- Office rents in Ho Chi Minh City remained stable in Q3 2015, while occupancy increased to an average of 94% due to new supply. Grade A and B office rents increased to US$40/sqm/mth and US$24/sqm/mth respectively in the city center. - The retail market saw average asking rents increase to US$59/sqm/mth in the CBD. New shopping centers added over 100,000 sqm of supply. Occupancy declined slightly to 92% for shopping centers. - Residential sales volumes increased 88% YoY in Q3 2015 to nearly 8,000 units. Average primary prices rose 2.5% while the luxury segment

1. PERFORMANCE
Average net asking rents for Grade A and Grad B offices remained stable
over the quarter at US$26/sqm/mth.
Landlords in the CBD are starting to adjust their rents because of limited
new supply entering the market in the future. Grade A and Grade B office
buildings in the city center increased their net asking rent to US$40/
sqm/mth and US$24/sqm/mth respectively.
Occupancy level increased to an average of 94% thanks to high rate from
newly-built Vietcombank Tower and Lim Tower 2. On quarterly basis,
Grade A improved its occupancy rate of 96% whilst Grade B witnessed
a nominal drop to 95% due to tenant relocation.
SUPPLY
The CBD holds more than half of the city’s office supply, including all
Grade A buildings and the majority of Grade B buildings. In the next
10 years, the CBD area remains the prime location for top-graded
commercial office space.
As of Q3 2015, Ho Chi Minh City (HCMC) office market had approximately
2,228,361 sqm GFA from 343 projects. The total stock was relatively
stable quarter-on-quarter (q-o-q) and increased 5% year-on-year
(y-o-y).
OFFICE SECTOR
Q3 2015 | MARKET INSIGHTS
HO CHI MINH CITY
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
Figure 1: Supply by year
Economy overview
The Vietnamese economy continued to show positive growth in Q3 2015.
GDP in Q3 increased 6.5% year on year (y-o-y), which is the highest
growth rate among the six key economies of Southeast Asia. Total retail
sales and consumer services in the first nine months of 2015 were
estimated at VND 2,374.5 trillion, up 9.8% compared to the same period
last year.
The CPI increased nominally at 0.74% y-o-y, the lowest level in the past
10 years. FDI pledges year to date, rose 53% from a year ago to $17
billion, with strong inflows into the manufacturing sector and production
of export goods and the associated services sector rose 6.17% in the first
nine months.
The State Bank of Vietnam issued government bonds highlight
improvements in the economy showing significant yield compression
with an average in Q3 of 6.7% and 7.1% for five year and ten year bond
respectively.
In the long term, the economy will benefit from domestic reforms and
trade liberalization as a pre requisite of Vietnam membership of the
Trans-Pacific Partnership (TPP), the Free Trade Agreement (FTA) and
further ASEAN integration.
www.colliers.com/vietnam
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. 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.
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 Colliers International Research
Figure 2: Average occupancy rate
*US$/sqm/month on net leasable area, excluding service charges and VAT.
OUTLOOK
The outlook for the office leasing market in HCMC over the next
5 years is more positive than the previous years. Since there will
be limit office developments scheduled for completion in the short
term, the current upward trend for occupancy rate is expected to
be sustained in 2016. Due to the lack of alternative office space,
landlords are more opptimistic on renewals for existing tenants.
DEMAND
Increase in FDI, changes in investment law and socio-economic
reforms will attract more business into Vietnam. These multinational
companies will strive for better quality in their offices.
Source: Colliers International Research
Source: Colliers International Research
Figure 3: Average asking rents
Source: Colliers International Research
HA VO
Senior Research Analyst
ha.vo@colliers.com
0
100000
200000
300000
400000
500000
600000
700000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Grade A Grade B
sqm
0
20
40
60
80
100
120
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4F
2011 2012 2013 2014 2015
Grade A Grade B
%
0
10
20
30
40
50
60
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4F
2011 2012 2013 2014 2015
US$/sqm/month
Grade A Grade B

2. PERFORMANCE
Across retail market segments, average net asking rent increased to
US$59/sqm/mth. Average net rents in the CBD recorded a 3% q-o-q and
7% y-o-y respectively.
The market saw a nominal drop of 1ppt q-o-q in occupancy. Amongst the
three segments, department stores have the highest rate of occupancy
at 97%, shopping centers at 92% and retail podiums at 82%. Occupancy
rate for shopping centres decreased by 1ppt due to new supply of Vincom
Quang Trung.
SUPPLY
Outside the CBD, Go Vap District welcomed 27,000 GFA of Vincom
Quang Trung shopping center to the market. This is the third retail center
developed by Vingroup in Ho Chi Minh City and the twelfth one across the
country. SC Vivo City was officially opened at the end of Q3 2015 with
41,000 GFA entering the market.
In contrast, the CBD retail stock decreased 1.66% y-o-y as 3,500 sqm
NLA of Saigon Center was officially closed for upgrading. When Phase 2
is completed in late 2016, the complex will have seven levels of retail and
dining spaces spread across 50,000 sm, including a department store
spanning 15,000 sqm across five floors.
RETAIL SECTOR
Q3 2015 | MARKET INSIGHTS
HO CHI MINH CITY
Figure 3: Total retail sales
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
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. 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.
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 Colliers International Research
Figure 1: Supply by type
OUTLOOK
The last quarter of 2015 will welcome approximately 107,000 GFA
retail space, creating changes on occupancy and rental rates. Retail
supply will be ample through 2020 when over a million square
meters of new supply will be added to the market. The retail market
is expected to grow stronger in the long term due to recent free trade
agreements.
DEMAND
On the 5th of October, agreement on the Trans-Pacific Partnership
has been reached by all 12 participating members after more than
five years of negotiations. Demand for retail space is projected to
rise in the short to medium term as more international retailers will
be interested to gaining access to the local retail sales.
Source: Colliers International Research
Figure 2: Average rental rate
Source: General Statistics Office | Colliers International Research
Source: Colliers International Research
HA VO
Senior Research Analyst
ha.vo@colliers.com
Economy overview
The Vietnamese economy continued to show positive growth in Q3 2015.
GDP in Q3 increased 6.5%year on year (y-o-y), which is the highest growth
rate among the six key economies of Southeast Asia. Total retail sales and
consumer services in the first nine months of 2015 were estimated at VND
2,374.5 trillion, up 9.8% compared to the same period last year.
The CPI increased nominally at 0.74% y-o-y, the lowest level in the past
10 years. FDI pledges year to date, rose 53% from a year ago to $17
billion, with strong inflows into the manufacturing sector and production
of export goods and the associated services sector rose 6.17% in the first
nine months.
The State Bank of Vietnam issued government bonds highlight improvements
in the economy showing significant yield compression with an average in
Q3 of 6.7% and 7.1% for five year and ten year bond respectively.
In the long term, the economy will benefit from domestic reforms and
trade liberalization as a pre requisite of Vietnam membership of the
Trans-Pacific Partnership (TPP), the Free Trade Agreement (FTA) and
further ASEAN integration.
0
20
40
60
80
100
120
140
160
180
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4F
2011 2012 2013 2014 2015
US$/sqm/month
CBD NON-CBD
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011 2012 2013 2014 2015
billion
69%
24%
7%
Shopping Center
Retail Podium
Department Store

3. PERFORMANCE
The review quarter recorded approximately 7,900 transactions, up 88%
y-o-y. The high-end segment continued to dominate the sales volumes
with 35% of all units sold in the first nine months of 2015. Compared
to the previous quarter, the sales rate showed signs of slowing down as
many Asian buyers avoided transactions in the “ghost month” of the lunar
year and developers were slow to place bank guarantees against pre-sales
payments as regulated in the 2014 Law on Real Estate Business.
The average primary sale price saw a increase of 2.5% y-o-y. On the
secondary market, the price is reported to increase 3% to 5% compared to
the same period last year.
SUPPLY
More than 10,000 units from 26 projects have been brought to the market
in Q3 2015. Local developers take the lead in the supply pipeline whilst
foreign developers account for less than 10% of residential projects in
the market. Developers have started to shift their focus on the luxury
apartment market segment.The review quarter recorded a growing number
of high-end projects from well-known developers such as Phu My Hung,
Capitaland and Novaland. Although demand for affordable housing is high
the number of projects for low and medium income buyers is still limited,
accounting for only 1/5 total supply.
DEMAND
HCMC currently has a population of approximately 7.95 million, accounting
for 8.8% of the whole nation’s population of 90.4 million people, making it
the highest population city in the country.
CONDOMINIUM SECTOR
Q3 2015 | MARKET INSIGHTS
HO CHI MINH CITY
Figure 2: Sold units
Economy overview
The Vietnamese economy continued to show positive growth in Q3 2015.
GDP in Q3 increased 6.5%year on year (y-o-y), which is the highest growth
rate among the six key economies of Southeast Asia. Total retail sales and
consumer services in the first nine months of 2015 were estimated at VND
2,374.5 trillion, up 9.8% compared to the same period last year.
The CPI increased nominally at 0.74% y-o-y, the lowest level in the past
10 years. FDI pledges year to date, rose 53% from a year ago to $17
billion, with strong inflows into the manufacturing sector and production
of export goods and the associated services sector rose 6.17% in the first
nine months.
The State Bank of Vietnam issued government bonds highlight improvements
in the economy showing significant yield compression with an average in
Q3 of 6.7% and 7.1% for five year and ten year bond respectively.
In the long term, the economy will benefit from domestic reforms and
trade liberalization as a pre requisite of Vietnam membership of the
Trans-Pacific Partnership (TPP), the Free Trade Agreement (FTA) and
further ASEAN integration.
Figure 1: Supply by District
Figure 3: Primary asking price
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
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. 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.
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 Colliers International Research
The city’s population is currently rising by approximately
200,000 people each year, which is equivalent to a 3%
y-o-y increase. Given limited residential land within urban
districts, there is a strong housing demand for the large
number of city citizens in new urban and suburban areas.
OUTLOOK
Approximately 60,000 units from 90 projects will enter the
market from now until 2017. The luxury apartment sector
will maintain growth in terms of sales volumes and new
supply with interest from buy-to-let investors.
Source: Colliers International Research
Source: Colliers International Research
Source: Colliers International Research
HA VO
Senior Research Analyst
ha.vo@colliers.com
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2008 2009 2010 2011 2012 2013 2014 2015 YTD
Luxury High-end Mid-end Affordable
US$/sqm
0%
10%
20%
30%
40%
50%
60%
70%
2013 2014 2015 2016F 2017F
District 2 District 7 District 9
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
units

4. PERFORMANCE
In Q3 2015, the primary average asking price of new launched projects
continued its upward trend since the last quarter of 2014 thanks to
improved economic conditions and investor confidence.
The most sought-after villa projects still located in District 2, District 7
and District 9 with prices in some cases reaching to US$3,400-3,600/
sqm. On the secondary market, prices remained stable due to limited
supply. The sales volume improved with a growth rate of 5% q-o-q and
76% y-o-y.
SUPPLY
The review quarter recorded five new launched projects on the primary
market. The existing supply pipeline comprises approximately 6,700
villas and townhouses from 51 projects.
As land availability in the city center are limited, villa and townhouse
projects are developed mainly in non-CBD locations. 80% of supply is
focused on District 2, District 7, District 9 and BinhThanh District which
have well-established infrastructure and connectivity. Amongst active
emerging districts, District 9 is home for 31% market share with majority
of current supply located near the Eastern Ring Road.
DEMAND
Although condominiums have become popular with the local market
recent years, landed property is still the preferred choice of housing.
Moreover, landed property is one of the traditional investment channels
given its long-term capital gain.
VILLA/TOWNHOUSE SECTOR
Q3 2015 | MARKET INSIGHTS
HO CHI MINH CITY
Economy overview
The Vietnamese economy continued to show positive growth in Q3 2015.
GDP in Q3 increased 6.5%year on year (y-o-y), which is the highest
growth rate among the six key economies of Southeast Asia. Total retail
sales and consumer services in the first nine months of 2015 were
estimated at VND 2,374.5 trillion, up 9.8% compared to the same period
last year.
The CPI increased nominally at 0.74% y-o-y, the lowest level in the past
10 years. FDI pledges year to date, rose 53% from a year ago to $17
billion, with strong inflows into the manufacturing sector and production
of export goods and the associated services sector rose 6.17% in the
first nine months.
The State Bank of Vietnam issued government bonds highlight
improvements in the economy showing significant yield compression
with an average in Q3 of 6.7% and 7.1% for five year and ten year bond
respectively.
In the long term, the economy will benefit from domestic reforms and
trade liberalization as a pre requisite of Vietnam membership of the
Trans-Pacific Partnership (TPP), the Free Trade Agreement (FTA) and
further ASEAN integration.
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
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. 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.
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 Colliers International Research
In terms of customer profile, there are two main groups of
buyers. Investors prefer to purchase new launches, taking
advantage of good initial pricing and end-user buyers who are
are more cautious and pay more attention in developer’s brand
name, construction progress and quality of the finishing.
OUTLOOK
The year-end will mark a slight rise in secondary price of
compounded villa and townhouse developments since there
will be no considerable new supply entering the market. Selling
price of the primary market will be unchanged since current
projects achieved efficient take-up rate. In the next three years,
newly launched projects are expected to be on a larger scale.
Stability is predicted in average asking price land lot segment in
both primary and secondary market given moderate supply and
increasing demand.
*Price excludes VAT
Table 1: Market Summary
Villa and Townhouse
Performance
Q3 2015 Q4 2015F
Absorption rate
Primary Price
($US/sqm)
Construction
Source: Colliers International Research
Figure 1: Supply by year
Source: Colliers International Research
Figure 2: Average asking price
Source: Colliers International Research
HA VO
Senior Research Analyst
ha.vo@colliers.com
0
1000
2000
3000
4000
5000
6000
7000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
YTD
2016F
Existing supply New supply
units
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
US$/sqm
District 7 District 9 District 2 Others

5. PERFORMANCE
Serviced apartments in CBD have traditionally performed well with average
rent being 37% higher than in the non-CBD area.
The average net asking rent recorded a growth of 2% on quarterly basis,
sitting at US$23/sqm/mth.
The overall average occupancy rate decreased 3 ppts, down to 83% q-o-q,
mainly due to competition from new privately owned apartments let on a
short-term basis.
SUPPLY
The market consists of approximately 4,230 apartments from 82 buildings.
District 1 makes up 44% of the total supply.
This quarter saw the launch of Berkley Serviced Residences in the Gateway
Thao Dien in District 2. Developed by Hamon Developments and SonKim
Land, the project is scheduled to open in 2017, offering 85 fully furnished and
serviced residences in one, two and three bedroom layouts.
DEMAND
Demand for serviced apartments will be strengthened by the growing FDI
investment to Ho Chi Minh City.
SERVICED APARTMENT SECTOR
Q3 2015 | MARKET INSIGHTS
HO CHI MINH CITY
Economy overview
The Vietnamese economy continued to show positive growth in Q3 2015.
GDP in Q3 increased 6.5%year on year (y-o-y), which is the highest
growth rate among the six key economies of Southeast Asia. Total retail
sales and consumer services in the first nine months of 2015 were
estimated at VND 2,374.5 trillion, up 9.8% compared to the same period
last year.
The CPI increased nominally at 0.74% y-o-y, the lowest level in the past
10 years. FDI pledges year to date, rose 53% from a year ago to $17
billion, with strong inflows into the manufacturing sector and production
of export goods and the associated services sector rose 6.17% in the first
nine months.
The State Bank of Vietnam issued government bonds highlight
improvements in the economy showing significant yield compression
with an average in Q3 of 6.7% and 7.1% for five year and ten year bond
respectfully.
In the long term, the economy will benefit from domestic reforms and
trade liberalization as a pre requisite of Vietnam membership of the
Trans-Pacific Partnership (TPP), the Free Trade Agreement (FTA) and
further ASEAN integration.
Table 2: Total new supply by year
Table 3: Significant future projects under construction
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
www.colliers.com/vietnam
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. 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.
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 Colliers International Research
HA VO
Senior Research Analyst
ha.vo@colliers.com
OUTLOOK
In the next three years, it is estimated that the serviced apartment
market in HCM City will have approximately 2,200 units from the
launch of 4 new projects and 3 renovated projects. Limited supply
entering the market over the next 12 months will create increases in
occupancy in the current projects.
Figure 1: Market performance
Project District Grade
Total
units
Expected
completion
Cosmo Residence 3 B 30 2015
New Pearl 3 B 120 2015
Icon 3 B 63 2016
Saigon Ascott Waterfront 1 A 222 2016
Saigon Centre Phase 2 1 A 216 2016
Source: Colliers International Research
Source: Colliers International Research
Source: Colliers International Research
0
5
10
15
20
25
30
35
40
0%
20%
40%
60%
80%
100%
Grade A Grade B
US$/sqm/month
Occupancy Rate Average Rental Rate
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Grade A Grade B
units