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MARKET INSIGHTS
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Q3 2020
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Tuesday, October 6, 2020

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 CONTENTS

1. OFFICE MARKET

2. RETAIL MARKET

3. CONDOMINIUM MARKET

4. INDUSTRIAL REAL ESTATE MARKET

 HCMC OFFICE
MARKET

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 3 © 2020 CBRE, INC.

 HCMC OFFICE: MARKET SNAPSHOT Q3 2020

GRADE A GRADE B
TOTAL
SUPPLY 445,313 sqm NLA 925,501 sqm NLA
NLA (sqm) 17 projects 67 projects

ASKING
-5.0% y-o-y US$25.3 3.0% y-o-y
NO NEW
RENT* US$44.3
US$/sqm/month Stable q-o-q Stable q-o-q SUPPLY

VACANCY 3.3 ppts y-o-y

RATE 11.5% 6.1% 1.3 ppt y-o-y
(%) 0.3 ppt q-o-q 0.3 ppt q-o-q

Source: CBRE Vietnam Research & Consulting, Q3 2020.

Note: Asking rent is quoted on NLA, excluding VAT & Service charges.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 4 © 2020 CBRE, INC.

TECH FIRMS & E-COMMERCE COMPANIES PREFERRED DECENTRALISED OPTION S
For cost-saving and convenient accessibility HCMC Office, Transactions by Purpose, Q3 2020
3%
14%
38%
7-8km
14%
4-5km

31%
Pearl Plaza
Etown Relocation Contraction Expansion
Complex
Renewal New Letting

HCMC Office, Rental Rate by Area, Q3 2020

Viettel
$60 25%

Vacancy rate (%)

US$ psm pm
Sofic
Complex
Tower
$50 20%
$40
15%
Etown $30
10%
Central $20
$10 5%
Grade A $- 0%
Mapletree
Business Phu My District 1 District 1 Other Other
Centre Hung Tower - Grade - Grade districts - districts -
Grade B A B Grade A Grade B
Metroline no. 1 Source: CBRE Vietnam Research & Consulting, Q3 2020.
H C M C R E A L E S T A T E M A R K E T Transactions
I N S I G H T S |closed
Q 3 2and
0 2 0 collected by CBRE in Q3 2020. The
5 statistic was based Asking Rent © 2 0Vacancy
2 0 C B R E , IRate
NC.
Metroline no. 2 on total number of transactions.
 CONTINUED RENTAL CORRECTION AFTER SECOND RESURGENCE OF COVID -19

HCMC Office Market, Performance, Q3 2020 HCMC Office Market, Net absorption, 9M 2020
Closing rent
120,000
US$3-4
$50 15% 100,000
80,000

NLA (sqm)
$40 12% 60,000
(US$/sqm/month)

Vacancy Rate (%)

40,000
Asking Rent

$30 9% 20,000
0
$20 6% -20,000 2018 2019 9M 2020
Q3

Grade A Grade B
$10 3%

$0 0%
2018 2019 Q3 2020 Negative net absorption in 9M 2020 as
Grade A Asking Rent Grade B Asking Rent tenants contracted spaces
Grade A Vacancy Rate Grade B Vacancy Rate
Grade A – Closing Rent Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 6 © 2020 CBRE, INC.

 MORE NEW PROJECTS IN DECENTRALISED AREAS

Q4 2020: 80,000 sqm NLA

Opal Tower Saigon First House, The 67 Tower UOA Tower
Binh Thanh District 3 District 7 District 7
NLA: 21,732 sqm NLA: 15,348 sqm NLA: 9,736 sqm NLA: 29,940 sqm

2021: >70,000 sqm NLA

Pearl 5 Tower CII Cobi Tower 2 The Graces

District 3 Binh Thanh District 7 District 7
NLA: 10,944 sqm NLA: 35,652 sqm NLA: 17,527 sqm NLA: 8,295 sqm
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 7 © 2020 CBRE, INC.
 THU THIEM BRIDGE NO.2
H A S BE E N H E A D I NG TO C O MP LETI ON S TAG E

HC
C B RMECHRCEM
ACL EMS A
T ARTKEE TMIA
NRS K
IGE TH TI N|S IQ
G3H.T2S0 2|0 Q 3 2 0 2 0 8 © 2020 CBRE, INC.
 THE EAST WILL ATTRACT MORE INVESTORS AND OCCUPIERS

>30,000 sqm NLA BINH DUONG

4% 3%
11%
2015
13% DONG
68% NAI

Central South East West North

APC Tower
2025 Worc@Q2
(Fraser)
>300,000 sqm NLA
4%
11%
7%

58%
19% New office EcoSmart City
project Average asking rent in the East
Empire City
US$18 – 35 psm pm
Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 9 © 2020 CBRE, INC.

 WHAT HAVE LANDLORDS DONE TO GAIN COMPETITIVE ADVANTAGES?

Financial support from the landlords Landlords refurbished properties to improve asset value

TENANTS LEASING
requested
incentives
landlords to
considered by the
provide rent
landlords
discount

Provide short-term
rental discount

Allow payment
deferral

Landlords can apply workplace strategy to

evaluate current strengths and
deficiencies, therefore, to redesign and
improve services
Source: CBRE Vietnam Research & Consulting, Q3 2020.
HC
C B RMECHRCEM
ACL EMS A
T ARTKEE TMIA
NRS K
IGE TH TI N|S IQ
G3H.T2S0 2|0 Q 3 2 0 2 0 10 © 2020 CBRE, INC.
Note: The photos above do not reflect the
technical upgrading parts.
 RENTAL RATE IS EXPECTED TO SLIGHTLY RECOVER IN 2021F

APAC Office, Grade A Rental Forecast, 2020F – 2021F HCMC Office, Performance Forecast, 2020F – 2021F
$50 25%
10%
2020F (As of Aug) 2021F
5% $40 20%

(US$ psm pm)

Vacancy (%)
Asking rent
0% $30 15%
Rental growth

-5%
$20 10%
-10%
$10 5%
-15%
$- 0%
-20%
2018 2019 2020F 2021F

Hong Kong SAR

Seoul

Melbourne
Hanoi

Singapore
Guangzhou
Tokyo

Shanghai

HCMC
Jakarta

Shenzhen

Sydney
Beijing
Bangkok
Taipei

Grade A - Asking Rent Grade B - Asking Rent

Grade A - Vacancy Rate Grade B - Vacancy Rate

Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 11 © 2020 CBRE, INC.

 03 WORKPLACE
DECENTRALISATION
More options for tenants STRATEGY
to save costs 02

REVIEW LEASE
AGREEMENT KEY TRENDS
More flexible leasing terms
and incentives
IN 2020F
AND
01 ONWARDS

CBRE H CM C M ARKET I N S I G H T | Q 3. 2020 12 © 2020 CBRE, INC.

 HCMC RETAIL
MARKET

DEPAR TM EN T N AM E | PRESENTATI ON TITLE 13 © 2020 CBRE, INC.

 FOOT TRAFFIC RECOVERY

Aeon Tan Phu Saigon Center at nighttime

Source: Youtube public clip, September 2020 Source: CBRE

“Mid-Autumn Festival @ Van Hanh Mall”

Source: Van Hanh Mall Fb

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 14 © 2020 CBRE, INC.

 REVIVAL NOT ONLY SEEN AT CAPITAL CITIES
Parkson Le Thanh Ton re-opened 1st
Growth of Sales of good, Vietnam floor with MUJI as anchor tenant
(July 2020)
20%
15% Uniqlo to launch 2 nd store in Hanoi COMING
10% (Vincom Metropolis, 2,000 sqm)
(Sept 2020) ❑ Kielh’s @ Vincom
5%
0% Centre Ba Trieu
Watson opened 400 sqm store at
❑ Levi’s @ Trang
-5% Vincom Center Dong Khoi
Tien Plaza
-10%
Vietnam Hai Hanoi HCMC Da Khanh MLB opened at Vincom ❑ Uniqlo @ Aeon Mall in Long Bien
Phong Nang Hoa Center Ba Trieu District
❑ Uniqlo @ Van Hanh Mall
9M 2019 9M 2020 1st McDonald’s in Binh Duong at
Source: GSO, September 2020
Aeon Canary Binh Duong

Elly Showroom at Vincom

Plaza Ninh Thuan
Source: Mediaz.vn, June 2020

Coming NARS store on

Trang Tien St., Hanoi
Source: Baodautu, 17 July 2020

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 15 © 2020 CBRE, INC.

 HCMC RETAIL: MARKET SNAPSHOT Q3 2020

CBD Non-CBD
TOTAL
SUPPLY 103,453 sqm NLA 942,575 sqm NLA
NLA (sqm) 3 projects & 8 small podiums 47 projects

NO NEW
ASKING
RENT* US$135.4 Stable y-o-y US$35.8 0.2% y-o-y SUPPLY
US$/sqm/month Stable q-o-q Stable q-o-q 1 soft
opening
VACANCY 0.6 ppts y-o-y (1,700 sqm – 1st
RATE 1.65% 13.1% 4.3 ppts y-o-y
floor Parkson
(%) 0.3 ppts q-o-q 0.2 ppts q-o-q Dong Khoi)

Source: CBRE Vietnam Research & Consulting, Q3 2020.

Note: Asking rent is quoted on NLA, excluding VAT
& Service charges for Ground Floor and First floor.
OCCUPI ER EVENT Q3.2020 16 © 2020 CBRE, INC.
 CATEGORIES ON TRENDS:
EXPERIENTIAL CONSUMPTION

Entertainment
SPORTWEAR
➢ Various in sizes
➢ Flexible: buy land, Supersport
buy properties, rent Fila
space, offer New Balance

Luxurious accessories
management Sketch
Crocs
contract MAP Active

good performance
HEALTH &
BEAUTY,
CLINIC “
Luxury goods sale increased by
15% in 8M 2020
Cle de Peau Beaute
Watson Source: DanViet, 29 Sept 9 2020.
Guardian
Matsumotokiyoshi

HC
C MEC HRCEM
BR ACL EMSAT A
R TKEE T
MAI NRSKIEGT HI T
N S| I G
QH3 T2S0 |
2 0Q 3 2 0 2 0 17 © 2 0 2200 C
CB R E , I N C .
 OCCUPANCY RATES START TO SEE
IMPROVEMENT AMIDST LIMITED
NEW SUPPLY

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 18 © 2020 CBRE, INC.

 OCCUPANCY RATES START TO SEE IMPROVEMENT

HCMC Retail, Market Performance, Q3 2020 Some landlords continued rent support policies during 2nd
wave of COVID-19 at shopping centres:

80,000 21% ✓ 50% off on Service Charge

60,000 18% ✓ 10%-30% off on Base rent, depends on categories
40,000 15%

Vacancy rate
NLA (sqm)

✓ Free rent during mandatory close-up

20,000 12%
- 9%
(20,000) 6% Projects of good location/quality quickly have their vacant
spaces leased
(40,000) 3%
(60,000) 0%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3 2018 2019 2020

Net Absorption Vacancy Rate - CBD

@ Saigon Centre & @ Vincom Centre Haidilao >1,000 sqm @
Vacancy Rate - Non-CBD Dong Khoi Parkson Hung Vuong
Haidilao @ Nowzone
Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 19 © 2020 CBRE, INC.

 FUTURE PIPELINES CONTINUE TO BE PUSHED FURTHER

Over total 550,000 sqm in the pipeline Non-CBD CBD

Soft opening 2021 2022 -2025

2020
(30,000 sqm) (>420,000 sqm)

Parkson Saigontourist
NLA: 13,350 sqm Alpha Mall Spirit of Saigon
Under renovation
Socar Mall Elite Mall Vincom Grand Park
Soft opening 48,000 sqm
30,000 sqm 42,000 sqm
District 2 District 8 District 9 Centennial
Mall Tax Plaza

Union Square
NLA: 27,900 sqm
Thu Thiem New Urban Area
Under renovation
Lotte
Central Premium Mall Onehub Saigon Empire City
24,000 sqm 70,000 sqm Sonkimland
District 8 District 9
Source: CBRE Vietnam Research & Consulting, Internet Images. Dai Quang Minh

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 20 © 2020 CBRE, INC.

 THU THIEM NEW URBAN AREA
A New Cluster For Retail One Hub Saigon

Vincom Thu Duc

109,000 sqm
Vincom Le Van Viet
18% 18%
2015 East
14% West
25% South
25%
North
Central
Vincom
Megamall
12% Thao Dien
2025
723,000 sqm
16% 45%
Vincom Center
Landmark 81
10%
Metropole
17%
Lotte
Socar Mall

Source: CBRE Vietnam Research & Consulting, Q3 2020.

Empire 88
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 21 © 2020 CBRE, INC.
 MARKET OUTLOOK: A SLOW RECOVERY UNDERWAY

APAC Retail, Rent Forecast HCMC Retail, Market Performance Outlook

25% 200,000

Net Absorption (sqm)

10%
stable 20% 150,000
Change y-o-y

Vacancy rate
0%
-10% 15% 100,000
-20% 10% 50,000
-30%
5% -
-40%
0% -50,000
Bangkok
Sydney - CBD
Beijing

Auckland - Regional Ctr

Hanoi
HCMC

Melbourne - CBD

Guangzhou
Shanghai

Taipei
Shenzhen
Brisbane - CBD

Tokyo (Ginza)

Perth - CBD
Singapore (Orchard)

Hong Kong SAR (High Street)

2016

2017

2018

2019

Q2 2020

2020F

2021F
Net Absorption Vacancy rate - CBD
Vacancy Rate - Non-CBD
2020F YTD Change in Rents in H1 2020 2021F

Remarks: All markets track the performance of prime high streets except Mainland China, Singapore
and Pacific. Mainland China tier I cities, Hanoi and HCMC track the performance of G/F prime Source: CBRE Vietnam Research & Consulting, Q3 2020.
shopping centres, Singapore tracks the performance of prime floor units of shopping centres while New
H C Mtracks
Zealand C R Eregional
A L E S Tshopping
A T E M Acentres.
RKET INSIGHTS | Q3 2020 22 © 2020 CBRE, INC.
Source: CBRE Vietnam Research & Consulting, August 2020.
 Experiential consumption/ New retail
03
online shopping clusters
Long-term effect on consumer behaviours Developments to the East
02
and impacts of Metro Line

Gradual recovery
Improvement in occupancy rate
Expansion of chain retailers
KEY TRENDS
Continued interest from foreign brands IN 2020F
AND
01 ONWARDS

CBRE HCMC MARKET INSIGHT | Q3 2020 23 © 2020 CBRE, INC.

 HCMC CONDOMINIUM
MARKET

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 24 © 2020 CBRE, INC.

 HCMC CONDOMINIUM: MARKET SNAPSHOT Q3 2020
New launch supply: 3,964 units from 4 projects
Sold units: 3,552 units

Luxury High-end Mid-end Affordable

New launch 101 units 3,863 units 0 unit 0 unit

supply 1 project 3 projects 0 project 0 project
74% y-o-y 1.9x y-o-y 100% y-o-y No new project in the last
38% y-o-y 5.6x q-o-q 100% q-o-q four quarter

Selling
$6,371 psm $2,518 psm $1,499 psm $935 psm
price* 3% y-o-y 1% y-o-y 7% y-o-y 4% y-o-y
Stable q-o-q Stable q-o-q 1% q-o-q Stable q-o-q

79 units 3,178 units 237 units 37 units LIMITED

Sold
units 74% y-o-y 1.6x y-o-y 98% y-o-y 52% y-o-y SUPPLY
26% q-o-q 5.6x q-o-q 75% q-o-q 57% q-o-q

(*) Selling price: US$ psm (excluding VAT and quoted on NSA)

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 25 © 2020 CBRE, INC.

 HIGH-END SUPPLY DOMINATED

HCMC Condominium, New launch supply, Q3 2020 3,964 units

(▼70% y-o-y)
Market correction Licensing issue COVID-19
14,000
3%
12,000
No. of New Launch (units)

10,000

8,000

6,000

4,000
97%
2,000
Luxury High-end Mid-end Affordable
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
High-end supply
2018 2019 2020 dominated the market
Luxury High-end Mid-end Affordable due to subsequent phase of
Source: CBRE Vietnam Research & Consulting, Q3 2020.
Vinhomes Grand Park
HC
C MEC HRCEM
BR ACL EMSAT A
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MAI NRSKIEGT HI T
N S| I G
QH3 T2S0 |
2 0Q 3 2 0 2 0 26 © 2020 CBRE, INC.
 MAP OF NEW LAUNCHED SUPPLY BY DISTRICT – Q3 2020
All in The East !!!

3
2

Supply Price 1
# Project District
(units) (US$/sqm)
1 The River 101 5,400 2
2 St Moritz 258 2,663 Thu Duc
Vinhomes Grand
3 Park 3,502 2,225 9
– The Origami
4 HCMCPrecia
REAL ES TAT E 103
M ARK E T I N S I G H T S2,144
| Q3 2020 2 27 © 2020 CBRE, INC.
Total 3,964
 N E W L A U N C H S U P P LY E X PA N D E D T O N E I G H B O U R P R O V I N C E S
HCMC & Binh Duong Condominium, 9M 2020
HCMC Binh Duong
Condominium project
9,214 units 8,289 units
17 projects 8 projects

$1,963 psm $1,276 psm

Binh Duong 6% y-o-y 21% y-o-y

8,890 units 8,009 units

HCMC Binh Duong
3%
HCMC
32%

100%
65%

Luxury High-end Mid-end Affordable

Source: CBRE Vietnam Research & Consulting, Q3 2020.
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 28 © 2020 CBRE, INC.
 LOWER ABSORPTION RATE AMID HIGH SELLING PRICES AND COVID -19

HCMC Condominium, Sold units, Q3 2020

16,000 COVID-19 100%

14,000 88%
12,000 75%

Sold rate (%)

10,000 63%
Sold units

8,000 50%
3,552 units
6,000 (▼73% y-o-y) 38%
4,000 25%
2,000 13%
0 0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020
Luxury High-end Mid-end Affordable Sold rate of new launch

Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 29 © 2020 CBRE, INC.

 PRICES CONTINUES TO INCREASE DUE TO LIMITED SUPPLY

HCMC Condominium, Average Primary Price, Q3 2020

LUXURY HIGH-END MID-END AFFORDABLE Price Q3 2020
US$6,371 psm US$2,518 psm US$1,499 psm $935 psm growth rate compared
7,000 in 2019 to Q4 2019
▲ 17% y-o-y ▲ 1% y-o-y
Primary price (US$ psm)

6,000
5,000
4,000 ▲ 10% y-o-y ▲ 0% y-o-y
3,000
▲ 5% y-o-y ▲ 6% y-o-y
2,000
1,000 ▲ 2% y-o-y ▲ 4% y-o-y

-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020
Luxury High-end Mid-end Affordable
(*) Selling price: US$ psm (excluding VAT and quoted on NSA)
Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 30 © 2020 CBRE, INC.

 CBRE SPECIAL REPORT
JOURNEY TO THE EAST: THE EXPANSION OF HCMC METROPOLIS

5,000 Launching price Current price* Price growth rate 100%

4,000 80%

Price growth rate (%)

Selling price (US$ psm)
3,000 60%
2,000 40%
1,000 20%
0 0%

Saigon Gateway
The Estella (2008)

Cantavil Premier
Thao Dien Pearl

Masteri Thao Dien

Lavita Garden

Estella Heights
Lavita Charm

Masteri An Phu

Him Lam Phu An

Centum Wealth
Gateway Thao

Q2 Thao Dien
The Nassim (2015)
Dien (2015)

(2017)
(2015)

(2018)

(2015)
(2018)

(2018)
(2010)

(2017)
(2010)

(2016)
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 31 (2014) Same side with metroline station On the other side with metroline station
© 2020 CBRE, INC.
* Secondary asking price, Q2 2020. Years indicate time of launching.
 THE EAST: RECEIVES HIGH INTEREST FROM INVESTORS AND END -USERS
The Metropole
Galleria Residence
Accumulated new launch by area
New Eastern Coach Station
2015

The East
34%
~55,000 units

Metro Line No. 1

The River Thu Thiem
2025

The East
44%
Thu Thiem Bridge No.2
~198,000 units

Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 32 © 2020 CBRE, INC.

Source: CBRE, SonKim Land, Ricons, Q3 2020.

 THE EAST: LAND PRICE INCREASED SIGNIFICANTLY
Land price Thu Thiem, D.2 Thanh My Loi, D.2 An Phu, D.2 Thao Dien, D.2 Lien Phuong, D.9 Suoi Tien, D.9
CAGR ▲ 50% ▲ 20% ▲ 20% ▲ 14% ▲ 20% ▲ 21%
2018-2020

Average land price, District 2, District 9, 2011-2020

15,000 District 2, Thanh My Loi District 2, An Phu
District 2, Thao Dien District 2, Thu Thiem
District 9, Lien Phuong street area District 9, Suoi Tien area
12,500
Average Land Price
(US$ psm land)

10,000

7,500

5,000

2,500

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Special report CBRE – Journey to The East: The Expansion of HCMC Metropolis, September 2020.
Please note the land price ranges included in this page have been included as a broad guide only. Readers should not make investment decisions without first doing a detailed study on the subject site and
obtaining a formal valuation. Land prices are subject to various positive and negative attributes, including but not limited to, proposed/approved plot ratio, permitted uses, land size, location, clear legal
status, land tenure and other restrictions. CBRE Vietnam does not accept any liability under any cause of action including negligence for any loss arising from use of or reliance upon this information.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 33 © 2020 CBRE, INC.

 HCMC CONDOMINIUM: FORECAST
Primary selling price and sold units are expected to maintain stable amid slow growth in new launch supply

HCMC condominium, Forecast 2020-2021 Future projects

45,000 2,250 Q4 2020

Primary Selling price (US$ psm)

40,000 2,000
35,000 1,750
30,000 1,500
The Opera
25,000 1,250 Residence, D.2 The River Thu
Units

Thiem, D.2
20,000 1,000 190 căn giai đoạn
15,000 750 tiếp theo

10,000 500
5,000 250
Vinhomes Grand Celadon City,
- 0
Park, D.9 Tan Phu
2018 2019 2020F 2021F Subsequent phases
New launch supply Sold units
Average primary price
(*) Selling price: US$ psm (excluding VAT and quoted on NSA) Sunshine Horizon,
Source: CBRE Vietnam Research & Consulting, Q3 2020. D.4
Mizuki Park,
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 34 Binh Chanh © 2020 CBRE, INC.
Image source: Zingnews.vn, Thanhnien, Celadon City, Mizuki Park
 THE EAST IS
DIVERSIFYING
THE KEY 03
LANDBANKS
DEVELOPMENT 02
DIRECTION

INNOVATION IN
PRODUCT
DEVELOPMENT KEY TRENDS
Changes in unit mix, unit size, larger
corridor, lifts
IN 2020F AND
01
ONWARDS

TỔNG QUAN THỊ TRƯỜNG TP.HCM | Q3/2020 35 © 2020 CBRE, INC.

 INDUSTRIAL
REAL ESTATE
MARKET
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 36 © 2020 CBRE, INC.
 TRADE TENSION AND THE COVID-19 PANDEMIC ACCELERATE
MANUFACTURING RELOCATION

VIETNAM

Bordering
CHINA location

▪ Increasing labor cost

Significant
▪ Unexpected events FTAs & Investment
improved
incentive
▪ Tighten legal framework infrastructure

NOTABLE INDUSTRIES

LOGISTICS ELECTRIC, AUTOMOTIVE SUPPORTING

ELECTRONIC INDUSTRY
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 37 © 2020 CBRE, INC.
 FOREIGN INVESTORS, DEVELOPERS AND TENANTS ENTER THE MARKET VIA M&A, SALE
AND LEASE BACK DEALS

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 38 © 2020 CBRE, INC.

 OVERVIEW OF INDSUTRIAL PARK IN VIETNAM

97.800 ha
336 Established IPs
Key Northern Economic Region
• Hanoi
• Hai Phong Total land area
• Hai Duong
• Quang Ninh
• Ha Nam
• Hung Yen
• Bac Ninh
• Thai Nguyen

66.000 ha
Key Central Economic Region
• Danang
• Thua Thien - Hue
261 Operating IPs Total leasable industrial land area
• Quang Nam
• Quang Ngai
• Binh Dinh

Key Southern Economic Region

• HCMC
• Dong Nai
• Binh Duong
76% Occupancy rate
• Long An
• BR-VT
• Tay Ninh
• Tien Giang Source: Ministry of Planning and Investment, Q2 2020.
• Binh Phuoc

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 39 © 2020 CBRE, INC.

 SOUTHERN INDUSTRIAL LAND: MARKET SNAPSHOT Q3 2020

HCMC Dong Nai Binh Duong Long An

Total land area of IPs 4,375 ha 9,665 ha 11,884 ha 3,267 ha

Total leasable industrial land

2,712 ha 6,425 ha 8,283 ha 2,207 ha
area
Asking land
rent
Operating IPs 21 31 29 17
increases
150 - 300 70 - 170 80 - 150 110 - 195 significantly
Asking rent* US$/sqm US$D/sqm US$/sqm US$/sqm

Average occupancy rate ≈90.8% ≈81.0% ≈84.4% ≈87.3%

Source: CBRE Vietnam Research & Consulting, Q3 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 40 © 2020 CBRE, INC.
Note: Asking industrial land rent is calculated for remaining lease term of project (normally from 30 to 40 years). Asking rent does not include VAT and Management fee.
 INDUSTRIAL LAND IS THE MOST SOUGHT AFTER PROPERTY

Industrial leasing enquiry by type, Q3 2020 Industrial leasing enquiry by industry, Q3 2020
Logistic

Electronic

Automotive

19.2% Plastic
21%
Industrial land Trading
37.0%
Warehouse Industrial property development
6.8%
50% Ready-built factory Garment
5.5% FMCG

29% F&B

Chemical

Telecom

Electric

Source: CBRE Vietnam Research & Consulting, Q3 2020.

Other

Note: The provided information is based on industrial leasing enquiries recorded by CBRE from January to August 2020.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 41 © 2020 CBRE, INC.

 THE COVID-19 PANDEMIC INCREASES WAREHOUSE DEMAND

Ready-built Factory Warehouse

Supply of Ready-built factory/warehouse
Stable asking rent Up 5% - 10% y-o-y in new warehouse projects

≈2.0 mil sqm South Central North

2020F
12
North

10

USD/sqm/month
25.3% y-o-y 8
Growth of supply
(2019-2020F) 6
4
South 2
0
≈2.7 mil sqm

HCMC

Binh Duong

Dong Nai

Long An

BR-VT

Da Nang

Quang Nam

Quang Ngai

Bac Ninh

Hanoi

Bac Giang

Hai Duong

Hai Phong
2020F

28.2% y-o-y
Growth of supply Source: CBRE Vietnam Research & Consulting, Q3 2020.
(2019-2020F) Note: According to market practice, supply in the northern region includes both leasable area ò ready-built factory and warehouse.
Asking rent does not include VAT and Management fee.
H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 42 © 2020 CBRE, INC.
 INDUSTRIAL LAND
H i g h Re n ta l G r o w th Re c o r d ed At S o m e I n d u s tr ial Pa rk s w i th G o o d L o c a ti o n s

Industrial land for lease

Stable q-o-q Up 20%-30% y-o-y at some IPs of HCMC, Long An and Dong Nai
350 CENTRAL NORTH
USD/sqm/remaining lease term

SOUTH
300
250
200
150
100
50
0
HCMC

Long An

Binh Duong

Dong Nai

BR-VT

Danang

Quang Nam

Quang Ngai

Bac Ninh

Ha Noi

Bac Giang

Hai Duong

Hai Phong

Hung Yen
Source: CBRE Vietnam Research & Consulting, Q3 2020.
Note: Asking industrial land rent is calculated for remaining lease term of project (normally from 30 to 40 years). Asking rent does not include VAT and Management fee.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 43 © 2020 CBRE, INC.

 APPLYING MODERN TECHNOLOGY INTO MANAGEMENT, OPERATION OF
FACTORY AND MAXIMIZING LAND USE

Factory 4.0 High-rise factory

Mobile application VR technology

Integrated service Eco friendly Lack of industrial land

Maximize land
usage efficient supply in prime locations
Image source: KTG Industrial, Tan Thuan EPZ, TLD Hightech.

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 44 © 2020 CBRE, INC.

 DEVELOPMENT OF HIGH-RISE WAREHOUSE TO MEET DEMAND OF
E-COMMERCE COMPANIES

High-rise Factory Cold storage

Limited logistic development land in Increasing demand of temperature-

prime locations controlled warehouse.

Storage space demand of e-commerce

companies increases significantly.

Image source: BW Industrial, ABA Cooltrans

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 45 © 2020 CBRE, INC.

 INTERGRATED-SERVICES
FOREIGN INVESTORS AND
INDUSTRIAL PARKS
DEVELOPERS IN LOGISTIC
INDUSTRY ENTER VIETNAM MARKET 04

02

MANUFACTURING
EXPANSION OF EXISTING KEY TRENDS
TENANTS
Land search activities outside major
03 IN 2020F AND
industrial regions ONWARDS
E-COMMERCE COMPANIES
01
INCREASE STORAGE SPACE
SIGNIFICANTLY

H CM C REAL ES TAT E M ARKET I N S I G H TS | Q 3 2020 46 © 2020 CBRE, INC.

 For more information regarding this presentation please contact:
CBRE Vietnam Co., Ltd. – Research & Consulting
T: +84 28 3824 6125 | E: research.vietnam@cbre.com

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TỔNG QUAN THỊ TRƯỜNG TP.HCM Q3/2020 © 2020 CBRE, INC.