HCMC Real Estate Q2/2015 Report Provides Insights on Market Trends

HO CHI MINH CITY - Q2/2015
CONTENTS
1.
Common Appendix Q2/2015
2.
HCMC Retail Market Q2/2015
3.
HCMC Office Market Q2/2015
4.
HCMC Serviced Apartment Market Q2/2015
5.
HCMC Apartment for Sale Market Q2/2015
6.
HCMC Villa/ Townhouse Market Q2/2015
Quarterly Report
Common Appendix for the HCMC and Ha Noi Markets

Q2/2015
Viet Nam
Prepared by
Savills Vietnam Co., Ltd.
June 2015
18th Floor, Continental Tower
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Ha Noi, Viet Nam
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Content
Appendix 1: Economic Overview in Q2/2015 ........................................................... 1
Appendix 2: Updated Policy and Legal Documents in Q2/2015 ............................. 5
Appendix 3: Updated Infrastructure Developments Q2/2015 .............................. 10
Disclaimer
The property market research contained is verified to the best of Savills Vietnams ability. The Savills
quarterly report reflects an overview of the current property market and is indicative research only.
Savills does not guarantee the accuracy of the research and forecasts contained herein. Savills does
not accept any responsibility for losses arising from reliance on the research and forecasting. Savills
recommends that the reader obtain a detailed market study of the specific sector of interest should
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freely quoted without acknowledgement.
Quarterly Market Report Q2/2015 Common appendix for HCMC and Ha Noi markets
Capitaland Real Estate Management (Vietnam) Ltd.
List of Tables
Table A 1.1 New legal documents issued during Q2/2015 in Ha Noi and HCMC ................................................... 9
Table A 2.1 Updated key infrastructure development projects in Q2/2015 - HCMC ...........................................10
Table A 3.2 Updated key infrastructure development projects in Q2/2015 - Ha Noi ..........................................10
List of Figures
Figure A1. 1 Nominal GDP and economic growth rates ..................................................................................................... 1
Figure A1. 2 Trade balance ............................................................................................................................................................. 2
Figure A1. 3 Retail sales.................................................................................................................................................................... 2
Figure A1. 4 CPI ................................................................................................................................................................................... 3
Figure A1. 5 FDI ................................................................................................................................................................................... 4
Quarterly Market Report Q2/2015 Common appendix for HCMC and Ha Noi markets
Appendix 1: Economic Overview in Q2/2015

After the 2012 financial crisis, Viet Nams ecomony has shown positive signs of recovery. In
Q2/2015, GDP increased 3% compared with the same period last year to US$44.8 billion. The
recovery remained on track, with real GDP growth improving to 6.4% YoY, the highest Q2
record over the last five years.
According to FocusEconomics Consensus Forecast, the GDP growth in 2015 is projected to
reach 6.2%, higher than in 2014 at 6%, driven by stronger domestic demand.
Figure A1. 1 Nominal GDP and economic growth rates
GDP, current price (LHS)
50
Economic growth (RHS)
US$ billion
45
7
6
40
35
30
25
20
15
10
5
0
0
Q2/2009
Q2/2010
Q2/2011
Q2/2012
Q2/2013
Q2/2014
Q2/2015
Source: GSO
In Q2/2015, Viet Nam posted a deficit of US$2 billion after two consectutive quarters of deficits.
Total export value in Q2/2015 increased 12% YoY to US$42 billion while the import value was
estimated at US$44 billion, up 18% YoY.
China remained the biggest exporter to Viet Nam. In Q2/2015, Chinese products accounted for
29% of Viet Nam's imports, followed by Korea at 17% and ASEAN at 15 per cent.
If domestic production continues to recover, a trade deficit in 2015 is forecast due to the
majority of raw materials, fuel and machinaries served for the manufacturing and assembly
sector being imported from other countries. Besides, the competitiveness of Viet Nams exports
will be affected due to the strengthening of US dollar against other currencies such as the Euro
and Japanese Yen.
Quarterly Market Report Q2/2015 - Common appendix

Figure A1. 2 Trade balance
50
Trade balance
US$ billion
Export
Import
40
30
20
10
0
-10
-20
Q1
Q2
Q3
Q4
Q1
2012
Q2
Q3
Q4
2013
Q1
Q2
Q3
Q4
Q1
2014
Q2
2015
Source: GSO
According to the GSO, in 1H/2015, Viet Nams retail sales achieved US$72.5 billion, 9.2% higher
than that in 1H/2014. If inflation was excluded, the real growth rate was 8.3%, increasing by 2.6
ppts YoY. The growth rate of retail sales is expected to increase in the future as consumer
confidence is gradually restored thanks to the well-controlled inflation and active support from
macroeconomic policies.
Figure A1. 3 Retail sales
Retail sales, current price
80
Real growth rate (YoY)
US$ billion
9
8
70
60
50
5
40
4
30
20
10
0
1H/2011
1H/2012
1H/2013
1H/2014
1H/2015
Source: GSO

Consumer price index (CPI) in June 2015 was 0.35% MoM and 1% YoY. According to the GSO,
the increase of CPI in June was due mainly to upward adjustments in petrol prices on May 20th,
2015 and in healthcare service charges on June 1st, 2015.
CPI in 1H/2015 hit the lowest rate in the last 14 years, at 0.86% YoY. On average, the monthly
CPI only rose 0.1% during the last 6 months. If CPI still remains well-controlled, the State Bank
will continue to loosen the monetary policy. As a result, enterprises will have more
opportunities to access credit, expand production, reduce costs and stimulate consumer
demand.
Figure A1. 4 CPI
18
16
14
12
10
8
6
4
2
0
1H/2006
1H/2007
1H/2008
1H/2009
1H/2010
1H/2011
1H/2012
1H/2013
1H/2014
1H/2015
Source: GSO
In 1H/2015, Viet Nam received US$3.8 billion from 757 newly registered FDI projects, down 21% YoY. Meanwhile, there were 281 existing projects that have increased their investment
capital. The total registered FDI inflow to Viet Nam reached US$5.5 billion, dropping sharply by
-20% YoY. However, the total FDI disbursement rose by approximately 10% to US$6.3 billion.
This was the first time that disbursed FDI was over registered FDI due mainly to the lack of
large-scale projects.
The manufacturing and processing sector was the largest recipient of FDI, with US$4.2 billion at
76% of the countrys FDI capital. The real estate sector ranked second with US$466 million at
9% market share.

Figure A1. 5 FDI

Total registered capital
12,000
FDI disbursement
US$ million
10,000
8,000
6,000
4,000
2,000
1H/2010
1H/2011
1H/2012
1H/2013
1H/2014
1H/2015
Source: GSO
The exchange rate in June 2015 increased 3% YoY to US$21,673, reflecting the governments
efforts to stabilize foreign exchange and support export activities.
In the first six months of 2015, credit growth reached 6.3% compared to December 2014, much
higher compared with an increase of 2% in the same period last year. The liquidity of the
commercial banking system continues to be improved to ensure the systems solvency.
According to the Vietnam National Administration of Tourism, international visitors to Viet Nam
were down -11% YoY to approximately 3.8 million in 1H/2015. This was due to the tensions in
East Sea which had a negative impact on Chinese arrivals. Besides, the financial difficulties in
Europe have influenced tourism demand, especially from Russia.

Appendix 2: Updated Policy and Legal Documents in Q2/2015

Legal Law by LNT & Partners
www.lnt-partners.com
NEW LEGAL CORRIDOR CREATED: NEW MOMENTUM FOR
M&A IN REAL ESTATE MARKET?
M&A is an essential component for business and the investment environment. In the real estate
development sector, M&A is more essential since it may cleanse the obstacles in the market, and
makes it more stable and flowing. One of the causes of the recent hibernation of the market is
the difficulty in transferring the unfinished real estate projects due to a lack of legal frame for this
activity, and therefore the sellers cannot meet the buyers. The tired developers could find no exit
mechanism.
With the effectiveness of various laws on business and investment from 1st July 2015, especially in
the real estate development, a new legal corridor has been opened, which brings with it many
hopes and expectations for improving the M&A in this market, consequently forming a new
movement in the market as well.
1.
The Investment Environment is more attractive to foreign investors
The procedure for a foreign investor to acquire equity from a local real estate developer had been
preceded in many steps. Amongst those is seeking opinions from relevant higher authorities
(because the real estate sector is a conditional industry), which is a time-consuming procedure,
usually fading away the business opportunities of the investor.
The Law on Investment now provides a simpler procedure for foreign investors acquisition of
equity or new investment in local enterprises.
Accordingly, a foreign invested company with
foreign capital less than 51% may be treated as a local enterprise in business procedures.
Additionally, establishing a new enterprise in Vietnam is also a more streamlined and faster affair,
since the procedure is now carried out at the provincial departments of planning and investment.
The foreign investor may set up an enterprise at first without a specific investment project as
required previously, and then the foreign investor may look for investment projects later. This
creates a short start-up track for foreign investors in Vietnam, and substantially reduces the start-up
costs accordingly1.

A more important and attractive change for foreign investors is the expansion of the scope of
foreign invested developers under the Law on Real Estate Business 2014. The requirement of
doing real estate business with newly created real estate projects only is now expanded to the
extent that the foreign invested developer may acquire partially or wholly uncompleted property
development projects2.
In reality, an acquisition of a business may be conducted in either a share deal or an asset deal
approach (i.e. acquiring the company owning the asset or buying the asset itself only) depending
on the facts of the case. However, in real estate M&A, the shares deal approach are often used
due to lack of a legal frame for project transfer whilst foreign investors often prefer the asset deal
approach because they will bear less liability and responsibilities over the project compared to
those in the share deal approach. The policy that allows foreign investors to acquire whole or
partial real estate projects will make the market more attractive to foreign investors, since some
investors prefer to acquire existing projects with proper licenses and approval, rather than starting
up the projects that require obtainment of various approvals that always obsess them in investing
in Vietnam. For instance, foreign investors can buy part of an existing real estate project to further
develop or lease some floors of an already-built office building for sub-letting, options that were
unfeasible under the previous laws.
2.
The market is expanded now
The previous policy that permitted foreigners to own residential property in Vietnam is only on a
pilot basis, and in fact did not succeed in attracting foreigners due to the many restrictions and
qualification requirements. Particularly, the conditions for being qualified for owning residential
properties were very difficult to be meet (only a small number of foreigners can meet such
conditions), furthermore, the owners actually have only the use right (i.e. not allowed to sub-let,
bequeath and so on), which all are unattractive to the foreigners.
The Law on Housing 2014 now expands the foreign subjects who are entitled to own houses in
Vietnam. Particularly, those foreigners who enter Vietnam lawfully are entitled to purchase and own
residential houses in Vietnam without the quantity limitation as before. Additionally, representative
offices, and foreign invested enterprises are also allowed to purchase and own residential houses
for their business demands. The residential houses under this Law includes apartments and
landed houses developed in real estate development project.
More importantly, the housing ownership of foreigners is now almost at parity with that of the
Vietnamese. The foreign owners are allowed to sell, lease, capitalize, bequeath, mortgage, pledge

or exchange the properties. Vietnamese who buy properties from the foreign owners can enjoy
long and stable use term with the properties.
The expansion to foreign subjects who are entitled to own houses in Vietnam, expansion of housing
ownership rights, and more assurances in liquidating the properties are all encouraging foreigners
residing and working in Vietnam. In a recent sale launch by a local developer in Ho Chi Minh, there
were around 150 foreigners registering buying apartments in the project as a report says.
The number of foreigners who are interested in owning houses in Vietnam is creating significant
additional demand to the market, creating a new momentum for the market, encouraging more
interest in, and investments in the market.
3. Obstacles should be cleared
All such consistent policies in relation to land, investment, housing, real estate business have
generated greater interest from foreign investors and created more momentum to the market. A
new wave of investment in the real estate market and/or more M&A real estate deals can be seen;
the market has been boosted with the necessary economic drivers.
To maintain the market tempo from the momentums, the Governments regulations on
implementation guidance should be consistent with the spirits of the policies, and should not
repeat the situation that it is broad and is of wide scope at the new law level, but the scope narrows
down at the decree or circular level as has often happened before.
For instance, the fact that there is no detailed guidance for implementing the laws that are already
effective is causing delays in procedures of business and investment registration, because the
authorities at the implementation level do not know how to implement the new law. It is still a
concern that such commitments as issuing the business registration certificate within 3 working
days under the Law on Enterprises can be practical in reality or not. The spirit of giving the
enterprises freedom to do business to the extent not prohibited by laws3 under the laws can be
still assured or maintained in the coming decrees and/or circulars that provided detailed guidance
in implementing the laws are of greatest concern to enterprises and investors these days.
With regard to the Law on Residential Housing, and the Law on Real Estate Business, some
concerns appear due to ambiguity of the laws, and on how they will be implemented in the coming
guidance:
How will the ratio limit of foreign ownership of not over 30% of total units in an apartment
building or 250 houses in a ward be implemented? And how can the developer be aware
of, or check such information in order to have a proper sale?

Will foreigners who buy residential properties from Vietnamese individual owners be
subject to the restriction of 30% of units, 250 houses as mentioned? And how this can be
controlled or checked in reality?
Under the Law on Real Estate Business, foreign invested developers can collect advance
payments from the homebuyers up to 50% of the sale price only. Whilst the Law on
Investment treats enterprises with foreign capital less than 51% of the total charter capital
like a local enterprise, will this spirit applied the same under the Law on Real Estate
Business? According to the opinions of many foreign investors, this spirit should be applied
consistently.
How it is interpreted with the requirement of foreigners who lawfully enter Vietnam under
the Law on Residential Housing (in order to determine whether he or she can be qualified
for housing ownership in Vietnam)? This should not repeat the situation in which there are
various different interpretations at various authorities of the condition of residing over 3
months in the previous Law on Residential Housing. In our opinion, the wording is clear
and there should not be additional guidance for this.
More and more queries and concerns are emerging from investors, especially foreign investors in
the real estate business and development sectors, which is always a complex area with complicated
guidance and procedures.
In order to maintain an attractive investment climate that has just been created by the new policies,
and ensure the upward trajectory of M&A in real estate, especially in the context that foreign
investors are interested in directing their investment flows to Vietnam, the Government should
protect and keep up commitments and innovative spirits under the new laws. The coming decrees
and circulars should be for clearing the obstacles and providing necessary guidance in
implementing the laws, not provide more ambiguities or narrow down the spirit of an open door
under the new laws.
If that mission can be achieved, the Government not only successfully keeps up the momentum
added to the market, but also ensures the positive trend of M&A flows, and thus boosting the
liquidity of the market, keeping it stable and increasing its long term endurance.
Law on Investment, Article 26
Law on Real Estate Business 2014, Article 11
http://www.thesaigontimes.vn/130528/Quyen-duoc-lam-nhung-gi-phap-luat-khong-cam.html

Table A 1.1 New legal documents issued during Q2/2015 in Ha Noi and HCMC
No.
Full name
Authority
Decree No.
issued
People's
23/2015/Q-
Committee
UBND
of HCMC
Decree No.
People's
24/2015/Q-
Committee
UBND
of HCMC
Commencing
time
15 May 2015
Area and field covered

Promulgating
regulations
on
compensation,
support
and
resettlement when the Gov. recovers

land in Ho Chi Minh City.
Promulgating process in state-owned
20 May 2015
housing receive, lease and transfer in

Ho Chi Minh City.
Regulation of the Bank guarantees
activities of credit institutions, foreign
Circular No.
The State
07/2015/TT-
Bank of
NHNN
Vietnam
bank branches.
25 June 2015
Effective from August 9, 2015, the

guarantors would have to pay buyers or
renters
the
money
advanced
to
developers if the developers failed to

handover the property on schedule.
Dispatch No.
1436/BXD-QLN
The Ministry
of
Implementation of the Housing Law

30 June 2015
Construction

No.65/2014/QH13 and the Real Estate

Business Law No.66/2014/QH13.
Appendix 3: Updated Infrastructure Developments Q2/2015

Table A 2.1 Updated key infrastructure development projects in Q2/2015 - HCMC
No.
Project name
Location description
Capacity/remarks
Project status
Binh Chanh district, Ho Chi Minh City, the

Road
1
connecting
the
intersection of National Highway 1A and the
East West Highway
East West Highway to ending of the Tan Kien
The
with
intersection (connects with the Tan Tao Cho
expected to be VND 2,371
Dem of HCMC Trung Luong highway). The
billion (US$97 million).
high
motorway
speed
HCMC
Trung Luong
total
investment
is
Approved on 22 October 2010.

Construction
started
on
September 2015.
total route is approximately 2.7km length and

60m width with 10 lanes.
Ring road 1 had a total length of 13.6km,
Ring road 1: Fully operating in
running from Tan Son Nhat Airport through
Q1/2015.
Binh Loi Bridge and ending at Linh Xuan

intersection.
Ring road 2 has a total length of 70km, starting
2
Ring roads 1, 2, 3 and 4
from Nguyen Van Linh boulevard through Phu

My Bridge, Go Dua intersection and connecting
to Highway 1.
Ring road 3 will have a total length of 89.3km,
The total investment of Ring
Ring Road 2: about 55km are
roads 1 was US$340 million.
completed, the remainder are
The total investment of Ring

roads 3 and 4 is expected to be
more than VND 150,000 billion
(US$7.3 billion).
the section from Rach Chiec 2

bridge to Go Dua (9km) and
the section from the An Lap
threeway junction to Nguyen
Van Linh Street (5.2km).
running through provinces/cities such as HCMC
Ring
(48.9km); Dong Nai (11.6km), Binh Duong (23.4
detailed planning. Section 1B

road
3:
Approved
10
No.
Project name
Capacity/remarks
Project status
km); Long An (5.4km).
will be constructed by the end

of 2015 or in early 2016.
Ring road 4 has a total length of 197.6km,

running through provinces/cities such as HCMC
Ring
road
4:
Approved
(20.3km); Ba Ria Vung Tau (17.3km); Dong Nai
detailed
(46.9km); Binh Duong (44km) and Long An
completion by 2025.
planning.
Expected
(68km).
Thu
Thiem
bridge
is
operational.
Four new bridges to connecting district 1, 4, 7
3
Thu Thiem bridges
and Binh Thanh with the Thu Thiem new urban

area (district 2).
The total capital of Thu Thiem

bridge 2 is approximately VND
3,100 billion (US$198.5 million).
Thu Thiem bridge 2 started

construction on 3rd February
2015 and is scheduled for
completion in Q2/2018.
Thu Thiem 3 and 4 bridges are
in the research process.
Metro line 1: Ben Thanh Suoi Tien is

comprised of an about 2.6km underground
4
Metro lines 1, 2, 3, 4, 5
section with 3 stations and a 17.1km elevated
and 6
section with 11 stations running through
The total capital of Metro line 1

is
approximately
US$2.49
billion.
Metro
line
1:
Construction
started in 2014 and achieved

40% volume. Ten out of eleven
elevated stations are being
districts 1, 2, 9, Binh Thanh, Thu Duc and Di An
The total capital of Metro line 2
built. The project is assumed
(Binh Duong province).
is approximately US$2.2 billion.
to be completed by 2018.

11
No.
Project name
Capacity/remarks
Project status
Metro line 2: An Suong Thu Thiem, 19km
Metro line 5: the total capital is
Metro
with 11 stations.
US$ 1.85 billion.
started in January 2015 and
line
2:
Construction
expected to complete in 2020.
Metro line 3: National Highway 13 Mien

Dong bus terminal Tan Kien, 23km. Line No.
Metro line 5: On proposing to
3A is comprised of 14 stations and Line No. 3B
adjust investment capital.
is comprised of 11 stations.
Metro line 4: Ben Cat bridge Nguyen Van
Linh highway, 24km, including 29 stations.
Metro line 5: Saigon bridge Can Giuoc bus
terminal, 17km with 22 stations including 15
underground
stations
and
seven
elevated
stations.
Metro line 6: Ba Queo Phu Lam, length 6km
with seven underground stations.
A total length of 987.32m and 23.5m wide with
5
Saigon 2 bridge
four lanes. It will connect district 2 with the

downtown area.
Binh Tien bridge
Total capital of VND 1,495.5

Construction started on 14
April 2012 and completed on
15 October 2013.
A total length of 3.2km, connecting districts 6, 8
Total capital of VND 2,400
In the process of calling for
and Binh Chanh.
billion (US$115.3 million).
investment.

12
No.
Project name
Capacity/remarks
Project status
Binh Tien bridge will be built from Pham Van

Chi in District 6, passing the Tau Hu canal to
Ward 14, District 8 and Binh Chanh.
Le Van Si bridge
Construction started in 2013
A total length of 60m, 18m wide. Located in
and was inaugurated in April
district 3.
2014.
Section from Nguyen Thai Son
to Binh Trieu crossroads was
inaugurated
Binh Loi Tan Son Nhat,
A total length of 13.65km and width of 30
Total
part of Ring road 2
60m with 6-12 lanes.
million.
capital
of
US$340
in
September
2013. Until now, the project

has completed 91.2% of roads
and 81.4% of technical drains.
Construction is expected to
complete in April 2016.
The part from Dong Van Cong
A total length of 9.4km and width of 67m,

9
intersection
to
Rach
Chiec
Eastern ring road, part
passing from Rach Chiec on the ring road east
Total capital of VND 400 billion
bridge was inaugurated on
of Ring road 2
to intersections Go Dua on Route 1.
(US$19 million).
August 2013. The part from

Rach Chiec bridge to Go Dua
intersection

will
start
13
No.
Project name
Capacity/remarks
Project status
constructing in Q4/2015.
Road connecting HCMC

10
Long Thanh Dau

Giay
A total length of 4km. Connecting the highways
Total capital of US$1 billion
to Vo Van Kiet and HCMC - Long Thanh Dau
(VND 20,630 billion).
Giay.
The
Thu Thiem 2 Tunnel
completed
construction and inaugurated

in February 2015.
The
11
project
project
started
Built across the SaiGon river, connecting Thu
Total investment of VND4,260
construction in February 2015
Thiem NUA with district 1.
and is expected to complete in

April 2018.
12
HCMC Thu Dau Mot

Chon Thanh
In planning.
A total length of 69km with six to eight lanes.
start in 2020.
The highway is 84.5km long and 17m wide with
13
HCMC Moc Bai
4-6 lanes, connecting Moc Bai Urban Area with
Investment: VND30,000 billion
Ring Road 3 and 4 of HCMC.
(US$1.38 billion), including the
Phase 1: 55.5km (4km Ring Road 3 and 51.5km

road parallel with Highway 22).
Phase 2: 29km (a 20km viaduct on Asian road
first phase
with VND14.462
billion (US$667.3 million) and

the second with VND15,509
The project is planned to start

in
Q1/2018
and
contruct
within 3 years.
and a 9km viaduct on Highway 22).

14
No.
14
15
Project name
The expansion of HCMC
Trung Luong
Binh Quoi bridge
Expanding to eight lanes.
Binh Khanh bridge
of 21.75m with four lanes.

Connecting Nhon Trach (Dong Nai) and Can Gio
17
Phuoc Khanh bridge
In planning.
with district 2.
Nha Be with the total length of 2.7km and width
district, the bridge is 3.1km long and 21.7m

wide with four driving lanes.
Package J1: VND3,017 billion

(US$139.2 million).
18
Bus Rapid Transit (BRT)
Lai intersection with 23.5km long with 32

stations.
begin in August 2015 and

complete within 47 months.
Package J3: VND2,884 billion
in
(US$133 million).
completion
August
2015
time
with
expected
after 42 months.
BRT 1 was approved in 2015.
The total capital is expected to
be approximately US$137.45
start in the end of 2016 or at
million.
the beginning of 2017.
BRT Route 2 is projected to pass Pham Van
Completion time in late 2018.
Dong street.
19
Contruction is scheduled to
In planning. Expected to start
Includes a total of six routes.

BRT Route 1: from intersections An Lac to Cat
Project status
In planning.
Connecting Binh Quoi - Thanh Da peninsula
A cable-stayed bridge connecting Can Gio and

16
Capacity/remarks
The expansion of the Ha
Expanding the two sections from Sai Gon bridge
Total capital of VND 2,286.8
Finished 47% volume due to
Noi highway
to the intersection with Binh Thai and from that
clearance problems.

15
No.
Project name
Capacity/remarks
point to the intersection with Tan Van.
Project status
The section passing Thu Duc
District
has
to
halt
constructing until the pillars of

Metro Line 1 are completed.
The process of clearance in
District 9 is on halt due to
difficulties in compensation.
Construction
20
Saigon bridge of Metro

line 1
December
A total length of 267.5m with a width of 11.1m.
started
2013
21st
and
is
expected to be completed in
November 2015.
21
Long Thanh connection
A total length of 3.1km, including four lines,
bridge,
located on the HCMC - Long Thanh - Dau Giay
connecting
HCMC and Dong Nai
22
highway.
Total capital of VND 1,500

Includes four lanes, the total length is 55km

HCMC Long Thanh
The total capital is more than
from at the interchanges of Ring Road 2
Dau Giay Highway
US$930 billion.
(District 9, HCMC) to the Dau Giay junction
Completed in 2013.
The entire route traffic started

operating in February 2015.
(Dong Nai).
23
Ben Luc Long Thanh
A total length of 58km built across Long An,
The total capital is US$1.6
Construction started on 19 July
highway
Dong Nai and HCMC, includes 4 driving lanes
billion.
2014 and is expected to be

16
No.
Project name
Capacity/remarks
and 2 emergency stop lanes.
Project status
complete in 2018.
Start of projects including the
package A1 , A2-1 , A2-2 and
A3 with a total length of 18.7
km funded by ADB , passing
through Ho Chi Minh City and
Long An provinces.
Located at An Suong intersection. An Suong

24
25
26
27
28
An Suong tunnel
Tunnel is the double tunnel along Truong Chinh
Vo Thi Sau flyover for
On Hai Ba Trung Nam Ky Khoi Nghia st, Vo Thi
motorbikes
Sau st.
Thanh Thai- Nguyen Tri

Phuong Flyover
In the research process.
Highway 22.
Located at the Thanh Thai Nguyen Tri Phuong

intersection with the length of 384m and width
of 9.5m.
Le Dai Hanh - Lanh Binh
Located at Le Dai Hanh Lanh Binh Thang
Thang flyover
intersection.
The expansion of Tran
A total length of 13.08km and width of 30m

In planning.
Construction cost: 235 billilion

VND (US$10.8 million).
Completed on 27 August 2014.
In planning.
Total capital of VND 333 billion
Start construction: April 2015.
17
No.
Project name
Capacity/remarks
Project status
Nao
with 6 lanes, connects Nguyen Van Huong road
(US$15.6 million).
Expect to complete in 2015.
Total capital of US$19.3 million.
Completed in January 2015.
with Tran Nao Luong Dinh Cua - Arc avenue

intersection.
Located at National Highway No. 2 intersection,
29
National
Highway
1A
flyover
Binh Tan district.

A total length of 504m, and width of 17.6m with
four lanes.
30
Rach Lang flyover
Located on Phan Chu Trinh street, Binh Thanh
Belong to renovation of Xuyen
district.
Tam
A total length of 2.9 km.
investment of US$238 million.
irrigation
with
total
Proposed on 1st June 2015.
Connecting Hai Ba Trung street, district 1 and

31
Kieu bridge
Phan Dinh Phung street, Phu Nhuan.

The bridge is 77m of length and 20m of width
Total capital of US$5.4 million.
Fully operating in 1st January

2015.
with 4 driving lanes.

Connection between East West avenue and
32
Expand of Luong Dinh

Cua street
Thu Thiem NUA.

The length: 2.3km from Tran Nao street to
Nguyen Thi Dinh Street. Luong Dinh Cua street
Total cost of over 700 billion
Start construction in 1st June
VND.
2015.
is expanded from 7-8m to 30m.

18
No.
Project name
Capacity/remarks
Project status
Started construction in 10th
The main branch is located on Nguyen Oanh 33
Flyover at Go Vap
Nguyen Kiem and shunts towards Pham Ngu
Expected total investment of
December 2014.
Lao - Nguyen Oanh.
US$16.5 million.
Expect
A total length of 238m.
to
complete
in
September 2015.
Four routes and 5 out of 10
34
Routes in Thu Thiem

Urban Area
Four
main
routes
including
Arc
Avenue,
Lakeside Avenue, Riverside Avenue, and a

subway connecting eight functional areas.
Total capital of VND12,000

bridges
are
all
under
construction. Dai Quang Minh

committed to complete four
main routes in May 2-2017.
Lam Vien Dong Dinh

35
Road ( crossing Can Gio

salting forest)
Renovation
36
upgrading
and
project
of
three roads leading to

Tan Son Nhat Airport
A third - category road with the length of 3.5

km and the width of 6m with 2 driving lanes.
Total
investment
VND190
is
billion
nearly
(US$8.8
Approved by the HCMC Hall.
million).
The three roads Truong Son, Tran Quoc Hoan

and Phan Thuc Duyen have granite paved, trees
The
planted
approximately VND115 billion
and
lighting
system
installed
(synchronized with the lighting system on
total
cost
was
Inaugurated on 27 April 2015.
(US$5.3 million).
Nguyen Van Troi - Nam Ky Khoi Nghia road).

19
Table A 3.2 Updated key infrastructure development projects in Q2/2015 - Ha Noi

No.
Project name
Capacity/remarks
Project status
Landmark for Ring road The Vinh Tuy Mo Market -Nga Tu Vong road,
1
2 Vinh Tuy - Nga Tu which is a part of ring road 2, will be widened on

Vong
Dong Du - Duong Xa The road is 4.3 km long, starting at the Red river
road, Gia Lam district
street
Dinh
(from
To
Chieu
Hien
Thanh to Dai Co Viet)
Planning
dyke intersection and ending at Highway 5.

The total
On-going
The road is approximately 600 m long and 17 m
investment: VND
Expected
wide.
257 billion (US$12.3
clearance in 2015 and complete the
billion)
project in 2016
A
4
On-going
the existing Dai La and Minh Khai streets.
Nguyen
3
4 lanes
total
length
of
4.7
to
complete
the
site-
km.
Long Bien bridge Bac There are two phases. The first phase includes the
The total
Co Vinh Tuy bridge part from Long Bien to Tran Hung Dao and Luong
investment: US$47
road renovation
million
Yen to Minh Khai. The second phase is the Tran
Planning
Hung Dao - Luong Yen flyover.

Ring
5
Road
3.5,
from
Thang Long Avenue to

Highway 32

The Peoples
Committee of Hoai
Duc district is
On-going
assigned to do a site
20
No.
Project name
Capacity/remarks
Project status
clearance and
supervise investors
during the
construction period.
Ring road 2
Ring road 4
The ring road No. 2 project (Nga Tu So - Nga Tu
The total
Vong) is located in Dong Da and Thanh Xuan
investment: VND
districts with an area of 116,866 m. The road is
2,560 billion
approximately 2,000 m long and 57 m wide.
(US$124 million)
Ring road No. 4 is a six-lane, type A highway with a
The total
total width of 120 m, a total length of 98 km and
investment: VND
goes through 14 districts in Ha Noi, Hung Yen and
66,500 billion
Bac Ninh with construction area of 1,230 ha.
(US$3.2 billion)
Expected
Ring road 4 (from Hoai Ring road 4 from Hoai Duc to Ha Dong is 17.7 km
investment: VND
Duc to Ha Dong)
50,000 billion
long.
(~USS$2.33 billion)
Ring road 5 Ha Noi Goes through the administrative boundaries of 36
The total investment
Capital Region
is VND 85,561
districts and cites belonging to eight provinces: Ha

On-going
Complete the site-clearance of the
part from Ton That Tung - Nga Tu
Vong before 30 August 2015 to put in
operation in October 2015
On-going
Three phases are expected to be
complete in 2017, 2018 and 2020.
The red boundary line of the ring road

has
been
approved.
1/500 planning has been approved.
On-going
21
No.
10
11
12
Project name
My Dinh Ba Sao Bai

Dinh Highway
Gia Lam (Line No. 1)
Noi, Hoa Binh, Ha Nam, Thai Binh, Hai Duong, Bac
billion (US$4.067
Giang, Thai Nguyen, Vinh Phuc.
billion)
four provinces including Ha Noi, Ha Nam, Hoa
Proposed in 2013. Planning
The total
15.36 km railway.
investment: US$930
Ha Dong (Line No. 2)
13 km railway goes through 12 stations with two
The total
intersections: Cat Linh and National University
investment: US$550
stations.
million
Nam
The total
Thang Long Tran Hung 11 km railway goes through ten stations.
investment: US$1
Dao (Line No. 2)
billion
A 12.5 km railway that goes through the Nhon
14
Project status
A 78 km long, 6-lane highway that passes through
million
Urban Railway Cat Linh
Railway
Capacity/remarks
Binh, Ninh Binh.
Urban Railway Giap Bat
Urban
13
The total
Urban railway Nhon - Ha intersection National Highway 32 Cau Dien
investment: EUR 1.3
Noi Station (Line No. 3)
Mai Dich Cau Giay Kim Ma Cat Linh Quoc Tu
billion (US$1.7
Giam Ha Noi Station, with 8.5 km ground and 4
billion)

In
the
planning
stages.
The design plan is not available.
Started
in
Expected
to
April
2010.
complete
the
infrastructure by 31st December 2015

and pilot run until March 2016.
Preparing to deploy two bid packages
depot and high sections of the project
Suspensed
the
project
to
review
security from 13th May 2015 due to

two consecutive accidents.
22
No.
Project name
Capacity/remarks
Project status
km underground.
Flyover
at
intersection
15
the
of
The total
north
Thang Long Van Tri The flyover is 692 m long and 26 m wide.
and railway Bac Hong
investment: VND
354 billion (US$16.5
million)
Van Dien
Kicked-off
on
23
January
2015
Expected to put into operation in

early 2016
The total
16
Flyover Chua Boc Pham

Ngoc Thach
A two-lane, 277 m long and 9 m wide road.
investment: VND
156 billion (US$7.4
Planning.
million)
17
Flyover Mai Dich Nam
Thang Long (belongs to A 4-lane, approximately 5 km long road.
: VND 4.5 trillion
ring road No. 3)
(US$212.8 million)
Pass
18
Duong
tunnel
Do
Tran
Nguyen Han)
19
the execution time is 18 months.
The total
(Chuong
Expected to kick off in early 2016 and
investment: VND 90
In planning stage. It is expected to
billion (US$4.28
complete in 2015.
million)
Nguyen Trai - Khuat Duy The four-lane tunnel follows Nguyen Trai street
The total
Kicked off 28 June, 2014 and expected
Tien Tunnel
investment:
to
and at Nguyen Trai Khuat Duy Tien intersection.

complete
in
late
2015
23
No.
Project name
Capacity/remarks
approximately VND
Project status
Under construction
700 billion (US$34

million)
20
Vinh Tuy bridge phase 2
Vinh Tuy bridge connects Tran Quang Khai,
The total
Nguyen Khoai, Minh Khai roads in Hai Ba Trung
investment: VND
Pending
district and Long Bien road, Thach Ban ward in
2,561 billion
Asking for investment from Japan
Long Bien district. The bridge is 3,504 m long.
(US$124 million).
been
river and radial highways highways according to Hanoi Traffic Master Plan to
(8 more bridges)
to
financial
issues.
Dong Tru and Nhat Tan Bridges has
Bridges across the Red Ten new bridges across the Red River, nine radial
21
due
put
in
operation.
The 8 remaining bridges are in the
2030 and Vision to 2050
planning stage.
The Equable Lake Park has area of 13.23 ha and

22
Nhan
Chinh
Lake Park
Equable
spreads over two wards: Nhan Chinh (Thanh Xuan
Adjustment for Master Plan 1/500 was
district) and Trung Hoa (Cau Giay district). The park
is VND 2,596 billion
approved
also
(US$126 million)
Planning
includes
entertainment
and
the
in
June
2014.
commercial services.
23
24
15 multi-level, modular 15 multi-level modular car parks are proposed to
On-going. Execution time is from
car parks
2012 to 2020.
be built in inner Ha Noi.
Reservoir Lake Park near The Reservoir Lake Park is located on the north and

VND 975 billion1.1.
Master plan 1/500 was approved

24
No.
Project name
Mai Dich cemetery
south side of Mai Dich cemetery. According to the
Capacity/remarks
(US$46 million)
Project status
(Decision No. 895/QD-UBND, dated
decision, the park is expected to be built in Mai
20
February
2012).
Dich precinct (Cau Giay district), My Dinh commune
construction
(Tu Liem district), Ha Noi with a total scale of
contract negotiations on 9 July 2014,
177,488 m.
and it could be built any time to the
department
Ha
Noi
held
end of 2015, expected to kick-off in

Q3 2015
Stations in Thuong Tin,
25
Hoai Duc, Dan Phuong,

Dong Anh
26
27
28
Parking lot in Kim Chung

new urban area
Ecological park in Tu
Liem district
Four large stations in Thuong Tin, Hoai Duc, Dan
Planning
Phuong and Dong Anh districts.

Parking lot with a total area of 3,200 m in the P6
land lot located in Kim Chung new urban area, Kim
Approved in 2012.
Chung commune, Dong Anh district, Ha Noi.

Ecological park with a total area of 26,000 m,
located at Km No.7, Thang Long boulevard, Tay
Mo, Tu Liem district, Ha Noi.
Investment is
estimated VND
Approved
37.365 billion (US
Planning.
in
2012.
$1.78 million)
Park, Lake CV1 and plot The total area of 42.9 ha. The area including the
Master plan 1/500 was approved in
D24 (new urban area park, lake and trade promotion centre is 330,000
September 2013. Planning.

25
No.
Project name
Cau
Giay)-
Yen
30
and parking.
Road surrounding Chu The project surrounds Chu Van An Memorial Park
Van An Memorial Park
in Hoang Mai, Thanh Tri and Ha Dong districts.
is VND 1.475 billion
Planning
and pu into operation in early 2016.
No.211
256
QL
1.
Renovation of the Route The first phase: Renovation following the standard
Phap Van Cau Gie
Expected to kick off before July 2015
Thuong the south of Nhat Tan bridge.
Km
of
the
four
lane
Under construction.
(US$70.12 million)
The project is 29 km long from Km No.182+300 to
31
Flyover at Phu Thuong The flyover made of steel is 7.5 m wide at Phu
intersection
Project status
Hoa m, the remaining area is for office, mixed land use
ward, Tu Liem
29
Capacity/remarks
highway.
The second phase: Enlargement to be the six-lane

highway with the width of 33.5 m.

is VND 6,731 billion
(~US$320.5 million).
The first phase is
The first phase is under construction.
invested VND 1,974

billion (~US$94
million).
D n vi chiu di
32
Road from Nhat Tan to The project is subjected to be 5 km long, 60 to 80
5.53km, tng mc
Thanh Nien Road
u t 4700 t
meters wide with 4 to 6 lanes.
Planning
ng, tng ng

26
No.
Project name
Capacity/remarks
Project status
khong 850 triu

ng/m2
33
34
Flyover in the area Nghi

Tam Lane 108
The project is 19.5 km long.
VND 6.8 billion
Expected to put into operation in
(~US$317,000)
September, 2015
Ring road 2 (Nhat Tan
On-going
Cau Giay)
The underground
35
Underground Parking lot The project is located at 295 Le Duan, in the area of
at 295 Le Duan
Thong Nhat Park.
parking lot
comprises of three
Approved in May, 2015
basements for 390

parking lots.
Road
36
connecting
Nguyen Van Cu Street

with Ta Ngan dyke
Renovation
37
expansion
The project is located in Bo De ward, Long Bien
and The project is the National highway 21 (Son Tay of
Under construction.
district.
National Hoa Lc - Xuan Mai) in Son Tay commune, Thch
Estimated
investment is
highway 21 from Son That, Quoc Oai and Chuong My districts. The
US$354.74 million
Tay to Xuan Mai
(VND 7,612 billion)
projected road is 29.36 km long with 6 lanes

Planning
27
No.
38
Project name
Capacity/remarks
Project status
Tunnels in the Tran Duy
Total investment is
Under
Hung
VND 1,087 billion
Expected to complete and put in
(~US$50.15 million)
operation in April, 2016
Thang
Long
Avenue intersections
construction
On-going
The execution time for the part from
39
Hoang
Ring road 1 (Hoang Cau
Cau
to
the
intersection
between Lang Ha and Giang Vo is
- Voi Phuc)
2015
2018.
The execution time for the part from

Lang Ha to Voi Phuc is 2016 - 2020.
40
41
On-going
Ring road 1 (Dong Mac -
Complete
Nguyen Khoai)
The
third
airline
International Airport
the
site-clearance
in
Q3/2015
in
Noi Bai Airport

Planning.
28
Disclaimer
The property market research contained is verified to the best of Savills Vietnams abilities. Savills
Savills Viet Nam does not guarantee the accuracy of research and forecasts contained herein. Savills
Viet Nam does not accept any responsibility for losses arising from reliance on the research and
forecasting. Savills recommends that the reader obtain a detailed market study of the specific
sector of interest should a deeper understanding of the market be required.
consent from Savills Viet Nam is prohibited. Approval should be obtained from Savills Viet Nam
before any reference to this report can be made in any statement, published document, or circular.

29

30
Quarterly Report
Retail
Q2/2015
Main Report
Ho Chi Minh City

Viet Nam
Prepared by
June 2015

81-85 Ham FNghi Street, District 1,
T: +84 8 3 8239 205 F: +84 8 3823 4571

41 A Ly Thai To Street, Hoan Kiem District,
Ha Noi, Viet Nam
T: +84 4 9461 300 F: +84 4946 1302
Content
Advisory Services Overview
Executive Summary ..................................................................................................... 1
1.
SUPPLY .................................................................................................................. 1
1.1.
OVERALL SUPPLY ........................................................................................................................................2
1.2.
STOCK BY DISTRICT ...................................................................................................................................3
1.3.
STOCK BY RETAIL TYPE.............................................................................................................................4
2.
PERFORMANCE ..................................................................................................... 8
2.1.
OVERALL.........................................................................................................................................................8
2.2.
PERFORMANCE BY LOCATION .............................................................................................................9
2.3.
PERFORMANCE BY RETAIL TYPE ....................................................................................................... 10
3.
DEMAND ANALYSIS ........................................................................................... 15
4.
FUTURE OUTLOOK.............................................................................................. 17
4.1.
OUTLOOK FOR SUPPLY ......................................................................................................................... 17
4.2.
OUTLOOK FOR DEMAND ..................................................................................................................... 19
5.
SWOT ANALYSIS................................................................................................. 21
Research Parameters ................................................................................................. 22

Appendix 1: Term Definitions .................................................................................. 23
Appendix 2:Existing Stock ........................................................................................ 26
Appendix 3: Future Supply ....................................................................................... 31
Disclaimer ................................................................................................................... 34
HCMC Quarterly Market Report Q2/2015 Retail Sector

List of Figures
Figure 1. 1: Total stock, Q2/2014 Q2/2015 ........................................................................................................................... 2
Figure 1. 2: Market share by location, Q2/2015 ..................................................................................................................... 3
Figure 1. 3: Current stock by district, Q2/2015 ....................................................................................................................... 4
Figure 1. 4: Market share by type, Q2/2015 ............................................................................................................................. 4
Figure 1. 5: Stock by retail type, Q2/2014 Q2/2015 .......................................................................................................... 5
Figure 1. 6: Supermarket stock by district, Q2/2015 ............................................................................................................ 6
Figure 1. 7: Supermarket stock share, Q2/2015 ..................................................................................................................... 7
Figure 2. 1: Overall performance .................................................................................................................................................. 8
Figure 2. 2: Occupancy by location.............................................................................................................................................. 9
Figure 2. 3: Average rent by location ........................................................................................................................................10
Figure 2. 4: Performance by retail type, Q2/2015 ................................................................................................................10
Figure 3. 1: Viet Nam Consumer Confidence Index ............................................................................................................16
Figure 4. 1: Future supply ..............................................................................................................................................................17
Figure 4. 2: Future supply by district, 2H/2015 onward ....................................................................................................18


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Clearly, no other agency can deliver the standard of excellence available from Savills Vietnam.

Executive Summary
Stock increase
In Q2/2015, HCMC welcomed three projects: two shopping centres, Vivo City and Taka Plaza 2; and
a supermarket, Co-op Xtra providing 42,000m2. Total retail stock was approximately 940,000m2;
increasing 5% quarter-on-quarter (QoQ) and 8% year-on-year (YoY). This total is much lower than
Bangkok (8 million m2), Singapore (4 million m2) and Kuala Lumpur (3 millions m2); indicating HCMC
has strong development potential.
Average rent decrease

In Q2/2015, the average rent decreased by -1% QoQ to US$60/m2/mth due to decrease in the rent
of shopping centres by -2% QoQ. The increase in shopping center with affordable rents in the nonCBD has decreased this segments rent. The new large scale shopping center, Vivo City, in district 7
offered 18% lower rent than the segment.
Increasing retail turnover

In the first six months of 2015, total sales of goods and services in HCMC was approximately
US$14.9 billion, increasing 10.9% YoY; without inflation it increased by 10.2% YoY. According to the
HCMC Statistics Office, real growth of retail in 1H/2015 was 10.2%; higher than that in 1H/2014 at
7.7% and the national figure of 10 percent.
Outlook
The rent and occupancy of the secondary area will be significantly affected due to the large amount
of future supply in 2H/2015. The total future retail supply will be 233,000 m2 from large-scale
projects such as Sunrise City Phase 2 in district 7, Thao Dien Pearl and Vincom Center in district 2.
In the next three years, supply in the secondary area will account for 50% of the total, followed by
the suburban area with 35% and the CBD with 14 percent.

1.
SUPPLY
1.1.
OVERALL SUPPLY
Savills studied five main retail groups:

o
Shopping centres;
Department stores;
Retail podiums;
Supermarkets (with an area of 300m2 or more);
Wholesale centres.
In Q2/2015, three new retail projects entered the market: Vivo City, Taka Plaza 2 and Co-op
Xtra. Saigon Square 2 temporarily closed and has no official reopening date.
In district 7, Vivo City mall was developed by Saigon Co-op and Mapletree, a Singaporean
developer. The project has five levels and a basement with a total floor area at 62,000 m2. In
mixed-use retail projects, each retail component is listed as an individual unit; for example,
Cantavil Premier and CT Plaza projects have two components - a supermarket and a
department store. Vivo City has two components: a shopping centre and a supermarket (Co-Op
Xtra). The shopping centres leasable area is 33,000 m2 and Co-op Xtras is 8,000 m2.
Taka Plaza 2, in Pham Ngoc Thach Street, district 3, was developed by Anh Em Anh Le Co. Ltd. It
supplied approximately 1,000m2 to the market and follows the business model of leasing kiosks
to retailers. The tenants sell clothes, accessories and souvenirs.
As of Q2/2015, there were 121 modern retail projects in HCMC supplying approximately
940,000m2, up 5% QoQ and 8% YoY.
Figure 1. 1: Total stock, Q2/2014 Q2/2015

1,000,000
m2
800,000
600,000
400,000
200,000
Total Stock
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
868,299
850,935
870,885
896,385
936,985
Source: Savills Research & Consultancy

1.2.
STOCK BY DISTRICT
The market is divided into three key areas: the CBD, secondary and suburban.
Table 1. 1 Key areas

Area
Districts
Central business district (CBD)
1 and 3
Secondary
2, 4, 5, 7, 10, Phu Nhuan and Binh Thanh

6, 8, 9, 11, 12, Go Vap, Tan Binh, Tan Phu, Thu Duc, Binh
Suburban
Chanh, Binh Tan, Hoc Mon, Cu Chi, Can Gio and Nha Be
In Q2/2015, the secondary area market share increased 3ppts QoQ to 38 percent due to the
entry of Vivo City.
Figure 1. 2: Market share by location, Q2/2015

CBD
19%
Suburban
area
43%
Secondary
area
38%
CBD: As of Q2/2015, stock was approximately 178,000m2; unchanged QoQ and accounting for
19% of the total retail stock in HCMC.
The CBD includes districts 1 and 3. District 1 is the most developed retail business area in the
CBD with 22 retail projects, accounting for 97% of this areas total stock. The majority of
shopping centres, department stores and retail podiums are located in district 1; especially
around the Le Thanh Ton, Dong Khoi, Le Loi and Nguyen Hue corridors. They distribute mainly
international brands and luxury goods. The CBDs retail density was approximately 0.9 m2/
person, the highest in the city.
Secondary: This area has the second largest share of HCMCs retail market at 38%; providing
360,000 m2 from 42 retail projects. It increased stock by 13% QoQ due to the entrance of Vivo
City and had an average retail density of 0.2 m2/ person, much lower than the CBD.

Suburban: In Q2/2015, 54 retail projects provided approximately 400,000m2, remaining stable

QoQ.
The supermarket and shopping centre segments have the largest share of retail stock; each
segment accounting for 42% market share. Changing and improving infrastructure, increasing
demand for daily goods and urbanisation are the main reasons for popularity.
Figure 1. 3: Current stock by district, Q2/2015
200,000
Total leaseable area
m2
Retail density
m2/person
1.0
160,000
0.8
120,000
0.6
80,000
0.4
40,000
0.2
CBD
Secondary
Others*
Dist. 6
Binh Tan
Dist. 9
Go Vap
Thu Duc
Dist. 11
Tan Binh
Tan Phu
Dist. 4
Phu Nhuan
Binh Thanh
Dist. 5
Dist. 10
Dist. 2
Dist. 7
Dist. 3
0.0
Dist. 1
Suburban
Source: Savills Research &
Note (*): Others include districts 8, 12, Binh Chanh, Hoc Mon, Cu Chi, Nha Be and Can Gio.
1.3.
STOCK BY RETAIL TYPE

Figure 1. 4: Market share by type, Q2/2015
Wholesale
market
6%
Retail Podium
3%
Department
Store
14%
Supermarket
30%
Shopping
Centre
47%

Figure 1. 5: Stock by retail type, Q2/2014 Q2/2015

500,000
m2
400,000
300,000
200,000
100,000
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Retail podiums
31,605
31,605
31,605
31,605
31,605
Department stores
128,372
128,372
128,372
128,372
128,372
Shopping centres
401,428
384,064
384,464
409,964
442,564
Supermarkets
255,894
255,894
275,444
275,444
283,444
Wholesale markets
51,000
51,000
51,000
51,000
51,000
In Q2/2015, shopping centres continued leading the retail market with a 47% share. Due to the
addition of 34,000 m2 from Vivo City and Taka Plaza 2 shopping centres, all other retail types
reduced their share.
Retail podiums: In Q2/2015, stock was unchanged at approximately 32,000m2; accounting for
3% of the total retail stock.
The retail podium segment has developed into two types based on target market.
o
The first type of retail podium is within high end hotels in the CBD such as the Rex,
Caravelle and New World, with scales of less than 2,000 m2. Their catchment is mainly
foreign tourists and wealthy Vietnamese drawn by international brands such as Bvlgari,
Bally, Channel, Burberry and Rolex.
The second type of retail podium has been developed in non-CBD areas to sell fast moving
consumption goods (FMCG) or provide personal services. They are mostly located in
mixed-use projects which have residential and/or office components such as The Vista, The
Manor 1 and 2; and Saigon Pearl and target internal and neighbourhood residents. Retail
podiums range from 3,000m2 to 8,000m2.
Department stores: This segment had no new projects in Q2/2015; it provided 128,000m2
from nine projects with a 14% market share. Parkson from Malaysia, manages six department
stores in the city, the remaining projects included Diamond Plaza, Nowzone and Zen Plaza.
Department stores are mostly located in the first three to six levels of high-rise projects
containing mid to high-end apartments or offices. They were mainly developed in the CBD and

new urban areas (NUA), typically in District 2 and 7. Department stores usually have high
development standards and attract range of tenant and products, thus attracting diversified
customer segments.
Shopping centres: In Q2/2015, two new projects, Vivo City and Taka Plaza 2, entered the
market. Saigon Square 2 was temporarily closed and has no reopening date. The shopping
centre segment had a total area of 443,000m2; increasing 8% QoQ.
There are two types of shopping centres in HCMC:

The first type of shopping centre has well-known cosmetics, fashion, jewellery and active-
wear brands. The rent is based on space (m2) and has various types of tenants and products
such as Vivo City.
The second type consists of kiosks ranging from 2m2 to 6m2 with rent paid monthly.
Targeted tenants are local retailers, selling domestic products such as casual clothes and
accessories. Taka Plaza in District 3 opened in Q2/2015.
The suburban area still had the largest portion of shopping centre stock at 38%; followed by
the secondary area with 34% and the CBD at 28 percent.
Supermarkets: In Q2/2015, the total supermarket stock was approximately 283,000m2,

increasing by 3% QoQ due to the entry of Co-op Xtra in district 7. This segment accounted for
30% of the citys total retail stock with more than 60% located in the suburbs.
Key players include Co-op Mart, Big C, Vinatex, Maximark and Citimart.
Figure 1. 6: Supermarket stock by district, Q2/2015

45,000
m2
Area
Supermarkets
No. of supermarkets
40,000
16
14
35,000
12
30,000
10
25,000
20,000
15,000
10,000
5,000
-
Tan
Binh
Dist. 10 Thu Duc Dist. 7 Tan Phu Go Vap
Phu Dist. 9
Nhuan
Binh
Tan
Binh Dist. 2 Dist. 11 Dist. 1 Dist. 3 Dist. 4 Others*

Thanh
Note (*): Others include districts 5, 6, 8, 12, Hoc Mon, Can Gio, Nha Be, Cu Chi and Binh Chanh.

Figure 1. 7: Supermarket stock share, Q2/2015

Others
14%
Big C
12%
Vinatex
9%
Citimart
6%
Maximark
8%
Co-op Mart
51%
Wholesale centres: The stock of wholesale centres has remained unchanged in the past five
years, providing 51,000 m2, stable QoQ. The three wholesale centres are located in non-CBD
areas. The lack of wholesale centers can be attributed to:
o
Large manufactures operating their own distribution channels efficiently without the
involvement of wholesalers.
A weak connection among manufacturers and wholesalers making it difficult to create

efficient logistic procedures.

2.
PERFORMANCE
2.1.
OVERALL
The average rent on the ground floor of a project is used as a benchmark to compare retail
projects rent. The average rent is weighted by the leasable area. The average rent was
calculated from shops 10m2 or more, is gross (including service charge) and based on US$/m2.
Several shopping centres rent is based per kiosk rather than per m2. Each kiosk has an area of
approximately 2 m2 to 6 m2. Savills excludes them when calculating the average rent.
Savills research focuses on shopping centres, department stores and retail podiums.
Supermarkets and wholesale markets are often self-owned and have a limited amount of
available space to rent.
In Q2/2015, the overall occupancy was stable QoQ at 92%, average rent decreased by -1%QoQ
to US$60/m2/mth.
Figure 2. 1: Overall performance
70
US$/m2/mth
60
100
80
50
60
40
30
40
20
20
10
-
0
Q2/2014
Q3/2014
Q4/2014
Occupancy rate
Q1/2015
Q2/2015
Average rent

2.2.
PERFORMANCE BY LOCATION
CBD: The average occupancy increased by 3ppts QoQ to 91 percent. The average rent was
US$104/m2/mth, stable QoQ. The upgrade of Nguyen Hue did not have strong impact on the
CBDs performance, as there are only a few retail projects near this location. The construction of
a metro station on Le Loi Street continued to be an inconvenience.
Kiosks for lease are excluded; thus the CBD areas average rent was unaffected by the entry of
Taka Plaza 2. The average monthly rent of Taka Plaza 2 ranged from US$350 US$650 per kiosk
(approximately US$110/m2/month); lower than other kiosk projects. In Q2/2015 the occupancy
of Taka Plaza 2 was 95 percent.
Secondary: The average rent was US$44/m2/mth, increasing by 3% QoQ; while occupancy was
93%, decreasing slightly by -2ppts QoQ. Changes in the rent and occupancy were a result of
the Vivo City, a new large-scale project. Compared to the secondary area, Vivo City had higher
rent but lower occupancy.
Suburban: The average rent was US$37/m2/mth, increasing by 8% YoY, due to a new project,
Vincom Thu Duc, which had higher rent than the areas average. The suburban areas occupancy
was stable QoQ at 94 percent.
Figure 2. 2: Occupancy by location

CBD
Secondary area
Suburban area
100
80
60
40
20
Q2/2011
Q2/2012
Q2/2013
Q2/2014
Q2/2015

Figure 2. 3: Average rent by location

CBD
Secondary area
Suburban area
US$/m2/mth
120
100
80
60
40
20
-
Q2/2011
Q2/2012
Q2/2013
Q2/2014
Q2/2015
Note: the average US$/m gross rent in shops that are 10m or larger on the ground level includes service charges but
excludes VAT.
2.3.
PERFORMANCE BY RETAIL TYPE
Only the shopping centre segment had a decrease in rent; the rent of both the retail podium
and department store increased.
Figure 2. 4: Performance by retail type, Q2/2015

Average rent (LHS)
70
Occupancy (RHS)
%
US$ / m2/ mth
60
100
80
50
40
60
30
40
20
20
10
-
0
Shopping centre
Department store
Retail podium

Note: the average US$/m gross rent in shops that are 10m or larger on the ground level includes service charges but
excludes VAT.

10
Retail podiums: The average occupancy decreased slightly to -2ppt QoQ to 83%, while the
average rent was stable QoQ, US$39/m2/mth. The decrease in occupancy was due to The Vistas
low occupancy.
In the CBD, retail podiums occupancy and rent were stable QoQ. The Rex Arcade and Opera
View performances were hindered by the construction of the Metro station.

In the secondary and suburban areas, retail podiums had soft performance because they mainly
catered to internal residents of multi-use complexes. For example, in district 2, access to the
Vistas was inconvenient due to the Ha Noi highway and the construction of metro line 1. In
addition, the nearby population density was low; this projects occupancy was at approximately
50%, decreasing -10% QoQ.
Figure 2. 1: Average rent and occupancy of retail podiums, Q2/2015

Average rent
US$/m2/mth
Occupancy rate
%
140
120
100
80
100
80
60
60
40
40
20
20
0
Sheraton
Rex
Saigon Arcade
Opera Caravelle New

View
Hotel
World
Hotel
Sunrise The Vista Saigon

city
Pearl
phase 1
Saigon
Airport
Plaza
The
The
Manor Manor
Phase 1 Phase 2
Department stores: This average rent increased by 1% QoQ to US$61/m2/mth; the average
occupancy remained stable QoQ, at approximately 97 percent.
Except for Parkson Paragon in district 7, all other department stores in the city had occupancy
of over 95 percent. Retailers leased space in these projects due to convenient access for
customers and the professional management.

11
Figure 2. 2: Average rent and occupancy of department stores Q2/2015

Average rent
Occupancy rate
US$/m2/mth
180
150
100
80
120
60
90
40
60
20
30
0
0
Diamond Plaza
Parkson
Royal
SaigonTourist Centre/Nowzone
Plaza
Zen Plaza
Parkson Hung Parkson CT Plaza

Vuong Plaza
Parkson
Flemington
Parkson Paragon Parkson Cantavil

Premier
Note: the average US$/m gross rent in shops that are 10m or larger on the ground level includes service charges but excludes
VAT.
Shopping centres: The segments average occupancy was 92%, stable QoQ. The average rent
of the shopping centre segment was US$61/m2/mth; decreasing by -2% QoQ due to Vivo Citys
lower rent.
Vivo City, had an average rent of US$50/m2/month, lower compared to this segments average.
It achieved occupancy of 85% after opening in April due to:
o
Multiple access points from Nguyen Van Linh Boulevard and Le Van Luong Street.
A location near many universities including RMIT, Ton Duc Thang and Canh Sat Nhan
Dan Universities which creates demand from young shoppers.
Supporting facilities such as indoor childrens world and an outdoor playground,

catering to demand from families with small children.
Vivo City has many brand names such as Topshop/Topman, Mango, Karen Millen,
Coast, Bebe, Warehouse, Oasis, Charles & Keith, Pedro, Accessorize, Monsoon Children,
Havaianas and NYS Sunglasses. Hamleys, the worlds oldest toy store, will open in the
next few months.
Vincom Bs occupancy was 87%, increasing by 8ppts QoQ due to the entry of Vinmart
supermarket and VinProelectric appliances mart. These new tenants were sub-branches of the
Vingroup conglomerate.

12
Figure 2. 3: Average rent and occupancy of shopping centres, Q2/2015

140
Average rent
US$/m2/mth
Occupancy rate
%
120
100
80
100
60
80
60
40
40
20
20
0
Union
Square
Vincom B
Saigon
Centre
Bitexco
Financial
Tower
Crescent
Mall
Lotte Mart Maximark Lotte Mart

Saigon
Nguyen
3/2
Phu Tho Superbowl
Huu Tho Extention
Citi Plaza Satra Pham

Hung
Leased kiosks: Leased kiosks were excluded, thus the shopping centre segments average rent
was unaffected.
o
Taka Plaza 2 had monthly rent range from US$650 to US$1,000 per kiosk (approximately
US$110/m2/mth). Despite being a new project, Taka Plaza 2 achieved a high occupancy of
95 percent. The three success factors of this project were the low initial investment capital,
flexible leasing terms and a densely populated location.
In Q2/2015, Saigon Square 2 in district 1 temporarily closed. In Q1/2015 the developer

encouraged existing and new tenants to move to Saigon Square 3, a new project, by
offering discounted rent for the first three months and a flexible fit-out time.
Leased kiosk projects illustrate a trend with many developers. For example; Phan Thanh Co.
Ltd developed Saigon Square 1 and 3; Anh Em Anh Le Co. Ltd has Taka Plaza 1 and 2;
Quang Thuan Co. Ltd owns Lucky Plaza; An Dong Investment JSC operates An Dong Plaza
and Nguyen Kim Co. Ltd constructed Saigon Mall. Novaland a large real estate developer
in Viet Nam started has begun 50 year leasehold kiosks (5-9 m2) at Sunrise city phase 2 in
district 7.

13
Figure 1. 8: Average occupancy and rent/kiosk, Q2/2015
1,600
Occupancy
US$/kiosk/mth
Lower rent
Upper rent
%
100
1,400
80
1,200
1,000
60
800
40
600
400
20
200
0
Taka Plaza 1
Saigon Square 1
Taka Plaza 2
Lucky Plaza
Saigon Mall
Saigon Square 3 An Dong Plaza

14
3.
DEMAND ANALYSIS
Retail sales of goods and services
According to the Provincial Statistical Offices (PSO) of HCMC, in the first six months of 2015,
HCMC total retail sales and services were approximately US$11.8 billion, increasing 11.8% YoY.
Without inflation, they increased by 14.3% YoY.
According to Nielsen Viet Nam, wet and traditional markets still dominate daily consumption;
however, this traditional retail channel has been threatened in recent years. Compared with
2012, the goods value of traditional markets have decreased by approximately by 5% in 2014,
this trend is expected to continue in the future.
Nielsen Viet Nam stated that the confidence index of Vietnamese consumers has continued to
rise despite the markets slow development. With approximately 57% of population under the
age of 35, Viet Nam is a very young and optimistic country. Vietnamese consumers now have
more disposable income; in 2014, GDP per capita was US$2,028; higher than in 2013 at
US$1,900 or 2012 at US$1,750.
Demand by location
The secondary area has been undergoing rapid infrastructure development, in particular metro
line 1 and highway linkages. Several mid to high-end residential projects are being built along
the metro line and will attract nearby residents. The increasing mid to high-income population
is a crucial for modern retail development. From second half of 2015 onwards, there are many
retail projects opening in district 2 such as Thao Dien Pearl and Vincom Center.
With an increasing population, the suburban area will be a potential market for many retailers.
During 2014 the suburban area had a 3% population growth rate; higher than the CBD with
1.1% pa and the secondary area with 0.6% pa.
Demand by retail type
Demand is was still high from small and medium domestic retailers selling products such as
clothes, accessories or household appliances. In addition, there is a large demand for
speculative investment as these projects require small initial capital and have a flexible
subleasing policy.
In order to improve occupancy, some high-end projects lease internally. For example: two sub
branches of Vincom Retail; Vinmart, a supermarket and VinPro, a electric appliances store
joined Vincom B, increasing the projects occupancy approximately seven percent QoQ.

15
The growing number of supermarkets in HCMC is evidence that the citys population is
adapting to modern shopping channels. It is expected that leaders in this segment including
Saigon Co-op and Big C will expand their distribution networks in 2H/2015.
The demand for retail podiums in the non-CBD is not high due to the low occupancy and
inconvenient access.
Consumer confidence index
The ANZ-Roy Morgan Vietnam Consumer Confidence is 140.2, unchanged QoQ. Vietnamese
Consumer Confidence remains well above the long-term average of 135.2.
o
Of those surveyed, 36% (up 1ppt YoY) stated that their families financial status was better
than last year; fewer people (18%, down 1 ppt QoQ) said they were worse off.
Approximately 56% surveyed expected that their families financial status will be better next
year and 53% of respondents believe that Viet Nams economy is growing.
The amount of people who believe that now is good time to buy major household item is
currently four times higher than who believe it is a bad time to buy.
These positive signals indicate the potential increase of consumption in the retail market during
the second half of 2015.
Figure 3. 1: Viet Nam Consumer Confidence Index
180
150
120
90
60
30
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June
2014
2015
Source: ANZ & Roy Morgan

16
4.
FUTURE OUTLOOK
4.1.
OUTLOOK FOR SUPPLY
From 2H/2015 approximately 1.4 million m2 from 69 future projects is expected to enter the
market. 32% of the future projects are currently under construction, whilst the remaining
projects are vacant land, in planning or on hold.
The retail market keeps growing in non-CBD areas. In the next three years, the secondary area
will account for 50% of future supply, followed by the suburban area with 35% and the CBD
with 14 percent.
Vincom Megamall Thao Dien in district 2 was recently reduced its retail space from 120,000 m2
to approximately 51,000 m2 and changed its name to Vincom Center Thao Dien.
By the end of 2017, many large-scale projects such as Thao Dien Pearl, Sunrise City phase 2,
Vincom Center Thao Dien, Riviera Point and Aeon Binh Tan will enter the market in the nonCBD area. The retail market in the non-CBD will welcome more than 382,000 m2 from 16
projects, that consequently affects the rent and occupancy of current projects.
Figure 4. 1: Future supply
1,000,000
No.of projects
m2
60
50
800,000
40
600,000
30
400,000
20
200,000
Retail space
Projects
10
2H/ 2015
2016 E
2017 E
Potential
232,689
156,558
57,475
934,016
10
50

17
Figure 4. 2: Future supply by district, 2H/2015 onward

300,000
m2
No.of projects
250,000
25
20
200,000
15
150,000
10
100,000
50,000
Dist. 7
Dist. 1
Dist. 2
Dist. 5
Tan
Binh
Leaseable area 265,220 222,701 182,000 105,373 96,270

No. of projects
13
Go Vap Dist. 10
Binh
Tan
79,147
72,040
66,000
Thu
Duc
Other
63,235 228,752
3
22
Foreign retailers
Viet Nam and Korea signed the Free Trade Agreement (FTA) in May 2015; as a result of this
agreement Korean developers will develop more new projects in HCMC.
o
A new Lotte Mart is being developed in Go Vap and will provide 27,000m2 GFA. This is the
eleventh retail project by Lotte in Viet Nam.
An E-mart providing 20,000m2 GFA is being developed in Go Vap district. This project is the
first of 17 E-mart supermarkets in Viet Nam.
The above developers are well-known retailers in Korea; both will target Go Vap, one of the
most populous districts in HCMC. These two retail projects will be located in City lands
new residential projects.

18
Local enterprises
The two most active domestic conglomerates in HCMC are Vingroup and Saigon Co-op.
o
Vingroup continues to extending its brand to encompass all retail types which include
Vincom high-end shopping centre, Vinmart supermarket, Vinmart plus convenient
store, VinPro electrical appliances mart and Vincom Megamall complex mall. In Viet
Nam, Vingroup will open more than 20 shopping centres by the end of 2015 and plans to
develop 100 supermarkets over the next three years.
Saigon Co-op maintains its leading position with a 50% share in the supermarket segments
stock. Alongside Co-op mart and Co-op Xtra Plus, Saigon Co-op is developing a new brand
of shopping centre in Can Tho, Sense City. This is a necessary strategy to test and measure
a new concept before entering into a highly competitive market like HCMC.
4.2.
OUTLOOK FOR DEMAND

Population
With an annual growth rate of approximately 3.9%, HCMCs population is expected to reach 10
million in 2020. The increasing population will bring new consumption trends in the next 10
years. In particular, the labour force will account for 53% of the total population and the smaller
household size will also stimulate consumption.
Rising middle class
In the next 10 years, a new income high income class will appear. According to the Ministry of
Foreign Affairs, this class is currently only 1% of the total population but will account for at least
10% in 2020. This new class is expected to be the driving force behind the growth of luxury
goods such as cars, high-end apartments and villas.
Globalisation
International investors and domestic developers have realised the potential of modern
commerce in Viet Nam. Shopping frequency will decrease as consumers purchase larger
amounts of goods, thus retailers will be required to offer discounted prices for bulk quantities.
Using credit cards will boost spending due to the convenience and ease of this type of
payment. Traditional retail channels will gradually be upgraded and merge with modern retail
channels such as convenience stores, supermarkets and hypermarkets.

19
Infrastructure such as the Metro Line 1 may change peoples main form of transportation and
consequently generate demand for an underground shopping area. According to Management
Board of HCMC Urban Railway, the underground retail area will have an area of 45,000 m2.
In the internet era, young people quickly adapt to new cultures, habits and fads. These
influencers stimulate a particular consumers needs and demands, consequently attracting
more retailers to provide suitable goods and services.

20
5.
SWOT ANALYSIS
The SWOT analysis will consider the strengths, weaknesses, opportunities and threats to this market
segment and is a brief overview of the factors that are apparent from Savills research. The details of
the report cover many other aspects and the SWOT analysis should not be read in isolation.
Strengths
High population growth rate.
A growing young and well-educated population.
Growing GDP per capita.
Increasing mid and high-income classes.
Modern retail centres are facing difficulties due to low consumer

spending, especially on non-essential products.
Traditional retail channels dominate the market. The majority of

consumers still have traditional shopping behaviours.
Weaknesses
Undeveloped infrastructure has slowed the development of the modern

retail market.
The popularity of motorbikes restrains the development of modern retail,

stopping at shop houses is more convenient than parking in retail
centers.
Lack of good development locations; especially in the non-CBD areas.
Large amount of future supply, particularly in the non-CBD area.
The HCMC retail market attracts many foreign developers, especially in

the F&B and supermarket segments.
Opportunities
Many infrastructure projects will change the urban structure and in turn
attract more capital investment in property and retail markets.
The slow recovery of the economy may continue to affect consumer

spending.
Threats
Lack of well trained and skilled human resources in the retail sector.
If the tough market conditions persist, consumers may return to the

traditional retail channels which provide cheaper products.

21
Research Parameters
Data collection: Methods of data collection include observation, personal interview, telephone
survey, internet survey, mail survey and Savills inter-department group discussions.
Analysis methods: Direct comparison, descriptive analysis, in-depth analysis, trend analysis, eventhistory analysis.
Scope of study: Twenty-four districts including districts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, Binh
Thanh, Phu Nhuan, Tan Binh, Tan Phu, Go Vap, Binh Tan, Cu Chi, Hoc Mon, Can Gio, Nha Be, Binh
Chanh and Thu Duc.
Research limitation: Savills quarterly report reflects an overview of the current property market
and is indicative research only. Savills recommends that the reader obtain a detailed market study
of the specific sector of interest should a deeper understanding of the market be required.
Note: The exchange rate used is VND 21,673/US$.

22
Appendix 1: Term Definitions

23
Appendix 1: Terms Definition

Term
Anchor tenant
Definition
A well-known commercial retail business such as a national chain store
strategically placed in a shopping centre so as to generate the most customers
for all of the stores located in the shopping centre.
Chain stores
Multiple retail units under common ownership that engage in some level of
centralized purchasing.
Department
A large retail establishment with an extensive assortment in variety and range of
store
goods, organized into separate departments. All departments are housed under
the same roof, and all goods purchased from all categories and brands are paid
at common counters to facilitate buying, customer service, merchandising and
control. The number of counters depends on size of the department store.
Shopping
A building or set of buildings that contain a variety of retail units, with
centre
interconnecting walkway enabling visitors to easily walk from unit to unit. Goods
are for sales in different shops leased by different tenants. Tenancy mix is one of
most important points for conceptualizing a shopping centre. It consists of
which tenants can lease the location and how to mix these tenants. It will result
who target customers are, create the shopper flows, result operations of the
centre. In a shopping centre, each shop has it own counter.
Supermarket
A large retail store operated on a self-service basis, selling groceries, produce,

meat, bakery and dairy products and sometimes non-food goods. Supermarkets
usually offer products at low prices. Customers usually shop by placing their
selected merchandise into baskets (self-service) and pay for the merchandise at
checkout.
Wholesale
The sale of goods, generally in large quantity, to a retailer for resale purposes.
Kiosk
A small stand-alone structure used as a point of purchase. This can be either a

computer or display screen used to disseminate information to customers or
may be a free-standing, full-service retail location. Kiosks are often found in
malls and other high-traffic locations.
Factory outlet
A manufacturer-owned store selling that firm's discontinued merchandise,

irregulars and cancelled orders.
Franchise
A business established or operated under an authorization to sell or distribute a

company's goods or services in a particular area.

24
Term
Definition
Gross area
The area included within the surrounding exterior walls of a building, exclusive
(GFA)
of vent shafts, elevator shafts, stairwells, second story atriums and lobbies.
Net Area
Usable
(NFA)
balconies, etc.
CBD
A common abbreviation for a central business district and is defined by districts
area after deducting stairs, walls, mechanical areas, corridors, vents,
1 and 3.

25
Appendix 2: Existing Stock

26
Project's name
District
Total
leasable
area
Average rent
(+SC-VAT)
2
(US$/m )
Occupancy
rate (%)
Caravelle Hotel
150
100
100
New World Hotel
1,010
90
100
Opera View
895
54
100
Rex Arcade
2,000
125
100
Saigon Airport Plaza
Tan Binh
7,600
23
75
Saigon Pearl
Binh Thanh
5,000
29
86
Sheraton Saigon
750
130
100
Sunrise city phase 1
3,500
35
100
The Manor Phase 1
Binh Thanh
2,000
20
100
10
The Manor Phase 2
Binh Thanh
2,500
20
100
11
The Vista
6,200
35
50
11
Total and average of Retail podium
31,605
39
82
Diamond Plaza
8,000
166
100
Parkson Cantavil Premier
14,872
35
97
Parkson CT Plaza
Tan Binh
12,300
41
98
Parkson Flemington
11
26,000
40
95
Parkson Hung Vuong Plaza
24,000
60
99
Parkson Paragon
15,000
38
87
Parkson SaigonTourist Plaza
16,000
100
100
Royal Centre/Nowzone
9,000
65
99
Zen Plaza
3,200
62
100
Total and average of Department store
128,372
61
97
Aeon Mall Tan Phu Celadon
Tan Phu
50,000
100
An Dong Plaza
18,000
463
92
Anh Duong
Go Vap
1,500
30
100
Bitexco Financial Tower
8,000
95
99
Citi Plaza
7,000
27
99
Crescent Mall
45,000
45
94
Hung Vuong Square
7,400
55
98
Lotte Mart Nguyen Huu Tho
24,000
40
100
Lotte Mart Phu Tho
11
24,500
38
98
10
Lucky Plaza
1,000
189
99
11
Maximart 3/2 Extension
10
25,000
40
96
12
Pandora City - Big C
Tan Phu
38,000
40
99
13
Pico Plaza
Tan Binh
13,000
30
65
14
Saigon Centre
3,500
99
100

27
Project's name
15
Saigon Mall
16
District
Total
leasable
area
Average rent
(+SC-VAT)
2
(US$/m )
Occupancy
rate (%)
Go Vap
7,400
58
99
Saigon Square 1
1,800
245
100
17
Saigon Square 3
2,500
163
95
18
Saigon Superbowl
Tan Binh
5,500
30
80
19
Satra Pham Hung
Binh Chanh
5,764
19
80
20
Taka Plaza 1
1,000
115
100
21
Taka Plaza 2
1,000
110
95
22
Union Square
38,000
130
80
23
Vincom B
57,700
100
88
24
Vincom Thu Duc
Thu Duc
23,000
44
95
25
Vivo City
33,000
50
85
25
Total and average of Shopping centers
442,564
61
92
An Phu Supermarket
2,000
Big C (Cora) An Lac
Binh Tan
6,000
Big C (Cora) Mien Dong
10
2,500
Big C An Phu
2,866
Big C Go Vap
Go Vap
1,800
Big C Hoang Van Thu
Phu Nhuan
5,500
Big C Phu Thanh
Tan Phu
9,000
Big C Truong Chinh
Tan Phu
7,000
Binh An (Mien Dong)
Binh Thanh
2,000
10
Binh Dan
Go Vap
4,600
11
Binh Trung Supermarket
3,500
12
Central Garden
2,600
13
Citimart An Khang
1,500
14
Citimart Binh Thanh
Binh Thanh
3,000
15
Citimart Citi Plaza
2,000
16
Citimart Etown
Tan Binh
2,200
17
Citimart Garden Plaza
2,000
18
Citimart Hoang Dieu
1,000
19
Citimart New SG
Nha Be
2,000
20
Citimart wholesale Centre
2,100
21
Co-op Extra plus
Thu Duc
15,000
22
Co-op mart Binh Tan
Binh Tan
8,000
23
Co-op mart Binh Trieu
Thu Duc
6,500
24
Co-op mart BMC
Tan Phu
1,500
25
Co-op mart Can Gio
Can Gio
550

28
Project's name
26
Co-op mart Cong Quynh
27
Co-op mart Cu Chi
28
Co-op mart Dinh Tien Hoang
29
Co-op mart Do Van Day
30
Co-op mart Foodcosa
31
District
Total
leasable
area
3,300
Cu Chi
4,000
Binh Thanh
4,800
Hoc Mon
2,500
Go Vap
5,000
Co-op mart Hanoi Highway
8,000
32
Co-op mart Hau Giang
2,000
33
Co-op mart Hiep Thanh
12
1,550
34
Co-op mart Hoa Binh
Tan Phu
2,500
35
Co-op mart Hoa Hao
10
4,000
36
Co-op mart Hoc Mon
Hoc Mon
1,800
37
Co-op mart Hung Vuong
978
38
Co-op mart Ly Thuong Kiet
10
12,000
39
Co-op mart National road 13
Binh Thanh
2,300
40
Co-op mart Nguyen Anh Thu
12
4,000
41
Co-op mart Nguyen Dinh Chieu
4,500
42
Co-op mart Nguyen Kiem
Phu Nhuan
4,500
43
Co-op mart Nhieu Loc
1,600
44
Co-op mart Phan Van Tri
Go Vap
4,500
45
Co-op mart Phu Lam
3,000
46
Co-op mart Phu My Hung
2,500
47
Co-op mart Phu Tho
11
5,500
48
Co-op mart Rach Mieu
Phu Nhuan
6,000
49
Co-op mart Thang Loi
Tan Binh
6,000
50
Co-op mart Tuy Ly Vuong
1,800
51
Co-op mart Vinh Loc B
Binh Chanh
2,000
52
Co-op Xtra
8,000
53
Ha Noi Mart
1,000
54
Lotte mart Tan Binh
Tan Binh
8,500
55
Maximark 3/2
10
5,000
56
Maximark Cong Hoa
Tan Binh
19,000
57
Minimart Shinhanco
Tan Binh
1,000
58
Nguyen Van Cu Supermarket
Thu Duc
1,500
59
S.Mart
3,000
60
Saigon Satramart
10
5,000
61
TDH Mart
Thu Duc
1,000
62
Thanh Nghia Supermarket
7,300

Average rent
(+SC-VAT)
2
(US$/m )
Occupancy
rate (%)
29
Project's name
District
Tan Binh
Total
leasable
area
63
Vinatex Bau Cat
64
Vinatex BC
600
65
Vinatex Binh Trung
1,200
66
Vinatex BMC Binh Chieu
Thu Duc
800
67
Vinatex CMC Plaza
Tan Binh
2,000
68
Vinatex Go Vap
Go Vap
2,000
69
Vinatex Khanh Hoi
4,000
70
Vinatex Lanh Binh Thang
11
5,000
71
Vinatex Phu Dinh
600
72
Vinatex Tan Quy
Cu Chi
1,000
73
Vinatex Tan Thuan
6,300
73
Total and average of Supermarket
283,444
Metro An Phu
36,000
Metro Binh Phu
9,000
Metro Hiep Phu
12
6,000
Total and average of Wholesale market

Total and average

Occupancy
rate (%)
2,300
121
Average rent
(+SC-VAT)
2
(US$/m )
51,000
936,985
60
93
30
Appendix 3: Future Supply

31

No.
Project's name
District
Est.
completion
time
Tan Binh
2015
6,000
2015
15,000
Completing
Go Vap
2015
18,339
Under construction
Binh Thanh
2015
20,000
Under construction
Est. area (m)
Status
Bay Hien Tower
Golden Plaza
Under construction
Maximax Go Vap
Pearl Plaza
Royal Tower
2015
11,000
Completing
Sunrise City Phase 2
2015
70,000
Completing
Thao Dien Pearl
2015
18,000
Completing
Times Square
2015
3,100
Completing
Vincom Center Thao Dien
2015
51,000
Under construction
10
Vincom Quang Trung
Go Vap
2015
20,250
Under construction
11
Aeon Mall Binh Tan
Binh Tan
2016
66,000
Under construction
12
E-mart
Go Vap
2016
20,000
Under construction
13
Lotte Mart
Go Vap
2016
20,558
Under construction
14
Saigon Center Phase 2
2016
50,000
Under construction
15
City Gate Tower
2017
3,100
Under construction
16
CT Plaza (Lman)
2017
12,000
Under construction
17
Estellaheight
2017
18,000
Under construction
18
The Gold View
2017
9,375
Under construction
19
Vista Verde
20
Melody Residence
21
An Dong Plaza 2
22
Aquila Plaza
23
2017
15,000
Under construction
Tan Phu
2018
5,000
Proposed/ Planning
N/A
16,000
Proposed/ Planning
Thu Duc
N/A
30,000
Proposed/ Planning
Ben Thanh Twin Tower
N/A
35,000
Vacant land
24
Berjaya Vietnam Financial

Centre (BVFC)
10
N/A
66,000
Proposed/ Planning
25
Cape Pearl
Binh Thanh
N/A
19,542
Vacant land
26
Centermark
N/A
10,000
Proposed/ Planning
27
Chuong Duong Golden Land
Thu Duc
N/A
22,000
Proposed/ Planning
28
Cong Hoa Garden
Tan Binh
N/A
12,000
Project on hold
29
CT Plaza Saigon
N/A
11,000
Vacant land
30
Culture Building Complex

SCPC
N/A
1,101
Proposed/ Planning
31
Eratown Center
N/A
48,000
Proposed/ Planning
32
Gia Dinh Plaza
12
N/A
4,000
Project on hold
33
Hang Xanh Complex
Binh Thanh
N/A
3,126
Project on hold
34
Happy Plaza
Binh Chanh
N/A
3,678
Project on hold
35
Intresco Plaza
N/A
18,000
Proposed/ Planning
36
Kenton
Nha Be
N/A
20,000
Project on hold
37
Khang Thong
N/A
25,000
Vacant land
38
Le Loi Plaza
N/A
10,000
Proposed/ Planning
39
Lega Fashion House
10
N/A
6,040
40
Linh Tay Complex
Thu Duc
N/A
11,235

Vacant land
Proposed/ Planning
32
No.
Project's name
District
Est.
completion
time
Est. area (m)
Status
41
Moon Garden
N/A
9,000
Proposed/ Planning
42
Office, Commerce and Hotel

Complex
N/A
4,500
Proposed/ Planning
43
OPC-Eximland
N/A
2,800
Proposed/ Planning
44
Oriental Plaza
Tan Binh
N/A
15,000
Proposed/ Planning
45
Parkson TDB
Tan Binh
N/A
49,000
Vacant land
46
Peninsula Place
N/A
2,000
47
Petro Vietnam Landmark

Shopping Maill
N/A
10,000
48
Phan Huy Ich Building
Tan Binh
N/A
2,270
Proposed/ Planning
49
Platinum Plaza
Binh Chanh
N/A
20,000
Proposed/ Planning
50
Richland Emerald
N/A
5,250
Project on hold
51
Richland Hills
N/A
2,000
Proposed/ Planning
52
River Gate
N/A
24,000
Proposed/ Planning
53
Riviera Point
N/A
50,000
Proposed/ Planning
54
Royal Garden
N/A
20,000
Project on hold
55
Saigon Brewery
N/A
15,000
Proposed/ Planning
56
Saigon Galleria
N/A
18,328
Proposed/ Planning
57
Saigon Gateway
Phu Nhuan
N/A
2,553
58
Saigon Green Energy Tower
N/A
23,373
Proposed/ Planning
59
Saigon M&C Tower
N/A
23,000
Project on hold
60
Saigon Sport City
N/A
70,000
Proposed/ Planning
61
Savico Plaza
N/A
8,000
Proposed/ Planning
62
SJC Le Loi
N/A
20,000
Vacant land
63
Soho Residence
Tan Binh
N/A
12,000
Proposed/ Planning
64
Spring Light City
N/A
17,000
Proposed/ Planning
65
Thao Loan Plaza
Binh Chanh
N/A
15,000
Proposed/ Planning
66
The Boat Club Residences
N/A
2,000
Proposed/ Planning
67
The Mark
N/A
39,220
Proposed/ Planning
68
Underground Retail Centre
N/A
25,000
Proposed/ Planning
69
VinaSquare Tower
N/A
51,000
Proposed/ Planning
69
Total

Proposed/ Planning
Project on hold
Vacant land
1,380,738
33
Disclaimer

34

35
July 2014
Quarterly Report
Office for lease

Q2/2015
Main Report
Ho Chi Minh City

Viet Nam
Prepared by
June 2015

81-85 Ham Nghi Street, District 1,
T: +84 8 3 8239 205 F: +84 8 3823 4571

Ha Noi, Viet Nam
T: +84 4 9461 300 F: +84 4946 1302
Content
Advisory Services Overview ........................................................................................ 1
1.
SUPPLY .................................................................................................................. 3
1.1.
TOTAL SUPPLY .............................................................................................................................................3
1.2.
SUPPLY BY DISTRICT .................................................................................................................................4
1.3.
SUPPLY BY GRADE......................................................................................................................................5
2.
PERFORMANCE ..................................................................................................... 8
2.1.
OVERALL.........................................................................................................................................................8
2.2.
PERFORMANCE BY LOCATION .............................................................................................................9
2.3.
PERFORMANCE BY GRADE .................................................................................................................. 10
3.
DEMAND ANALYSIS ........................................................................................... 13
3.1.
TAKE-UP BY GRADE ................................................................................................................................ 13
3.2.
TAKE-UP BY LOCATION ........................................................................................................................ 14
3.3.
OFFICE TRANSACTIONS........................................................................................................................ 14
3.4.
DEMAND DRIVERS .................................................................................................................................. 14
4.
FUTURE OUTLOOK.............................................................................................. 16
4.1.
4.2.
5.
SWOT ANALYSIS................................................................................................. 20

Appendix 2: Market Practices ................................................................................... 25
Appendix 3: Existing Stock ....................................................................................... 28
Appendix 4: Future Supply ....................................................................................... 38
Disclaimer ................................................................................................................... 41
HCMC Quarterly Market Report Q2/2015 Office for lease Sector

List of Tables
Table 4. 1 New office buildings ...................................................................................................................................................17
List of Figures
Figure 1.1: Total stock ....................................................................................................................................................................... 3
Figure 1.2: Stock by district ............................................................................................................................................................. 5
Figure 1.3: Stock by grade ............................................................................................................................................................. 7
Figure 2. 2: Average gross rent and occupancy ..................................................................................................................... 9
Figure 2. 3: Grade A performance ..............................................................................................................................................10
Figure 2. 4: Grade B performance ..............................................................................................................................................11
Figure 2. 5: Grade C performance ..............................................................................................................................................12
Figure 2. 6: Service charges and average rent ......................................................................................................................12
Figure 3. 1: Office take-up .............................................................................................................................................................13
Figure 3. 2: Registered FDI ............................................................................................................................................................15
Figure 4. 2: Future supply by location ......................................................................................................................................18


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Executive Summary
Stock changed
In Q2/2015, the total office stock was more than 1,472,000 m2, stable quarter-on-quarter (QoQ) and
increasing 3% year-on-year (YoY). Robot Tower, a new Grade C project in district 3 providing 3,200
m2 entered the market and had a minor effect on the total supply.
Better performance
In Q2/2015, the office market performed well across all grades; occupancy was 93% (up 2 ppts QoQ
and 2% YoY) and average gross rent was US$25/m2/mth (unchanged QoQ, decreased -1% YoY).
Grade A occupancy was more 95% in all buildings; except Times Square, which was only 83%
occupied.
Increased take-up
Total office take-up increased by 6% QoQ to approximately 25,500 m2. Grade A and Grade C had
the strongest take-up, increasing by 499% QoQ and 195% QoQ respectively. Grade As take-up
stemmed from a better performance in all buildings, increasing 3 ppts QoQ, apart from Times
Square. The demand for Grade C offices was high, accounting for more than 68% of total take-up
this quarter, mostly from the take-up of new Grade C buildings released in the previous quarter.
Expected strong stock increase

At the end of 2015, there will be a large increase in supply of Grade A and B projects with more
than 137,000 m2 entering the market. These projects will account for approximately 77% of new
supply in 2H/2015 and will place pressure on the performance of Grades A and B.

1.
SUPPLY
1.1.
TOTAL SUPPLY
Robot Tower, a new Grade C building, entered the market supplying 3,200 m2.
In Q2/2015, HCMCs total office stock was more than 1,472,000m2 from 224 existing projects;
stable QoQ and increasing by 3% YoY. The YoY increase was due to the release of new Grade B
buildings such as MB Sunny Tower, Le Meridien and Vietbank Office Building.
In the last five years, the commercial real estate market had slowly grown as developers felt the
pressure of an economy with surging inflation, high interest rates and limited financial
resources. Consequently, the supply growth rate dropped significantly from 32% in Q2/2010 to
3% in Q2/2015. In the last three years, the average supply growth rate per annum was 6 percent.
Figure 1 1: Total stock

1,600,000
m2
1,400,000
35
30
1,200,000
25
1,000,000
20
800,000
15
600,000
10
400,000
200,000
0
Q2/2010
Q2/2011
Q2/2012
Q2/2013
Q2/2014
Q2/2015
Total stock
947,688
1,164,050
1,248,193
1,353,494
1,434,150
1,472,532
Growth rate
32
23

1.2.
SUPPLY BY DISTRICT
In Q2/2015, the CBD accounted for 62% of total supply. District 1 provided 762,000 m2 NLA,
accounting for 83% of the CBDs stock. The CBD has the highest density of Grade A and Grade B
buildings due to several advantages including: the presence of international and domestic
businesses in finance & banking and real estate sectors and up-scale amenities such as 5-star
hotels, restaurants and entertainment facilities.
District 1s total stock was unchanged QoQ and increased 1% YoY. The average supply growth
rate had increased slowly at 1% per annum in the last three years as the district is one of the
most expensive areas of the city and vacant (commercial) land is rare to find.
District 3 provided approximately 154,000 m2, increasing 2% QoQ and 16% YoY due to the
addition of Robot Tower. For supply, District 3, is ranked in third place after district 1 and Tan
Binh.
In the non-CBD area, Tan Binh district and district 7 have the highest absorption, and provided
50% of total non-CBD stock.
o Tan Binh district supplied 174,000 m2, unchanged QoQ and increasing 2% YoY.
Buildings were mainly low-rise Grade C with less than 12 levels, targeting companies
taking advantage of the nearby Tan Son Nhat International Airport.
o District 7 provided 105,000 m2 of office space in Q2/2015, unchanged QoQ and YoY.
Tenants looking for a location with low density, adequate quality, and good
supporting amenities can find offices in the Phu My Hung area.
o Offices in industrial parks (IP) tend to be built within the IPs and are under-developed.
These include Charm IT Center (Quang Trung Software Park, District 12), and SCS
Internet Building (Saigon Hightech Park, District 9).

Figure 1.2: Stock by district

900,000
projects
m2
120
800,000
100
700,000
600,000
80
500,000
60
400,000
300,000
40
200,000
20
100,000
Total leaseable area
Projects
District 1
District 3
Tan Binh
District 7
Others
762,503
154,345
174,260
105,372
276,053
100
47
23
11
43
Note: Others column includes districts 2, 4, 5, 8, 9, 10, 11, 12 and Binh Thanh, Phu Nhuan and Nha Be.
1.3.
SUPPLY BY GRADE
In Q2/2015, Grade C continues to lead the market with a 46% share, followed by Grade B at 44
percent. Only Grade C had a slight increase of 0.5% QoQ, this segment still had the highest
annual stock growth of 17% over the last five years, followed by Grade B at 10%; whilst Grade A
was quite low at 2 percent.
Grade A
Stock: Grade A provides 147,000 m2, unchanged QoQ and YoY. In the last five years, only two
Grade A buildings have entered the market; five of the eight Grade A offices have been in
operation since 1996. The majority of Grade A buildings are located on prime streets in the CBD
including Dong Khoi, Nguyen Hue, Le Loi and Le Duan streets.
Newer Grade A offices stand out with mixed-use specifications and full international and
professional management. For example: Kumho offers retail, a 5-star hotel and serviced
apartments; Bitexco Financial Tower has retail and restaurants and Times Square has hotel, retail
and entertainment components.

Grade B
Stock: total stock was 650,000 m2, unchanged QoQ and increasing 1% YoY. During last year,
there were only three buildings MB Sunny Tower, Vietbank Office Building, and Le Meridien
released into the market. Despite the constant increase in Grade Bs stock, development has
decreased to an average growth rate of 4% per annum in the last three years.
More than 70% of Grade B buildings are in the CBD. Each office offers unique points of
specifications and services to attract tenants.
o Me Linh Point has capital expenditure every year maintaining the quality of the
building.
o President Place has LEED Gold certification (granted by US Green Building Council), a
prestigious certification for green buildings.
o Centre Point reported a 20% reduction in carbon emissions and a 30% reduction in
energy consumption.
o Somerset has a distinct layout with low density of companies on each level. Gemadept
tower has a program with partner restaurants around the CBD, offering a 10-20%
discount for staff from tenant companies.
Grade C
Stock: In Q2/2015, there was more than 672,000 m2 from 168 projects; 54% was found in the
non-CBD area. The entry of 3,200 m2 from Robot Tower increased total Grade Cs supply by
0.5% QoQ and by 5% YoY.
The diverse base of Grade C offices at different locations across the city offer tenants a wide
range of choices. The large quantity of Grade C offices could increase competitiveness between
existing offices.

Figure 1.3: Stock by grade

800,000
m2
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Q2/2010
Q2/2011
Q2/2012
Q2/2013
Q2/2014
Q2/2015
Grade A
100,071
137,071
135,510
147,110
147,110
147,110
Grade B
467,042
550,008
572,766
602,033
642,457
650,107
Grade C
380,575
476,972
539,917
604,352
644,584
675,316

2.
PERFORMANCE
2.1.
OVERALL
In Q2/2015, average rent was US$25/m2/mth, unchanged QoQ and YoY. Grade As average rent
decreased 2% QoQ. In contrast, Grade B and Grade C had a slight increase of 1% QoQ.
The average occupancy rate was 93%, up 2% QoQ and YoY. A number of Grade A and Grade C
buildings increased occupancy during the quarter, boosting the overall occupancy of each
Grade to above 90 percent. On average, occupancy has increased by 1% per year in the last two
years.
With stable rent and increased occupancy, the market is able to absorb rent at approximately
US$25/m2/mth. The stabilisation of rent and occupancy stemmed from positive economic
factors.

US$ / m2/ mth
28
25
100
80
22
60
19
40
16
20
13
10
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Average gross rent
25
25
25
25
25
Occupancy
91
90
91
91
93
Note: The average gross rent was calculated on net leasable area, including service charge but excluding VAT.

2.2.
PERFORMANCE BY LOCATION
CBDs average gross rent was US$30/m2/mth, unchanged QoQ and YoY. CBDs rent was mainly
derived from district 1 where average gross rent was maintained at approximately
US$32/m2/mth for seven consecutive quarters; the highest rent across all locations. The CBDs
occupancy reached 94%, increasing 1ppt QoQ and 3ppts YoY. Occupancy was high for most
buildings, 76% of buildings had occupancy above 95 percent.
Non-CBDs average gross rent was US$17/m2/mth, a decrease of 1% QoQ. The rent decrease
occurred in districts such as Phu Nhuan and Binh Thanh (declining slightly at 1% QoQ). Nha Be
had the biggest rental decrease, decreasing 15% QoQ; however rent increased YoY. Eight
districts within the non-CBD experienced an rental increase of seven percent.
Non-CBD occupancy increased 3% QoQ and 1% YoY. This was derived from the strong
performance of offices in district 5, 9, 12 and Nha Be.
o Lottery Building in district 5 had occupancy increase of 35%, reaching 75 percent. This
building entered the market in Q4/2014 and had many transactions this quarter.
o Districts such as district 9, 12 and Nha Be had an average increase of 16% YoY. These
buildings increased their leasing activities to attract more tenants. For example, SCS
Internet Building (district 9) offered shuttle bus services to the city center and
decreased rent 11% YoY. PV Gas Tower (Nha Be district) decreased rent by -15% YoY,
positioned itself as a green tower and has three levels of retail for office users. Charm
IT centre (district 12) is located in Quang Trung software city and attracts technical
companies.
Figure 2. 2: Average gross rent and occupancy

35
US$/ m2/ mth
100
30
80
25
60
20
15
40
10
20
5
0
District 1
Phu
Nhuan
District
District 3 District 7 Nha Be District 2 Tan Binh District 9 District 4
11
Average rent
32
21
20
19
18
18
18
17
17
Occupancy rate
95
96
92
90
89
88
81
97
59
Binh
Thanh
District 5
District
10
District
District 8
12
16
15
14
13
13
13
88
98
81
96
88
38
Note: The average rent was calculated on net leasable area, including service charge but excluding VAT.

2.3.
PERFORMANCE BY GRADE
Grade A
In Q2/2015, the average gross rent was US$47/m2/mth, a decrease of -2% QoQ and YoY. Grade
A buildings are facing strong competition from Vietcombank Tower which has had effective preleasing activities and a affordable price of US$40/m2/mth. This building is expected to enter the
market in Q3/2015.
Figure 2. 3: Grade A performance

55
US$/ m2/ mth
100
50
80
45
60
40
35
40
30
20
25
20
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Average rent
48
48
48
48
47
Occupancy rate
93
93
93
93
96
The average occupancy of Grade A was 96%; increasing 3 ppts QoQ and YoY and the highest
occupancy in the last seven years. The increase came from an increase of all Grade A projects,
except Times Square. Kumho Asiana Plaza had the highest increase of 6% QoQ due to the
expansion of Masan Group, followed by Bitexco Financial Tower by 4 percent.
Grade B
In Q2/2015, the average gross rent was US$28/m2/mth, up 1% QoQ and unchanged YoY, due to
a rent increase in 20% of stock. District 1 achieved the highest rent of US$31/m2/month.
Notably, there was a wide gap in the average rent of Grade B buildings in the CBD and nonCBD; the CBDs average rent was 60% higher than that in the non-CBD. Within the CBD, the
average rent of Grade B buildings in district 1 was 18% higher than in district 3.
Grade Bs occupancy was 93%; unchanged QoQ and increasing 2% YoY. In the CBD, vacant
space is limited with most buildings reporting available lots with sizes ranging from 100 m2 to
300 m2. Nearly 90% of buildings had occupancy rate of above 90 percent. In non-CBD areas,

10
64% of buildings achieved occupancy of above 91%; all remaining buildings were above 80%,
except Parkson Paragon.
Figure 2. 4: Grade B performance

30
US$/ m2/ mth
100
80
25
60
20
40
15
10
20
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Average rent
28
28
27
27
28
Occupancy rate
91
91
93
93
93
Grade C
The average gross rent was US$18/m2/mth, unchanged QoQ and YoY. Grade Cs average rent
was 39% below the markets average, reflecting the wide gap with Grade B and Grade A.
The average rent of Grade C buildings in the CBD was 13% higher than in the non-CBD. The
highest rent was in district 1 at US$20/m2/mth. The CBD area also provides 98 offices, 46% were
built in the last five years. For non-CBD areas, the highest average gross rent was found in Tan
Binh and district 7, at US$17/m2/mth.
The occupancy rate was 92%, increasing 2% QoQ and YoY, the highest rate over the last five
years. Despite the constant increase in supply and a growth of 16% per annum since 2010;
Grade Cs occupancy has remained above 80% in the last five years, evidence of the consistent
demand for this Grade.

11
Figure 2. 5: Grade C performance

25
US$/m2/ mth
100
20
80
15
60
10
40
20
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Average rent
18
18
18
18
18
Occupancy rate
90
89
90
90
92
Service charges and average rent
Only Grade A had a slight increase of 0.4% QoQ and YoY in the ratio of service charges over the
average rent. This was the result of a 1% increase of service charge; however, Grade A rent
decreased 2% QoQ.
The ratio proportion of service charges over the average rent of Grade C decreased by 1% YoY
due to decrease in service charge by 3% YoY; Grade B was unchanged QoQ and YoY.
Figure 2. 6: Service charges and average rent

24.0
Grade A
Grade B
Grade C
22.0
20.0
18.0
16.0
14.0
12.0
10.0
Q2/2013
Q3/2013
Q4/2013
Q1/2014
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015

12
3.
DEMAND ANALYSIS
3.1.
TAKE-UP BY GRADE
In Q2/2015, office take-up totalled more than 25,500 m2, increasing 6% QoQ and 112% YoY.
Take-up this quarter mainly occurred in Grade C buildings, at approximately 17,300 m2,
increasing 195% QoQ and 72% YoY. Large take-up comes from the rigorous leasing activities of
new Grade C buildings; including Kicotrans Bach Dang, Lottery Building, Song Tra Saigon Airport
Plaza and Pico Plaza. Grade C is in constant demand with 53% of total take-up in the last three
years.
Grade A take-up reached 3,700 m2, increasing 499% QoQ and 593% YoY. This was partially
derived from the transactions of Kumho Asiana Plaza and Bitexco Financial Tower with a
combined take-up of approximately 3,000 m2. Take-up of less than 300 m2 was also recorded in
all other Grade A buildings, except Times Square and Diamond Plaza. Currently, Grade As
supply is limited and average take-up is approximately 4,000 m2 for the last three consecutive
years; whilst the current vacant space was nearly 6,000 m2.
Grade Bs take-up was 4,400 m2, decreasing 75% QoQ, but an increasing 213% YoY. As the
market stabilised following the strong take-up of the previous quarter, Grade Bs quarterly takeup decreased. Grade Bs take-up in 1H/2015 was 23% higher than the average take-up in the
last three years. Grade B accounted for 38% of total the take-up in the last three years.
Figure 3. 1: Office take-up

70,000
m2
60,000
50,000
40,000
30,000
20,000
10,000
0
1H/2012
2H/2012
1H/2013
2H/2013
1H/2014
Grade A
4,897
3,749
Grade B
24,233
8,567
Grade C
21,097
31,557
2H/2014
1H/2015
11,174
2,706
1,577
674
4,402
17,543
28,274
4,867
19,779
22,053
29,344
30,141
32,097
25,889
23,268

13
3.2.
TAKE-UP BY LOCATION
In Q2/2015, CBDs large take-up (from 500m2 to 1,000 m2) occurred in Grade A and Grade B
buildings. Total take-up in district 1 was the highest across all districts, reaching more than 8,500
m2 this quarter. In district 3, more than 70% of buildings had occupancy of above 95% and
provided 2,700m2 this quarter.
Take-up in the non-CBD was 25% more than the CBD, reaching approximately 14,100 m2. Tan
Binh was leading district with strong take-up in Grade C. Kicotrans Bach Dang leased
approximately 2,200 m2; Pico Plaza leased 1,000 m2 and Saigon Airport Plaza leased 900 m2.
3.3.
OFFICE TRANSACTIONS
Highlights from Grade A and Grade B buildings:

o Target customers who can afford to rent prime Grade A or Grade B offices are large
tenants in sectors such as finance & banking, insurance, oil and gas, real estate and
FMCG who require a large office space from one to three levels.
o With NLAs ranging between 700 m2-1,000 m2, prime Grade A and Grade B buildings
can match the increasing demand of occupiers. Masan Group expanded from three
levels to five levels in Kumho Asiana Plaza; Vincom leased over 1,000m2 to Itochu and
Lottery building leased out more than 1,000 m2 to Lazada.
o Many Grade A and B buildings have a tenant-mix strategy; tenants range from large
multinational companies to small-scale enterprises. Deal sizes from 200 m2 to 500 m2
are found in Metropolitan Tower, Saigon Centre and Sunwah Tower.
3.4.
Grade C buildings suit the demand of enterprises desiring a smaller space at an affordable price.
DEMAND DRIVERS
FDI: In first half of 2015, according to the HCMC Statistics Office, total new registered FDI
projects was 249 projects, increasing 54% YoY; whilst the FDI newly registered capital was at
US$792 million, unchanged YoY
According to the Ministry of Planning and Investment, for the first half of 2015, HCMC attracted
21% of the total registered FDI to Vietnam. Out of the 16 sectors receiving FDI capital in
Vietnam, real estate ranked second with 8.5% of the total FDI. There were positive signs of FDI

14
reimbursement to Vietnam, reaching US$6.3 billion in the first half of 2015, increasing 10%
YoY.c.
New enterprises: There were more than 14,000 newly registered enterprises; increasing 29%
YoY. Total registered capital reached approximately VND95.2 trillion (US$4.4billion) increasing
60.7% YoY. For the first five months of 2015, approximately 5,500 enterprises closed their
businesses, decreasing by 32.2% YoY, 99% of these enterprises were domestic companies.
Economic growth: GDP growth rate has remained robust for the last five years ranging from
5.5% to 6 percent. Economic agreements such as the Trans-Pacific Partnership, European Free
Trade Association, and Eurasian Economic Union will attract a number of international
companies into Vietnam.
Figure 3. 2: Registered FDI

3,500
mil US$
projects
500
450
3,000
400
2,500
350
300
2,000
250
1,500
200
150
1,000
100
500
0
Registered FDI capital
Projects
50
2010
2011
2012
2013
2014
6M/2015
2,304
2,723
1,289
1,657
3,214
792
375
384
401
440
414
249
Source: HCMC's Statistical Office

15
4.
FUTURE OUTLOOK
4.1.
OUTLOOK FOR SUPPLY
Overall, there are 56 future projects with a total area of more than 1.1 million m2. By 2017, the
market expects to welcome approximately 504,000 m2 from 27 future projects.
In 2H/2015, HCMC expects to welcome approximately 178,000 m2 of office space from nine
projects, including one Grade A, three Grade B and five Grade C. In the short-term, the
performance of Grade A and B will be under pressure from the large amount of future supply.
o Vietcombank Tower in district 1 is a Grade A project providing more than 67,000 m2 in
office space, and will enter the market in Q3/2015. Its rigorous pre-leasing activities
have had a large amount of absorption in a short time. The market will see movement
of large tenants from existing Grade A and B buildings to this Vietcombank Tower,
negative impacting those segments performance. Confirmed tenants include Johnson
& Johnson, Heineken and Shiseido who will move the end of 2015.
o Lim Tower 2 in district 3 is Grade B with 39,000 m2 office space which is expected to
enter the market by the end of 2015. It has experienced a large amount of demand
from tenants who require from one to two levels. The floor plate of Lim Tower 2 is
approximately 1,000 m2 NLA.
o The Waterfront and Royal Tower will enter the market, supplying 30,000 m2. Both
buildings are classified as Grade B. The Waterfront is located on Ton Duc Thang Street
will be a competitive project in district 1. Royal Tower is a high specification building
with four levels of retail and 14 levels of office for lease and sale. It is located in the
heart of Phu My Hungs financial center. Royal Tower is already completed and expects
to enhance the overall office market in the area.

16
Table 4. 1: New office buildings in 2H/2015

No.
Building name
Address
District
Expected
Grade
Expected
net leasable
area (m)
Vietcombank Tower
5 Me Linh Square
District 1
67,000
Lim Tower 2
158 Vo Van Tan
District 3
39,000
Royal Tower
Nguyen Luong Bang, Tan Phu Ward
District 7
21,852
The Waterfront
2 Ton Duc Thang
District 1
8,822
MB Babylon
683 Au Co
Tan Phu
2,240
PT Building
180-180A Nam Ky Khoi Nghia
District 1
2,000
Office Building
27-29 Nam Ky Khoi Nghia
District 1
2,000
432 Nguyen Thi Minh Khai
District 3
16,392
475/1 Dien Bien Phu
Binh Thanh
19,300
8
9
Saigon Giai Phong

Office Building
Hutech Tower 2
Total supply
178,606

m2
projects
700,000
30
600,000
25
500,000
20
400,000
15
300,000
10
200,000
100,000
0
2H/2015
2016E
2017E
Potential
178,606
185,000
140,842
624,761
12
26
Future leaseable area

Projects
Future supply by location
By 2017; the CBD will account for 64% of total future supply, providing more than 325,000 m2 of
office space. District 1 is the largest supplier, with more than 245,000 m2, accounting for 49% of
total supply. By 2017, if all projects are completed as planned, the CBD will have approximately
1.2 million m2 of office space, 69% higher than the non-CBD area.

17
By 2017; in non-CBD areas, districts 10, 7, and Binh Thanh will be the main suppliers; with Binh
Thanh experiencing a 135% stock increase in the future. District 7, especially Phu My Hung, still
receives attention from developers who are looking for an urban center in the south. Overall,
including future supply and existing supply, district 7 and Tan Binh district still dominate nonCBD stock, supplying 63% of total stock.
Only 40% of planned projects are currently under construction. The remaining of 60% is still in
the initial stages of planning, on vacant land or on hold.
Figure 4. 2: Future supply by location

900,000
m2
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
District 1
District 10
District 7
District 3
Binh Thanh
Others
Future supply
452,758
246,000
122,563
114,473
88,384
107,729
Current stock
762,503
25,449
105,372
154,345
26,109
398,755
Note: Others column includes districts 2, 4, 5, 8, 9, 11, 12 and Tan Binh, Tan Phu, Phu Nhuan and Nha Be.
Project on hold
22%
Vacant land
24%
Proposed/
Planning
14%
Completing
23%
Under
construction
17%

18
4.2.
OUTLOOK FOR DEMAND

Macroeconomics
Economy: According to the Global Competitiveness Report 2014-15 published by the World
Economic Forum (WEF), Vietnams business competitiveness was at ranked 68th out of 148
countries, an increase of two places from 2013. Ho Chi Minh City is at the heart of Vietnams
economy. It is recognised as the largest and most dynamic cities in Vietnam.
o The diverse occupier base offers investors exposure to companies in all sectors. The
citys economy will continue to grow, promising a strong future for the office market.
o Ho Chi Minh City needs to strengthen its economic on the back of a diversified
economy to attract more companies into the country.
Job prospects: According to the HCMC Center of Forecasting Manpower Needs and Labour
Market Information (FALMI), enterprises in the city may need 270,000 labourers a year to
support businesses establishment or expansion from 2015-2020 . This figure indicates a positive
outlook for office market demand.
City development effect
Planning regulations: According to Decision 1340/QD-UBND by the Ho Chi Minh City Peoples
Committee, the CBD will continue to develop with the support of nearby districts including
district 4 and Binh Thanh district. There is a decentralization plan into the east and the south; the
east comprises of district 2 and 9 and the south includes district 7 and Nha Be. In the next five to
ten years, there will be a growing demand for office spaces in these districts from companies
providing services for the area.

19
5.
SWOT ANALYSIS
As the economic hub of Vietnam, HCMC has good economic growth

and high office demand, especially in the CBD.
Strengths
Office space is available in all sizes to meet the variety of demands

by potential tenants.
Weaknesses
Imbalanced office locations, with the highest density in the CBD.
Not enough parking spaces.
Despite improvements, the complex of legal system is a barrier to

new development and investment.
Lack of transparency in the market postpones accurate information

for investors.
Strong increases in FDI projects and registered capital.
Important infrastructure projects are being developed in HCMC and

surrounding provinces.
Opportunities
Important regional trade agreements are being finalised.
FMCG is one of the most well-established industries in Viet Nam; the

office market can capture this sector, increasing occupancy.
Threats
The completion dates of future projects are difficult to predict.
Limited land bank in prime areas.
Planning regulations and restrictions.
It may continue to be difficult and costly for developers in the site

clearance stage.
Increasing competition from future supply.

20
Research Parameters
Chanh and Thu Duc.

21
Appendix 1:
Term Definitions

22
Term
Floor plate
Definition
A construction term that is used in the property industry to denote the layout and
size of a level in a building. This is one of the criteria for grading office buildings.
The useable area within a building measured to the internal face of the perimeter
Net area
walls at each level. Unless stated otherwise, all areas referred to by Savills are
based on the Net Area.
Net floor
Usable floor area after deducting stairs, walls, mechanical areas, corridors, vents,
area (NFA)
balconies, columns etc.
Service
The amount chargeable by the building owner to cover the operating costs,
charge
including management fees, statutory costs, maintenance, sinking fund, cleaning

common areas, common area electricity, landscaping etc. Expressed as a rate/m.
Value Added
Value added tax which is payable by the landlord or the tenant, currently the rate
Tax (VAT)
is 10 percent.
Total Rent
The Average Rent includes rent and service charge, but excludes VAT, fit-out and
utilities. Normally expressed as rate /m/mth. Unless stated otherwise, rents
quoted shall be the Total Rent.
Occupancy
rate
The percentage of occupied space to the total Net Area.

23
Appendix 2:
Market Practices

24
Appendix 2: Market Practices
Issue
Market practices
The rental space on the ground level is the most desirable and the most
expensive in an office building. This is due to the lack of good retail space in
HCMC. On average, the ground level may cost three times as much as space
on the other floors. Because of the high cost/m of the ground level, retail,
Level and
location within
the level
banking and insurance companies are targeted for this space.
Tenants who do not require a ground level location usually prefer a level
that is located as high as possible so that they can enjoy a better view.
Tenants, culturally dependent, may rely on a lucky number from their own
traditional concept in choosing their leased level. Many tenants refuse to
rent level numbers four or 13 for superstitious reasons. Therefore, many
buildings have changed their level 13 into 12A, 12bis or even 14.
Tenants normally prefer locating their office next to the elevator for
visibility.
Tenants prefer an entrance with a covered drop off area for protection from
the elements.
Tenants prefer office buildings with a central core design, rectangular shape
and column free floor space, which is easy to design. The building
architecture should be an energy-saving design providing light that is more
natural and has doubled glazed windows to prevent noise from outside and
Technical
requirements
standard blinds for solar protection.
There should be a 100% power supply backup.
High-speed computerised elevators with a separate service elevator for

cargo transportation.
Tenants are increasingly concerned about security. Buildings should be

equipped with fully licensed 24-hour security guards and a closed circuit
video surveillance system, ensuring 24-hours of secure access.
Tenants prefer a building with sufficient parking areas: one motorbike

parking space for each 10 m office NFA or one car parking space for each
200 m to 300 m office NFA.
Lease terms
Lease terms may vary from tenant to tenant but are typically from two to

25
Issue
Market practices
seven years. Landlords will balance lease terms amongst tenants so that not
all tenants end their contracts at the same time. This helps landlords avoid
facing large vacant areas in their buildings at one time.
There is a growing interest in long-term office leasing. This type of leasing is

suitable for stable enterprises with long-term business plans in Viet Nam
and helps them to avoid the instability of office rent. It is likely that the total
rent of a 50-year lease contract may be at the total rent for a short-tem
lease over three to two years. At present, only some local developers have
chosen to apply this type of leasing.
Some tenants may require a reinforced area with a sufficient load capacity
from 700 to 800 kilos/m. This requirement is for placing IT server or a vault
especially for banking tenants.
Special
Banking tenants prefer buildings with a mezzanine level so that they can
rent both ground and mezzanine floors to have larger frontage space.
requirements
Large tenants also prefer a knockout panel an internal staircase for

connecting two floors easing vertical transportation and making movement
between floors efficient. However, this does affect net area/useable area.
The rental space on the ground level is the most desirable and the most
expensive in an office building. This is due to the lack of good retail space in
HCMC. On average, the ground level may cost three times as much as space
on the other floors. Because of the high cost/m of the ground level, retail,
Level and
location within
the level
banking and insurance companies are targeted for this space.
Tenants who do not require a ground level location usually prefer a level
that is located as high as possible so that they can enjoy a better view.
Tenants, culturally dependent, may rely on a lucky number from their own
traditional concept in choosing their leased level. Many tenants refuse to
rent level numbers four or 13 for superstitious reasons. Therefore, many
buildings have changed their level 13 into 12A, 12bis or even 14.
Tenants normally prefer locating their office next to the elevator for
visibility.

26
Appendix 3:
Existing Stock

27

No.
Project's name
1
2
3
4
5
6
7
8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Bitexco Financial Tower

Diamond Plaza
Kumho Asiana Plaza
Metropolitan Tower
Saigon Centre
Saigon Tower
Sun Wah Tower
Times Square
Total and average of Grade A
A&B Tower
Bao Viet Building
Bitexco
Capital Place
Centec Tower
Central Plaza
CentrePoint
Crescent Plaza
Empress Tower
E-Town 1 Building
E-Town 2 Building
E-Town 3 Building
Continental Tower
Gemadept
Green Power
Havana
HMTC Building (HD Tower)
Location
45 Ngo Duc Ke, District 1
34 Le Duan, District 1
235 Dong Khoi, District 1
65 Le Loi, District 1
115 Nguyen Hue, District 1
57-61 Dong Khoi, District 1
76 Le Lai, District 1
231-233 Dong Khoi, District 1
19-25 Nguyen Hue, District 1
6 Thai Van Lung, District 1
72-74 Nguyen Thi Minh Khai , District 1
106 Nguyen Van Troi, Phu Nhuan
Phu My Hung , District 7
138-142 Hai Ba Trung, District 1
364 Cong Hoa, Tan Binh
81-85 Ham Nghi, District 1
2bis-4-6 Le Thanh Ton , District 1
35 Ton Duc Thang , District 1
132 Ham Nghi, District 1
25bis Nguyen Thi Minh Khai , District 1

Approx.
area (m2)
37,000
13,900
25,764
15,200
10,846
12,000
20,800
11,600
147,110
19,039
10,211
6,000
4,400
27,888
6,094
30,686
9,590
15,000
29,000
27,000
13,600
15,000
12,000
13,603
7,128
8,213
Est. average rent

(US$/m2/mth), excl.
VAT
40
49
53
45
43
46
51
52
47
35
30
36
23
33
32
25
21
29
19
17
19
29
31
29
25
27
Occupancy (%)
96
99
96
95
97
100
98
83
96
98
100
95
98
98
100
96
79
100
100
100
100
97
99
100
98
100
28
No.
Project's name
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Intelligence Office Building

Lawrence S Ting
Le Meridien
Lim Tower
Maritime Bank Tower (Vincom Financial Tower)
Master Building
MB Sunny Tower
Me Linh Point
Opera View
Parkson Paragon
PDD Building
Petro Building
Petroland Commercial and Financial Tower
President Place
Ree Tower
Royal Centre
Saigon Finance Center
Saigon Riverside Office
Saigon Royal
Saigon Trade Center
Sailing Tower
Scetpa Building
Somerset
The Landmark
The Vista
TMS
Vietbank Office Building
Vincom Center
Location
19 Pham Ngoc Thach , District 3
Nguyen Van Linh, District 7
3c Ton Duc Thang, District 1
9-11 Ton Duc Thang, District 1
180-192 Nguyen Cong Tru, District 1
41-43 Tran Cao Van , District 1
259 Tran Hung Dao, District 1
2 Ngo Duc Ke, District 1
Nguyen Luong Bang , District 7
162 Pastuer, District 1
C61A-01 Tan Trao, District 7
93 Nguyen Du, District 1
9 Doan Van Bo, District 4
235 Nguyen Van Cu, District 1
9 Dinh Tien Hoang, District 1
2A-4A Ton Duc Thang , District 1
51 Nguyen Thi Minh Khai , District 1
19A Cong Hoa, Tan Binh
21-23 Nguyen Thi Minh Khai , District 1
5B Ton Duc Thang , District 1
268 Ha Noi Highway, District 2
172 Hai Ba Trung, District 1
Nguyen Thi Minh Khai , District 3
70-72 Le Thanh Ton , District 1

Approx.
area (m2)
5,018
12,500
9,930
25,000
20,950
7,000
12,551
17,600
3,465
8,000
2,700
13,304
25,200
9,267
17,740
14,000
8,000
10,000
4,200
31,416
16,900
10,340
3,200
8,000
5,000
4,000
8,520
62,846
Est. average rent

(US$/m2/mth), excl.
VAT
25
21
32
36
27
20
32
30
34
18
25
38
15
37
20
33
23
25
28
27
32
15
27
31
21
25
30
35
Occupancy (%)
100
97
100
100
93
100
60
99
100
69
89
99
91
97
100
96
98
96
97
83
99
87
93
96
88
97
20
85
29
No.
Project's name
46
47
48
48
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
VTP Building (OSIC)

Yoco Building
Zen Plaza
Total and average of Grade B
123 Nguyen Dinh Chieu
18 HBT
181 Dien Bien Phu
22 Nguyen Binh Khiem
24 Nguyen Binh Khiem
226 Le Van Sy
246E Le Van Sy
92 Huynh Van Banh
Abacus Tower
ACB Builidng
Agrex Sai Gon
Alpha Tower
An Phu Plaza
Artex Saigon Building
Athena
Bao Minh Tower
Beautiful Saigon 1
Beautiful Saigon 2 (BB Dai Minh Convention Tower)
Beta Security
Broadway Office Park
Business Airport Centre (Waseco)
C.T Plaza
Cavi
Central Park Building (Nguyen Trai)
Location
56 Nguyen Trai, District 1
123 Nguyen Dinh Chieu, District 3
181 Dien Bien Phu, District 1
22 Nguyen Binh Khiem, District 1
24 Nguyen Binh Khiem, District 1
226 Le Van Sy, Tan Binh
264E Le Van Sy, District 3
92 Huynh Van Banh, Phu Nhuan
444A Cach Mang Thang Tam, District 3
58 Vo Van Tan, District 3
117-119 Ly Chinh Thang, District 3
236-238 Nguyen Cong Tru, District 1
146-148 Cong Hoa, Tan Binh
217 Nam Ky Khoi Nghia, District 3
Nguyen Khac Vien , District 7
C5 B01 Hoang Van Thai, District 7
Nguyen Luong Bang , District 7
10 Pho Quang, Tan Binh
60A Truong Son, Tan Binh
51D Dinh Bo Linh, Binh Thanh
208 Nguyen Trai, District 1

Approx.
area (m2)
6,500
5,000
7,508
650,107
4,200
2,400
800
1,500
1,120
1,700
1,100
1,900
3,500
3,608
5,240
3,500
8,657
2,507
5,863
1,700
3,300
7,192
1,900
9,290
12,500
6,000
2,500
4,000
Est. average rent

(US$/m2/mth), excl.
VAT
Occupancy (%)
26
100
22
29
28
18
28
20
12
13
11
17
16
22
16
23
17
23
18
13
20
20
22
23
18
15
20
12
18
100
95
93
100
83
78
100
100
100
100
100
100
91
100
100
100
100
100
64
95
97
91
88
95
93
100
95
30
No.
Location
Approx.
area (m2)

5 Quang Trung Software Park, District 12
26 Tran Cao Van , District 3
45 Vo Thi Sau, District 3
12 Mac Dinh Chi, District 1
435 Hoang Van Thu, Tan Binh
27 Nguyen Trung Truc, District 1
12 Ton Dan, District 4
111D Ly Chinh Thang, District 3
1 Dinh Le, District 4
341-343 Dien Bien Phu, Binh Thanh
81 Cao Thang, District 3
268 To Hien Thanh , District 10
27 Dinh Bo Linh, Binh Thanh
26-28 Ham Nghi, District 1
147-149 Vo Van Tan, District 3
182 Le Dai Hanh, District 11
140 Nguyen Van Thu, District 1
78-80 Cach Mang Thang 8, District 3
180-182 Ly Chinh Thang, District 3
24C Phan Dang Luu, Binh Thanh
27-29 Nguyen Khac Vien , District 7
3,700
5,600
2,400
6,400
1,208
3,000
1,600
1,500
4,000
5,900
2,900
9,000
1,390
2,285
12,000
3,000
5,500
2,100
2,000
3,720
5,000
26,677
1,560
1,962
2,800
6,171
6,721
2,700
Project's name
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Central Park Nguyen Du

Charm IT Center
Ciat Building
Citilight Tower
Cityview
CT-IN
CMARD 2 Building
Colonnade
Comeco Tower
Constrexim Square
DC Tower
Dinh Le Office Building
DMC Building (Broadcast Building)
Do Thanh Mekong
Dong Han Plaza
Dong Nai Brick Building
Dong Tay TCI
DTC Plaza
Empire Tower
Endovina Center
E-star Building
Flemington
Gatexim Building
G-B Building
Giay Viet Plaza
Gilimex Office Building
Golden Tower
Gosto Commercial Centre

Est. average rent

(US$/m2/mth), excl.
VAT
20
13
13
20
19
13
18
15
22
12
17
16
14
20
11
15
18
13
24
22
15
21
16
18
14
16
25
17
Occupancy (%)
77
88
100
98
100
90
100
100
97
77
76
96
90
80
95
100
100
95
100
100
100
91
100
45
73
100
96
100
31
No.
Location
Approx.
area (m2)
62A Pham Ngoc Thach , District 3

209 Hoang Van Thu, Phu Nhuan
Hoang Dieu, District 4
60M Truong Son, Tan Binh
5 Phan Xich Long, Phu Nhuan
13-15-17 Truong Dinh , District 3
Xo Viet Nghe Tinh, Binh Thanh
36 Bui Thi Xuan, District 1
4B Ton Duc Thang , District 1
2 Thi Sach, District 1
549-551 Nguyen Tri Phuong, District 10
3G Pho Quang, Tan Binh
60 Nguyen Van Thu, District 1
159 Dien Bien Phu, Binh Thanh
1A Me Linh Square, District 1
19 Dong Da, Tan Binh
111 Ly Chinh Thang, District 1
1489 Nguyen Van Linh , District 7
110 Cach Mang Thang 8, District 3
1,850
3,000
1,400
12,000
5,924
1,800
4,800
2,052
5,100
2,448
8,000
7,308
8,155
1,690
4,000
5,730
1,200
3,500
3,000
1,650
3,200
1,120
1,500
3,600
14,600
5,073
4,400
2,219
Project's name
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
Green House
Green Star
H&H Building
H3 Building
Ha Do South Building
Ha Phan Building 1
Ha Phan Building 2
HAD Truong Dinh
Han Nam Office
Hang Xanh Building
Harbour View Tower
HDTC
HMC Building
Hoa Lam
Hoa Lam Office Centre
Hoang Anh Safomec
Hoang Trieu Building
HPL Building (Sycomore)
HUD Building
IBC Building
IDC Industrial Center
IDD 2
IDD Building
Intan Building
IPC Office Building
Itaxa House
I Tower
Jabes Building

Est. average rent

(US$/m2/mth), excl.
VAT
16
16
15
13
19
12
16
21
26
16
31
16
22
34
18
15
14
17
13
21
16
17
17
17
17
18
24
17
Occupancy (%)
100
99
100
68
100
71
90
100
100
100
90
100
97
100
98
91
77
100
97
98
94
100
89
100
83
100
95
96
32
No.
Location
Approx.
area (m2)

5 Dong Da, Tan Binh
20 Song Thao, Tan Binh
44-46-48 Bach Dang, Tan Binh
43-45 Ho Tung mau, District 1
123 Le Loi, District 1
51-53 Vo Van Tan, District 3
56-58-60 Hai Ba Trung, District 1
77 Tran Nhan Ton , District 5
70 Lu Gia, District 11
95A Phan Dang Luu, Phu Nhuan
149-151 Nguyen Van Troi, Phu Nhuan
235-241 Cong Hoa, Tan Binh
422-424 Ung Van Khiem, Binh Thanh
N1 Dien Bien Phu, Binh Thanh
728-730 Vo Van Kiet Highway, District 5
538 Cach Mang Thang 8, District 3
17 Ba Huyen Thanh Quan, District 3
Pho Quang, Tan Binh
21 Nguyen Trung Ngan, District 1
7-9-11 Mai Thi Luu, District 1
201 Cach Mang Thang Tam, District 3
167-169 Dien Bien Phu, District 1
6 Nguyen Khac Vien , District 7
1,952
3,651
2,412
2,800
3,750
1,210
2,000
1,620
2,390
17,635
2,500
3,400
1,820
2,640
1,350
4,242
3,000
2,100
1,600
6,540
6,000
3,927
1,440
3,199
2,200
3,243
1,140
6,000
Project's name
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
Jardine House
Khang Thong Building
Kicontrans
Kicontrans 2
Kicotrans Bach Dang
Kim Xuan Gia Building
Kimdo Centre
KM Plaza
Lant (Quynh Lan) Building
Lottery Building
Loyal Building
Lu Gia Plaza
Luong Tai Office
M Star Building
Maison Pasteur
Maseco
Mekong Tower
Melody Tower 1
Melody Tower 2
MH Building
Military Bank
Minh Long Tower
Minh Phuong Sai Gon
Miss Ao Dai
MTL Office Building
Nam A Bank Building
Nam An Building
Nam Long Capital Tower

Est. average rent

(US$/m2/mth), excl.
VAT
27
20
12
12
16
18
20
13
19
16
17
10
15
18
16
20
15
17
17
7
13
22
10
25
16
22
12
20
Occupancy (%)
100
96
98
70
79
100
100
83
100
75
100
100
100
100
100
100
95
100
100
100
89
100
100
100
84
85
100
100
33
No.
Project's name
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
Nam Minh Long Building

Nam Song Tien
NDC Office Building
Nguyen Lam
Norch Building
Ocean Tower
OIIC Building
OSC Viet Nam
Park View Building
Parkroyal (Garden Plaza)
Pasteur Tower
Pax Sky
Par Sky Pham Ngoc Thach
Petroland Tower (SCIC)
Phoenix Building
Phoenix Tower
Phu Ma Duong
Phuong Long
Phu Nu Newspaper Office Building
Phuong Nam Office
Pico Plaza
Pjico Building
PV Gas Tower (Dragon Tower Building)
Qunimex Building
Resco
Rosana Building
Sacomreal Office
Sai Gon - Mai Nguyen
Location
61A-63 Vo Van Tan, District 3
16 bis Nguyen Dinh Chieu, District 3
133 Duong Ba Trac, District 8
170-172E Bui Thi Xuan, District 1
248-250 Nguyen Dinh Chieu, District 3
144-148 Le Lai, District 1
309-311 Nguyen Van Troi, Tan Binh
16 Truong Dinh , District 3
13 Ky Dong, District 3
18-20 Phuoc Hung, District 5
Lot C4-1 Hoang Van Thai, District 7
20 Nguyen Dang Giai, District 2
673 Nguyen Huu Tho, Nha Be
28 Nguyen Thi Dieu, District 3
94-96 Nguyen Du, District 1
66 Pho Duc Chinh , District 1

Approx.
area (m2)
1,500
1,250
1,234
5,460
4,000
1,461
1,200
1,300
3,000
1,300
2,174
4,800
1,908
1,800
4,000
1,000
7,000
2,858
6,747
1,800
15,190
2,865
21,019
1,400
3,700
4,000
1,482
3,120
Est. average rent

(US$/m2/mth), excl.
VAT
17
15
27
13
15
13
13
15
22
17
19
22
17
17
16
15
15
18
17
15
20
16
18
17
24
23
25
17
Occupancy (%)
100
83
100
38
72
100
88
95
100
95
100
100
100
84
100
51
98
92
75
100
100
100
88
100
92
100
100
96
34
No.
Project's name
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164

Saigon Chau Khanh Nguyen Building
Saigon Prime Office Building
Samco
Samco Vo Van Kiet
Satra Building
SCS Internet Building
Seagull Building
Sky View
Sonata Building (TQD Office Builiding)
Song Tra
Star Building
Tan Hoang Minh Building
Tenimex Office Buidling
Thanh Dung Tower (Thai Son Building)
Thanh Nien Printing JS Co.
Thao Dien Building
Thien Son
Tien Phuoc Building
Tran Dinh Xu Office Building (Lang Truyen Thong)
TTA
Tuoi Tre Office Building
TV Building (HAD/KENT)
VFC Tower
Vietnam Business Center
Viet Thuan Thanh
Vimadeco Building
Vimedimex
Location
1 Bach Dang, Tan Binh
107-111 Nguyen Dinh Chieu, District 3
444-448 Nguyen Chi Thanh, District 10
326 Vo Van Kiet , District 1
275B Pham Ngu Lao, District 1
Saigon High Tech Park, District 9
39B Truong Son, Tan Binh
41A Nguyen Phi Khanh, District 1
55 Truong Quoc Dung, Phu Nhuan
96 Cao Thang, District 3
33ter-33bis Mac Dinh Chi, District 1
111-121 Ngo Gia Tu, District 10
179 Nguyen Cu Trinh , District 1
62 Tran Huy Lieu, Phu Nhuan
21 Hoang Hoa Tham, Binh Thanh
5 Nguyen Gia Thieu, District 3
90 Tran Dinh Xu, District 1
81-83 Nguyen Huu Cau, District 1
60A Hoang Van Thu, Phu Nhuan
31A Nguyen Dinh Chieu, District 3
57-59 Ho Tung Mau, District 1
246 Cong Quynh, District 1

Approx.
area (m2)
8,560
3,120
5,400
3,719
8,368
2,560
15,769
15,000
1,000
1,760
5,500
4,000
3,000
4,000
2,000
2,680
1,400
4,000
800
1,200
1,800
3,670
1,000
2,050
1,900
2,000
1,960
5,000
Est. average rent

(US$/m2/mth), excl.
VAT
21
17
20
22
17
22
17
16
15
18
20
18
20
10
18
20
14
16
15
13
15
18
19
17
18
22
15
20
Occupancy (%)
97
98
94
100
100
98
59
100
96
94
88
94
100
100
98
100
77
97
100
100
42
79
90
100
100
100
100
97
35
No.
Project's name
165
166
167
168
168
Vinaconex
Vitek Building
WMC Tower (IWA Square)
Robot Tower
Total and average of Grade C
Location
102A-B Cong Quynh, District 1

Approx.
area (m2)
925
2,500
2,056
3,200
675,316
Est. average rent

(US$/m2/mth), excl.
VAT
12
16
16
20
18
Occupancy (%)
100
100
100
89
92
36
Appendix 4:
Future Supply

37

No.
Project's name
District
Est. completion time
Est. area (m2)
Status
The Waterfront
Dist. 1
2015
8,822
Completing
MB Babylon
Tan Phu
2015
2,240
Completing
Royal Tower
Dist. 7
2015
22,563
Completing
Office Building
Dist. 1
2015
2,000
Under construction
Lim Tower 2
Dist. 3
2015
39,000
Completing
Sai gon Giai Phong Office Building
Dist. 3
2015
16,392
Completing
Hutech Tower 2
Binh Thanh
2015
19,300
Completing
Vietcombank Tower
Dist. 1
2015
67,000
Completing
PT Building
Dist. 1
2015
2,000
Completing
10
Viettel building
Dist. 10
2016
47,000
Project on hold
11
SFC Office Building
Dist. 1
2016
N/A
Under construction
12
Lung Lo
Dist. 10
2016
N/A
Under construction
13
Cong Hoa Garden
Tan Binh
2016
15,000
Under construction
14
Sai Gon Center Phase 2
Dist. 1
2016
40,000
Under construction
15
SSG Tower
Binh Thanh
2016
42,000
Completing
16
Lao Dong Newspaper Office Building
Dist. 3
2016
10,000
Project on hold
17
Otran Tower
Dist. 1
2016
3,000
Proposed/Planning
18
Complex Building
Dist. 1
2016
6,300
Under construction
19
Hai Quan
Dist. 1
2016
30,000
Under construction
20
Maple Tree Business Center
Dist. 7
2016
28,700
Under construction
21
Nam Giao
Dist. 1
2016
3,000
Project on hold
22
The One
Dist. 1
2017
58,000
Under construction
23
Gateway Parcel 1
Dist. 2
2017
3,342
Vacant land

38
No.
Project's name
District
Est. area (m2)
Status
24
257 Dien Bien Phu
Dist. 3
2017
13,800
Under construction
25
Golden Hill Complex (Ngan Binh)
Dist. 1
2017
7,000
Vacant land
26
Deutsches Haus
Dist. 1
2017
18,700
Under construction
27
Saigon Center Phase 2
Dist. 1
2017
40,000
Under construction
28
Sagri Tower
Binh Thanh
N/A
7,000
Project on hold
29
Berjaya- Viet Nam Financial Center
Dist. 10
N/A
188,000
Proposed/Planning
30
BIDV Tower
Dist. 1
N/A
40,000
Vacant land
31
DB Tower
Binh Thanh
N/A
10,000
Project on hold
Dist. 1
N/A
3,829
Under construction
33
Fosco International Business Center

Tower
Gia Dinh Tower
Dist. 1
N/A
N/A
Vacant land
34
Golden Plaza
Dist. 1
N/A
19,448
Project on hold
35
Great World Tower
Dist. 5
N/A
14,352
Proposed/Planning
36
Khahomex - Savico Tower
Dist. 4
N/A
15,119
Vacant land
37
Le Loi Plaza
Dist. 1
N/A
20,000
Proposed/Planning
38
Lega Fashion House
Dist. 10
N/A
N/A
Project on hold
39
Savico Office
Dist. 1
N/A
2,700
Vacant land
40
Nexus Parcel 2
Dist. 1
N/A
38,532
Vacant land
41
Nguyen Cu Trinh Center
Dist. 1
N/A
N/A
Proposed/Planning
42
Pacific
Dist. 1
N/A
2,216
Project on hold
43
PV Power Landmark
Dist. 2
N/A
2,424
Project on hold
44
Richland Hill
Dist. 9
N/A
21,000
Proposed/Planning
45
Roussel Viet Nam Building
Tan Binh
N/A
8,000
Proposed/Planning
46
Sai Gon Gateway
Phu Nhuan
N/A
3,252
Vacant land
47
Saigon M&C Tower
Dist. 1
N/A
40,000
Project on hold
32

39
No.
Project's name
District
Est. area (m2)
Status
48
Savico Plaza
Dist. 1
N/A
27,413
49
Saigon Green Energy Tower
Dist. 5
N/A
N/A
Vacant land
50
SJC - Le Loi
Dist. 1
N/A
60,043
Vacant land
51
Spring Light City
Dist. 3
N/A
27,594
Vacant land
52
Tan Phong Complex (Vivo City)
Dist. 7
N/A
100,000
Proposed/Planning
53
TDB Plaza
Tan Binh
N/A
N/A
Vacant land
54
Tie Tower
Dist. 10
N/A
11,000
Vacant land
55
Viet Thuan Thanh Office Tower
Binh Thanh
N/A
10,084
Project on hold
56
Marie Curie Suites
Dist. 1
N/A
7,798
Vacant land
56
Total

Project on hold
1,129,209
40
Disclaimer
freely quoted without acknowledgement

41

42
July 2014
Quarterly Report
Serviced Apartment
Q2/2015
Main Report
Ho Chi Minh City

Viet Nam
Prepared by
June 2015
18th Floor, Continental Tower,

T: +84 8 3 8239 205 F: +84 8 3823 4571

Ha Noi, Viet Nam
T: +84 4 9461 300 F: +84 4946 1302
Content
1.
SUPPLY .................................................................................................................. 3
1.1.
OVERALL SUPPLY ........................................................................................................................................3
1.2.
SUPPLY BY DISTRICT .................................................................................................................................4
1.3.
SUPPLY BY GRADE......................................................................................................................................5
2.
PERFORMANCE ..................................................................................................... 6
2.1.
OVERALL PERFORMANCE .......................................................................................................................6
2.2.
PERFORMANCE BY DISTRICT .................................................................................................................7
2.3.
PERFORMANCE BY GRADE .....................................................................................................................8
3.
DEMAND ANALYSIS ........................................................................................... 12
4.
FUTURE OUTLOOK.............................................................................................. 14
4.1.
4.2.
5.
SWOT ANALYSIS................................................................................................. 17

Appendix 2: Market Practices ................................................................................... 22
Appendix 3: Existing Stock ....................................................................................... 24
Appendix 4: Future Supply 2017E ......................................................................... 29
Disclaimer ................................................................................................................... 30
HCMC Quarterly Market Report Q2/2015 - Serviced Apartment Sector

List of Tables
Table 1. 1: New supply ...................................................................................................................................................................... 3
Table 4. 1: New supply in next two quarters..........................................................................................................................14
List of Figures
Figure 1. 1: Total stock by quarter ............................................................................................................................................... 3
Figure 1. 2: Stock by district ........................................................................................................................................................... 4
Figure 1. 3: Market share by grade .............................................................................................................................................. 5
Figure 2. 2: Occupancy and rent ................................................................................................................................................... 8
Figure 2. 3: Grade A performance ................................................................................................................................................ 9
Figure 2. 4: Grade B performance ..............................................................................................................................................10
Figure 2. 5: Grade C performance ..............................................................................................................................................10
Figure 3. 1: Leased unit volume ..................................................................................................................................................12
Figure 4. 2: Future supply by district .........................................................................................................................................15


2011, 2012, 2013, 2014, 2015
Best Property Consultancy in Viet Nam 2010

Executive Summary
Stock change
In Q2/2015, one new Grade C project entered the market; however, this did not significantly impact
the overall supply. The total supply of serviced apartments in HCMC was approximately 4,280 units
from 82 projects, relatively stable quarter-on-quarter (QoQ) and up 5% year-on-year (YoY).
Improved market performance

The serviced apartment market achieved better occupancy this quarter with improvements across
all three Grades. The average occupancy was 85%, up 3 ppts QoQ and YoY. The average rent, was
down by -1% QoQ and -3% YoY to US$23/m2/mth.
Strong Grade B occupancy increase

Amongst the three grades, Grade B had the most improved occupancy, up approximately 3 ppts
QoQ and YoY to 83 percent. The segments higher occupancy was influenced by short-term leases
in districts 1 and 7. Grade Bs rental rate was down 1% QoQ and 3% YoY to US$25/m2/mth.
Pressure from future supply

Future supply in 2H/2015 and 2016 may put pressure on the performance of the serviced
apartment market. New high-end stock from the expected Grade A Times Square and Grade B New
Pearl in 2H/2015 may have significant impact on occupancy rate of Grade A and B segments in the
short-term.
Positive outlook for demand

Taking advantages of changes from upcoming Free Trade Agreements (FTAs) and the Trans-Pacific
Partnership (TPP), many foreign companies are expected to invest and expand their business to
Vietnam. This will boost demand for serviced apartments.

1.
SUPPLY
1.1.
OVERALL SUPPLY
In Q2/2015, the HCMC serviced apartment market welcomed 14 new units from a self-operated
Grade C project in district 2, The Pearl.
Table 1. 1: New supply

No.
Project name
Address
Pearl
Street
Serviced
Apartment
District
No.
64,
Thao Dien Ward
District 2
Grade
Stock
(units)
14
Total stock for new supply
Description
1-br: 8 units (35 50m2)
2-br: 6 units (60 80m2)
14
As of Q2/2015, total supply of serviced apartments in HCMC was 4,285 units from 82 projects,
stable QoQ and up 5% YoY.
Around 72% of total serviced apartments in HCMC fall into one to 2-bedroom categories, due
to the fact that the majority of demand comes from single tenants and small families.
Figure 1. 1: Total stock by quarter

Grade A
units
Grade B
Grade C
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015

Approximately 70% of serviced apartment projects in HCMC are locally owned and operated.
The number of international operators in HCMC is in the minority and is mainly Grades A and B.
International operators in Grade A include the Intercontinental, Norfolk Group and Savills; while
Grade B international operators include Somerset (by Ascott Group), Nikko, Fraser, and
Peninsula.
1.2.
SUPPLY BY DISTRICT
As of Q2/2015, the CBD had the largest concentration of serviced apartments in HCMC with
more than 2,360 units, equivalent to 55% of total supply. In particular, district 1 dominated the
market with a 40% market share, followed by district 3 with 15 percent.
In recent years, due to growing demand and limited stock expansion opportunities in district 1
and 3, the development of serviced apartment projects has shifted to outside the CBD to new
urban areas (NUAs) due to developed infrastructure and the large foreign communities in these
areas. District 2 has had a stock growth of 29% pa over the last five years; as of the studied
period, the district provided 630 serviced apartments from 15 projects, approximately 15% of
the total supply. District 7 also had a very high density of serviced apartment accommodation,
accounting for a 15% market share.
Serviced apartments in the CBD and NUAs cater primarily to business guests due to their high
concentration of office buildings and better public infrastructure/facilities. Serviced apartments
in Phu Nhuan and Tan Binh have become particularly popular among staff working for airlines
(pilots and flight attendants) due to lower rental rates and proximity to the airport.
Figure 1. 2: Stock by district

1,800
projects
units
30
1,500
25
1,200
20
900
15
600
10
300
District 1
District 7
District 3
District 2
Binh Thanh
Others
Grade C
413
52
253
169
22
473
Grade B
736
598
350
468
138
Grade A
558
55
Number of projects
28
16
15
13
Note: Others include districts 10, 11, 12, Phu Nhuan and Tan Binh.

1.3.
SUPPLY BY GRADE
The structure of the three grades was unchanged QoQ. Grade B had the largest stock with the
highest share at 54%, followed by Grade C with 32 percent.
Grade B and C stock has met demand from both business and leisure travellers. Grade A
accommodation which mainly caters for high-income expats was concentrated in the CBD;
particularly in district 1. This area is well-known for a the high amount of office buildings and
developed infrastructure.
Figure 1. 3: Market share by grade
Grade A
14%
Grade C
32%
Grade B
54%

2.
PERFORMANCE
2.1.
OVERALL PERFORMANCE
Q2/2015 was a successful quarter with the average occupancy increasing by 3 ppts QoQ and
YoY to 85%, the highest since Q4/2012. All three grades had improved occupancies compared
with the previous quarter.
Short-term contracts contributed partly to higher occupancy of Grades B and C during this
quarter. More than 90% of serviced apartments offered short and long-term contracts. The
average rent for long-term contracts was 35% lower than short-term contracts.
The average rental rate continued to decrease 1% QoQ and 3% YoY to US$23/m2/mth in an
effort to increase occupancy. Over the last two years, the average rent has fallen 1%/quarter.
Amongst the three grades, Grade A suffered the most significant drop in rent of 3% compared
with the previous quarter.
Along with competitive asking rents, tenants were offered favourable discounts and incentives
for long-term tenancies such as higher electricity/water allowances and a free laundry service.

30
US$/m2/mth
25
100
80
20
60
15
40
10
20
5
0
Avg rent rate
Occupancy rate
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
23.3
23.2
23.2
22.8
22.6
82
82
83
82
85

Note: The average rent was based on long-term contract (at least six months), includes service charges but excluding VAT.

2.2.
PERFORMANCE BY DISTRICT
District 1 is the favoured area for tenants due to its location, convenient transportation and
facilities for expatriates. The district has achieved a high occupancy of over 89% in the last five
quarters. In Q2/2015, occupancy was 94%; up 5% QoQ and 3% YoY. District 1 offers the highest
average rent of US$27/m/mth, mostly attributed to the high rental rates from internationally
managed Grade A and B projects.
In the non-CBD, serviced apartment projects are often less attractive than the CBD due to
location disadvantages. The average rental rate in the non-CBD continued to decrease 1% QoQ
to US$23/m2/mth as most serviced apartment projects in these areas were trying to attract
more customers. In Q2/2015, the non-CBDs occupancy increased 4% QoQ to 84 percent.
Tan Binh achieved the highest increase in occupancy in the non-CBD area, up 3% QoQ and 11%
YoY to 85 percent. This was due to the increase in occupancy of the Saigon Airport Plaza of 5
ppts to 94% QoQ. This project is preferred choice of pilots, air technicians and staff of the
airport and companies in the surrounding areas.
NUAs including district 2 and 7 performed better than last quarter. They are adjacent to the
CBD and industrial parks and have well-planned amenities, infrastructure, as well as a high
concentration of international schools, hospitals and clinics.
o
The average occupancy of district 7 increased by 11% QoQ and 13% YoY to 81 percent.
The majority of the projects in district 7 have become operational in the last two to
three years; the units are new and have modern decor. All projects in district 7 are
concentrated in the Phu My Hung NUA and have higher rentals than the overall
market, at approximately US$26/m2/mth. The spacious, Asian style apartments meet
the demand of families, especially Asia tenants.
District 2 had an average occupancy of 85; stable QoQ and up 2% YoY. The projects
offered spacious apartments with much lower rent than district 7 at around
US$19/m2/mth.

Figure 2. 2: Occupancy and rent

30
US$/m2/mth
100
25
80
20
60
15
40
10
20
5
0
District 1 District 7 District 3 District 2
Binh
Thanh
District
Phu
Tan Binh
10
Nhuan
District
12
District
11
Avg rent rate (LHS)
27
26
22
19
18
15
13
12
10
Occupancy (RHS)
94
81
73
85
91
79
85
88
50
40
Note: The average rent was based on long-term contract (at least six months), includes service charges but excluding VAT.
2.3.
PERFORMANCE BY GRADE
Grade A
Most Grade A projects are luxury apartments with city views, premium living environments and
prime locations in the CBD that attract high-income expatriates. Due to limited stock and high
demand from high-income expats, Grade A projects have seen increasing occupancy rates
compared with Q1/2015, reaching 95% this quarter, an increase of 1% QoQ and 5% YoY.
Amongst six active high-end projects in HCMC, Nguyen Du Park Villas had the best
performance with full occupation during three consecutive quarters. The project provided
flexible options of luxury one to 4-bedroom villas with the conveniences and security of a fivestar serviced residence.
Intercontinental Asiana Saigon is fully occupied, up 3% QoQ, the highest occupancy increase
among Grade A projects. A prime location, full range of facilities and amenities, international
operators reputation, along with qualified services were the main reasons for the projects
strong performance, despite it having the highest rental rate in the segment, at around
US$35/m2/mth.
The average rent of Grade A was US$30/m2/mth, down 3% QoQ but stable YoY. This was due to
the strong decrease in Norfolk Mansions rental rate, which was down 13% compared with the

previous quarter to attract more tenants. In return, the projects occupancy has risen 3% QoQ
and 5% YoY to 95 percent.
Figure 2. 3: Grade A performance
35
US$/m2/mth
30
100
80
25
60
20
15
40
10
20
5
0
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Avg rent rate
30
30
31
31
30
Occupancy rate
91
91
95
95
95

Note: The average rent was based on long-term contract (at least six months), includes service charges but excludes VAT.
Grade B
In Q2/2015, Grade B segment achieved an average occupancy of 83%, up by 3% QoQ and YoY.
This improved occupancy was due to districts 1 and 7s higher occupancy QoQ.
This quarter, Grade B projects in District 1 achieved the highest occupancy of 92%, up 6% QoQ
and 1% YoY. This increase came from increases in short-term stays and lower rents in projects
such as Nikko, Saigon Sky Garden, Spring Court and LaFaytte De Saigon.
Apart from Waterfront and Crescent Residence 3, all Grade B projects in district 7 had an
improvement in occupancy. The Capri had the highest occupancy increase of 38% QoQ to 89%,
the highest since the project launched. Short-term leases of 1-bedroom apartments
contributed mostly to this success, whilst the 2-bedroom type has been fully occupied by longterm tenants.
Since Q2/2013, the average rent of the Grade B segment has continued trending downwards
with a quarterly decrease of 1%. In Q2/2015, the average rent was at US$25/m2/mth, down 1%

QoQ and 3% YoY. The lower rate comes from 2% QoQ rental drop in projects in the CBD to
US$26/m2/mth to attract more tenants.
Figure 2. 4: Grade B performance
30
US$/m2/mth
25
100
80
20
60
15
40
10
20
5
0
Avg rent rate
Occupancy rate
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
25.2
25.1
25.0
24.7
24.5
79
79
80
79
83

Note: The average rent was based on long-term contract (at least six months), including service charges but excluding VAT.
Grade C
Due to tightening budget of young expats and affordable rental rates, Grade C projects are
now a favourable choice for short-term business travellers. In Q2/2015, the Grade C segment
achieved an average occupancy of 84%, up 2% QoQ and YoY.
Grade C projects in the CBD performed much better than the non-CBD area due to a prime
location and high density of office buildings. In Q2/2015, the CBD achieved better performance
with occupancy increasing by 6% QoQ to 91%; whilst the non-CBDs decreased 1% QoQ to 78
percent.
In Q2/2015, the Grade Cs rental rate was at US$16/m2/mth, up 3% QoQ but down 1% YoY. The
QoQ increase was mainly due to a 4-5% increase in the average rent of projects in the CBD and
NUAs.

10
Figure 2. 5: Grade C performance

20
US$/m2/mth
100
16
80
12
60
40
20
0
Avg rent rate
Occupancy rate
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
16.4
16.4
16.3
15.8
16.3
82
83
84
82
84

Note: The average rent was based on long-term contracts, (at least six months), including service charges but excluding VAT.

11
3.
DEMAND ANALYSIS
Take-up
In Q2/2015, the serviced apartment market had a total take-up of approximately 217 units,
407% higher than Q1/2015. This was due to the international workforce in Vietnam, as HCMC is
now a main destination for foreign expats, which should correlate to a growing demand for
serviced apartments. In addition, leisure travellers are also now actively seeking spacious units
which serviced apartments provide as opposed to conventional hotels.
Figure 3. 1: Leased unit volume
4,000
Previous-quarter leased units
units
Take-up
3,000
2,000
1,000
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
Target market
Expatriates working and living in HCMC are the main source of long-term tenants in serviced
apartments. The number of expatriates is mostly driven by foreign direct investment (FDI)
inflow to the city. HCMC is the most attractive destination for FDI among provinces and cities in
Vietnam. According to the Statistical Office of HCMC, as of 1H/2015, 249 FDI newly-registered
projects were licensed with a capital of over US$794 million. In addition, 80 projects registered
an increased capital of nearly US$407 million, a 4% increase YoY. On the whole, FDI capital in
the city in the first six months reached US$1.2 billion, a YoY rise of 33 percent.

12
Demand by nationality
Tenants in HCMCs serviced apartments mostly come from Asian countries. According to the
HCM City Real Estate Association, more than 80,000 Koreans, 7,600 Japanese and 6,000
Filipinos, are currently working and living in the city.
The location of foreign communities in HCMC has an important role in expatriates decision of
living location.
o
With diverse apartment types, dcor and prime locations, serviced apartment projects
in the CBD, including districts 1 and 3, have a variety of nationalities, mostly from
Japan, Korea and Europe.
NUAs with new urban planning, public facilities and infrastructure such as international
schools and medical clinics have attracted a large number of international tenants from
various nationalities. Records from the Crescent Residences in district 7 show that
Korean tenants accounted for 35%, followed by Japanese at 30 percent. The majority of
occupants from serviced apartment projects in district 2 come from Western countries
such as the UK, France, Australia, and US.
Alternatives to conventional hotels
Serviced apartments are relatively recent products in the lodging industry that have gained
significant popularity in recent years, thereby representing a significant competitor for
conventional hotels. Serviced apartments have become an attractive alternative to the standard
hotel product for short-term stay by giving tenants the freedom of their own house and adding
the exclusive service of a hotel to it. The demand for serviced apartments in HCMC has grown
8% pa over the last five years, fuelled by gradually improving product knowledge, improving
standards of serviced apartments and the arrival of major brands into the market, namely
Ascott, InterContinental, Somerset, Fraser, Norfolk Group, Savills, etc.
Serviced apartments offer occupants the convenience and service of a hotel but with the
comfort and amenities of a home. With business travellers spending even longer at the office
and further away from home, serviced apartments are becoming increasingly more popular.

13
4.
FUTURE OUTLOOK
4.1.
OUTLOOK FOR SUPPLY

The serviced apartment market is expected to welcome 21 future projects supplying more than
4,360 units. From 2H/2015 to 2017, eleven projects with approximately 2,200 units are expected
to come online.
There are currently two serviced apartment projects with a total of 220 units in the 2H/2015
development pipeline, including 100 units from the expected Grade A Times Square and the
120 units from expected Grade B New Pearl Residence. If these projects are released by the end
of 2015, the serviced apartment stock is expected to increase by 8% compared with 2014. The
stock growth correlates with the demand for the market which has grown at an average of 8%
pa over the last five years. However, in the short-term, the performance of the high-end
segment will be under pressure from the large amount of future supply entering the market.
o
Times Square on Nguyen Hue Street, district 1 is a 40-level luxury commercial complex
including a hotel, serviced apartments, and retail and office space for lease. Apart from
the active hotel and office, the serviced apartment is expected to come online in late
2015.
Developed by Sunny World, New Pearl Residence is located on Nam Ky Khoi Nghia,
district 3 the golden street to downtown HCMC. As of the studied period, the project
is in the final stages of completion.
Table 4. 1: New supply in the second half of 2015

No.
Projects name
District
Expected Grade
Number of units
Times Square
District 1
100
New Pearl Residence
District 3
120
Total
220
The CBD remains a favourable choice for foreigners. There are 13 future projects in districts 1
and 3 providing 30% of future supply in HCMC. The remainder will be in non-CBD including
district 4, 7, 10, Tan Binh and Phu Nhuan.
As of Q2/2015, 52% of future projects are under construction or being completed. The rest are
either on vacant land, in planning or pending.

14

projects
units
1,500
6
5
1,000
4
3
500
2
1
6M/2015E
2016E
2017E
220
731
1,250
Future units
Number of projects
Figure 4. 2: Future supply by district

3,000
units
2,500
2,000
1,500
1,000
500
District 1
Tan Binh
District 7
District 3
District 2
Phu
Nhuan
Others
Total future units
1,112
1,216
480
213
195
1,150
Total current units
1,707
156
650
658
637
93
384
Note: Others include districts 10, 12, Phu Nhuan and Tan Binh.

15
4.2.
OUTLOOK FOR DEMAND
Vietnams economy is expected to benefit from the Governments upcoming open-door policy.
With a stable political environment and strong economic potential, Vietnam is an attractive
destination for foreign investors. The Vietnamese Government is endeavoring to create a
favorable investment environment by continuing to revise Vietnams legal system and
introducing important incentives for foreign investors. In an effort to attract investors towards
certain economic sectors, Vietnamese tax law offers preferential tax rates, tax reductions and
tax exemptions for newly-established companies investing in areas with extreme socioeconomic conditions, economic zones and high-tech parks. The Corporate Income Tax (CIT)
rate has gradually fallen from 32% in 1997, to 25% in 2009, and most recently to 22% (as of
January 1 2014) and 20% (effective in January, 2016). It is predicted that FDI inflow to Vietnam
and HCMC in particular will possibly increase in 2015 as a result of the advantages offered by
these incentives. According to the Peoples Committee, HCMC is expected to receive an
extensive amount of FDI as the authorities are completing procedures to grant investment
licenses for a complex project in Thu Thiem; which is worth US$1.2 billion in Q3/2015.
According to the Ministry of Industry and Trade, Vietnam has signed and is negotiating several
free trade agreements (FTAs), including the Trans-Pacific Partnership, EU-Vietnam FTA and
Vietnam-Korea FTA, which will likely happen in the end of 2015. As a result, these FTAs are
expected to spur new investment from foreign firms, particular from Japanese and EU
companies who are gradually redirecting Chinese investment to the ASEAN region. This may
have a positive impact on the rising number of foreign professionals working in the city.
The National Assembly has approved the amended Housing Law, which gives property rights
for overseas Vietnamese and foreigners. The new law, which took effect in July 2015, removes
many of the previous restrictions on foreign individual buyers, allowing them a 50-year
leasehold contract for landed properties in Vietnam. This may have a negative effect on the
demand from expatriates for serviced apartments.

16
5.
SWOT ANALYSIS
HCMC is the most popular investment destination in Vietnam and

has a high concentration of embassies and foreign enterprises.
Strengths
HCMC has good infrastructure and convenient public transportation.
Diversified lease terms and rental rates.
High level service and luxury facilities from high-end projects in the
CBD.
Narrow segment of tenants - mainly expatriates and business

travellers.
Weaknesses
Weak marketing strategy to attract target customers.
Lack of international brands in Grade B and C segments.
Increasing number of foreign invested companies and international

business travellers.
Opportunities
Improving
infrastructure
connecting
HCMC
with
surrounding
provinces.
Positive short to mid-term outlook for FDI in Vietnam.
New Housing Law may have a negative effect on the demand from
expatriates for serviced apartments.
Threats
Competition with buy-to-let apartments and traditional hotels.
Majority of future projects are hardly committed to construction

progress.

17
Research Parameters
Chanh and Thu Duc.

18
Appendix 1:
Term Definitions

19
Term
Term explanation
Lessee
The person or business that takes a property on lease.
Lessor
The person or business that leases out a property.
Net floor
Usable floor area after deducting stairs, walls, mechanical areas, corridors, vents,
area (NFA)
balconies, etc.
Penthouse
An apartment located on the top floors of a building. Often associated with luxury.
Serviced
A room or set of rooms fitted with typical residential apartment facilities that can
apartments
be leased or rented as a separate and independent dwelling, in which the cost of

the majority of the services (electricity, water, cleaning, etc) is included in a weekly
or monthly charge.
Utilities
The private or public service facilities such as gas, electricity, telephone, water and
sewer that are provided as part of a development.
VAT
Value Added Tax which is payable by the buyer of a property, currently the rate is
10 percent.

20
Appendix 2:
Market Practices

21
Appendix 2: Market Practices

Issues
Market practice
Lease term
Six months and above
Payment
One months rent in advance
terms
Security
Two months rent
deposit
Payment
In VND
Brokerage fee
Usually, leasing fees are typically one months rent paid by the landlord
VAT
Currently 10%, this VAT is either included in the sale price or excluded,
depending on each project

22
Appendix 3:
Existing Stock

23

Units
Average rent rate

(US$/m2/mth), excl. VAT
Occupancy (%)
34 Le Duan, district 1
42
26
95
1 Le Quy Don, district 3
55
23
82
260
35
100
111 Nguyen Du, district 1
41
28
100
Norfolk Mansion
17 Ly Tu Trong, district 1
126
29
95
Sedona Suites
65 Le Loi, district 1
89
25
90
613
30
95
1
2
3
4
5
6
7
Somerset Vista
Diamond Island
Capri
An Phu Plaza
An Phu Compound
Saigon Domaine
Xi Riverview Palace
628 HaNoi Highway, district 2

Binh Trung Tay Ward, district 2
2 Hoang Van Thai, district 7
117-119 Ly Chinh Thang, district 3
43 Thao Dien, district 2
1057 Xo Viet Nghe Tinh, Binh Thanh
An Phu, Thao Dien, district 2
100
68
175
54
68
45
80
20
21
40
16
22
18
16
94
35
89
78
100
78
93
Nikko
235 Nguyen Van Cu, district 1
53
29
96
Saigon View Residences
117 Nguyen Cuu Van, Binh Thanh
93
19
96
10
Waterfront
Saigon South, district 7
132
20
65
11
Crescent Residence 3
Phu My Hung, district 7
64
20
89
12
111
19
86
13
116
26
72
14
Sherwood Residence
127 Pasteur, district 3
240
23
50
15
Saigon Court
149 Nguyen Dinh Chieu, district 3
56
26
93
16
Riverside Apartments
53 Vo Truong Toan, district 2
152
24
89
17
Spring Court
1Bis Phung Khac Khoan, district 1
14
16
93
No.
Project's name
Location
Diamond Plaza
Indochine Park Tower
Intercontinental Asiana Saigon
Nguyen Du&Hai Ba Trung, district 1
Nguyen Du Park Villas

24
Units
Average rent rate

Occupancy (%)
8A Nguyen Binh Khiem, district 1
165
21
85
Somerset Chancellor Court
21-23 Nguyen Thi Minh Khai, district 1
172
30
94
20
Saigon Sky Garden
20 Le Thanh Ton, district 1
172
31
97
21
Landmark
5B Ton Duc Thang, district 1
66
30
88
22
LaFaytte De Saigon
8 Phung Khac Khoan, district 1
18
30
100
23
Garden View Court
101 Nguyen Du, district 1
76
23
93
23
2,290
25
83
No.
Project's name
Location
18
Somerset HCM
19
27-29 Ho Xuan Huong
27-29 Ho Xuan Huong, district 3
10
12
100
An Loc
55 Vo Van Tan, district 3
13
16
100
AVA
40/10 Nguyen Van Huong, district 2
35
18
94
City Living
10C2 Nguyen Thi Minh Khai, district 1
18
18
89
City View
12 Mac Dinh Chi, district 1
69
23
93
Compass Parkview
149-151 Nguyen Du, district 1
34
31
79
DB Court
218 Dien Bien Phu, district 3
38
23
92
Emm Hotel Saigon
157 Pasteur, district 3
44
28
93
Glenwood Apartment
248A Nguyen Van Huong, district 2
11
11
73
10
Glenwood Residence
243 Nguyen Van Huong, district 2
21
11
86
11
Golden Globe
324/35-37 Hoang Van Thu, Tan Binh
12
11
33
12
Green Hills
Quang Trung Software Park, district 12
100
10
50
13
Hado Villas
766 Su Van Hanh, district 10
30
11
83
14
HBT
180A Hai Ba Trung, district 1
21
21
90
15
Him Lam
234 Ngo Tat To, Binh Thanh
14
20
100
16
Hoan My NDC
455 Nguyen Dinh Chieu, district 3
12
83

25
Units
Average rent rate

Occupancy (%)
72/6 Truong Quoc Dung, Phu Nhuan
10
80
Hoang Ha Apartment
5 Ly Chinh Thang, district 3
10
70
19
K&T
215B3 Nguyen Van Huong, district 2
11
12
73
20
Kim Sa
100Bis Nguyen Dinh Chieu, district 1
19
14
100
21
Lisa Apartments
413/15-17-19 Nguyen Kiem, Phu Nhuan
12
13
75
22
Mai Har Lan
10AB Thai Van Lung, district 1
41
21
95
23
May Apartment
216/A37 Nguyen Van Huong, district 2
11
100
24
Mayfair Suites
102 AB Cong Quynh, district 1
28
26
96
25
Merin Suites
121/1-121/3 Nguyen Van Troi, Phu Nhuan
32
11
84
26
Nam An
167-169 Dien Bien Phu, district 1
12
92
27
Nhat Minh
15A Le Thanh Ton, district 1
21
19
95
28
Nhat Minh Avila
22 Thi Sach, district 1
34
25
100
29
Parkside Residence
166-168 Nam Ky Khoi Nghia, district 3
30
27
97
30
PL Central
27 Thai Van Lung, district 1
14
20
100
31
PNT
58/8 Pham Ngoc Thach, district 3
17
86
32
Royal Huy
204B6/8 Nguyen Van Huong, district 2
15
11
67
33
Royal Kim Son
112 Nguyen Van Huong, district 2
15
11
87
34
1 Bach Dang, Tan Binh
84
17
94
35
Saigon Apartment
2K Ho Xuan Huong, district 3
20
15
90
36
Saigon City Residence
8A/3D2 Thai Van Lung, district 1
17
43
100
37
Saigon Mansion
3 Vo Van Tan, district 3
35
20
74
38
Saigon Village
17 To Hien Thanh, district 10
32
18
75
39
Southern Cross
East 8th Street, Phu My Hung, district 7
52
13
96
No.
Project's name
Location
17
Hoan My PN
18

26
Units
Average rent rate

Occupancy (%)
Nguyen Van Huong, district 2
22
100
Sweet Home
27K Tran Nhat Duat, district 1
12
13
100
Tan Binh
5 Hoang Viet, Tan Binh
40
80
43
Thien Son
Nguyen Gia Thieu, district 3
13
19
54
44
Usilk apartment
8B Dong Nai, Tan Binh
20
10
90
45
Valentina Court
124 Dien Bien Phu, district 1
28
13
100
46
Veronica BT
D2 Street, Binh Thanh
88
47
Veronica D2
216/26 Nguyen Van Huong, district 2
14
93
48
Victoria Court
29 Huynh van Banh, Phu Nhuan
31
11
97
49
Vy Long
36/6R Nguyen Van Troi, Phu Nhuan
14
100
50
Xuan Huong
26A Le Thanh Ton, district 1
45
16
93
51
Khai Hoan Apartment Hotel
624 Lac Long Quan, district 11
62
40
52
Thien Son 2
16 Ngo Thoi Nhiem, district 3
21
21
81
53
Pearl Serviced Apartment
Street No. 64, district 2
14
13
79
53
1,382
16
84
82
Total and average of whole market
4,285
23
85
No.
Project's name
Location
40
Sunrise
41
42

27
Appendix 4:
Future Supply

28

No.
Project's name
District
Estimated supply (units)
Times Square
district 1
2015
100
Completing
New Pearl Residence
district 3
2015
120
Completing
Saigon Centre (Phase 2)
district 1
2016
200
Under-construction
Ascott Waterfront Saigon
district 1
2016
222
Completing
Icon D3
district 3
2016
63
Under-construction
Cosmo Residence
district 3
2016
30
Under-construction
Cong Hoa Garden Complex
Tan Binh
2016
216
Under-construction
Golden Hill
district 1
2017
100
Vacant land
Ben Thanh Tower (The One)
district 1
2017
N/A
Under-construction
10
Lancaster Residence
district 4
2017
250
Ground breaking
11
The Landmark 81 Tower
Binh Thanh
2017
900
Ground breaking
12
Hacota Building (Somerset Saigon)
district 1
N/A
100
Under- construction
13
Savico Plaza D1
district 1
N/A
N/A
Ground breaking
14
Lavenue Crown
district 1
N/A
240
Vacant land
15
4 Star Hotel Residential Apartment
district 1
N/A
N/A
Proposed/Planning
16
Ben Thanh Ben Chuong Duong
district 1
N/A
150
Proposed/Planning
17
Tie Tower
district 10
N/A
N/A
Proposed/Planning
18
Vietnam Financial Centre
district 10
N/A
N/A
Proposed/Planning
19
Tan Phong Shopping Complex (SC Vivo)
district 7
N/A
480
Proposed/Planning
20
Saigon Gateway
Phu Nhuan
N/A
195
Vacant land
21
Him Lam-Tan Son Nhat Golf
Tan Binh
N/A
1,000
21
Total

Status
Proposed/Planning
4,366
29
Disclaimer
freely quoted without acknowledgement

30

31
Quarterly Report
Apartment for sale

Q2/2015
Main Report
Ho Chi Minh City

Viet Nam
Prepare by
June 2015

T: +84 8 3 8239 205 F: +84 8 3823 4571

Ha Noi, Viet Nam
T: +84 4 9461 300 F: +84 4946 1302
Content
1.
SUPPLY .................................................................................................................. 5
1.1.
OVERALL SUPPLY ........................................................................................................................................5
1.2.
PRIMARY SUPPLY........................................................................................................................................5
1.3.
SECONDARY SUPPLY ............................................................................................................................. 10
2.
PERFORMANCE ................................................................................................... 11
2.1.
OVERALL PERFORMANCE .................................................................................................................... 11
2.2.
PRIMARY MARKET ................................................................................................................................... 11
2.3.
SECONDARY MARKET PERFORMANCE .......................................................................................... 16
3.
DEMAND ANALYSIS ........................................................................................... 18
3.1.
FINANCIAL SUPPORT ............................................................................................................................. 18
3.2.
RENTAL YIELD ........................................................................................................................................... 19
3.3.
PRODUCT DIVERSITY ............................................................................................................................. 20
4.
FUTURE OUTLOOK.............................................................................................. 21
4.1.
4.2.
5.
SWOT ANALYSIS................................................................................................. 23

Term Definitions ........................................................................................................ 25
Appendix 1: Average Asking Secondary Prices of 100% Sold Projects ................ 26
Appendix 2: Projects in the Primary Market ........................................................... 34
Appendix 3: Future Projects ..................................................................................... 42
Disclaimer ................................................................................................................... 49
HCMC Quarterly Market Report Q2/2015 Apartment for sale Sector

List of Tables
Table 1. 1: Market summary ........................................................................................................................................................... 5
Table 1. 2: Newly launched projects............................................................................................................................................ 6
Table 3. 1: Rental Yield ....................................................................................................................................................................19
List of Figures
Figure 1. 1: Primary stock by district ........................................................................................................................................... 8
Figure 1. 2: Primary stock by grade ............................................................................................................................................. 9
Figure 1. 3: Secondary stock by district ...................................................................................................................................10
Figure 2. 1: Performance by district ...........................................................................................................................................11
Figure 2. 2: Performance by grade .............................................................................................................................................14
Figure 2. 3: Average secondary price ........................................................................................................................................16
Figure 2. 4: Secondary price growth .........................................................................................................................................17
Figure 4. 1: Future supply by district, 2015 2017..............................................................................................................21
Figure 4. 2: Future supply by year, 2015 2018 ...................................................................................................................22


2011, 2012, 2013, 2014, 2015

Executive Summary
Strong new supply

In Q2/2015, eleven new projects and new phases of eight active projects were launched, providing
more than 9,700 units, increasing 47% quarter-on-quarter (QoQ) and 138% year-on-year (YoY). This
quarter had the highest amount of newly launched supply in the last five years. As of Q2/2015,
there were approximately 26,000 available units in the primary market, a significant increase of 27%
QoQ and 72% YoY.
Outstanding performance
The overall absorption rate was 19%; a decrease of 2 ppts QoQ but an increase of 2 ppts YoY. In
Q2/2015, approximately 5,000 units were sold, up 17% QoQ and 96% YoY, the highest transaction
volume since Q4/2010.
Grade B sales volume had a strong increase of 26% QoQ while Grade C maintained a good
performance QoQ.
Demand
In Q2/2015, district 2 achieved the most sales with 28% of the total transaction volume, followed by
Binh Thanh with 15 percent. Projects with a prime location, sufficient facilities and supported by
infrastructure development are popular.
Strong future supply

From 2H/2015 to 2017, approximately 59,200 new units from 90 existing and future projects are
expected to enter the market. District 9 is a major future supplier, followed by Binh Thanh and
district 2.

1.
SUPPLY
1.1.
OVERALL SUPPLY
As of Q2/2015, there was a total of 332 active and 100% sold projects, providing more than
112,200 units, an increase of 9% QoQ and 27% YoY. In Q2/2015, there were approximately
26,000 available units in the primary market, a significant increase of 27% QoQ and 72% YoY.
Table 1. 1: Market summary

Project type
Number of projects
Number of units
Active primary projects
106
51,643
100% sold- out projects
226
60,646
Total
Future projects
332
160
112,289
127,090
1.2.
PRIMARY SUPPLY
New projects
This quarter 11 new projects and new phases of eight active projects were launched, providing
more than 9,700 units. This is an increase of 47% QoQ and 138% YoY. This quarter had the
highest amount of newly launched supply in one quarter in the last five years. New supply
appeared in all Grades; with Grade B accounting for 62% of the total launched units, followed
by Grade C with a 34% share. Grade A only accounted for 5% of newly launched units in
Q2/2015.

Table 1. 2: Newly launched projects

No.
New
projects
Existing
projects
Projects name
Address
District
Grade
Sarimi
dist. 2
Gateway Thao Dien
dist. 2
194
Everich Infinity
Mai Chi Tho, Sa La urban

area
Ha Noi Highway, Thao
Dien ward
An Duong Vuong Street
No. of
units
414
dist. 5
758
Wilton Tower
1W Dien Bien Phu
Binh Thanh
494
Sunrise Cityview
Nguyen Huu Tho
dist. 7
703
Krista
Nguyen Duy Trinh Street
dist. 2
344
Melody Residences
Au Co Street
Tan Phu
704
The Easter City
Pham Hung
dist. 8
120
Jamona Apartment
dist. 7
260
10
An Gia Riverside
Bui Van Ba, Tan Thuan

Dong ward
inside Dao Tri
dist. 7
250
11
Flora Anh Dao
Do Xuan Hop Street
dist. 9
500
12
Vinhomes (Next launch)
Binh Thanh
1,200
13
Masteri (Next Launch)
Nguyen Huu Canh

Street
Ha Noi Highway
dist. 2
1,260
14
Vista Verde (Block Lotus)
Dong Van Cong Street
dist. 2
218
15
Citihome (Next launch)
dist. 2
176
16
CBD Premium Home

(Next launch)
Scenic Valley (Next
launch)
The Park Residence
(Next launch)
Botanica (Next launch)
dist. 2
197
Nguyen Van Linh Street,

PMH
Area 12, Nguyen Huu
Tho, Phuoc Kieng
Pho Quang street, Ward
2
dist. 7
392
Nha Be
528
Phu Nhuan
479
17
18
19
Total

9,191
This quarter developers continued to show confidence in launching new apartment projects.
Sarimi was the only Grade A project launched in Q2/2015. It was located inside the Sala urban
area in Thu Thiem New Urban Area (NUA). Sala urban area was developed by Dai Quang Minh
Corporation and comprises of apartment, villas, townhouses and office, retail, etc. Sarimi
apartment was the first component to be launched and has a low-rise design of 12 levels
providing 414 units.
Gateway Thao Dien was a jointly developed project by Hamon Developments and Son Kim
Land. The project has good location in Thao Dien ward and is close to the future Metro Line 1.
With a close distance to Saigon River, the project also has a wide river view for all apartments.
Approximately 194 units were launched this quarter out of the planned 439 units. Gateway
Thao Dien provides a wide selection of apartments including studios, 1 to 4-bedroom units
with modern designs and integrated facilities such as a resort style swimming pool,
kindergarten, wine cellar, sauna and an F&V courtyard.
Everich Infinity has a prime location on An Duong Vuong street in district 5, leveraging the
surrounding retail developments and facilities such as Parkson Hung Vuong, Nowzone, etc. A
number of schools and hospitals are within a short distance from the project. The project
comprises 758 units in which 43% are Officetels with an area of 32 m2 to 54 m2. Approximately
72% of the total apartments are 2-bedroom, followed by 3-bedroom type with a 25% share.
Novaland launched two new projects, Wilton Tower and Sunrise Cityview. Wilton Tower is a
mixed-use project including office, retail and apartment in Binh Thanh district. Two blocks of
the project are connected and have 10 to 14 units per level. Sunrise Cityview was launched after
the success of Sunrise City, but at a lower development standard than Sunrise City to widen the
prospective purchaser pool.
Six new Grade C projects began selling this quarter, providing a selection of 1 to 3-bedroom
apartments. These projects provide sufficient inner facilities and have appropriate pricing for
first-time homebuyers.
Other active projects selling their later phases were large-scale projects that have successfully sold
the majority of previous phases:
The remaining units of Vinhomes Central Parks Park 6 and two new blocks, the Landmark 1
and 2 were launched this quarter. The new blocks the Landmark 1 and 2 are situated next to
the Landmark 81 Tower, which will become a large mixed-use project that includes a 5-star

hotel, office and retail center. These two blocks provide 1 to 4- bedroom units, shop-houses,
garden duplexes and penthouses.
In Q2/2015, Masteri launched the remaining units of CT4 and CT3. Scenic Valley launched its
last phase after the success of previous phases.
Other Grade C projects launching later phases included CBD Premium Home, The Park
Residence and Citihome; previous phases of these projects were successfully absorbed. These
Grade C projects offered suitable products and appropriate pricing towards first-time
homebuyers, therefore achieving a good performance.
Stock by location
District 2 continued to lead the apartment supply with over 5,200 units, an increase of 55%
QoQ and 203% YoY. District 2s stock accounted for 22% market share, followed by district 7
with a 16% share. These two districts have dominated the apartment market with good urban
planning, well-developed infrastructure, convenient accessibility and a wide range of
surrounding facilities.
Figure 1. 1: Primary stock by district

Units
7,000
25
6,000
20
5,000
15
4,000
3,000
10
2,000
5
1,000
District 2 District 7
Binh
Thanh
Tan Phu
Binh Tan
District
12
Tan Binh
Nha Be
District 9 District 8 District 6
Others
Primary stock
5,724
4,263
3,455
2,237
1,324
1,169
1,049
957
897
888
802
3,197
Market share
22
16
13
14
The column Others in Figure 1.1 represents the total primary stock of the districts that have market shares below 3%
including 1, 3, 4, 5, 10, 11, Binh Chanh, Go Vap, Hoc Mon, Thu Duc, Phu Nhuan.
Binh Thanh became the third largest supplier with over 3,400 units, accounting for a 13%
market share in Q2/2015. The mass increase of supply in this district was due to Vinhomes
Central Park.
While the majority of supply in district 2, 7 and Binh Thanh was from Grade A and B projects,
other districts mainly provided Grade C apartments.

Stock by grade
All three Grades experienced an increase in supply this quarter. The newest Grade A project,
Sarimi contributed to the 51% QoQ increase of Grade A stock. As of Q2/2015, there were over
910 Grade A units in the primary market, accounting for 6% of the total primary supply.
For the first time in two years Grade B dominated the market with a 51% market share. There
were approximately 13,200 Grade B apartments in Q2/2015, a significant increase of 49% QoQ
and 265% YoY.
Grade Cs primary stock had an increase of 7% QoQ and 12% YoY.
Figure 1. 2: Primary stock by grade
28,000
Grade A
Units
Grade B
Grade C
24,000
20,000
16,000
12,000
8,000
4,000
0
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014

Q4
Q1
Q2
2015
1.3.
SECONDARY SUPPLY
In Q2/2015, there were approximately 86,300 units in the secondary market, increasing 5%
QoQ. Seventy percent of secondary supply was from 100% sold out projects; the remainder was
derived from sales of active primary projects.
Districts that obtained less than 3%, included district 1, 3, 4, 5, 6, 9, 11, 12, Phu Nhuan and Hoc
Mon are consolidated into the Others category. These ten districts supplied more than 14,400
units, accounting for a 14% market share.
Figure 1. 3: Secondary stock by district

25,000
Units
30
25
20,000
20
15,000
15
10,000
10
5,000
District 7 District 2
Secondary stock
Market share
Binh
Thanh
Tan Phu
Binh Tan
Nha Be
Thu Duc
Go Vap
District 8
Binh
Chanh
Tan Binh
Others
20,567
10,349
8,353
6,551
5,050
4,621
3,888
3,660
3,296
2,841
2,730
14,421
24
12
10
14

10
2.
PERFORMANCE
2.1.
OVERALL PERFORMANCE
The overall absorption rate was 19%, a decrease of 2 ppts QoQ but an increase of 2 ppts YoY.
In Q2/2015, approximately 5,000 units were sold, up 17% QoQ and 96% YoY; the highest
transaction volume since Q4/2010.
In Q2/2015, district 2 achieved the most sales with 28% of the total transaction volume,
followed by Binh Thanh with a 15% share.
All Grades performed well this quarter. Grade B sales volume had a strong increase of 26% QoQ
while Grade C maintained stable performance QoQ.
2.2.
PRIMARY MARKET
Performance by location
Since Q2/2014, district 2 has outperformed other districts in HCMC. In Q2/2015, this district
achieved over 1,400 sales, accounting for 28% of the total transaction volume.
For the first time Binh Thanh district had the second best performance with 765 sold
apartments, followed by district 7 with 590 sold units.
These three districts attracted upgrade buyers and small investors due to the prime locations,
rapid urbanisation and well-developed infrastructure that connect the districts to the city center
and surrounding districts.
Figure 2. 1: Performance by district

11
District 2s performance was boosted in four consecutive quarters due to the good trading
activities of newly launched Grade A and B projects:
o
After launching remaining units, the Masteri achieved 650 sales. The wide range of 1 to
3-bedroom units, duplexes and penthouses presented different choices to both firsttime homebuyers and upgrade buyers. A smaller unit size compared to other Grade B
projects also encouraged buyers and investors due to a lower unit price. Other factors
contributing to the success of Masteri was the future shopping center, Vincom
Megamall, and the planned Metro-line 1, that will directly connect to the project. This
has increased the value of the project in terms of connectivity and convenience for
future residents.
Gateway Thao Dien was launched this quarter but has attracted attention from both
upgrade buyers and small investors. The project had a modern high-end design and
high-quality finishing conditions. Studio apartments and 1- to 4-bedroom units were
introduced to meet the demands of various buyers. Even with a relatively high price of
US$1,867/m2, 150 units were absorbed within the first month of sales.
Estella Heights and Sun Avenue performed well with over 80 sales in each project. The
high standard of the product and the wide range of inner facilities leveraged the
transactions of Estella Heights. Sun Avenue has well regarded developers and a good
location close to Thu Thiem NUA.
Grade C projects in district 2 were also favoured by first-time homebuyers, particularly

La Astoria, CBD Premium Home and Krista. Over 40 units were sold in each project. La
Astoria and CBD Premium Home were active projects that had good sales due to
suitable unit sizes and layouts for small families. The Krista project was the later phase
of the sold-out Parc Spring project. The reputation of the developer and good
development standard of the first phase has encouraged buyers confidence in The
Krista. These three projects offered pricing from US$960 to US$1,040/m2.
Binh Thanh district outperformed district 7 for the first time in terms of transaction volume. The
high sales volume of this district mainly occurred in Vinhomes Central Park. Located in a prime
location close to CBD and partly surrounded by Sai Gon River, this large-scale project has
various advantages including location, accessibility and natural landscaping.
In Q2/2015,
approximately 700 apartments of Vinhomes Central Park were absorbed; mostly in the two new
blocks, The Landmark 1 and 2.
12
District 7 performed well this quarter due to the good performance of many active projects.
o
Sunrise City Lot Central continued its good performance with 40 sold apartments. The
construction is complete and a portion of the apartments is ready for hand over,
contributing to the high sales in this quarter. Sunrise Cityview and Scenic Valley had
high sales volume of over 50 units each. Bare-shell handover helped these two projects
to lower unit prices, therefore widening the target buyers. These projects were also
supported by the proven track record and credibility of the developer.
Other Grade C projects in district 7 that had good sales included Hoang Anh Thanh
Binh, E-home 5 Bridgeview and An Gia Riverside. The completed construction of Hoang
Anh Thanh Binh and E-home 5 Bridgeview encouraged buyers confidence with 80 sales
each. An Gia Riverside recorded approximately 70 transactions within the first month
of launching. This project was part of La Casa and has been acquired by An Gia
Investment, it was released at US$1,080/m2.
Other districts that had good performance included Tan Phu, district 6 and 12. These three
districts together had approximately 1,000 sold apartments in Grade C projects.

13
Performance by grade
Figure 2. 2: Performance by grade
14,000
units
US$/ m2
2,500
12,000
2,000
10,000
8,000
1,500
6,000
1,000
4,000
500
2,000
0
Grade A
Grade B
Grade C
Primary stock
917
13,198
11,847
Units sold
170
2,317
2,515
2,056
1,644
861
Average price
Source: Savills Research and Consultancy
Grade A
In Q2/2015, Grade A performance significantly improved with 170 sales, an increase of 66%
QoQ and 47% YoY. However, Grade A had the lowest sales amongst the three Grades due to
the high pricing that lead to a small target market. In Q2/2015, Grade A transaction volume
only accounted for 3% of the total sales volume.
The sales improvement of Grade A was due to a new project, Sarimi, which contributed
approximately 59% of the total Grade A sales volume. With a prime location within Thu Thiem
NUA inside the Sala urban area, the project focused on 2-bedroom units with sizes ranging
from 83 m2 to 87 m2, and 3-bedroom units from 100m2 to 130m2 that were suitable for
upgrade purchasers and high-income families.
Grade B
In the recent quarters, Grade B experienced very good sales volume, accounting for 46% of the
total transaction volume this quarter. Grade Bs absorption rate was 18%, decreasing 3 ppts due
to the mass increase in supply. The average prices of Grade B projects were approximately

14
US$1650/m2, increasing 2% QoQ. The prices ranged from US$1,300/m2 to 1,800/m2 and have
remained stable in recent quarters.
In Q2/2015, more than 2,300 Grade B units were sold, a strong increase of 26% QoQ. The
majority of Grade B sales came from two large-scale projects, Vinhomes Central Park and
Masteri, together accounting for 58% of the total Grade B sold units. Apart from the location
advantage, these two projects were developed by credible developers and provided 1 to 3bedroom units with flexible payment terms to buyers. These projects also both have future
large-scale retail projects and are connected to the future Metro line 1, raising the projects
value.
Three Grade B projects, Garden Gate, Orchard Garden and Botanica, developed by Novaland,
had a good sales volume of over 60 units sold in each. The projects have selling prices ranging
from US$1,485/m2 to US$1620/m2, and provide a mixture of apartments and officetels. The
officetels accounted for approximately 50% of the total sales volume. A strong distribution
network and an effective marketing campaign significantly contributed to the good
performance of these Grade B projects.
Grade C
In Q2/2015, Grade Cs absorption rate was 21%, stable QoQ but up 5 ppts YoY. The total Grade
C sales volume was over 2,500 units, increased by 8% QoQ and 45% YoY. Grade C transactions
have dominated the apartment market since 2011; however the market share has decreased
gradually in recent quarters due to the strong performance of Grade B. In Q2/2015, Grade C
accounted for 50% of the total transaction volume, mostly occurring in outer districts such as
Tan Phu, district 6, 12 and Nha Be. Grade Cs average selling price was US$860/m2, a slight
increase of 4% QoQ. The most popular price range was from US$600 to US$1,000/m2. A
number of Grade C projects in district 2 and Binh Thanh had higher selling prices from
US$1,000/m2 to US$1,300/m2. Some examples of these projects included Saigon Land, Soho
Riverview, La Astoria and Krista.
Low pricing was the most important factor contributing to the strong performance of Grade C.
As buyers of these projects are mostly first-time homebuyers and small families, Grade C
products offer a reasonable unit size from 60m2 to 70 m2 for 2-bedroom units and below 90 m2
for 3-bedroom units, therefore widening the purchaser pool. Prices of less than US$49,700/unit
will be eligible for the stimulus loan package, encouraging purchasers in projects such as 8X

15
Plus, 12 View, Tan Huong Tower and Tanibuilding Son Ki 1. These projects have low selling
price from US$570/m2 to US$670/m2, and together achieved over 310 transactions this quarter.
Newly-launched Grade C projects such as Melody Residence and An Gia Riverside have focused
on providing a wide range of inner facilities such as gymnasium, spa, community area, and
swimming pool; these faculties helped to increase the projects competitiveness. A prolonged
payment schedule in these projects also supported purchasers with financial difficulties. These
projects sold 200 units this quarter.
The construction status and a marketing campaign are other significant factors in the success of
Grade C projects. Projects with complete construction such as E-home 3, Hoang Anh Thanh
Binh and Him Lam Cho Lon have attracted purchasers due to the handover status. Over 80
units were sold in each project this quarter. The Park Residence and Flora Anh Dao achieved a
high sales volume of over 150 units due to an effective marketing campaign and strong
distribution channels.
2.3.
SECONDARY MARKET PERFORMANCE
Savills used 110 typical, 100% sold apartment projects from the early 2000s until Q4/2014 from
all the districts in HCMC to analyse movements in the secondary market.
District 1 and Binh Thanh continued to have the highest secondary asking prices of
US$2,070/m and US$1,650/m respectively. In districts 2, 3, 4, 5, 7, 11 and Phu Nhuan, asking
prices ranged from US$1,080/m to US$1,450/m. The remaining districts supplied mainly
Grade C projects and had relatively low asking prices from US$570 to US$770/m.
Figure 2. 3: Average secondary price

2,500
US$/ m2
2,000
1,500
1,000
500

16
Figure 2. 4: Secondary price growth

QoQ growth rate
Long-term growth rate
10%
8%
6%
4%
2%
Binh Tan
District 8
District 9
Binh Chanh
-4%
Go Vap
Tan Phu
Thu Duc
Nha Be
District 6
District 12
Tan Binh
District 2
District 5
District 4
District 11
District 7
District 3
Phu Nhuan
Binh Thanh
-2%
District 1
0%
-6%

17
3.
DEMAND ANALYSIS
3.1.
FINANCIAL SUPPORT
As of Q2/2015, mobilising interest rates fluctuated around 5% per year for short-term deposits.
The gross rental yield for HCMC apartments normally ranged between 4% to 6% pa, and was
even higher in well-developed urban areas such as district 2 and 7. With a low mobilising
interest rate, investors have more incentive to invest in the apartment market, which has
remained more stable than other investment channels such as gold, stocks and foreign
currency. A number of recent Grade A and Grade B projects have received much attention from
small investors for investment. These projects are situated in a good location, havea wide range
of facilities, good security and management, and therefore good rental demand. The main
tenants of these buy-to-let units are foreign expatriates working and living in HCMC.
As of 31 May 2015, the total loan commitment of the US$1,440 stimulus package reached
US$655.8 million, accounting for approximately 50% of the total loan package. The
disbursement amount was US$355 million, accounting for 24% of the stimulus package. As
more commercial banks have joined the stimulus package program, the disbursement rate has
increased to support homebuyers.
Home loan interest rates have become very competitive between commercial banks, ranging
from 4.5% to 6% for the first three to six months and 8% to 10% pa for later months. Low
interest rate home loans from many of the commercial banks with loan terms up to 15 years
will support end-users. In addition, a number of complete or close to complete projects
continued to apply flexible payment plans to boost sales in Q2/2015; including handover with
only 30 to 50% down payment, with the remaining balance to be paid in two to three years
with little or no interest. Other projects that were still under construction offered multiple
payment installments until handover.

18
3.2.
RENTAL YIELD
In recent quarters, District 2 has become the focus of the HCMC real estate market in terms of new
supply and transaction activities. Projects developed in this district have attracted both home
purchasers and investors. A large portion of the investors have been encouraged to buy apartments
for rental purposes. Savills chose four projects to analyze the expected rental yield in district 2 to
understand these investors incentives.
Based on the rent price of 12 samples from four projects, it can be seen that the gross rental yield
of high-end projects in District 2 ranged up to 7% pa, higher than the popular rental yield of HCMC
from 4% to 6% pa. The high yield of District 2 is a result of good urban planning and welldeveloped infrastructure. The high quality of construction and management contribute to the high
rental rates of Grade A and B projects in District 2.
Table 3. 1: Rental Yield
Samples
The Estella
The Vista
Imperia
An Phu
Thao Dien
Pearl
Unit size
(m2)
Rental rate
(US$/ unit/ mth)
Selling price of similar

unit (US$/ unit)
Gross
yield
Sample 1
124
1,000
204,420
6%
Sample 2
148
1,300
251,950
6%
Sample 3
98
800
156,900
6%
Sample 1
125
1,000
178,260
7%
Sample 2
101
800
147,370
7%
Sample 3
135
1,100
185,400
7%
Sample 1
95
750
152,120
6%
Sample 2
115
800
164,000
6%
Sample 3
135
1,000
175,890
7%
Sample 1
95
800
157,142
6%
Sample 2
122
1,150
203,303
7%
Sample 3
136
1,200
233,143
6%

19
3.3.
PRODUCT DIVERSITY
In recently launched projects a wide range of products with different sizes, bedrooms and uses
are provided. Apartments including studios, 1 to 4-bedrooms, small duplexes and linkable
apartments were introduced to meet the demand of various purchasers. In all types of
apartments, unit sizes have decreased by approximately 20% compared to the 2011-2012
period, lowering the unit price and targeting a wider pool of potential purchasers.
One bedroom units and officetels have been popular in newly launched projects. One bedroom
units are found in new projects such as Gateway Thao Dien, Wilton Tower, Masteri and
Vinhomes Central Park; while officetels were introduced in Botanica, Garden Gate, Orchard
Garden, Everich Infinity, etc. Officetels have attracted small investors due to the low capital
investment and high rental yield expectations.

20
4.
FUTURE OUTLOOK
4.1.
OUTLOOK FOR SUPPLY

Supply by location and year
Future supply is calculated from projects in planning stages which have not yet launched sales.
As these projects are in planning, launch dates are not available and may be later than
expected.
Figure 4. 1: Future supply by district, 2H/2015 2017

9,000
Units
8,000
14
12
7,000
10
6,000
5,000
4,000
3,000
2,000
2
1,000
-
District
9
Binh
Thanh
District District
2
8
Future supply
7,794
7,677
6,695
Market share
13.17
12.97
11.31
Thu
Duc
Nha Be
District District
7
12
6,172
4,721
3,969
3,802
10.43
7.98
6.71
6.42
Binh
Tan
District
1
Tan
Binh
District District
Others
6
4
3,214
2,617
2,532
2,513
1,635
1,716
4,135
5.43
4.42
4.28
4.25
2.76
2.90
6.99
From 2H/2015 to 2017, approximately 59,200 units from 90 existing or announced projects will
be completed. Approximately 35% of future supply is expected to be completed in 2H/2015
2016. The remaining 65% is delayed to 2017 or later.
District 9 is the largest future supplier providing approximately 6,700 units, and will account for
13% of the total supply from 2015 to 2017, followed by Binh Thanh and district 2. Due to large
available land stock, district 9 has potential for residential development. In addition, the
opening of Long Thanh Dau Giay Highway and the future Metro Line 1 strongly supports the
connectivity of the district to the city center, increasing the attractiveness of district 9 to
developers. Major developers are confident in Binh Thanh and district 2 due the good urban
planning and well-established infrastructure that connects these districts to the city center and
surrounding districts.

21
Figure 4. 2: Future supply by year, 2015 2018

Projects
Units
60,000
70
50,000
60
50
40,000
40
30,000
30
20,000
20
10,000
-
10
2H/2015-2016
2017
2018
2018 onward
20,639
38,553
19,712
48,186
37
53
11
59
# of planned units
# of identified projects
4.2.
OUTLOOK FOR DEMAND
The apartment markets strong performance in recent quarters highlights the demand towards
suitable projects with appropriate pricing. Diversity in unit sizes, good construction progress,
reasonable pricing and flexible payments will boost the sales performance in the future.
Recent legal reforms such as real estate law, housing law and developer guarantees are
expected to have a positive impact on the performance of the apartment sector.
End-users will be strongly encouraged by competitive mortgage rates and longer loan terms,
while smaller investors are confident in the good rental yields in HCMC. With projects using
prolonged and flexible payment terms to their advantage, these projects have achieved a good
performance. This trend is expected to continue in the future.
Projects that are supported by major infrastructure have received much attention in recent
quarters. Once large infrastructure developments such as Ring Road 2 and Metro Line 1 are
completed, they will increase the value of the surrounding projects.
The development of the Thu Thiem NUA will become more active this quarter with the launch
of the first project in the area. The activities in this area will increase the development of the
eastern region, raising residential supply in these areas.

22
5.
SWOT ANALYSIS
Strong population growth which supports residential demand.
The recovery of the economy facilitates the development of the

residential market.
Strengths
Stronger financial support from the government and commercial banks

has encouraged homebuyers.
A range of products, flexible payment terms and construction

commitment has increased buyer confidence.
The stable rental yield of HCMCs apartment market with the decreased
interest rate creates more incentives for investors.
Weaknesses
The slow pace of construction in projects due to the lack of capital

discourages potential purchasers.
The downturn of the real estate market has had lasting negative effects
on investor and buyer confidence.
Developers with strong financial capability and proven track records

continue to restructure halted projects, resulting in released inventory
and a vibrant market.
Opportunities
The strong performance of the apartment market in recent quarters

strengthens the confidence of both buyers and developers.
A number of under-construction and complete infrastructure projects

may have a positive impact on projects.
Recent legal reforms are expected to have a positive impact on the

apartment market.
Threats
Slow construction progress of major infrastructure may affect projects

performances.
A significant increase in apartments may cause a surplus in the future.

23
Research Parameters
Chanh and Thu Duc.

24
Term Definitions
Active projects: Projects that launched their sale phase before or in the studied quarter but have
not yet sold (100%) in the primary market.
Primary stock: Refers to apartments available for sale from the active projects in the studied
quarter. Buyers can buy apartments directly from developers.
Secondary stock: Refers to apartments sold from the active projects before the studied quarter
and the total number of apartments from the projects that have sold 100 percent.
Apartment Grading: Savills Vietnam has reviewed Circular 14/2008/TT-BXD (issued by the Ministry
of Construction, dated 02 June 2008) and began applying a modified Apartment Grading system
since Q2/2009 for all apartment projects studied nationwide. Savills Viet Nam has adapted twelve
of Circular 14s twenty-four criteria, for more details; see Appendix 5, Common Appendix. Three
Grades: Grade A (high-end), Grade B (medium-end) and Grade C (low-end) are applied. Please note
that the apartment grading-related analysis is for reference purposes only.

25
Appendix 1: Average Asking Secondary Prices of 100% Sold Projects

26
Appendix 1: Average Asking Secondary Prices of 100% Sold Projects, US$/m excl. VAT
Project names
Location
District
No. of Units
Average initial
asking price,
excl. VAT
Secondary Price
Q2/2015
A View 13C Apartment Building
Nguyen Van Linh St
Binh Chanh
192
938
523
Conic - Dinh Khiem
Nguyen Van Linh St
Binh Chanh
160
350
506
Conic Dong Nam A
Lot 13B
Binh Chanh
242
558
529
Conic Garden
Lot 13B
Binh Chanh
231
609
532
Him Lam
Zone 6A
Binh Chanh
360
665
906
Average asking secondary price in Binh Chanh district
640
BICC Tan Tao 1
Tan Tao ward
Binh Tan
480
550
503
Da Sa Buildings
Binh Tri Dong B ward
Binh Tan
54
483
550
Gia Phu Cotec Apartments
Le Trong Tan St
Binh Tan
389
352
487
Nguyen Quyen Plaza
Phan An, Binh Tri Dong ward
Binh Tan
156
585
602
Nhat Lan Building
Highway 1A
Binh Tan
200
381
704
Average asking secondary price in Binh Tan district
544
21 Century Apartment Building
326/1 Ung Van Khiem St
Binh Thanh
336
636
1,073
B1-Truong Sa
Truong Sa St, ward 17
Binh Thanh
362
1,105
1,363
Cantavil Hoan Cau
600A Dien Bien Phu St
Binh Thanh
203
1,500
1,552
Cuu Long Apartments
351/31 No Trang Long St
Binh Thanh
248
497
816
Dat Phuong Nam
243 Chu Van An St
Binh Thanh
300
960
1,020
HUD Building
159 Dien Bien Phu St
Binh Thanh
82
647
1,198
Kim Son 1
Extended No Trang Long St
Binh Thanh
98
412
836
My Phuoc
Bui Huu Nghia St, ward 2
Binh Thanh
544
796
1,007

27
Project names
Location
District
No. of Units
Average initial
asking price,
excl. VAT
Secondary Price
Q2/2015
Saigon Pearl
92 Nguyen Huu Canh St
Binh Thanh
2,112
2,500
2,165
The Manor - phase 1
Binh Thanh
426
1,950
1,443
The Manor Officetel
Binh Thanh
621
1,850
2,106
Average asking secondary price in Binh Thanh district
1,669
Avalon Apartments
53 Nguyen Thi Minh Khai St
dist. 1
51
2,621
3,316
BMC Apartments
258 Ben Chuong Duong St
dist. 1
137
1,114
1,675
Central Garden
225 Ben Chuong Duong St
dist. 1
380
994
1,543
Horizon Tower
214 Tran Quang Khai St
dist. 1
277
932
1,889
Indochina Park Tower
4 Nguyen Dinh Chieu St
dist. 1
100
1,545
1,591
International Plaza
343, 347, 349,351 Pham Ngu Lao
dist. 1
91
1,550
2,539
Sailing Tower
111 Pasteur St
dist. 1
68
2,446
3,861
The Lancaster
22 Le Thanh Ton St
dist. 1
90
2,900
3,697
Average asking secondary price in district 1
2,088
Bigemco Building
2/2 Ly Thuong Kiet St
dist. 11
108
682
1,003
Khai Hoan Apartment
624 Lac Long Quan St
dist. 11
104
1,474
979
Phu Tho - Thuan Viet
319 Ly Thuong Kiet St
dist. 11
195
1,100
1,129
The EverRich
Le Dai Hanh-3/2 Junction
dist. 11
300
1,331
1,459
1,228
Thai An 3, 4
Nguyen Van Qua St
dist. 12
348
456
808
Thai An Building
Highway 1A
dist. 12
192
488
534

711
28
Project names
Location
District
No. of Units
Average initial
asking price,
excl. VAT
Secondary Price
Q2/2015
An Hoa Building
Zone C, An Phu - An Khanh
dist. 2
188
568
1,043
An Khang Building
An Phu - An Khanh ward
dist. 2
304
886
1,183
An Phu Building
An Phu - An Khanh
dist. 2
72
585
984
Binh Minh Buidling
Luong Dinh Cua St
dist. 2
154
531
709
Cantavil An Phu - phase 1
An Phu
dist. 2
390
1,091
1,379
Fideco Riverview
Thao Dien ward
dist. 2
78
909
1,431
Hoang Anh River View
37 Nguyen Van Huong St
dist. 2
580
1,550
1,132
Luong Dinh Cua
18 Luong Dinh Cua St, An Phu ward
dist. 2
108
625
976
Petro Land
Binh Trung Dong ward
dist. 2
380
745
655
Resco An Thinh
An Phu - An Khanh
dist. 2
122
580
991
River Garden
360 Nguyen Van Huong St
dist. 2
210
1,400
1,517
1,097
Green Building
Cach Mang Thang Tam St
dist. 3
51
613
932
Savimex Apartments
167 Nguyen Phuc Nguyen St
dist. 3
68
994
1,507
Screc Tower A
Extended Truong Dinh St
dist. 3
144
1,352
1,483
1,382
Constrexim Square
12 Ton Dan St
dist. 4
288
1,594
1,345
Khahomex Building
360C Ben Van Don St
dist. 4
330
511
1,046
Khanh Hoi 3
360G Ben Van Don
dist. 4
125
1,282
1,306
Khanh Hoi II
360A Ben Van Don St
dist. 4
260
868
1,235
Orient
331 Ben Van Don St
dist. 4
180
1,500
1,424

29
Project names
Location
District
No. of Units
Average initial
asking price,
excl. VAT
Secondary Price
Q2/2015
Sin Town
1 Ton That Thuyet St
dist. 4
635
725
1,092
Van Do Building
348 Ben Van Don St
dist. 4
286
639
1,251
1,200
Hung Vuong Plaza
126 Hung Vuong St
dist. 5
276
2,000
1,266
Lakai Apartments
192 Nguyen Tri Phuong St
dist. 5
74
909
1,001
Phuc Thinh Tower
341 Cao Dat St
dist. 5
360
710
998
Sao Mai Building
Luong Nhu Hoc St
dist. 5
77
767
979
Tan Da Court
86 Tan Da St
dist. 5
246
1,700
1,310
1,143
Binh Phu 1 Building
20-23 Binh Phu Residential Area
dist. 6
152
418
651
Binh Phu Apartment Complex
961 Hau Giang St
dist. 6
348
966
754
Kien Thanh - Cotec
62 Ba Hom St
dist. 6
198
428
696
Noble Apartment - phase 1
D37A, Ba Hom St
dist. 6
86
1,570
731
Tan Thinh Loi
D37A, Phu Lam B area, Ba Hom
dist. 6
221
1,213
749
724
An Hoa 3-4
Nam Long Residential Area
dist. 7
165
391
765
An Hoa 5-6-7
Nam Long Residential Area
dist. 7
180
481
843
BMC - Hung Long
60/7 Huynh Tan Phat St, Phu Thuan

ward
dist. 7
844
1,023
1,153
Canh Vien II
Southside Area, Phu My Hung
dist. 7
116
1,070
1,514
Garden Court 1
Canal Area, Phu My Hung
dist. 7
103
2,000
1,762

30
Project names
Location
District
No. of Units
Average initial
asking price,
excl. VAT
Secondary Price
Q2/2015
Garden Court 2
dist. 7
90
2,115
1,853
Green View
Southside Area, Phu My Hung
dist. 7
153
1,390
1,590
Hoang Thap Plaza
Extended Nguyen Van Cu St
dist. 7
144
720
1,030
Minh Thanh Apartments
173 Le Van Luong St
dist. 7
112
1,719
788
My Duc
Hillview Area, Phu My Hung
dist. 7
84
1,074
1,832
My Phat
dist. 7
72
1,436
1,770
Nam Khang
Phu My Hung
dist. 7
33
1,099
1,222
Ngoc Lan Apartment
Go O Moi St, Phu Thuan ward
dist. 7
275
910
756
Park View
dist. 7
142
900
1,549
Phu My
Phu My Residential Area
dist. 7
482
791
1,049
Sky Garden II
Nguyen Van Linh St
dist. 7
710
700
1,362
Sky Garden III
Phu My Hung New Urban Area
dist. 7
1,715
1,600
1,679
The Panorama, Phase 3
dist. 7
140
1,473
2,080
V-star Apartments
Tan Truong Residential Area
dist. 7
224
850
750
1,351
Him Lam Nam Khanh
Ward 5
dist. 8
368
563
754
My Thuan Apartments
An Duong Vuong St
dist. 8
208
375
458
Ngoc Phuong Nam
125/20 Au Duong Lan, ward 2
dist. 8
192
908
676
Phu Loi Apartments
Nguyen Van Linh St
dist. 8
190
526
522
Thanh Nhut Apartments
Pham The Hien St, ward 7
dist. 8
47
795
533

624
31
Project names
Location
District
No. of Units
Average initial
asking price,
excl. VAT
Secondary Price
Q2/2015
E-Home Dong Sai Gon 1
Duong Dinh Hoi, Do Xuan Hop
dist. 9
312
766
626
Hiep Phu Building
3A Ha Noi Highway
dist. 9
129
480
666
638
An Loc 1 Apartments
Nguyen Oanh St, ward 17
Go Vap
200
350
583
An Loc 2 Apartments
Nguyen Oanh St, ward 17
Go Vap
200
350
672
The Splendor
Nguyen Van Dung St
Go Vap
206
700
730
Average asking secondary price in Go Vap district
662
Hoang Anh-New Saigon
Nguyen Huu Tho St
Nha Be
1,010
1,075
818
Phu Hoang Anh
Nguyen Huu Tho St
Nha Be
1,172
1,950
832
Phu My Thuan Apartments
41/1 Nguyen Binh St
Nha Be
582
438
408
Average asking secondary price in Nha Be district
738
Botanic Towers
312 Nguyen Thuong Hien St
Phu Nhuan
268
947
1,366
Phu Nhuan Apartments
20 Hoang Minh Giam St
Phu Nhuan
126
1,156
1,535
Satra
Phan Dang Luu
Phu Nhuan
125
1,650
1,527
Average asking secondary price in Phu Nhuan district
1,446
Bau Cat 2 - Block M
Vuon Lai St
Tan Binh
260
585
867
Phuc Yen Plaza
2/11 A Phan Huy Ich St
Tan Binh
360
913
708
Ruby Garden
Extended Nguyen Sy Sach St
Tan Binh
298
1,100
861
Average asking secondary price in Tan Binh district
803
Fortuna Kim Hong
306 Vuon Lai St
Tan Phu
208
485
759
Khang Phu Building
67 Huynh Thien Loc St
Tan Phu
246
795
647

32
Project names
Ruby Land (Tan Hong Ngoc)
Location
58/13 Luy Ban Bich St
District
No. of Units
Average initial
asking price,
excl. VAT
Secondary Price
Q2/2015
Tan Phu
280
587
629
Average asking secondary price in Tan Phu district
679
My Long
Street 18, Hiep Binh Chanh ward
Thu Duc
202
800
953
Riverside Garden
Kha Van Can St
Thu Duc
252
1,165
507
Sun View Building
Cay Keo, Tam Phu Ward
Thu Duc
448
824
733
Average asking secondary price in Thu Duc district

682
33
Appendix 2: Projects in the Primary Market

34
Appendix 2: List of projects in the primary market

Number of
launched
units, end
of Q2/2015
Sold
status,
end of
Q2/2015
(%)
Average
primary
price
(US$/sqm),
excl. VAT
District
Launching time
(Quarter/Year)
Expected
completion
time
Nguyen Huu Tho, Tan Hung Ward
dist. 7
1/2008
2012
810
95
2,138
Xi Riverview Palace
Nguyen Van Huong, Thao Dien

Ward
dist. 2
4/2008
2012
270
80
2,598
Saigon Pavillon
55 Ba Huyen Thanh Quan, Ward 6
dist. 3
1/2010
2012
87
80
4,179
Diamond island (phase 1)
Binh Trung Dong Ward
dist. 2
2/2010
N/A
249
44
2,469
C.T plaza Nguyen Dinh Chieu
117 Nguyen Dinh Chieu, Ward 2
dist. 3
1/2011
2014
232
50
4,165
Sunrise City Lot W (Central)
dist. 7
2/2011
2014
623
96
1,879
Star Hill
dist. 7
3/2012
2014
351
88
1,901
Sarimi
dist. 2
2/2015
2016
414
24
2,339
The Vista
628C Ha Noi Highway, An Phu Ward
dist. 2
2/2007
2011
750
97
1,648
Imperia An Phu
Lot 5, An Phu Ward
dist. 2
2/2008
2012
700
97
1,615
City Garden (Phase 1:

Avenue, Boulevard)
59 Ngo Tat To, Ward 21
Binh
Thanh
4/2009
2012
449
97
2,650
Saigon Luxury Apartment
172-174 Ky Con, Nguyen Thai Binh

ward
dist. 1
1/2010
2010
81
90
3,562
Everrich II - Phase 1
422 Dao Tri, Phu Thuan Ward
dist. 7
3/2010
2014
1,041
60
1,134
Cantavil Premier
An Phu Ward
dist. 2
4/2010
2014
200
95
1,945
No.
Name of projects
Location
Sunrise City Lot V (South)
C14B & C15B, International

Commercial and Financial Area, PMH,
Tan Phu Ward
10 Mai Chi Tho street, Thu Thiem
NUA
3,036

2,056
35
Number of
launched
units, end
of Q2/2015
Sold
status,
end of
Q2/2015
(%)
Average
primary
price
(US$/sqm),
excl. VAT
District
Launching time
(Quarter/Year)
Expected
completion
time
dist. 7
4/2010
2015
631
80
1,496
Ca Cam River, Tan Phu Ward
dist. 7
1/2011
2015
540
72
1,617
dist. 2
2/2011
2014
799
59
1,407
dist. 7
3/2011
2011
116
96
1,953
369 Le Van Sy, Ward 12
dist. 3
3/2012
2016
84
12
1,496
17-19-21 Nguyen Van Troi , Ward 12
Phu
Nhuan
1/2013
2015
291
76
2,533
dist. 7
1/2013
2015
781
100
1,677
Nha Be
2/2013
2013
352
89
1,317
Nguyen Thi Thap
dist. 7
3/2013
2014
356
10
1,467
Lexington Residence
Mai Chi Tho street, An Phu Ward
dist. 2
4/2013
2016
750
61
1,386
17
Icon 56 Apartment
56 Ben Van Don
dist. 4
1/2014
2015
130
77
1,847
18
Green Valley
Saigon South Golf Club
dist. 7
1/2014
2016
367
97
1,440
19
Vista Verde
Dong Van Cong
dist. 2
3/2014
2017
794
47
1,405
20
Scenic Valley
Nguyen Van Linh, PMH, Tan Phong

Ward
dist. 7
4/2014
2017
1,202
60
1,300
21
Him Lam Riverside - Phase 2
dist. 7
4/2014
2015
570
21
1,328
22
The Ascent
58 Quoc Huong St, Thao Dien Ward
dist. 2
4/2014
2016
240
1,525
23
Vinhomes Central Park
Nguyen Huu Canh Street Ward 12
Binh
Thanh
4/2014
2017
3,509
43
1,925
No.
Name of projects
Location
Sunrise City Lot N (North)
Riviera point
Tropic garden - C1,C2,A1,A2
10
Canh Vien 3
11
C.T Minh Chau
12
The Prince Residence
13
Happy Valley (R18)
14
Dragon Hill
15
Docklands
16
Nguyen Van Huong, Thao Dien

Ward
Southside district, PMH, Tan Phong
Ward
Nguyen Van Linh, PMH, Tan Phong

Ward
Nguyen Huu Tho, Phuoc Kieng
Commune

36
Number of
launched
units, end
of Q2/2015
Sold
status,
end of
Q2/2015
(%)
Average
primary
price
(US$/sqm),
excl. VAT
District
Launching time
(Quarter/Year)
Expected
completion
time
165 Ha Noi Highway, Thao Dien

Ward
dist. 2
4/2014
2016
3,000
57
1,422
River Gate Residence
151 Ben Van Don Street Ward 6
dist. 4
4/2014
2017
368
1,859
26
Garden Gate
8 Hoang Minh Giam Street, Ward 9
4/2014
2017
388
21
1,485
27
Orchard Garden
128 Hong Ha Street, Ward 9
4/2014
2016
180
50
1,508
28
The Tresor
39 Ben Van Don Street Ward 6
dist. 4
4/2014
2017
253
2,499
29
Sky Center
10 Pho Quang street, Ward 2
Tan Binh
1/2015
2016
495
20
1,614
30
Estella Heights
Ha Noi Highway, Thao Dien Ward
dist. 2
1/2015
2017
462
61
1,790
31
The Sun Avenue
Mai Chi Tho street, An Phu Ward
dist. 2
1/2015
2018
280
64
1,522
32
Botanica
104 Pho Quang street, Ward 2
Tan Binh
1/2015
2017
609
16
1,620
33
Gateway Thao Dien
Ha Noi Highway, Thao Dien
dist. 2
2/2015
2017
194
77
1,867
34
Wilton Apartment
D1 Street, Ward 25
Binh
Thanh
2/2015
N/A
494
1,464
35
Everich Infinity
An Duong Vuong
dist. 5
2/2015
2016
758
2,022
36
Sunrise City View
dist. 7
2/2015
N/A
703
1,246
36
No.
Name of projects
Location
24
Masteri
25
TDH Truong Tho
Hoang Kim The Gia
4S-Linh Dong
Phu
Nhuan
Phu
Nhuan
22,917
Near Dang Van Bi, Truong Tho Ward
Truong Phuoc Phan, Binh Tri Dong
Ward
Cross of Road no. 30, Linh Dong,
Kha Van Can

1,644
Thu Duc
1/2009
2010
262
89
843
Binh Tan
4/2009
2011
348
99
810
Thu Duc
1/2010
2014
896
92
596
37
Number of
launched
units, end
of Q2/2015
Sold
status,
end of
Q2/2015
(%)
Average
primary
price
(US$/sqm),
excl. VAT
Name of projects
Location
District
Launching time
(Quarter/Year)
Expected
completion
time
Green Hills ( Green Park)
New town Welife City
Binh Tan
1/2010
2015
330
70
629
Lacasa - Phase 1
Hoang Quoc Viet, Phu Thuan Ward
dist. 7
3/2010
2013
324
100
656
Pho Dong Hoa Sen
dist. 9
3/2010
2013
210
99
572
Sai Gon Lilama SHB Town
Tan Phu
3/2010
2014
340
100
675
Terra Rosa Block B
13E Nguyen Van Linh
Binh
Chanh
3/2010
2012
366
100
741
Anh Tuan Apartment
Huynh Tan Phat, Phu Xuan

Commune
Nha Be
4/2010
2013
520
99
458
10
Era Town
Nguyen Luong Bang, Phu My Ward
dist. 7
1/2011
N/A
1,763
96
699
11
TDH Phuoc Binh
No. 6D, Phuoc Binh Ward
dist. 9
1/2011
2011
86
87
789
12
Thanh Da View
50/3 Thanh Da, ward 27
Binh
Thanh
1/2011
2012
132
87
1,196
13
An Binh apartment
787 Luy Ban Bich, Phu Tho Hoa

Ward
Tan Phu
1/2011
2012
222
99
838
14
Celadon City
Tan Thang, Son Ky Ward
Tan Phu
4/2011
2013
894
54
1,296
15
Phuc Loc Tho (Emerald)
35 Le Van Chi, Linh Trung Ward
Thu Duc
4/2011
2015
402
75
652
16
The Hyco4 Tower
Nguyen Xi, ward 26
Binh
Thanh
1/2012
2013
330
82
1,165
17
The Eastern
Lien Phuong, Phu Huu Ward
dist. 9
2/2012
2013
648
60
960
18
E-home 3
Ho Ngoc Lam, An Lac Ward
Binh Tan
3/2012
2013
1,703
55
738
19
Terra Rosa Block C
13E Nguyen Van Linh
Binh
Chanh
3/2012
2016
42
36
876
No.
Dien Phuc Thanh Residential, Phuoc

Long B Ward
Thoai Ngoc Hau - Luy Ban Bich, Hoa
Thanh Ward

38
Number of
launched
units, end
of Q2/2015
Sold
status,
end of
Q2/2015
(%)
Average
primary
price
(US$/sqm),
excl. VAT
District
Launching time
(Quarter/Year)
Expected
completion
time
Road no. 17, Tan Hung Ward
dist. 7
4/2012
2016
944
69
1,009
Homyland 2
307 Nguyen Duy Trinh, Binh Trung

Tay Ward
dist. 2
3/2013
2014
420
95
936
22
Dream Home Luxury

Apartment
Road no. 59, Ward 14
Go Vap
3/2013
2015
530
89
780
23
3G apartment
Road no. 19, Hiep Binh Chanh ward
Thu Duc
3/2013
2013
196
100
705
24
An Phu Apartment ComplexPhase 2
961 Hau Giang street, Ward 11
dist. 6
4/2013
2015
286
77
839
25
Tecco Green Nest
Phan Van Hon street
dist. 12
4/2013
2015
288
28
606
26
I-home 1 Apartments
359 Pham Van Chieu, Ward 14
Go Vap
4/2013
2014
145
41
686
27
Sunny Plaza
2 Truong Dang Que, Ward 3
Go Vap
4/2013
2015
235
91
949
28
Galaxy 9 Apartment
9 Nguyen Khoai, Ward 1
dist. 4
1/2014
2016
246
100
1,479
dist. 7
1/2014
2015
592
68
1,265
Tan Binh
1/2014
2014
225
89
978
No.
Name of projects
Location
20
Hoang Anh Thanh Binh
21
29
E-home 5 The Bridgeview
30
Era Lac Long Quan (the

Useful Apartment)
Tran Trong Cung, Tan Thuan Dong

ward
19/19 Lac Long Quan - Au Co, ward
9
31
Tan Huong Tower
Tan Huong
Tan Phu
1/2014
2014
360
81
617
32
Lan Phuong Plaza
Tam Binh ward
Thu Duc
1/2014
2014
122
66
829
33
Hung Phat Apartment
Le Van Luong - Dao Su Tich
Nha Be
1/2014
2014
354
81
724
34
The Park Residence
Area 12, Nguyen Huu Tho, Phuoc

Kieng
Nha Be
1/2014
2015
960
26
839
35
CBD Premium Home
Dong Van Cong
dist. 2
2/2014
2016
403
31
960
36
Samland Giai Viet
Ta Quang Buu
dist. 8
2/2014
2014
222
88
976

39
Number of
launched
units, end
of Q2/2015
Sold
status,
end of
Q2/2015
(%)
Average
primary
price
(US$/sqm),
excl. VAT
District
Launching time
(Quarter/Year)
Expected
completion
time
Do Xuan Hop, Phuoc Long B ward
dist. 9
2/2014
2016
130
77
912
Hung Ngan Garden
Tan Hiep Chanh ward
dist. 12
2/2014
2015
672
30
602
39
Saigon Land
D2 Street
Binh
Thanh
2/2014
2015
152
69
1,320
40
An Gia Garden
Tan Ky Tan Quy, Tan Son Nhi ward
Tan Phu
2/2014
2016
392
65
928
41
Linh Trung Apartment
6-8 Road No.16, Linh Trung ward
Thu Duc
2/2014
2015
124
65
643
42
Lucky Palace
Phan Van Khoe
dist. 6
3/2014
2017
356
62
1,173
43
Tan Phuoc
Ly Thuong Kiet
dist. 11
3/2014
2015
350
53
1,192
44
8X Plus
Truong Chinh
dist. 12
3/2014
2016
578
69
648
45
12 View
Phan Van Hon, Tan Thoi Nhat ward
dist. 12
3/2014
2015
408
86
573
46
Tanibuilding Son ky 1
DC 13, Son Ky Ward
Tan Phu
3/2014
2016
507
48
439
47
Topaz Garden
4 Trinh Dinh Thao, Hoa Thanh ward
Tan Phu
3/2014
2016
424
59
658
48
La Astoria

Tay Ward
dist. 2
4/2014
2017
240
88
1,034
49
Citihome
dist. 2
4/2014
2016
382
37
595
50
Him Lam Cho Lon
Nguyen Van Luong
dist. 6
4/2014
2015
750
49
991
51
Soho Riverview
533 Xo Viet Nghe Tinh Street Ward

26
Binh
Thanh
4/2014
2016
105
24
1,265
52
Topaz City
Ta Quang Buu
dist. 8
1/2015
2016
796
21
805
53
Carillon 2
27 Trinh Dinh Thao street
Tan Phu
1/2015
2016
224
71
701
54
An Gia Star
1A Highway, Tan Tao
Binh Tan
1/2015
2016
384
52
662
No.
Name of projects
Location
37
Lucky Dragon
38

40
Number of
launched
units, end
of Q2/2015
Sold
status,
end of
Q2/2015
(%)
Average
primary
price
(US$/sqm),
excl. VAT
No.
Name of projects
Location
District
Launching time
(Quarter/Year)
Expected
completion
time
55
Full House
7th Street, Binh Tri Dong Ward
Binh Tan
1/2015
2016
192
63
678
56
Krista

Dong ward
dist. 2
2/2015
2018
344
15
1,040
57
Jamona Apartment
Bui Van Ba, Tan Thuan Dong
dist. 7
2/2015
2017
260
12
628
58
An Gia Riverside
Hoang Quoc Viet, Tan Thuan Ward
dist. 7
2/2015
2017
250
28
1,080
59
The Easter City
Phm Hng (Chnh Hng)
dist. 8
2/2015
2015
120
17
692
60
Flora Anh Dao
Xun Hp
dist. 9
2/2015
2016
500
10
839
61
Melody Residences
Au Co
Tan Phu
2/2015
2017
704
17
877
61

25,690
861
41
Appendix 3: Future Projects

42
Appendix 3: List of Future Projects

No.
Project's name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Delta River Tower

Tropic Garden
Him Lam Cho Lon
Linh Trung Apartment
The Park Residence
VRG River View
289 Tran hung Dao Building
Lexington Residence
Citihome
Hoang Anh Incomex
Botanic Towers II
Era Royal Plaza
Sadeco Building-Phase 2
Binh An Plaza
NBB Garden 3
Diamond Riverside (NBB Garden 1)
Sovrano Hoang Quan
Topaz City
Khang Gia Chanh Hung
TDH-Phuoc Long
Dien Phuc Thanh
Minh Tam
Rach Chiec residential multi-complex
TDH-Phuc Thinh Duc
Dai An - Saigon Riverside
Waterfront Condominium
U garden
Minh Long
SSC Cantavil

District
dist. 1
dist. 2
dist. 6
Thu Duc
Nha Be
dist. 1
dist. 1
dist. 2
dist. 2
dist. 7
dist. 7
dist. 7
dist. 7
dist. 8
dist. 8
dist. 8
dist. 8
dist. 8
dist. 8
dist. 9
dist. 9
dist. 9
dist. 9
dist. 9
Binh Thanh
Binh Thanh
Tan Binh
Tan Binh
Tan Binh
Estimated
completion
time
2015
2015
2015
2015
2015
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
2016
Number of units
161
558
488
135
1,023
300
821
585
368
396
600
1,020
1,532
759
750
1,470
653
316
164
118
128
272
600
721
636
550
240
85
450
Status
Under construction
Under construction
Completing
Under construction
Under construction
Under construction
Project on hold
Proposed/ planning
Under construction
Proposed/ planning
Proposed/ planning
Under construction
Proposed/ planning
Under construction
Proposed/ planning
Proposed/ planning
Vacant land
Under construction
Under construction
Under construction
Project on hold
Proposed/ planning
Proposed/ planning
Proposed/ planning
Under construction
Proposed/ planning
Under construction
Vacant land
Project on hold
43
No.
Project's name
District
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
Phuc Bao Minh

Tan Phu IDICO
City Land
SunView Town
Aquila Plaza
Binh Chieu Apartment
Fortune Apartment
Full House
Lancaster Nguyen Trai
1 Bis Nguyen Dinh Chieu
Nexus Parcel 2
Vietcomreal Riverside
584-Thao Dien
Vista Verde
Prime Condominium, dist. 2
Vinaconex Thao Dien
Nassim
The Estella Heights
Gateway Thao Dien
The CBD Premium Home
The Lancaster 4
The Tresor
River Gate Residence
Binh Phu
OPC Eximland
Lucky Palace
Khang Thong Apartment
Peninsula Place
Bella Vista
Elys Garden
Tan Phu
Tan Phu
Go Vap
Thu Duc
Thu Duc
Thu Duc
Thu Duc
Binh Tan
dist. 1
dist. 1
dist. 1
dist. 2
dist. 2
dist. 2
dist. 2
dist. 2
dist. 2
dist. 2
dist. 2
dist. 2
dist. 4
dist. 4
dist. 4
dist. 6
dist. 6
dist. 6
dist. 7
dist. 7
dist. 8
dist. 8

Estimated
completion
time
2016
2016
2016
2016
2016
2016
2016
2016
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
Number of units
600
665
730
1,273
600
280
480
112
250
1,000
N/A
210
372
606
1,500
1,305
240
338
166
447
800
495
421
434
445
268
204
50
848
1,212
Status
Vacant land
Under construction
Proposed/ planning
Under construction
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Vacant land
Under construction
Proposed/ planning
Proposed/ planning
Proposed/ planning
Under construction
Proposed/ planning
Project on hold
Proposed/ planning
Proposed/ planning
Proposed/ planning
Under construction
Vacant land
Under construction
Under construction
Proposed/ planning
Vacant land
Under construction
Under construction
Under construction
Proposed/ planning
Vacant land
44
No.
Project's name
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
Phuoc Long Spring Town

Prime Condominium, dist. 9
River Valley
Gia Hoa Building
Golf park residence
Lucky dragon
The Boat Club Residences
Xi Grand Court
Moscow Tower
Babylon residence 2
Go Sao Residential
Vinhomes Central Park
Orchard Garden
Thai Son apartment
Thai Son Plaza
Phu Long
Thang Long Complex
Viet Phat Tower
Dang Thanh Apartment
Song Da Riverside
Petrovietnam Greenhouse
Nhu Ngoc Residence
Paradise
BITA-THACO
Nhut Quang
Hoang Nam Residential Area
8X Rainbow
Khai Hoan Paradise
Blue Diamond Tower
Sadeco Phuoc Kien

District
dist. 9
dist. 9
dist. 9
dist. 9
dist. 9
dist. 9
dist. 9
dist. 10
dist. 12
dist. 12
dist. 12
Binh Thanh
Phu Nhuan
Tan Binh
Tan Binh
Tan Binh
Tan Binh
Tan Phu
Tan Phu
Thu Duc
Thu Duc
Thu Duc
Thu Duc
Binh Tan
Binh Tan
Binh Tan
Binh Tan
Nha Be
Nha Be
Nha Be
Estimated
completion
time
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
2017
Number of units
N/A
1,940
1,720
1,000
99
470
726
530
600
614
2,000
6,491
117
650
728
211
149
407
236
609
390
240
714
432
326
1,339
408
1,296
500
1,150
Status
Proposed/ planning
Vacant land
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Under construction
Proposed/ planning
Proposed/ planning
Under construction
Proposed/ planning
Under construction
Under construction
Vacant land
Vacant land
Under construction
Proposed/ planning
Proposed/ planning
Vacant land
Proposed/ planning
Proposed/ planning
Proposed/ planning
Vacant land
Proposed/ planning
Proposed/ planning
Vacant land
Proposed/ planning
Proposed/ planning
45
No.
Project's name
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
Babylon residence 3
Thanh Phat
Hong Tan Apartments
Bay Water
Golden Hill
Saigon Sports City
Rach Chiec Sports Complex
The Sun Avenue
Phuong Viet
Richland Hill complex
GS Metrocity
Celadon City
SSG's project
GS Thu Thiem
CII Thu Thiem
Nguyen Son
Sing Viet City
M&C Tower
Royal Center
Saigon Residences
Calista
Apartment of The Minh Company
Green Pearl City
Green Plaza
Horizon Place
Golden Plaza
Charmington
Vinaland
CapitaLand & Sadeco Apartments
The Mark

District
Hoc Mon
Binh Tan
Binh Tan
Binh Thanh
dist. 1
dist. 2
dist. 2
dist. 2
dist. 8
dist. 9
Nha Be
Tan Phu
dist. 2
dist. 2
dist. 2
Binh Chanh
Binh Chanh
dist. 1
dist. 1
dist. 1
dist. 2
dist. 2
dist. 2
dist. 3
dist. 4
dist. 5
dist. 5
dist. 7
dist. 7
dist. 7
Estimated
completion
time
2017
2018
2018
2018
2018
2018
2018
2018
2018
2018
2018
2018
2019
2019
2019
2019
2019
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Number of units
850
691
1,660
1,200
504
3,000
945
1,120
1,049
1,340
N/A
8,203
3,000
2,000
2,700
3,838
N/A
180
504
N/A
N/A
520
N/A
143
N/A
328
298
246
600
2,064
Status
Proposed/ planning
Proposed/ planning
Under construction
Proposed/ planning
Under construction
Proposed/ planning
Vacant land
Vacant land
Proposed/ planning
Project on hold
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Project on hold
Proposed/ planning
Vacant land
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Project on hold
Vacant land
Vacant land
Proposed/ planning
Vacant land
46
No.
Project's name
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
My Van 2 Apartment
Khai Vy Residential Area
Incomex Saigon
Riviera Point - Next phases
Lacasa - Next phases
Everrich II - Next phases
Truong Dinh Hoi 3 apartment building
My Phuc
Glory Tower CD
Rainbow Plaza
Mini New Town
Minh Son Apartment
Tang Phu House
Sabana Building
TDH Tocontap
Thanh Thai Apartment
Apartment project in Dam Sen Complex
Tan Phuoc Apartment
Thien Quy Apartment
Gia Dinh Plaza
Wilton Tower
Cape Pearl (SSG Thanh Da)
Cong Hoa Garden
Hoa Binh Building
TC1 Tower
Detaco Tan Phu
Mikasa
584 Lilama SHB
584 Thai Son
Tahami Apartments

District
dist. 7
dist. 7
dist. 7
dist. 7
dist. 7
dist. 7
dist. 8
dist. 8
dist. 8
dist. 8
dist. 9
dist. 9
dist. 9
dist. 9
dist. 9
dist. 10
dist. 11
dist. 11
dist. 12
dist. 12
Binh Thanh
Binh Thanh
Tan Binh
Tan Phu
Tan Phu
Tan Phu
Go Vap
Go Vap
Go Vap
Thu Duc
Estimated
completion
time
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Number of units
N/A
2,492
500
1,705
1,944
2,084
944
999
408
N/A
4,600
N/A
295
N/A
N/A
612
1,600
1,000
300
302
N/A
1,006
220
1,000
385
728
156
900
1,176
N/A
Status
Proposed/ planning
Proposed/ planning
Vacant land
Proposed/ planning
Proposed/ planning
Proposed/ planning
Vacant land
Proposed/ planning
Vacant land
Vacant land
Proposed/ planning
Vacant land
Proposed/ planning
Vacant land
Vacant land
Under construction
Proposed/ planning
Proposed/ planning
Vacant land
Under construction
Proposed/ planning
Vacant land
Vacant land
Proposed/ planning
Vacant land
Vacant land
Vacant land
Under construction
Under construction
Under construction
47
No.
Project's name
150
151
152
153
154
155
156
157
158
159
Linh Dong Apartment

Chuong Duong Golden Land
Glory House
Truong Tho Apartment
Everville
Saigon Green 2
Saigon Green 1
Lucky Tower
Saigon South Residence - Century 21
Sai Gon Moi 2
160
Louis Tower

Thu Duc
Thu Duc
Thu Duc
Thu Duc
Binh Tan
Binh Tan
Binh Chanh
Binh Chanh
Binh Chanh
Nha Be
Estimated
completion
time
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Nha Be
N/A
District
Number of units
Status
218
616
640
224
1,230
1,050
1,044
400
282
384
Proposed/ planning
Proposed/ planning
Vacant land
Vacant land
Under construction
Proposed/ planning
Proposed/ planning
Proposed/ planning
Proposed/ planning
Project on hold
321
Under construction
48
Disclaimer

49

50
Quarterly Report
Villas and Townhouses for Sale

Q2/2015
Main Report
Ho Chi Minh City

Viet Nam
Prepared by
Savills Vietnam Co., Ltd
July 2015
18th Floor, Fideco Tower

T: +84 8 3 8239 205 F: +84 8 3823 4571

Ha Noi, Viet Nam
T: +84 4 9461 300 F: +84 4946 1302
Content
1.
SUPPLY .................................................................................................................. 3
1.1.
OVERALL SUPPLY ........................................................................................................................................3
1.2.
PRIMARY SUPPLY........................................................................................................................................3
1.3.
SECONDARY SUPPLY ................................................................................................................................9
2.
MARKET PERFORMANCE ................................................................................... 11
2.1.
OVERALL PERFORMANCE .................................................................................................................... 11
2.2.
PRIMARY MARKET PERFORMANCE ................................................................................................. 11
2.3.
SECONDARY MARKET PERFORMANCE .......................................................................................... 16
3.
DEMAND ANALYSIS ........................................................................................... 20
3.1.
NEW HOUSING CONSTRUCTION LICENSES ................................................................................. 20
3.2.
BUYER PREFERENCES ............................................................................................................................. 20
3.3.
SUPPORTING POLICIES ......................................................................................................................... 21
3.4.
OVERSEAS REMITTANCES .................................................................................................................... 21
4.
FUTURE OUTLOOK.............................................................................................. 22
4.1.
5.
SWOT ANALYSIS................................................................................................. 25

Term Definitions ........................................................................................................ 27
Appendix 1: Current Primary Projects ..................................................................... 28
Appendix 2: Secondary Projects ............................................................................... 32
Appendix 3: Future Projects ..................................................................................... 37
Disclaimer ................................................................................................................... 53
HCMC Quarterly Market Report Q2/2015 - Villa & Townhouse Sector

List of Tables
Table 2. 1: Gross yields, Q2/2015 ...............................................................................................................................................18
Table 4. 1: Expected supply in 2015 ..........................................................................................................................................22
List of Figures
Figure 1. 1: Primary stock, Q2/2014 Q2/2015 ...................................................................................................................... 4
Figure 1. 2: Primary stock by district, Q2/2015 ....................................................................................................................... 5
Figure 1. 3: Villa/townhouse areas by project, Q2/2015 ..................................................................................................... 6
Figure 1. 4: Villa/townhouse GFA by project, Q2/2015 ....................................................................................................... 6
Figure 1. 5: Land plot stock, Q2/2014 Q2/2015 .................................................................................................................. 7
Figure 1. 6: Land plot stock by district, Q2/2015 ................................................................................................................... 8
Figure 1. 7: Land plot areas by project, Q2/2015 ................................................................................................................... 9
Figure 1. 8: Secondary stock, Q2/2015....................................................................................................................................... 9
Figure 2. 1: Primary transactions, Q2/2014 Q2/2015 ......................................................................................................12
Figure 2. 2: Performance by district, Q2/2015 ......................................................................................................................13
Figure 2. 3: Performance by project, Q2/2015 ......................................................................................................................13
Figure 2. 4: Price range by land area, Q2/2015.....................................................................................................................14
Figure 2. 5: Price range by GFA, Q2/2015 ..............................................................................................................................14
Figure 2. 6: Performance by project, Q2/2015 ......................................................................................................................16
Figure 2. 7: Average price by land plot area, Q2/2015 ......................................................................................................16
Figure 2. 8: Average secondary price, villa/townhouse .....................................................................................................17
Figure 2. 9: Average secondary price, Q2/2015 ....................................................................................................................17
Figure 2. 10: Average secondary price of land plots, Q2/2012 Q2/2015 ...............................................................19
Figure 3.1: New housing construction licenses ....................................................................................................................20
Figure 4. 1: Future supply, 2015 onward .................................................................................................................................23


2011, 2012, 2013, 2014, 2015

Executive Summary
More stock
In Q2/2015, three new villa/townhouses and the next phase of an existing project provided more
than 470 additional dwellings to the primary market. Primary stock of villa/townhouse reached
approximately 1,140 dwellings, up 3% quarter-on-quarter (QoQ) and 216% year-on-year (YoY). The
primary stock has had steady growth since the beginning of 2015, reflecting developers confidence
in this segment.
In the land plot segment, one new project and a new phase of an existing project entered the
market, adding more than 60 plots. The primary land plot market had approximately 760 plots,
down -43% QoQ and -32% YoY.
Villa/townhouse performance
The transaction volume of villas/townhouses increased by 12% QoQ and 116% YoY. Townhouses
dominated the market with 82% of total transactions. The absorption rate was 35%, up 3 ppts QoQ
but down sharply -16 ppts YoY. Go Vap district had the best performance in the villa/townhouse
segment.
Land plot performance

In the land plot segment, the transaction volume decreased by -36% QoQ and -21% YoY. The
absorption rate was up 6 ppts QoQ and 8 ppts YoY due to sharp decrease in supply. District 9 and
Thu Duc had the best performance, accounting for approximately 70% of sales.
Outlook
In 2H/2015, nine projects with 1,250 dwellings are expected to enter the market. District 9 is the
largest supplier, accounting for 31% of the total future supply.

1.
SUPPLY
1.1.
OVERALL SUPPLY
Three new villa/townhouse projects and the next phase of an existing project provided more
than 470 dwellings to the primary market, totalling 1,140 dwellings, increasing 3% QoQ and
216% YoY. The secondary market had more than 5,000 dwellings, accounting for 77% market
share.
In this quarter, the primary land plot market provided approximately 760 plots, decreasing -
43% QoQ and -33% YoY. The stock sharply decreased due to the limited amount of new supply
and six sold out projects from the last quarter being removed from the primary supply list.
Table 1. 1: Newly launched projects Q2/2015
No
Project name
District
Developer
Type
Mega Village
D.9
Khang Dien SJC
Townhouse
Villa Park
D.9
M.I.K
Vinhomes
Binh
Thanh
Cityland Riverside
D.7
Total
Van Phuc Riverside
Residence
1
2
Sokico Hung Long
Total
Total
dwellings
Launched
units in
Q2/2015
258
258
Villa
28
28
VinGroup
Villa
93
93
Real Estate Investment

Cityland Co.
Villa/Townho
use
91
91
470
Thu Duc
Dai Phuc Group
Land Plot
30
30
Go Vap
Hung Gia Phuc Co.
Land Plot
32
32
62
1.2.
PRIMARY SUPPLY
Villa/townhouse supply
In Q2/2015, the primary market had 22 active projects with approximately 1,140 dwellings, a
slight increase of 3% QoQ and 216% YoY. Since Q1/2013, townhouses have continuously
dominated this segment, accounting for 62% of the total primary stock. Townhouse stock
decreased by -2% QoQ but increased 160% YoY. Villa stock went up by 12% QoQ and 393%
YoY.
After achieving a good sales rate with Mega Ruby in Q4/2014 and Mega Sapphire in Q1/2015,
Khang Dien JSC launched Mega Village this quarter, supplying 259 townhouses. To attract more

customers and make residents feel more secure, Khang Dien put an extra security check-point
at each intersection in the Mega Village compound.
CityLand Riverside, developed by Cityland Ltd, was launched this quarter in District 7,
comprising of both villas and townhouses after the success of Cityland Garden Hills in Q1/2015.
The project has primary stock of 91 dwellings. Due to the slow selling speed of land plots and
slow construction of sold land plots, the developer wanted to speed up the construction status
and switched from selling land plots to selling bare-shell dwellings. The main product were
villas; accounting for 75% of total dwellings.
Vinhomes in Binh Thanh entered the market in this quarter and provided 93 villas with a scale
of 3.65ha. Located within Vinhomes Central Park project, Vinhomes benefits from facilities and
amenities of Vinhomes Central Park. Vinhomes Central Park also included an 81-level building
that will become a large scale mixed-use project comprising of retail, hotel and office.
Vinhomes is the only villa project in Binh Thanh district.
Villa Park in district 9 launched its next phase after pending for few years. Khang Dien SJC, the
previous developer of this project, was replaced by M.I.K. This quarter Villa Park launched 28
new bare-shell villas, out of the total 234 dwellings; the rest of villas have been sold and some
residents have already moved in.
Figure 1. 1: Primary stock, Q2/2014 Q2/2015

1,200
Dwellings
Projects
1,000
25
20
800
15
600
10
400
200
0
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
No. of townhouses
274
574
683
724
712
No. of villas
87
117
307
382
429
No. of active project
12
13
17
21
22

Supply by location
In Q2/2015, Go Vap continued to be the largest primary stock from two large-scale projects,
Cityland Center Hills and Cityland Garden Hills; accounting for 44% market share. District 9 was
the second largest supplier in the villa/townhouse segment with a 27% market share. This
district had the highest number of projects in the primary market. The majority of these
projects were launched in the last three quarters. This demonstrates that rapid urbanisation and
major infrastructure projects such as the Long Thanh- Dau Giay Highway have had a significant
impact on developers confidence.
In Go Vap and district 9, townhouses continued to dominate the market share. As of Q2/2015,
townhouses accounted for 79% and 90% of the primary supply in Go Vap and district 9
respectively.
Only district 9, 7 and Binh Thanh had new supply this quarter. Binh Tan and Binh Chanh only
provided townhouses; Nha Be and Binh Thanh only offered villas to the primary market.
Figure 1. 2: Primary stock by district, Q2/2015
450
Dwellings
300
150
0
Go Vap
D.9
D.7
Binh
Thanh
Nha Be
D.2
D.12
Binh Tan
Binh
Chanh
No. of villas
83
33
97
93
72
39
12
No. of townhouses
320
291
31
29
26
In the primary market, villa land areas varied from 120 to 1,050 m2. The most popular land area
was 200 m2. GFAs ranged from 220 to 760 m2. Most villa projects offered three-floor dwellings
with three to 4-bedrooms. Riviera Cove had the highest land area amongst all villa projects,
ranging from 450 to 1,050 m2.

The majority of townhouse projects provided two to three-levels with two to four bedrooms.
Land areas ranged from 70 to 330 m2, the popular land area was 85 m2. Mega Ruby had the
highest land area amongst active townhouse projects, ranging from 145 to 398 m2.
Figure 1. 3: Villa/townhouse areas by project, Q2/2015
m
Highest
Lowest
1,200
1,000
800
600
400
200
Figure 1. 4: Villa/townhouse GFA by project, Q2/2015
1,200
Highest
Lowest
900
600
300

Land plot supply
As of Q2/2015, the primary land market had 17 active projects, providing approximately 765
plots, decreasing -43% QoQ and -33% YoY. This substantial decrease was due to limited new
supply and six fully sold projects being removed from the primary supply list. This was the
lowest amount of primary supply since Q4/2013.
One new project and the next phase of a current project entered the market, adding more than
60 plots. Three projects were delayed and will be launched in the near future. One of the three
delayed projects; Arista Villas, will be renamed Jamona Home Resort and will be relaunched at
the beginning of Q3/2015.
Cityland Riverside in district 7 was removed from the primary land plot projects as the
developer transferred the project from land plots into bare-shell houses. An Gia Garden in Tan
Phu district was renamed Nakyco.
Most land plot projects are sold in capital contribution contracts (CCC).
Figure 1. 5: Land plot stock, Q2/2014 Q2/2015

2,000
Projects
Plots
30
1,800
25
1,600
1,400
20
1,200
1,000
15
800
10
600
400
200
No. of land plots
No. of active projects
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
1,143
1,541
1,808
1,349
765
17
22
28
23
17

Supply by location
Figure 1. 6: Land plot stock by district, Q2/2015
250
Plots
Projects
200
150
100
50
0
Land plot
No. of active project
D.9
Thu Duc
Binh Chanh
D.2
D.7
Tan Phu
Binh Thanh
Go Vap
D.8
Nha Be
233
180
81
80
70
43
40
32
Eastern districts, including district 2, 9, Binh Thanh, and Thu Duc continued to dominate with
approximately 70% of land plot stock. District 9 was the largest supplier providing 233 plots
from four projects, accounting for 30% of the market share.
Thu Duc District was the second largest supplier in the land plot market with 180 plots from
three projects. Van Phuc Riverisde was the only active project in Thu Duc as the two projects in
this area stopped selling during this quarter. These two projects will relaunch with better prices
when some apartments surrounding these projects are completed at the end of 2015.
Popular townhouse plot areas had areas ranging from 80m2 to 120m. Popular villa plot areas
ranged from 180m2 to 400 m. Dong Tang Long had the largest plot land area of 560m per
plot.

Figure 1. 7: Land plot areas by project, Q2/2015

Highest
Lowest
600
500
400
300
200
100
-
1.3.
SECONDARY SUPPLY
Villa/townhouse
As of Q2/2015, there were approximately 4,253 villa/ townhouse dwellings in the secondary
market; villas continued to dominate with 62% market share.
Districts 2, 7, 9, and Go Vap provided villas and townhouses. District 7 is the largest supplier in
the secondary market supplying 1,938 dwellings, accounting for 46% market share, followed by
district 9 with 23% market share. Villas accounted for 90% of secondary supply in district 7.
Thu Duc, Nha Be and Binh Thanh districts provided only villas; accounting for 11% of the total
stock. District 8, Binh Tan and Binh Chanh supplied only townhouses.
Figure 1. 8: Secondary stock, Q2/2015

2,000
Dwellings
1,600
1,200
800
400
Townhouses
Villas
D.7
D.9
Go Vap
D.2
Thu Duc
406
487
331
119
1,532
479
15
163
168
Binh
Thanh
Binh Tan
Binh
Chanh
D.8
98
106
58
165
126
Nha Be

Land plots
As of Q2/2015, the secondary land plot market provided approximately 65,400 plots from 177
projects, up 2% QoQ and 5% YoY.
District 2 and Binh Chanh were the major suppliers in the secondary land plot market with
approximately 15,000 plots, accounting for 23% market share in each district.
Figure 1. 9: Land plot stock, Q2/2015
District 2
Binh Chanh
District 9
District 7
Nha Be
District 8
Thu Duc
Other
23%
23%
2%
2%
7%
18%
12%
14%

10
2.
MARKET PERFORMANCE
2.1.
OVERALL PERFORMANCE
In the primary villa/townhouse segment, sales increased 12% QoQ and 116% YoY,
demonstrating strong recovery.
In the secondary market, the average asking price for villas/townhouses increased by 4% QoQ
and 3% YoY.
Land plot sales decreased -36% QoQ and -21% YoY. The land plot absorption rate increased 6
ppts compared to the previous quarter due to limited amount of new supply. The average
secondary asking price was stable QoQ but increased 13% YoY.
2.2.
PRIMARY MARKET PERFORMANCE

Villa/townhouse
In Q2/2015, there were approximately 395 villa/townhouses sold in the primary market,
increasing 12% QoQ. The absorption rate was 35%, up 3 ppts QoQ but decreased 16 ppts YoY.
Townhouse transactions continued to dominate the villa/townhouse market with 82% of total
sales. Amongst active townhouse projects, Mega Village had the highest sales of 100 units,
followed by Cityland Center Hills and Cityland Garden Hills with 90 sales in each project. Mega
Village is located near Mega Ruby and Mega Sapphire as a special division with a better design,
amenities and higher construction quality and provided a medical clinic. Each residence in
Mega Village has a parking space for one car, meeting the demand of purchasers. Mega Ruby,
Mega Sapphire, and Mega Village all benefit from recently developed infrastructure such as
Long Thanh Dau Giay highway that conveniently connects these projects to the city center and
surrounding districts.
Small and medium-size landed properties had good performance due to high demand of endusers.
The majority
of purchasers
were
attracted
to
products
costing
less
than
US$300,000/dwelling, with a land area from 80 m2 to 120 m2 in a gated compound with full
internal facilities. For example, Mega village had an absorption rate of 39% just in one quarter.
There is still a small wealthy purchaser pool attracted to high-end projects with land areas of
more than 200 m2, such as Cityland Garden Hills and Vinhomes. Despite a high average price
of US$3,000,000 per dwelling, Vinhomes sold five units in just one month after launching.
Cityland Garden Hills sold ten 10 units in this quarter; ranging from US$490,000 to US$730,000
per dwelling.

11
In Q2/2015, sales of more than US$300,000/dwelling accounted for approximately 15% of the
total sales, stable QoQ and down -8 ppts YoY. In this quarter, projects in Phu My Hung
continued to have soft performance as most of the remaining products are luxurious and highpriced dwellings. The only new project in district 7; Cityland Riverside, which changed from land
plots to bare-shell villas, also had soft performance. All projects in district 7 had an absorption
rate of less than 20 percent.
Figure 2. 1: Primary transactions, Q2/2014 Q2/2015

Absorption rate %
%
100
56
48
80
40
60
32
24
40
16
20
8
0
Q2/2014
Q3/2014
Q4/2014
Q1/2015
Q2/2015
> US$300,000/ dwelling
23
15
15
=< US$300,000/ dwelling
77
93
92
85
85
Absorption rate (%)
50
34
37
32
35
Go Vap had the best performance in the villa/townhouse segment, followed by district 9.
Garden Hills and Cityland Center Hills in Go Vap benefited from well-developed infrastructure
and amenities such as Vu Anh hospital, Gia Dinh Park, Big C supermarket and universities; it
only takes a few minutes to travel to Thu Duc district and Tan Son Nhat airport. An E-mart is
being constructed adjacent to these two projects and is expected to be completed in Q4/2015.
Each project sold 90 units this quarter, ranging in prices from US$183,000 to US$778,000 per
dwelling; there were no promotional or discounts programs offered.
District 9 also had great performance at the beginning of 2015 due to good urban planning
and recent developed infrastructure, with 31% of total transaction volume from three projects
of Khang Dien SJC. These three projects included Mega Ruby, Mega Sapphire, and Mega
Village.
Sales in district 9, 12, and Binh Tan were only townhouses; whereas successful transactions in
district 2, Binh Thanh, and Nha Be were only villas. Dragon Parc in Nha Be had a good
absorption rate of 38% due to a low average price of US$ 300,000/dwelling.

12
Figure 2. 2: Performance by district, Q2/2015

Sold dwellings
200
180
160
140
120
100
80
60
40
20
0
Go Vap
D.9
D.7
D.2
Nha Be
D.12
Binh Thanh
Binh Tan
Townhouse
170
123
17
10
Villa
10
19
21
17
Figure 2. 3: Performance by project, Q2/2015
Star Hill continued to have the highest price, ranging from US$12,900/m2 to US$17,000/m2.
This project was located in the prime location of district 7 and used shophouses for commercial
purposes.

13
Figure 2. 4: Price range by land area, Q2/2015
18,000
US$/m
Lowest
Highest
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
Vinhomes launched this quarter and had the highest price per GFA, ranging from US$14,960 to
US$41,800/m2. As well as the good reputation of the developer, this project had a premium
design, high construction quality and premium services with 5-star standards. Handover
condition was 95% payment with a 2% maintenance fee.
Figure 2. 5: Price range by GFA, Q2/2015
45,000
US$/m
Lowest
Highest
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000

14
Land plots
In Q2/2015, total transaction volume of the land plot segment was 390 units; sharply
decreasing -36% QoQ and -21% YoY. The absorption rate increased to 51%, up 6 ppts QoQ and
8 ppts YoY due to limited new supply. The land plot segment had soft performance this quarter
as limited new land plot supply led to limited choices for buyers.
Eastern districts led the land plot market with 80% of total transaction volume. Thu Duc had the
best performance with 39% of total sales; followed by district 9 with 31% and district 2 with 10
percent. Well-developed infrastructure development in the Eastern region has assisted projects
in these areas in becoming more attractive to buyers.
o
In Q2/2015, the sales volume of the Dong Tang Long project in district 9 accounted for
approximately 31% of total transactions with approximately 120 plots. This was the
most significant project amongst four active projects of district 9. The good
performance was mainly due to the relatively low price, ranging from US$370/m2 to
US$500/m2, and the completed internal infrastructure and facilities. Another selling
point is that Dong Tang Long granted red books for each property owner.
Another project that had good performance was Van Phuc Riverside in Thu Duc.
Located on 198 ha, this project will provide a school, hospital, an internal park, stadium,
and shopping center. It also had good proximity to Tan Son Nhat International Airport,
city center, National Route 1A, and National Route 13. Van Phuc Riverside offered
average price of US$800/m2, higher than other land plots projects in Eastern districts.
In May 2015, Van Phuc Riverside launched a 30 land plots, 24 have sold. By the end of
2015, Van Phuc Riverside may sell bare-shell houses, as it only has 60 land plots left for
sale.
Other districts accounted 30% of total transaction volume due to limited new supply and low
remaining land plot stock of the district narrowed choices for purchasers, resulting in a soft
performance. For example, Binh Tan, Tan Phu, Binh Thanh, Hoc Mon, and Nha Be had the
softest performance in the land plot market, accounting for only 1% of the total sales volume.

15
Figure 2. 6: Performance by project, Q2/2015
US$ Thousand/ plot
Accum. Sold percentage (%)
Lowest
Highest
%
350
300
100
80
250
60
200
150
40
100
20
50
Figure 2. 7: Average price by land plot area, Q2/2015
US$ /m
Lowest
Highest
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
2.3.
SECONDARY MARKET PERFORMANCE

Villa/townhouse
The average asking price in the secondary market was US$790,500 per dwelling, up 4% QoQ
and 3% YoY.
In secondary villa/townhouse segment, district 2 had the highest secondary price with
approximately US$1,500,000 per dwelling, increasing significantly 29% QoQ and 69% YoY due
to urban planning and developed transport infrastructure such as Sai Gon Bridge, Xa Lo Ha Noi
highway and Thu Thiem tunnel. The Metro Line 1 project is expected to improve the districts

16
connectivity to the CBD and surrounding districts. Binh Thanh had the second highest average
asking price at approximately US$1,430,000 per dwelling.
Figure 2. 8: Average secondary price, villa/townhouse
US$/dwelling
900,000
850,000
800,000
750,000
700,000
650,000
600,000
Q1
Q2
Q3
Q4
Q1
Q2
2012
Q3
Q4
Q1
Q2
2013
Q3
Q4
2014
Q1
Q2
2015
In Q2/2015, the average secondary asking price of villas and townhouses in other districts was
unchanged QoQ.
Binh Tan district continued to have the lowest secondary price, with an average of US$60,700
due to the distance from the city centre.
Figure 2. 9: Average secondary price by location, Q2/2015
80%
% change QoQ
% change YoY
70%
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
D.8
D.9
Binh Chanh
Nha Be
D.7
Binh Thanh
D.2
Binh Tan
The gross yield of villa/ townhouses was stable, ranging from 2% to 5% of the secondary price.
My Kim 1 had the lowest yield of 2% due to a high price asking price. Housing projects in

17
district 7 have the most stability due to their prime location and amenities; target lessees are
generally expatriate families. Binh Thanh and district 2 also had good yields due to welldeveloped infrastructure and a full range of amenities that underwrites demand.
Table 2. 1: Gross yields, Q2/2015
Property
Type
District
Gross yield
Selling price
Villa Riviera
Villa
3%
1,776,404
My Kim 1
Villa
2%
1,281,100
My Kim 3
Villa
3%
1,060,767
My Toan 1
Townhouse
4%
584,829
Saigon Pearl Villas
Villa
Binh Thanh
3%
1,428,967
Ngan Long Villas
Villa
Nha Be
3%
538,304
Thao Nguyen Saigon Villas
Villa
4%
346,918
Land plots
The average asking price in the land plot secondary market was approximately US$1,050/m2;
stable QoQ but increasing 12% YoY.
District 8 and Nha Be had a sharp decrease in secondary prices. In Q2/2015, the average asking
price in district 8 decreased -38% QoQ to US$521/m2, followed by Nha Be at -16% QoQ to
US$439/m2.
Districts with good urban planning and developed infrastructure, including district 7 and 9 had
a significant increase in their secondary prices, from 10% to 16% QoQ.
District 2, offered the highest average asking price in the secondary market at US$1,766/m2,
down -1% QoQ.
A large purchaser pool still prefers land plots for living or investing purposes, as purchasers can
save on construction costs and control construction progress.

18
Figure 2. 10: Average secondary price of land plots, Q1/2013 Q2/2015

District 2
District 7 (Excl. PMH)
Binh Chanh
District 8
Thu Duc
Nha Be
District 9
US$/sq m
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014

Q4
Q1
Q2
2015
19
3.
DEMAND ANALYSIS
3.1.
NEW HOUSING CONSTRUCTION LICENSES
As of 1H/2015, according to Construction Department of Ho Chi Minh City, 20,457 new housing
construction licenses were granted in HCMC, up 6.8% YoY.
Newly constructed GFA was
4,215,000m2, up 5.8% YoY. This quarter had the most new housing construction licenses
granted in the past five years. This steady growth demonstrated the strong residential demand
in landed housing segment in 2H/2015.
Figure 3.1: New housing construction licenses
thousand m2
licenses
24,000
4,800
21,000
4,000
18,000
3,200
15,000
12,000
2,400
9,000
1,600
6,000
800
3,000
-
May-11
May-12
May-13
May-14
May-15
No. of new licenses
15,212
13,544
13,644
19,082
20,457
Total GFA
2,812
2,498
2,606
3,972
4,215
Source: HCMC Construction Deparment
3.2.
BUYER PREFERENCES
The newly launched Vinhomes in Binh Thanh marked the return of the high-end villa segment
in this quarter. It has shown that wealthy purchasers are still attracted to premium products in
projects in a prime location and a wide range of facilities.
The townhouse segment in district 9 and Go Vap had a good performance by fulfilling the
needs of purchasers.
Landed properties with appropriate pricing and connectivity to city center were attractive to
end-users, ranging in price from 700 to 1,600 $US/m2. The high liquidity of land plots in Eastern
districts also attracted investors.

20
3.3. SUPPORTING POLICIES
The State Bank of Viet Nam has lowered the ceiling deposit interest rate for terms less than
six months to 5.5 percent. This downward trend has had a positive impact on the real estate
market. For residential buyers, their financial ability is well supported, which enhances
purchasing power. For developers, a lower investment cost may encourage them to offer
more promotions such as discounts or payment terms extension; hence, attracting more
residential buyers.
3.4. OVERSEAS REMITTANCES
According to the World Bank report, overseas remittances to Viet Nam reached US$12
billion in 2014. Remittances are expected to be between $13 billion and $14 billion this
year.
According State Bank branch HCMC, remittances to HCMC reached at US$1.7 billion in
1H/2015, increasing by 20% YoY. Remittances to real estate accounted for 22 percent of
total remittances. The strong growth of remittances to Viet Nam will provide substantial
capital for the real estate market, especially with the new policy allowing foreigners to own
real estate, which came into effect as of July 1 2015.

21
4.
FUTURE OUTLOOK
4.1.
OUTLOOK FOR SUPPLY

Future stock from 2H/2015 onwards is approximately 52,500 dwellings from 137 projects with a
total area of 8,900 ha. Future projects, with an area of less than 50 ha are mainly located in
districts 2, 7, 9, and Nha Be. Most future projects with a scale larger than 50 ha are located in
Cu Chi and Thu Duc.
Seventy percent of the projects are still in planning or approval stages.
In 2H/2015, nine projects with 1,250 dwellings are expected to enter the market. District 9 will
be the largest supplier; accounting for 31% market share.
Table 4. 1: Expected supply in 2H/2015
No
Project name
District
Developer
Type
Expected total
dwellings
Jamona Riverside
Sacomreal
Villa/Townhouse
226
Dai Quang Minh
Dai Quang Minh Real

Estate Co.
Villa/Townhouse
291
May Flower Villa
Phu My Vinh
Villa
62
Truong Dinh Hoi 3 RA
Townhouse
116
Parkland Green
Jen Development
Villa/Townhouse
122
Gold Park Residence
Novaland Investment JSC
Villa/Townhouse
95
River Terrace
Jamona Home Resort
Thu Duc
Sacomreal
Savico Tam Binh
Thu Duc
Savico
Total
District 8 Public Services

Co.
Hung Phu Real Estate
Townhouse
Investment Co.
176
Villa/Townhouse
100
Townhouse
63
1,251

22
Supply by location
District 9 and Cu Chi remain the largest future suppliers due to the extensive land stock,
accounting for approximately 33% of the future supply. Thu Duc, Tan Phu, and district 2
account for 10% of the future supply respectively.
Cu Chi will supply large scale projects ranging from 50 ha to 100 ha; while districts 9 and Thu
Duc will provide smaller scale projects ranging from 40 ha to 80 ha.
Due to their smaller land areas, districts 7, Go Vap, Binh Tan, Binh Chanh and Can Gio are
expected to provide projects of less than 50 ha each. These districts have a relatively small
future supply with a market share of less than 10% each.
Districts 8, 11, 12, Binh Thanh, and Nha Be are consolidated in the Others category since each
provide less than 2.5% of the total area.
Figure 4. 1: Future supply, 2015 onward

1,600
Projects
ha
1,400
35
30
1,200
25
1,000
20
800
15
600
10
400
200
-
Total Area
No. of projects
Cu Chi
District 9
Tan Phu
Thu Duc
Hoc Mon
Can Gio
Go Vap
District 7
Binh Tan
Binh
Chanh
Others
1,518
1,388
936
899
920
613
484
445
433
338
913
18
30
11
15
14
26
Prospects
From July 1st 2015, foreign companies and foreigners with a valid visa are formally allowed to
own up to a maximum of 250 villas/townhouses in a given ward on a 50-year leasehold
contract. The law also allows foreigners to lease, transfer and inherit property the same as
Vietnamese citizens. This amendment may open up the residential market and positively boost
demand.

23
The Law on Real Estate Business, formally effected in July 1st 2015, was amended to minimise
the risk in buying an unfinished housing unit. Under the amendment, a real estate project must
satisfy certain requirements before launching, including a completed foundation, approval from
Department of Construction and a bank guarantee. Accordingly, the buyer is entitled to ask the
guarantor to return their deposit in case the developer fails to meet the contractual agreement.
These regulations will boost buyers confidence and help identify capable investors.

24
5.
SWOT ANALYSIS
segment and is a brief overview of those factors that are apparent from Savills research. The details
of the report cover many other aspects and the SWOT analysis should not be read in isolation.
An improvement in supply and sales of villa/townhouse segment.
Increasing demand for small to medium-size projects with good construction
Strengths
progress, adequate internal facilities, infrastructure and moderate pricing.
The high-end segment remained favourable to wealthy purchasers.
Current underdeveloped infrastructure systems still negatively influence the

development progress.
Weaknesses
Slow construction progress and unclear legal status in some projects might
affect buyers confidence.
The community in some areas is not well developed.
New Housing Law took effect July 1st, 2015. Foreigners now have greater
certainty of residential rights.
Opportunities
Bank Guarantee will boost the buyers confidence.
An increase in the amount of high-income households will boost demand for

high-standard living environments.
Threats
Projects which have delayed construction due to capital shortage and

complex legal documents affected buyers confidence.
Development of infrastructure systems that connect the city to surrounding

provinces such as Dong Nai and Binh Duong might increase the competition
from these markets.

25
Research Parameters
Data Collection: Methods of data collection include observation, personal interview, telephone
survey, internet survey, mail survey, and Savills inter-department group discussions.
Analysis Methods: Direct comparison, descriptive analysis, in-depth analysis, trend analysis, eventhistory analysis;
Scope of Study: 24 districts in Ho Chi Minh City, including 19 urban districts: 1, 2, 3, 4, 5, 6, 7, 8, 9,
10, 11, 12, Binh Thanh, Phu Nhuan, Tan Binh, Tan Phu, Go Vap, Binh Tan, and Thu Duc; and 5 rural
districts: Cu Chi, Hoc Mon, Binh Chanh, Nha Be, and Can Gio.

26
Term Definitions
Primary supply: Refers to villas & townhouses available for sale from active projects in the studied
quarter. Buyers can purchase villas & townhouses directly from developers.
Secondary supply: Refers to villas & townhouses from projects that have sold 100 percent.
Villa & townhouse: Refers to shell or finished villa & townhouses for sale, not including land plots.
Research Limitations: Savillss quarterly report reflects an overview of the current property market
and is indicative research only. Savills recommends the reader obtain a detailed market study of the
specific sector of interest should a deeper understanding of the market be required.

27
Appendix 1: Current Primary Projects

28
Appendix 1.1: Primary villa/townhouse projects
No.
Project name
District
Launched
time
Developer
Type
Total
dwellings
Sold
percentage
(%)
Avg. price per

dwelling
(US$/dwelling)
Avg. price
per unit
land area
(US$/m2)
Jen
Developments
Q1/2015
Jen Capital
Villa
2,122,457
2,922
Pho Dong Village
Q3/2014
Saigon Construction
Company
Villa
128
88
301,168
1,689
Ventura
Q1/2011
Kien A JSC
Townhouse
92
90
217,039
1,548
Villa
58
91
986,221
4,377
My Van 2
Q3/2013
Phu My Hung
Corporation
Nam Vien
Q1/2014
Phu My Hung
Corporation
Villa
48
81
955,461
4,218
Star Hill
Q3/2012
Phu My Hung
Corporation
Townhouse
32
81
1,118,210
14,961
The Chateau
Q4/2011
Phu My Hung
Corporation
Villa
131
91
2,556,037
4,967
Cityland Riverside
Q2/2015
City Land Ltd.
Villa/
townhouse
91
34
541,017
2,367
Villa Park
Q2/2015
M.I.K
Villa
28
394,722
1,651
10
Lucky Dragon
Residence
Q1/2013
Novaland JSC
Townhouse
38
89
193,382
1,871
11
Mega Ruby
Q4/2014
Khang Dien JSC.
Townhouse
235
100
125,242
1,401
12
Mega Sapphire
Q1/2015
Khang Dien JSC.
Townhouse
57
93
196,614
1,608
13
Mega Village
Q2/2015
Khang Dien JSC.
Townhouse
259
39
131,789
1,605
14
Riviera Cove
Q4/2009
Keppel Land
Villa
96
95
1,020,020
1,512

29
No.
15
16
17
Project name
Vinh Tan
Cityland Garden
Hill
Cityland Center
Hills
District
Launched
time
12
Q1/2015
Vinh Tan Construction

and Investment Ltd.
Villa/
Townhouse
Go Vap
Q1/2015
City Land Ltd.
Go Vap
Q3/2014
Binh Tan
Q2/2010
Developer
Type
Total
dwellings
Sold
percentage
(%)
Avg. price per

dwelling
(US$/dwelling)
Avg. price
per unit
land area
(US$/m2)
60
50
147,979
1,629
Villa/
Townhouse
335
43
418,265
2,677
City Land Ltd.
Townhouse
414
92
199,060
2,021
Thu Thiem Development

Investment Ltd, Co
Townhouse
65
63
106,697
1,274
Townhouse
38
84
136,114
1,119
18
Dat Viet RA
19
13C-Greenlife RA
Binh
Chanh
Q4/2014
Tan Binh Investment and

Construction Co.
20
Vinhomes
Binh
Thanh
Q2/2015
Vin Group
Villa
93
3,026,081
7,843
21
Dragon Parc
Nha Be
Q3/2014
Phu Long Real Estate Co.
Villa
58
57
298,002
1,774
22
Galleria
Nha Be
Q2/2010
An Tay Development Ltd

Co
Villa
58
48
517,146
1,940
22
Total

2,417
30
Appendix 1.2: Primary Land Plot Projects

No.
Project name
District
Launched
time
Developer
Total plots
Sold
percentage
(%)
Avg. price per

plot (US$/plot)
Avg. price per

unit land area
(US$/m2)
Ninh Giang
Riverside
Q1/2015
Invesco Pho Dong Real

Estate Ltd.
164
75
88,153
787
Jamona City
Q4/2014
Sacomreal
142
66
125,157
1,212
La Casa
Q1/2014
Van Hung Phat Corp
66
98
152,749
908
39
90
57,213
549
421
81
69,681
435
The Sun City Ba To
Q1/2014
Nam Viet Investment,

Construction & Housing
Trading Ltd Co
Dong Tang Long
Q4/2014
HUD
Peach Garden
Q4/2014
Viet Tee
37
51
79,031
477
Tang Phu House
Q3/2012
Phong Phu Corp
79
96
95,876
617
The Sun City Minh

Son
Q3/2013
Minh Son Construction &

Investment Co, Ltd
53
83
109,416
601
Dai Phuc Riverview
Binh
Thanh
Q4/2013
Dai Phuc
100
60
191,187
1,212
10
Sokico Hung Long
Go Vap
Q2/2015
Hung Gia Phuc Ltd
32
91
59,500
600
11
Arista Villas
Thu Duc
Q4/2013
Sacomreal
190
61
99,789
545
12
Savico Tam Binh
Thu Duc
Q3/2012
Savico JSC
63
87
97,962
546
13
Van Phuc Riverside

Residence
Thu Duc
Q2/2015
BCCI
30
24
76,686
683
14
Nakyco
Tan Phu
Q3/2014
Nakyco Ltd
100
62
179,471
1,660
15
Duong Hong
Garden House
Q3/2014
Dai Phuc Real Estate

Group
72
64
120,284
893
16
Viet Phu Garden
Q4/2014
BCCI
94
68
67,320
488
17
Anh Tuan Garden
Q4/2011
Anh Tuan JSC
119
98
42,417
312
17
Total
Binh
Chanh
Binh
Chanh
Nha Be

1,801
31
Appendix 2: Secondary Projects

32
Appendix 2: Secondary Villa/ Townhouse Projects
No.
1
Project name
BMC Hung Long
Location
District
Phu Thuan
Hung Thai 1
Phu My Hung
Hung Thai 2
Phu My Hung
Lam Thien Luc Dia
Phu My Hung
My Gia 1
Phu My Hung
My Gia 2
Phu My Hung
My Giang 1 &2
Phu My Hung
My Hao
Phu My Hung
My Hoang
Phu My Hung
10
My Hung
Phu My Hung
11
My Kim 1
Phu My Hung
12
My Kim 2
Phu My Hung
13
My Kim 3
Phu My Hung
14
My Phu 1
Phu My Hung
15
My Phu 2
Phu My Hung
Developer
BMC
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.

Type
Villa
Total
dwellings
Completion
time
Avg. price per

dwelling
(US$/ dwelling)
Avg. price per

dwelling land area
(US$/ sq m)
2007
N/A
N/A
Townhouse
142
2004
825,912
3,376
Villa
42
2005
489,088
3,882
Villa
16
2003
699,795
4,860
Villa
64
2005
820,529
3,373
Villa
42
2005
764,392
3,594
Villa
139
2006
679,994
3,808
Villa
46
2002
1,029,699
4,498
Villa
47
2002
1,148,126
3,710
Villa/townhouse
67
1999
1,238,292
3,972
Villa
51
2002
1,238,100
4,918
Villa
37
2002
1,022,470
4,069
Villa
38
2002
1,060,760
5,376
Villa
52
2006
1,297,698
3,371
Villa
52
2006
1,548,009
4,819
33
No.
Project name
Location
District
16
My Phu 3
Phu My Hung
17
My Quang
Phu My Hung
18
My Thai 1
Phu My Hung
19
My Thai 2
Phu My Hung
20
My Thai 3
Phu My Hung
21
My Toan 1
Phu My Hung
22
My Toan 2
Phu My Hung
23
My Toan 3
Phu My Hung
24
My Tu 1
Phu My Hung
25
My Tu 2
Phu My Hung
26
My Tu 3
Phu My Hung
27
My Van
Phu My Hung
28
Nam Phu
Tan Thuan
Dong ward
29
Phu Gia
Phu My Hung
Developer
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Phu My Hung
Co.
Nam Long
Investment
Corporation
Phu My Hung
Co.

Type
Total
dwellings
Completion
time
Avg. price per

dwelling
(US$/ dwelling)
Avg. price per

dwelling land area
(US$/ sq m)
Villa
81
2013
N/A
N/A
Villa
60
2004
1,022,778
4,526
Villa
106
2005
587,970
3,717
Villa
72
2005
676,904
3,676
Villa
40
2006
507,544
3,625
Townhouse
74
2005
584,829
4,246
Townhouse
72
2005
576,754
4,005
Townhouse
24
2005
599,825
5,404
Villa
27
2004
1,661,053
4,694
Villa
18
2004
1,476,491
3,729
Villa
16
2004
830,529
4,153
Villa
60
2007
1,095,834
4,199
Villa
99
2006
595,870
4,860
Villa
99
2003
1,619,527
4,001
34
No.
Project name
30
Nam Thong
30
Sub - Total Dist 7
Location
District
Tan Thuan
Dong ward
Developer
Nam Long
Investment
Corporation
Type
Total
dwellings
Townhouse
18
Completion
time
2013
Sai Gon Pearl

Villas
Nguyen Huu
Canh
Sub - Total Binh Thanh Dist
Villa Riviera
Thao Dien
ward
Binh
Thanh
Vietnam Land
SSG Ltd.
Villa
126
N/A
898,214
3,798
1,428,967
7,350
1,185,039
6,634
2007
1,776,404
3,445
2015
205,289
1,064
1,538,726
3,252
2007-2008
126
2
Keppel Land
Villa
101
Avg. price per

dwelling land area
(US$/ sq m)
N/A
1,706
Avg. price per

dwelling
(US$/ dwelling)
An Gia Hung
Investment
2
La Astoria
Residence
Binh Trung
Tay ward
Construction
Joint Stock
Townhouse
18
Co.
2
Sub - Total Dist 2
119
Thao Nguyen
Saigon Villas
Long Thanh
My
Nam Long
Investment
Corporation
Villa
115
2006-2009
346,918
771
The Garland
Duong Dinh
Hoi st.
VinaCapital
Phuoc Dien
Villa
53
2011
288,377
1,254
Hoja Villas
Phuoc Long B
ward
Khang Dien
House JSC
Townhouse
29
2013
N/A
N/A
Mega Residence
Phu Huu St.
Khang Dien
Townhouse
160
2014
100,678
1,060

35
No.
Project name
Location
District
Developer
Type
Total
dwellings
Completion
time
Avg. price per

dwelling
(US$/ dwelling)
Avg. price per

dwelling land area
(US$/ sq m)
JSC.
Truong Thanh
ward
Dong Tang Long
Sub - Total Dist 9
Conic Bang Lang

Townhouse
Sub - Total Binh

Chanh Dist.
Kim Long Villas
Nguyen Huu
Tho
Nha Be
Ngan Long Villas
Nguyen Huu
Tho
Nha Be
Sub - Total Nha Be Dist
Conic Loc Phat
Ward 7 RA
Sub - Total in district 8
Hoa Binh
residential area
Sub - Total in Binh Tan
44
Total
HUD
Villa
21
2015
378
Phong Phu
Residential
Area
Binh
Chanh
Conic Linh
Phong
Townhouse
74
2007
74
Phu Long
Real Estate
Co.
Phu Long
Real Estate
Co.
Ward 7
Binh Hung
Hoa Ward
Conic Linh
Phong
Saigon 5
Construction
& Trading Co
Binh Tan

204,264
930
172,680
1,183
172,680
1,183
43
End 2010
567,526
2,703
Villa
60
Q2/2010
538,304
1,645
550,554
2,086
Townhouse
37
End 2010
278,403
1,131
Townhouse
Q3/2011
N/A
N/A
223,933
99
60,699
897
60,699
897
46
Thu Thiem
Development
Investment
Ltd., Co
456
Villa
103
Ta Quang Buu
Street
55,178
Townhouse
59
59
Q1/2011
2,611
36

37

No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
May Flower Villa
District 2
Phu My Vinh Co.
Villa, Townhouse
2015
N/A
Truong Dinh Hoi

3 RA
District 8
District 8 Public Services Co.
2.7
Townhouse/Apartme
nt
2015
Ready for
relaunching
Golf Park
Residence
District 9
2.4
Villa
2015
Finish site clearance
Parkland Green
District 9
Jen Development
4.3
Villa, Townhouse
2015
Vacant land
Dai Quang Minh
District 2
Dai Quang Minh Real Estate

Corporation
36.9
Villa, Townhouse,
Apartment
2015
Start infrastructure
construction
Savico Tam Binh
Thu Duc
Savico
5.6
Townhouse,
Apartment
2015
construction
Jamona Riverside
District 7
Sacomreal
7.6
Villa, Townhouse
2015
construction
Arista Villas Phase 2
Thu Duc
Sacomreal
9.1
Villla/ Townhouse
2015
Under construction
River Terrace
District 9
Hung Phu Real Estate Investment

Corporation
Townhouse
2015
construction
10
Lotus City (Lotus

Residence)
District 7
Anh Tuan Investment JSC.
Villa/Townhouse/Lan
d plot
2016
Under construction
11
Cho Ray Hospital

Residential Area
Binh Chanh
Hong Quang Investment &

Construction Co.
82.3
Villa, townhouse,
Apartment
2016
1/2000 approved

38
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
12
Thien Phuc
Residential Area
Binh Chanh
Van Thinh Phat Investment

Corporation
2.58
Villa, Townhouse,
Apartment
2016
1/2000 approved
13
Saigon South
Residential
Complex Area
Binh Chanh
Tien Phuoc Co., Ltd.
19.8
Villa, Townhouse,
Apartment
2016
Vacant land
14
Saigon West
Villas
Binh Tan
Vinhtien Land
Villa, Townhouse
2016
1/500 approved
15
Phuc Duc Can

Gio Eco-Villas
Area
Can Gio
Phuc Duc Group
13
Villa
2016
Executing 1/500
plan
16
Kim Tam Hai

Residential Area
Cu Chi
Kim Tam Hai Co.
41.76
Villa, Townhouse
2016
1/2000 approved
17
C.T Sphinx Golf

club &
Residences
Cu Chi
C.T Group
200
Villa
2016
N/A
18
SGCCR Complex
Area
District 2
SDI
120
Complex
2016
Under construction
19
Marina Saigon
Villas
District 2
The 21st Century Binh Trung Tay

Company Ltd., (Vietnam)
14.5
Complex
2016
1/500 approved
20
Binh Trung Dong

service
apartment
District 2
5.2
Villla, Townhouse
2016
Planning
Tan Hung Thinh Investment &

Development Corp

39
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
21
Seven Diamond
District 7
Vinhtien Land
2.5
Villa
2016
Compensation
completion
22
Eastern Sense
District 9
158
Villa, Townhouse
2016
Vacant land
23
Marina Garden
District 9
Hung Phu Real Estate Investment

Corporation
9.4
Villa, Apartment
2016
1/500 approved
24
Long Thoi RA
Nha Be
Intresco
56
Villa, Townhouse,
Apartment
2016
Site compensation:
95%, 1/500
planning
25
Binh Chieu 2
Residential Area
Thu Duc
ThuDuc House
1.4
Villa, Townhouse
2016
1/500 approved
26
North of Kinh
Duong Vuong
Street Residential
Area
Binh Tan
N/A
111.15
Townhouse,
Apartment
2016
1/2000 approved
27
Residential Area
- Ward 24
Binh Thanh
N/A
56.94
Complex
2016
1/2000 approved
28
Residential Area
- Ward 15
Binh Thanh
N/A
51.86
Villa, townhouse,
Apartment
2016
1/2000 approved
29
Residential Area
- Ward 26
Binh Thanh
N/A
103.06
Complex
2016
1/2000 approved

40
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
30
Tan Phu Trung

Residential Area
- Area 2
Cu Chi
N/A
139.8
Villa, Townhouse,
Apartment
2016
1/2000 approved
31
Binh My & Hoa

Phu Communes
Residential Area
Cu Chi
N/A
55.77
Complex
2016
1/2000 approved
Cu Chi
N/A
99.46
Villa, Townhouse
2016
1/2000 approved
Cu Chi
N/A
156.24
Villa, Townhouse
2016
1/2000 approved
32
33
Trung Lap
Thuong
Commune
Residential Area
Tan Phu Trung
Commune
Residential Area
- Area 3
34
District Capital
Park &
Residential Area
Cu Chi
N/A
65.3
Villa, Townhouse,
Apartment
2016
1/2000 approved
35
Tan Thong Hoi

Residential Area
- Area 2
Cu Chi
N/A
132.04
Villa, Townhouse
2016
1/2000 approved
Cu Chi
N/A
50.2
Villa, Townhouse
2016
1/2000 approved
Cu Chi
N/A
68.6
Villa, Townhouse
2016
1/2000 approved
Cu Chi
N/A
54.4
Villa, Townhouse
2016
1/2000 approved
36
37
38
Tan Phu Trung &

Tan Thanh Tay
Communes
Resettlement
Residential Area
Bau Dung
Residential Area
- Area 2
Phuoc Thanh
Residential Area

41
No.
39
40
Project name
Tan Phu Trung
Town Residential
Area
Phuoc Thanh
Residential Area
- Area 4
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
Cu Chi
N/A
51.6
Villa, Townhouse
2016
1/2000 approved
Cu Chi
N/A
37.96
Villa, Townhouse
2016
1/2000 approved
41
An Nhon Tay
Residential Area
Cu Chi
N/A
103
Villa, Apartment
2016
1/2000 approved
42
Pham Van Coi

Residential Area
Cu Chi
N/A
45.1
Villa, townhouse
2016
1/2000 approved
43
Tan Thanh Tay

Residential Area
Cu Chi
N/A
100
Villa, townhouse
2016
1/2000 approved
44
Interward 9-11
Residential Area
District 11
N/A
38.85
Townhouse
2016
1/2000 approved
45
Investco Hung
Long 1
Residential Area
(Plot 33-47 of
Area 19 Saigon
South NUA)
District 7
Investco
12.5
Villa, Townhouse,
Apartment
2016
1/2000 approved
46
Urban
Residential Area
District 7
N/A
36.9
Villa, Townhouse,
Apartment
2016
1/2000 approved
47
Rach Ba Buom
Southern
Residential Area
District 7
Sacomreal
264
Villa, Townhouse,
Apartment
2016
1/2000 approved
48
Me Coc
Residential Area
District 8
N/A
64
Villa, Townhouse,
Apartment
2016
1/2000 approved

42
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
49
Ward 12-13
Residential Area
District 8
N/A
53.98
Villa, Townhouse,
Apartment
2016
1/2000 approved
50
Commercial &
Residential Area
District 9
My Thinh Phu Real Estate

Investment Co., Ltd
1.03
Complex
2016
Approved invested
location in Q2 2010
51
Residential Area
Long Thanh My Long Binh
District 9
Hoa Viet JSC Company. , Ltd
34
Villa, Townhouse,
Apartment
2016
1/2000 approved
52
Go Trang
Residential Area
District 9
N/A
43.29
Villa, Townhouse,
Apartment
2016
1/2000 approved
53
Xom Moi II
Residential Area
District 9
N/A
101.5
Villa, Townhouse,
Apartment
2016
1/2000 approved
54
Expatriate
Housing Area Saigon Hi-Tech
Park - Phase 2
District 9
N/A
28.15
Villa, Apartment
2016
1/2000 approved
55
Rach Ba Cua Eastern

Residential Area
District 9
N/A
93.14
Villa, Townhouse,
Apartment
2016
1/2000 approved
56
Ward 3
Residential Area
Go Vap
N/A
144.69
Complex
2016
1/2000 approved
57
Ward 13
Residential Area
Go Vap
N/A
85.55
Complex
2016
1/2000 approved

43
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
58
Ward 4
Residential Area
Go Vap
N/A
37.42
Townhouse,
Apartment
2016
1/2000 approved
59
Ward 8,9 & 11

Residential Area
Go Vap
N/A
216.76
Townhouse,
Apartment
2016
1/2000 approved
60
Tan Xuan
Residential Area
Hoc Mon
N/A
106.9
Villa, Townhouse
2016
1/2000 approved
Hoc Mon
N/A
117.21
Villa, Townhouse,
Apartment
2016
1/2000 approved
Hoc Mon
N/A
119.47
Villa, Townhouse,
Apartment
2016
1/2000 approved
61
62
Thoi Tam Thon

Commune
Residential Area
Area II
Thoi Tam Thon
Commune
Residential Area
Area I
63
Residential Area
along Backroad
80B
Hoc Mon
N/A
179.11
Villa, Townhouse,
Apartment
2016
1/2000 approved
64
Residential Area
- Provincial Road
9
Hoc Mon
N/A
226.1
Villa, Townhouse,
Apartment
2016
1/2000 approved
65
Residential Area
- Tan Xuan
Commune National Road 22
Hoc Mon
N/A
165.47
Villa, Townhouse,
Apartment
2016
1/2000 approved
66
North of Bo
Dang Residential
Area
Nha Be
N/A
75.2
Villa, townhouse,
Apartment
2016
1/2000 approved
67
Phuoc KiengNhon Duc NUA
Nha Be
Thanh Nhut
34.9
Complex
2016
1/2000 approved

44
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
68
Ward 7
Residential Area
Tan Binh
N/A
24.58
Townhouse
2016
1/2000 approved
69
Ward 10
Residential Area
Tan Binh
N/A
84.45
Complex
2016
1/2000 approved
70
Tay Thanh Ward

Residential Area
Tan Phu
N/A
94.74
Complex
2016
1/2000 approved
71
Son Ky Ward
Residential Area
Tan Phu
N/A
172.3
Complex
2016
1/2000 approved
72
Hiep Tan
Residential Area
Tan Phu
N/A
112.9
Complex
2016
1/2000 approved
73
Hoa Thanh
Residential Area
Tan Phu
N/A
94.39
Complex
2016
1/2000 approved
74
Phu Trung
Residential Area
Tan Phu
N/A
88.73
Complex
2016
1/2000 approved
75
Tan Son Nhi

Residential Area
Tan Phu
N/A
112.82
Complex
2016
1/2000 approved
76
Tan Thanh
Residential Area
Tan Phu
N/A
99.49
Complex
2016
1/2000 approved
77
Tan Thoi Hoa

Residential Area
Tan Phu
N/A
114.6
Complex
2016
1/2000 approved
78
Residential Area
facing Kha Van
Can street
Thu Duc
N/A
N/A
Villa, Townhouse,
Apartment
2016
1/2000 approved
79
Linh Xun Ward

Residential Area
Thu Duc
N/A
147.74
Villa, Townhouse,
Apartment
2016
1/2000 approved

45
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
80
Residential Area
- Dang Van Bi
street
Thu Duc
N/A
79.64
Villa, Townhouse,
Apartment
2016
1/2000 approved
81
Tam Hai
Residential Area
Thu Duc
SAVICO
69.62
Villa, Townhouse,
Apartment
2016
1/2000 approved
82
Go Dua
Residential Area
Thu Duc
N/A
97.53
Villa, Townhouse,
Apartment
2016
1/2000 approved
83
Linh Trung &

Linh Tay Wards
Residential Area
Thu Duc
N/A
80
Villa, Townhouse,
Apartment
2016
1/2000 approved
84
Hiep Binh Phuoc

Residential Area
Thu Duc
SAVICO
194
Villa, Townhouse,
Apartment
2016
1/2000 approved
85
Linh Trung NUA
Thu Duc
N/A
55.45
Villa, Townhouse,
Apartment
2016
1/2000 approved
Thu Duc
N/A
89.15
Complex
2016
1/2000 approved
Thu Duc
SAVICO
63.96
Complex
2016
1/2000 approved
District 9
N/A
139.13
Complex
2017
Executing
1/2000 plan
86
87
88
North of To
Ngoc Van Street
Residential Area
Hiep Binh Phuoc
Industrial Group
& Residential
Area
Residential Area
- Eastern Bus
station - Ga
Depot

46
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
89
Residential Area
- Quarters 1,2 &
3
District 9
N/A
104.6
Villa, Townhouse,
Apartment
2017
Executing
1/2000 plan
90
Upgrading
Residential Area
- Quarters 2 & 3
District 9
N/A
151.45
Villa, Townhouse,
Apartment
2017
Executing
1/2000 plan
91
TK 21 Residential
Area (9B7
Residential Area)
Binh Chanh
Nam Long Investment Corporation

& Century 21 Corporation
5.9
Villa, Apartment
N/A
Planning
92
Viet Rang Dong

Residential Area
( Plot 17,18 Area
of Saigon South
NUA)
Binh Chanh
Vietsunrise Co., Ltd
N/A
Complex
N/A
1/2000 approved
93
Residential Area
and Public
Project - Area 6
Binh Chanh
Intresco
47.18
Villa, Townhouse,
Apartment
N/A
Planning
94
Residential Area
and Public
Project - Area
11A
Binh Chanh
BCCI
55.28
Villa, Townhouse,
Apartment
N/A
Planning
95
Residential Area
of Sport Center Area 2
Binh Chanh
Trung Son Construction

& Trading Co.,Ltd
N/A
Villa, townhouse
N/A
Planning
96
Gia Phu
Residential Area
Binh Chanh
Gia Phu House Trading

& Construction Co.
5.16
Villa, Townhouse
N/A
Planning

47
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
97
Ngoc Cung
Binh Chanh

& Century 21 Corporation
37.4
Villa, townhouse,
Apartment
N/A
Planning
98
Binh Hung
Residential Area
Binh Chanh
Binh Chanh Investment

& Construction JSC.
38
Villa, Townhouse
N/A
Planning
99
Villa Area Saigon River Side
Binh Chanh
KeppelLand
13.5
Villa
N/A
Planning
100
Sterling
Residence
Binh Chanh

Corporation
26.4
Villla, Townhouse
N/A
Site compensation
and clearance
101
L'amour Villas RA
Binh Chanh

Corporation
4.7
Villla, Townhouse
N/A
Site compensation
and clearance
102
Tan Tao Urban

Area
Binh Tan
Song Da JSC.
320
Villa, Townhouse
N/A
Planning
103
Can Gio Eco-Villa

Area
Can Gio
Can Gio Tourism Urban JSC.
600
Villa
N/A
Planning
104
Tan An Hoi
Residential Area
Cu Chi
Tay Bac NUA Board of Management
104
Complex
N/A
1/500 approved
105
Mechanical
Industrial Group
Residential Area
Cu Chi
Hoa Phu JSC.
13
Townhouse
N/A
1/500 approved

48
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
106
Thanh Xuan Villa

Area
District 12
Go Vap Investment - Import Export

& Construction Co.
2.6
Villa
N/A
Planning
107
Doan Nguyen
District 2
Doan Nguyen Co
& Khang Dien House JSC.
Villa
N/A
Planning
108
Residential Area
in Phu My Ward
District 7
SAVIMEX
5.23
Villa, Townhouse,
Apartment
N/A
Approved invested
location in Q2 2010
109
Mui Red Light

park area and
Saigon Peninsula
residential area
District 7

Corporation
117.78
Villla, Townhouse
N/A
Site compensation
and clearance
110
Townhouse Area
District 8
Thu Thiem
N/A
Townhouse
N/A
Ready for
launching
111
Ward 11
Residential Area
District 8
N/A
26.9
Complex
N/A
1/2000 approved
112
Long Binh
District 9
Intresco Co & Thu Thiem House Co
12.6
Villa
N/A
Planning
113
Casuarina Cove
District 9
KeppelLand & Hung Phu Real Estate

Investment Corporation
9.8
Villa
N/A
Vacant land
114
7/5 Residential
Area
District 9
7/5 Company
32
Villa, Townhouse
N/A
Planning

49
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
115
Khang Dien Long Truong
District 9
Khang Dien
House JSC.
20
Villa
N/A
Planning
116
Long Phuoc Dien

- Long Truong
District 9
Long Phuoc Dien Co.

& Khang Dien House JSC
6.3
Villa
N/A
Planning
117
Tri Kiet - Long

Truong
District 9
Tri Kiet Co
Villa
N/A
Planning
118
Gia Phuoc
District 9
Gia Phuoc Co
3.68
N/A
N/A
Planning
119
Phu Huu
District 9
16.9
Villa
N/A
Planning
120
Rach Ba Cua Villa

Area Phu Hung
District 9
Minh Duong Furniture JSC

& Le Quoc Construction
& Trade Co., Ltd.
4.4
Villa
N/A
Planning
121
Green City EcoVilla Area
District 9
ACT Company
310
Villa
N/A
Planning
122
Phu Huu Ward

Residential Area
District 9
Phuc Phat Dien
4.88
Townhouse,
Apartment
N/A
1/500 approved

50
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
123
Azurecity
District 9
Thanh Pho Xanh Ltd,Co.
4.37
Complex
N/A
Infrastructure
construction
124
Exim Garden
Residential Area
District 9
Eximland
18.06
Villa, Apartment
N/A
N/A
125
Goldora - wait
for relaunching
District 9
Indochina Capital
8.2
Villa, Townhouse
N/A
Ready for
relaunching
126
Ich Thanh
Residential Area
District 9
Phuc Phat Dien
54.19
Complex
N/A
1/2000 approved
127
Villa Long
Truong
District 9
Khang Dien JSC.
3.4
Villa
N/A
1/2000 approved
128
Gia Phuoc
District 9
Gia Phuoc Co
3.68
N/A
N/A
Planning
129
Residential Area
at Ba Diem
Commune
Hoc Mon
An Thinh Construction
& Investment JSC.
5.9
Villa, Townhouse
N/A
1/500 approved
130
Residential Area
along NorthSouth axis
Nha Be
N/A
49.09
Complex
N/A
Planning
131
Nha Be Villa Area
Nha Be
Khang Thong Group JSC.
1.7
Villa, Townhouse
N/A
Planning
132
Hung Long
Nha Be
NDMREAL
Villa
N/A
Planning
133
High-end
Residential Area,
Phu Trung Ward
Tan Phu
Hong Ha House Trading

& Construction JSC.
0.5
Villa
N/A
Planning

51
No.
Project name
District
Developer
Project area
(ha)
Type
Estimated
launched
time
Progress
134
Thang Loi
Residential Area
Tan Phu
N/A
41.3
Villa, Townhouse
N/A
Planning
135
Hung Phu
Residential Area
Thu Duc
Investco
9.28
Villa, Townhouse,
Apartment
N/A
1/500 approved
136
Linh Dong
Resettlement
Residential Area
Thu Duc
N/A
0.83
Townhouse
N/A
1/500 approved
137
Low Income
Residential Area
Thu Duc
Saigon Housing Trading

& Information Service Co.,Ltd
0.88
Townhouse
N/A
1/500 approved
137
Total

8,901
52
Disclaimer
The property market research contained is verified to the best of Savills Vietnams ability. Savills
Savills Vietnam does not guarantee the accuracy of research and forecasts contained herein. Savills
Vietnam does not accept any responsibility for losses arising from reliance on the research and
consent from Savills Vietnam is prohibited. Approval should be obtained from Savills Viet Nam

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HCMC Real Estate Q2/2015 Report Provides Insights on Market Trends

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HO CHI MINH CITY - Q2/2015

Common Appendix Q2/2015

HCMC Retail Market Q2/2015

HCMC Office Market Q2/2015

HCMC Serviced Apartment Market Q2/2015

HCMC Apartment for Sale Market Q2/2015

HCMC Villa/ Townhouse Market Q2/2015

Common Appendix for the HCMC and Ha Noi Markets

18th Floor, Continental Tower

6th Floor, Sentinel Place,

81-85 Ham Nghi Street, district 1,

41 A Ly Thai To Street, Hoan Kiem district,

Ho Chi Minh City, Viet Nam

Ha Noi, Viet Nam

T: +84 8 3 8239 205 F: +84 8 3823 4571

T: +84 4 9461 300 F: +84 4946 1302

Appendix 1: Economic Overview in Q2/2015

Economic growth (RHS)

Quarterly Market Report Q2/2015 - Common appendix

Figure A1. 2 Trade balance

Real growth rate (YoY)

Quarterly Market Report Q2/2015 - Common appendix

Quarterly Market Report Q2/2015 - Common appendix

Figure A1. 5 FDI

Quarterly Market Report Q2/2015 - Common appendix

Appendix 2: Updated Policy and Legal Documents in Q2/2015

The Investment Environment is more attractive to foreign investors

Accordingly, a foreign invested company with

Quarterly Market Report Q2/2015 - Common appendix

The market is expanded now

Quarterly Market Report Q2/2015 - Common appendix

Quarterly Market Report Q2/2015 - Common appendix

Law on Investment, Article 26

Law on Real Estate Business 2014, Article 11

Quarterly Market Report Q2/2015 - Common appendix

Area and field covered

resettlement when the Gov. recovers

housing receive, lease and transfer in

Effective from August 9, 2015, the

developers if the developers failed to

Implementation of the Housing Law

Quarterly Market Report Q2/2015 - Common appendix

No.65/2014/QH13 and the Real Estate

Appendix 3: Updated Infrastructure Developments Q2/2015

Binh Chanh district, Ho Chi Minh City, the

intersection of National Highway 1A and the

East West Highway

East West Highway to ending of the Tan Kien

intersection (connects with the Tan Tao Cho

expected to be VND 2,371

Dem of HCMC Trung Luong highway). The

billion (US$97 million).

Approved on 22 October 2010.

total route is approximately 2.7km length and

Ring road 1: Fully operating in

running from Tan Son Nhat Airport through

Binh Loi Bridge and ending at Linh Xuan

Ring roads 1, 2, 3 and 4

from Nguyen Van Linh boulevard through Phu

The total investment of Ring

Ring Road 2: about 55km are

roads 1 was US$340 million.

completed, the remainder are