s real estate challenges require more than geographic reach and local knowledge: they require integrated expertise in market segmentation, valuation, disposition, assembly, debt and equity strategies and much more. Our integrated platform and our experienced bring you closer to your customers.
  • 4. HCMC CBD MARKET REPORT APRIL 2015 | COMMERCIAL OFFICE MARKET P.2 | Colliers International It is expected that District 1 will welcome two new Grade A office buildings which add approximately 65,000 sqm GFA to the market. However, this new supply is expected not to sharply deteriorate the current occupancy rate as over 60% of the office space from the new supply was leased although these projects have not been officially opened. The continued economic improvements will be supporting factors for the recovery of the office sector. In terms of asking rents, significant changes are not expected in the next couple of months. However, the not-so-good performance office buildings may adjust their rents to compete with new quality buildings. Outlook HCMC FDI BY MONTH Source: Colliers International CBD OFFICE PERFORMANCE BY ZONE, APRIL 2015 Source: Colliers International Source: Colliers International Grade AAR Occupancy rate Supply A ↔  ↔ B  ↔ ↔ B   ↔ B   ↔ B   ↔ CITY CENTRAL FINANCIAL HUB NORTHERN CBD SOUTHERN CBD Market Performance The positive macroeconomic performance in Q1 2015 and the increasing newly established enterprises had positive impacts on the property market, particularly the office sector. Moreover, the newly opened Nguyen Hue Boulevard has notably improved the image of Grade A office buildings surrounding. The fast-flowing traffic helped the occupancy rate of these buildings slightly increase to 93.0%, 0.7 percentage points higher than the previous month. However, the average asking prices remained flat compared to the preceding month given the not-yet-fully recovered market. It stood at US$39.9/sqm/month (on net area). Grade B did not show significant changes in the review month. The occupancy rate reached 95.1% while the average asking rent was US$23.1/sqm/month.
  • 5. P.3 | Colliers International HCMC CBD MARKET REPORT APRIL 2015 | COMMERCIAL OFFICE MARKET * US$/ sq m/ month (on net area) No Name Address Com- pletion Year NLA (sq m) Service Charges (*) Occupancy rate NFA asking rent (*) 1 Saigon Centre 65 Le Loi 1996 11,650 6.5 99% 37.0 2 Saigon Tower 29 Le Duan 1997 13,950 6.0 90% 37.0 3 Sunwah Tower 115 Nguyen Hue 1997 20,800 6.0 98% 47.0 4 The Metropolitan 235 Dong Khoi 1997 15,200 6.0 91% 40.0 5 Diamond Plaza 34 Le Duan 1999 15,936 8.0 100% 37.0 6 Kumho Asiana Plaza 39 Le Duan 2009 26,000 7.5 97% 46.0 7 Bitexco Financial Tower 45 Ngo Duc Ke 2010 37,710 8.0 91% 35.0 8 President Place 93 Nguyen Du 2012 8,330 6.0 96% 31.0 9 Times Square 22-36 Nguyen Hue 2012 9,000 7.0 86% 45.0 Grade A 158,576 7.0 93% 40.0 1 OSIC 8 Nguyen Hue 1993 6,500 6.0 100% 18.0 2 Yoco Building 41 Nguyen Thi Minh Khai 1995 5,000 4.0 100% 22.0 3 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai 1996 3,200 5.0 100% 21.0 4 Central Plaza 17 Le Duan 1997 6,094 5.0 100% 24.0 5 Saigon Riverside Office 2A-4A Ton Duc Thang 1997 10,000 5.0 100% 20.0 6 Saigon Trade Center 37 Ton Duc Thang 1997 31,416 6.0 78% 23.0 7 Harbour View Tower 35 Nguyen Hue 1997 8,000 5.0 95% 20 8 MeLinh Point Tower 02 Ngo Duc Ke 1999 17,600 6.0 99% 22.0 9 Zen Plaza 54-56 Nguyen Trai 2001 11,037 5.0 94% 21.0 10 Bitexco Office Building 19-25 Nguyen Hue 2003 6,000 5.0 95% 25.0 11 The Landmark 5B Ton Duc Thang 2005 8,000 5.0 98% 20.0 12 Opera View 161-167 Dong Khoi 2006 3,100 7.0 85% 27.0 13 Petro Tower 1-5 Le Duan 2007 13,304 5.0 98% 30.0 14 City Light 45 Vo Thi Sau 2007 10,000 5.0 100% 15.0 15 The Landcaster 22Bis Le Thanh Ton 2007 7,000 5.0 90% 25.0 16 Gemadept Tower 5 Le Thanh Ton 2008 14,000 7.0 97% 24.0 17 Fideco Tower 81-85 Ham Nghi 2008 15,000 6.0 100% 22.0 18 Havana Tower 132 Ham Nghi 2008 7,326 6.0 98% 19.0 19 Sailing Tower 51 Nguyen Thi Minh Khai 2008 16,910 6.0 99% 26.0 20 Royal Center 235 Nguyen Van Cu 2008 14,320 5.0 100% 23.0 21 TMS 172 Hai Ba Trung 2009 4,000 4.0 100% 23.0 22 Bao Viet Tower 233 Dong Khoi 2010 10,650 6.0 100% 21.0 23 Green Power Tower 35 Ton Duc Thang 2010 15,600 6.0 96% 23.0 24 Vincom Center 68-70-72 Le Thanh Ton 2010 56,600 5.0 95% 23.0 25 Saigon Royal 91 Pasteur 2010 5,340 4.0 100% 20.0 26 A&B Tower 76 Le Lai 2010 17,120 6.0 91% 29.0 27 Maritime Bank Tower 192 Nguyen Cong Tru 2010 19.596 5.0 97% 22.0 28 Empress Tower 138 Hai Ba Trung 2012 19,538 6.0 100% 30.0 29 Lim Tower 9-11 Ton Duc Thang 2013 29,265 6.0 100% 28.0 30 Sunny MB Tower 259 Tran Hung Dao 2013 13,200 5.5 97% 25.0 Grade B 399,596 6.0 95% 23.1
  • 6. P.4 | Colliers International HCMC CBD MARKET REPORT APRIL 2015 | CBD OFFICE MAP * US$/ sq m/ month (on net area)
  • 7. HCMC CBD MARKET REPORT APRIL 2015 | RETAIL MARKET P.5 | Colliers International Market Performance Outlook SHOPPING CENTER PERFORMANCE, APRIL 2015 Source: Colliers International RETAIL PODIUM PERFORMANCE, APRIL 2015 Source: Colliers International Source: Colliers International While department stores maintained its stable performance, shopping centres and retail podium showed mixed stories in terms of both asking rent and occupancy rate. The department stores reached the occupancy rate of almost 100% with the average asking rent of US$82.4/sqm/month. The asking rents of retail podium unexpectedly increased by 4.2% m-o-m to US$69.4/sqm/month. This was mainly driven by high rent of small available space at Caravelle Hotel. As retailers did not take the whole space as planned, the occupancy rate of this retail format slowed to 95.7% in April. Shopping centres performed differently from the retail podiums. The occupancy rate remained unchanged from the previous month, 82.3%, the asking rents slightly dropped by 5.2% m-o-m to US$65.8/sqm/month as some retail centres had to adjust down the rent to keep their tenants. AVERAGE RENT BY TYPE, APRIL 2015 Source: Colliers International Rapid growth of online retail will adversely affected the traditional retail format. Luxury products will continue to see challenges meanwhile mid-end retail segment will be promising. Therefore, asking rents are unlikely to increase in the short-term. However, the retail sector is still attractive to foreign retailers in the APC in the long-run. DEPARTMENT STORE PERFORMANCE, APRIL 2015
  • 8. P.6 | Colliers International HCMC CBD MARKET REPORT APRIL 2015 | CBD RETAIL MAP * US$/ sq m/ month (on net area)
  • 9. P.7 | Colliers International APRIL 2015 | HOTEL MARKET HCMC CBD MARKET REPORT No Name of Project / Building Address Location Comple- tion Year NLA (sq m) Average Rental (US$/sq m/month) Occupancy Rate 1 Hotel Continental Saigon 132-134 Dong Khoi District 1 2000 200 200 87% 2 Caravelle Hotel 19 Lam Son Square District 1 2000 150 90 100% 3 New World Hotel 79 Le Lai District 1 2000 1,000 60 100% 4 Sheraton Saigon 88 Dong Khoi District 1 2002 750 125 80% 5 Opera View Lam Son Square District 1 2006 1,260 85 94% 6 Kumho Asiana Plaza 35 Le Duan District 1 2009 6,830 45 96% 7 Rex Arcade 141 Nguyen Hue District 1 2010 2,000 120 100% 8 ICON 68 45 Ngo Duc Ke District 1 2011 8,000 45 90% 9 President Place 93 Nguyen Du District 1 2012 800 70 71% 10 Times Square 22-36 Nguyen Hue District 1 2013 9,000 90 100% Retail Podium 29,990 69.4 96% 1 Diamond Plaza 34 Le Duan District 1 1999 9,000 83 100% 2 Zen Plaza 54-56 Nguyen Trai District 1 2001 6,817 50 100% 3 Parkson Saigon Tourist 35 Le Thanh Ton District 1 2002 17,000 90 100% Department Store 30,200 82.4 100% 1 Saigon Center 65 Le Loi District 1 1996 3,500 75 100% 2 City Plaza 230 Nguyen Trai District 1 2000 5,250 25 100% 3 Saigon Square 1 77-89 Nam Ky Khoi Nghia District 1 2006 1,300 167 100% 4 Nowzone Nguyen Van Cu District 1 2008 9,000 55 100% 5 Saigon Square 2 7-9 Ton Duc Thang District 1 2009 1,400 90 30% 6 Vincom Center B 72 Le Thanh Ton District 1 2010 45,000 55 95% 7 Taka Plaza 102 Nam Ky Khoi Nghia District 1 2011 1,000 90 100% 8 Union Square Dong Khoi District 1 2012 38,000 65 60% 9 Lucky Plaza Dong Khoi District 1 2013 1,000 160 77% Shopping Centre 105,450 65.8 82% No Name of Hotel Address Location Comple- tion Year Total Room Occupancy ARR(*) 1 Caravelle 19 Lam Son Square District 1 2000 335 59% 180 2 New World Saigon 76 Le Lai District 1 2000 533 60% 115 3 Sofitel Plaza Saigon 17 Le Duan District 1 2000 290 53% 149 4 Rex 141 Nguyen Hue District 1 2000 289 55% 110 5 Renaissance Riverside 8-15 Ton Duc Thang District 1 2001 350 62% 143 6 Lotte Legend Hotel 2A-4A Ton Duc Thang District 1 2001 283 56% 150 7 Sheraton 88 Dong Khoi District 1 2002 480 61% 185 8 Park Hyatt Saigon 02 Lam Son Square District 1 2005 259 Renovation Renovation 9 Majestic Saigon 1 Dong Khoi District 1 2007 175 78% 130 10 InterContinental Asiana 39 Le Duan District 1 2009 305 83% 220 11 Nikko Saigon 235 Nguyen Van Cu District 1 2011 334 50% 105 12 Pullman Hotel 146 Tran Hung Dao District 1 2013 306 44% 118 5 Star 3,633 60% 146 1 Continental Saigon 132-134 Dong Khoi District 1 1990 86 76% 73 2 Norfolk Hotel 117-119 Le Thanh Ton District 1 1992 104 74% 89 3 Duxton 63 Nguyen Hue District 1 1996 203 76% 80 4 Royal City 133 Nguyen Hue District 1 2000 135 58% 57 5 Palace Saigon 56-66 Nguyen Hue District 1 2000 146 65% 73 6 Oscar 68A Nguyen Hue District 1 2000 108 60% 40 7 Liberty Central 179 Le Thanh Ton District 1 2010 140 65% 94 8 Grand 08 Dong Khoi District 1 2011 107 64% 83 9 Liberty Central Riverside 17 Ton Duc Thang District 1 2013 170 75% 88 4 Star 1,161 70% 77 HCMC CBD MARKET REPORT APRIL 2015 | HOTEL MARKET
  • 10. P.8 | Colliers International HCMC CBD MARKET REPORT APRIL 2015 | CBD HOTEL MAP * US$/ sq m/ month (on net area)
  • 11. P.9 | Colliers International HCMC CBD MARKET REPORT APRIL 2015 | HOTEL MARKET According to the Vietnam National Administration of Tourism (VNAT), international arrivals to Vietnam in April continued to decrease by 7.4% y-o-y to 690,400 arrivals. Cumulatively, Vietnam welcomed approximately 2.7 million arrivals, dropping by 12.2% y-o-y in the first four months of 2015. Foreign arrivals from China and Cambodia witnessed strongest decrease, 33.2% y-o-y and 28.1% y-o-y respectively. The falling international arrivals to Vietnam negatively impacted the hotel performance especially the 5- and 4- star hotels. The occupancy rate of 5-star hotels dropped from 67.8% in March to 59.5% in April. Steep decrease in room rents were reported in the review month. The average room rates of 5-star hotels slowed to US$146.4 per room per night, a 6.8% m-o-m drop. Similar story is reported at 4-star hotels in the city centre. The average room rates declined by 13.2% m-o-m to US$77.4 per room per night while the occupancy rate reached only 70.1%, 8.1 percentage points lower than March. Hotel Market Overview Despite the not-so-good performance in April, the occupancy is expected to keep stable as some hotels such as Sheraton, Continental and New World Hotel will be renovated. In terms of new supply, The Reveria Saigon on Nguyen Hue Boulevard which had the soft-launch in January is expected to be officially launched in Q3 2015. REVENUE FROM TOURISM BUSINESS IN HCMC , APRIL 2015 Source: Statistical Office in HCMC, Colliers International Outlook PERFORMANCE OF TOP-GRADED HOTELS IN HCMC , APRIL 2015 Source: Colliers International, (*) Excluding Park Hyatt THE REVERIA SAIGON, DISTRICT 1 Source: Colliers International
  • 12. P.10 | Colliers International HCMC CBD MARKET REPORT APRIL 2015 | HOTEL MARKET APRIL 2015 | SERVICED APARTMENT MARKET PERFORMANCE OF 5-STARS HOTEL, APRIL 2015 Source: Colliers International PERFORMANCE OF 4-STARS HOTEL, APRIL 2015 Source: Colliers International According to the current construction status, it is expected that District 1 will witness two new projects completed in the second half of 2015. These include Times Square (100 units) and Waterfront (approximately 181 units). If they are opened as schedule, rents of Grade A serviced apartment is expected to increase slightly due to high rent from these two projects. Due to the new supply, the occupancy rate of Grade A serviced apartment may be affected while Grade B will remain relatively stable in the coming months. Outlook Grade A serviced apartment remained flat compared with the previous month in terms of asking rent and occupancy rate. Compared to the previous month the average rent remained unchanged US$33.5 per sqm per month and the occupancy rate stood at 89.0%. The occupancy rate of Grade B decreased to 83.2%, 3.5 percentage points lower than March meanwhile the average asking rent was US$27,0 per sqm per month. Market Performance
  • 13. P.11 | Colliers International HCMC CBD MARKET REPORT * US$/sq m/month ** Not including VAT *** Buildings are sorted by Year of Completion APRIL 2015 | SERVICED APARTMENT MARKET APRIL 2015 | SERVICED APARTMENT HCMC CBD MARKET REPORT Serviced Apartment Overview GRADE A CBD SERVICED APARTMENTS PERFORMANCE Source: Colliers International GRADE B CBD SERVICED APARTMENTS PERFORMANCE Source: Colliers International No Project Name Address Location Comple- tion Year Total Room Average Occupancy ARR(*) 1 The Landmark 5B Ton Duc Thang District 1 1995 66 89% 26 2 Somerset Chancellor Court 21-23 Nguyen Thi Minh Khai District 1 1996 172 93% 34 3 Sedona Suites 65 Le Loi District 1 1996 89 85% 30 4 Nguyen Du Park Villas 111 Nguyen Du District 1 2004 41 98% 30 5 The Landcaster 22 Bis Le Thanh Ton District 1 2007 55 71% 37 6 InterContinental Asiana Saigon 39 Le Duan District 1 2009 267 90% 36 Grade A 707 89% 34 1 Somerset HCM 8A Nguyen Binh Khiem District 1 1998 165 74% 26 2 Saigon Sky Garden 20 Le Thanh Ton District 1 1998 154 87% 26 3 Norfolk Mansion 17-21 Ly Tu Trong District 1 1998 126 98% 33 4 Diamond Plaza 34 Le Duan District 1 1999 42 93% 29 5 Garden View Court 101 Nguyen Du District 1 2000 76 80% 31 6 Ben Thanh Luxury 172-174 Ky Con District 1 2010 30 90% 18 7 Vincom Center 72 Le Thanh Ton District 1 2010 60 34% 26 8 Lafayette De Saigon 08 Phung Khac Khoan District 1 2010 18 90% 28 9 Spring Court 1Bis Phung Khac Khoan District 1 2011 14 86% 19 10 Nikko Saigon 235 Nguyen Van Cu District 1 2011 54 100% 27 11 Saigon City Residence 8A/3D2 Thai Van Lung District 1 2011 17 94% 34 Grade B 738 83% 27 * US$/sq m/month ** Not including VAT *** Buildings are sorted by Year of Completion
  • 14. HCMC CBD MARKET REPORT APRIL 2015 | CBD SERVICED APARTMENT MAP P.12 | Colliers International
  • 15.
  • 16. HCMC CBD MARKET REPORT | APRIL 2015 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 • Valuation & Advisory Services >> Valuation for land, existing property or development sites >> Feasibility studies to determine NPV, IRR and highest & best use • Office Services >> Tenant Representation >> Landlord Representation • Residential Sales & Leasing • 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. COLLIERS INTERNATIONAL HO CHI MINH CITY Bitexco Office Building, 7th Floor 19-25 Nguyen Hue Street District 1, HCM City, Vietnam Tel: + 84 8 3827 5665 HANOI Capital Tower, 10th Floor 109 Tran Hung Dao Street, Hoan Kiem District, Hanoi, Vietnam Tel: +84 4 3941 3277 485 offices in 63 countries on 6 continents United States Canada Latin America Asia Pacific EMEA Accelerating success : 140 : 42 : 20 : 195 : 85 DAVID JACKSON Deputy General Director david.jackson@colliers.com +84 123 719 7184 YEN NGUYEN Research Analyst yen.nguyen@colliers.com +84 915 478 778 About Colliers International Colliers International is a global leader in commercial real estate services, with over 16,300 professionals operating out of more than 502 offices in 67 countries. A subsidiary of First Service Corporation, Colliers International delivers a full range of services to real estate users, owner and investors worldwide, including global corporate solutions, brokerage, property and asset ,management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world. Publication Coverage Frequency Content Availability Investment Report Vietnam Quarterly Capital Markets Publicly available 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 in- cluding 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 $2 billion in annual revenue 2.5 billion square feet under management 15,700 professionals and staff www.colliers.com/vietnam Please contact, If you would like to recieve our other research reports This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2015. All rights reserved.