CBRE Vietnam Market Forum 2021

CONTENTS 01. OFFICE MARKET 02. RETAIL MARKET 03. INDUSTRIAL MARKET 04. RESIDENTIAL MARKET 05. Q&A

CBRE FORUM 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

OFFICE MARKET CBRE FORUM 2020 | VIETNAM

CBRE RESEARCH | © 2020 CBRE, INC.

A TALE OF TWO CITIES

HANOI

VS

HO CHI MINH CITY

Source: CBRE Vietnam Research Selected photos retrieved from Bao Thanh Nien, Kenh 14, Vietnamnet, VnExpress July 2nd to July 5th 2021 CBRE FORUM 2021 | VIETNAM

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FOURTH COVID-19 WAVE IS HITTING HCMC (AS OF 7 JULY 2021) Hanoi and HCMC Google mobility index COVID-19 first wave

40%

Hanoi

HCMC

COVID-19 fourth wave

20% 0% -20% -40%

HCMC daily cases Hanoi daily cases

Source: Google’s mobility index extracted from Google’s COVID 19 Community Mobility Reports. The reference day would shift one day behind if it is a national holiday. The baseline for prior outbreak is the median value for the corresponding day of the week during the 5 week period Jan 3 Feb 6, 2020.

Source: Google, CBRE Research, 03 July 2021.

CBRE FORUM 2021 | VIETNAM

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MORE EMPLOYEES ARE RETURNING TO THE OFFICE IN APAC, SEA STALLED Office utilization rate, APAC

APAC Greater China Australia/ New Zealand North Asia South East Asia India 0%

20% No one working in the office

40% <25%

60% 25% - 50%

51% - 75%

80%

100%

>75%

Source: CBRE Asia Pacific, Occupier Survey, June 2021 CBRE FORUM 2021 | VIETNAM

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OFFICE USE REMAINS ROBUST, BUT THE ROLE IS CHANGING Office workplace vs Remote working compared

Innovation

Individual productivity

Employee engagement

Team productivity 0%

10%

20%

30%

40%

Remote work is better

Same

50%

60%

70%

80%

90%

100%

Workplace is better

Source: CBRE Asia Pacific, Occupier Survey, June 2021 CBRE FORUM 2021 | VIETNAM

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IMPROVING BUSINESS OUTLOOK ACROSS APAC

Expectation on the state of business environment, APAC

Company’s current business conditions, APAC

100%

Expanding

27%

80% Sustained recovery

25%

60% Early stages of recovery

18%

40% Stabilising

20%

19%

Still contractin g

0% Apr 20 Better

Oct 20 About the same

10%

May 21 0%

Worse

5%

10%

15%

20%

25%

30%

Source: CBRE Asia Pacific, Occupier Survey, June 2021

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CONTRACTION SIGNIFICANTLY LOWER COMPARED TO 2020 Transactions by purpose, Major Transactions Collected and Closed by CBRE, H1 2021 100% 80% 60% 40% 20% 0% HCMC

Hanoi 2019 New Letting

HCMC Expansion

2020 Relocation

Hanoi Renewal

HCMC Consolidation

Hanoi H1 2021 6M Contraction

Source: CBRE Vietnam Research, Q2 2021.

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BOTH OCCUPIERS AND LANDLORDS ARE MORE ADAPTIVE TO CURRENT SITUATION 2020

Occupiers

H1 2021

Contract, surrender unused space to save cost 17% of transactions in Hanoi and 27% of transactions in HCMC

Contract, surrender unused space to save cost ?

0% of transactions in Hanoi and 3% of transactions in HCMC

Work from home

Work from home

Provide incentives (rent free period, rent reduction) 10% - 50% depending on industry

Provide incentives ? (rent free period, rent reduction) Few or no short-term incentives

March & April 2020

Landlords

$

CBRE FORUM 2021 | VIETNAM

Since May in HCMC

*except buildings under lockdown

$

Reduce asking rents 1% - 5% on average

10

Reduce asking rents ?

Reduced or flat escalations at renewal

CBRE RESEARCH | © 2021 CBRE, INC.

MARKET SNAPSHOT GRADE A OFFICE MARKET H1 2021

HCMC

0

New projects in H1 2021 90,000 sqm in Hanoi in H2 2021

TOTAL SUPPLY

475,000

NLA (sqm)

sqm NLA

HANOI 528,000

18 projects ASKING RENT*

US$41.6

US$/sqm/month

VACANCY RATE

12.2%

6.4% y-o-y

0.4 ppt y-o-y

sqm NLA

21 projects

US$26.9

18.9%

3.0% y-o-y

11.3 ppt y-o-y

(%)

Source: CBRE Vietnam Research, Q2 2021.

CBRE FORUM 2021 | VIETNAM

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

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MARKET SNAPSHOT GRADE B OFFICE MARKET H1 2021

HCMC

1

New project in H1 2021 in HCMC 90,000 sqm in Hanoi and 24,000 sqm in HCMC in H2 2021

Source: CBRE Vietnam Research, Q2 2021.

CBRE FORUM 2021 | VIETNAM

TOTAL SUPPLY

958,000

NLA (sqm)

sqm NLA

HANOI 997,000

69 projects ASKING RENT*

US$25.1

US$/sqm/month

VACANCY RATE

9.1%

3.0% y-o-y

4.3 ppt y-o-y

sqm NLA

72 projects

US$13.9

11.6%

1.5% y-o-y

0.6 ppt y-o-y

(%)

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

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THE WORST IS OVER? HCMC & Hanoi Office market, Net absorption 50,000 40,000

Sqm

30,000 20,000 10,000 0 -10,000 -20,000 Q1

Q2

Q3 2018

Q4

Q1

Q2

Q3

Q4

2019 HCMC

Q1

Q2

Q3 2020

Q4

Q1

Q2 2021

Hanoi

Source: CBRE Vietnam Research, Q2 2021.

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VACANCY RATES DROPPED, BUT WILL TAKE TIME TO REACH PRE-COVID LEVEL

25%

40

20%

30

15%

20

10%

10

5%

-

0% 2018

2019

2020

H1 2021 Q2 2021

50

25%

40

20%

30

15%

20

10%

10

5%

0

0% 2018

2019

2020

Vacancy rate

50

Asking rents (US$/sqm/month)

Hanoi Office, Market Performance by Grade

Vacancy rate

Asking rents (US$/sqm/month)

HCMC Office, Market Performance by Grade

H1 2021 2021 Q2

Grade A - Rent

Grade B - Rent

Grade A - Rent

Grade B - Rent

Grade A - Vacancy rate

Grade B - Vacancy rate

Grade A - Vacancy rate

Grade B - Vacancy rate

Source: CBRE Vietnam Research, Q2 2021.

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

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HIGH DEMAND FROM TMT AND BANKING/FINANCE SECTORS Transactions by Industry, Major Transactions Collected and Closed by CBRE, H1 2021

Expectation on change of real estate portfolio over the next 3 years, APAC All sectors

TMT

TMT

Banking/Finance/Insurance

Finance

Manufacturing

Professional services

Logistics

Life Science

Retail/Trading 0% HCMC

10%

20%

30%

0%

40%

Hanoi

Unsure

20%

Decrease

40%

60%

No change

80%

100%

Increase

Source: CBRE Vietnam Research, Q2 2021.

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HYBRID WORK MODEL WILL BE THE NEW NORM Anticipated of remote working’s frequency in steady state situation, APAC 40% 30% 20% 10% 0% Work in office all the time

1-2 days/month

1day/week or less

Q3 2020

Up to 3 days/week

4-5 days/week Work remotely all the time

Q2 2021

Source: CBRE Asia Pacific, Occupier Survey, June 2021

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MORE OPEN TOWARD DESK SHARING RATIO APAC based companies

Industries that are quick to adapt Life Sciences Finance Technologies Business Services Source: CBRE Asia Pacific, Occupier Survey, June 2021

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DEVELOPERS ARE FOCUSING ON GREEN CREDENTIALS HANOI

HCMC

Less water consumed

Capital Place

Techno Park Tower (In progress)

President Place

Etown Central

Mapletree Business Center

Less energy consumed

CO2

Lower emissions Lancaster Luminaire (in progress)

36 Cat Linh (in progress)

Deutsches Haus

Friendship Tower

Phu My Hung Tower

Less waste Source: CBRE Vietnam Research, Q2 2021.

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SUPPLY GROWTH TO ACCELERATE FROM H2 2021 IN HANOI 2021 ~180,000 sqm

Hanoi Office, notable future projects 1

5

Techno Park Tower (A) Gia Lam,

9

NLA: ~90,000 sqm

3

West

8 3

10

6

Midtown 7

Lancaster Luminaire (A) Dong Da NLA: 20,600 sqm

BRG Tower (B) Hoan Kiem

NLA: 5,000 sqm

36 Cat Linh (B) Ba Dinh NLA: 16,000 sqm

9

8

5

Epic Tower (B) Cau Giay NLA: 25,000 sqm

Lotte Mall Hanoi (A) Tay Ho NLA: 45,000 sqm

10

2 1

Intracom Riverside (B) Dong Anh NLA: 22,000 sqm

The Valley Smart Building (B) Nam Tu Liem NLA: 39,500 sqm

(*) Buildings are partially owner occupied. Listed NLA is area available to rent.

Source: CBRE Vietnam Research, Google Images, Q2 2021 CBRE FORUM 2021 | VIETNAM

HUD Tower (B) Thanh Xuan NLA: 48,000 sqm

4

Vinacomin Tower (B) Cau Giay NLA: 38,000 sqm

4 CBD

6

2

2022 onward 150,000+ sqm 7

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WHILE ONLY MODERATE SUPPLY GROWTH EXPECTED IN HCMC HCMC Office, notable future projects 2021 45,418 sqm

1 6

1

2022 onwards ~150,000+ sqm

5

2

6

4 2

8 7 AP Tower (B) Binh Thanh NLA: ~10,000 sqm

4

3

The Graces (B) District 7 NLA: 8,295 sqm

35

Pearl 5 Tower (B) District 3 NLA: 10,944 sqm

Saigon First House (B) District 3 NLA: 15,348 sqm

Cobi Tower (B) District 7 NLA: 27,127 sqm

7

One Central (A) District 1 NLA: 36,000 sqm

E-town 6 (A) Tan Binh GFA: 40,000 sqm

8

Prime A District 2 NLA: 52,000 sqm

Source: CBRE Vietnam Research, REIC Images, Google Images, Q2 2021 CBRE FORUM 2021 | VIETNAM

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MARKET OUTLOOK MUCH DEPENDS ON THE ROLL-OUT OF VACCINES AND SUPPLY PIPELINE

24%

30

18%

20

12%

10

6%

-

0% 2018

2019

2020

2021F

Asking rent (US$/sqm/month)

40

Forecast

50

30%

Vacancy Rate

Forecast

50 Asking rent (US$/sqm/month)

Hanoi Office, Performance Outlook

40

24%

30

18%

20

12%

10

6%

-

0% 2018

2022F

30%

2019

2020

2021F

Vacancy rate

HCMC Office, Performance Outlook

2022F

Source: CBRE Vietnam Research, Q2 2021.

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

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FORECAST TRENDS

Economic outlook to remain positive despite COVID-19

CBRE FORUM 2021 | VIETNAM

Vaccine visa and increasing vaccine rate will lessen the impact of COVID-19

Both occupiers and landlords are applying strategies to be more resilient

Green and wellness credentials are in the spotlight as occupiers’ adoption of Environment, Social & Governance (ESG) increase

CBRE RESEARCH | © 2021 CBRE, INC.

RETAIL MARKET CBRE FORUM 2020 2021 | VIETNAM

CBRE RESEARCH | © 2020 2021 CBRE, INC.

THE PANDEMIC HAS CHANGED THE NATURE OF SALES F R O M

TO

Retail and Services Turnover H1 2021

4.9%

y-o-y (vs. 11.8% in 2019)

• Show more supports

Landlords

Wait and See mode

• Retain existing tenants

Retail Business to be Closed

26%

y-o-y

• Stabilize occupancy rate Vacant Spaces, NLA Sqm

• Negotiations

Retailers

CBRE FORUM 2021 | VIETNAM

• Cost cutting • Generate Cash

• Streamline Operation • Expansion strategy • Vaccination

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43% vs. Q1 2020 for HCMC 72% vs. Q1 2020 for Hanoi Rent Support Pre-lockdown: 20%-50% depends on categories, malls

CBRE RESEARCH | © 2021 CBRE, INC.

Mobility Index, Retail & Recreations 0

UNEXPECTED NEW WAVE WORRIED CONSUMERS

-10 -20 -30 -40 -50

-36%

-60

Vietnam (vs. -16% in Q4 2020)

-70 HCMC: worse than first wave

-80

VS

M

-8%

Fe b

GROCERY & PHARMACY

-2 0 ar -2 Ap 0 r2 M 0 ay -2 Ju 0 n20 Ju l-2 Au 0 g2 Se 0 p2 O 0 ct2 N 0 ov -2 De 0 c2 Ja 0 n2 Fe 1 b2 M 1 ar -2 Ap 1 r2 M 1 ay -2 Ju 1 n21

-90

HCMC

WORKPLACE

-14%

VS

PUBLIC

-28%

VS

Hanoi

Note: Google’s mobility index extracted from Google’s COVID-19 Community Mobility Reports, as of monthly average between 1 Mar 2020 and 15 May 2021. The baseline for prior outbreak is the median value for the corresponding day of the week during the 5-week period Jan 3-Feb 6, 2020. Mobility trends for places like restaurants, cafes, shopping centers theme parks, museums, libraries, and movie theaters.

Source: Google, Data as of 20 May 2021

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VIETNAM CONSUMER CONFIDENCE INDEX HAS NOT IMPROVED SINCE THE FIRST WAVE

Retail Sales (y-o-y)

Monthly Retail sales growth, y-o-y

Consumer Confidence Index

60%

150

40%

120

20%

90

0%

60

-20%

30

-40%

0

Ju n20 Ju l -2 Au 0 g20 Se p20 O ct2 N 0 ov -2 D 0 ec -2 0 Ja n21 Fe b2 M 1 ar -2 1 Ap r-2 M 1 ay -2 1 Ju n21

Vietnam

Vietnam

South Korea

Japan

China

2019

Singapore

First Wave

2020

Japan

China

Q1 2021

Singapore

Source: Tradingeconomics, June 2021

Source: GSO of Asian countries, June 2021 CBRE FORUM 2021 | VIETNAM

South Korea

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CBRE RESEARCH | © 2021 CBRE, INC.

VIETNAM RETAIL SNAPSHOT H1 2021

HCMC SUPPLY NLA (sqm)

ASKING RENT (*) US$/sqm/month

VACANCY RATE (%)

Hanoi

1,068,128

SUPPLY

sqm NLA New Supply: 1 in Non-CBD

CBD US$ 137

Non-CBD US$ 34

1.2% y-o-y

-5.2% y-o-y

CBD

Non-CBD

1.9%

14.6%

0.0 ppt y-o-y

NLA (sqm)

Snapshot H1 2021

ASKING RENT (*) US$/sqm/month

1,004,481

sqm NLA New Supply: 0

CBD US$ 102

Non-CBD US$ 29

-1.7% y-o-y

-3.8% y-o-y

CBD VACANCY RATE (%)

-1.6 ppt y-o-y

10.8% 10.1 ppt y-o-y

Non-CBD 14.6% 4.8 ppt y-o-y

Note: Asking Rent is average of Ground Floor and First floor, excluding of Service Charge and 10% VAT. Source: CBRE Research, Q2 2021 CBRE FORUM 2021 | VIETNAM

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UNCERTAIN PANDEMIC CONTROL MEASURES POSTPONED MARKET RECOVERY

Vacancy Rate 2019 – Q2 2021

COVID – 19

COVID – 19 (Wave 3)

COVID – 19 (Wave 2)

COVID – 19 (Wave 4)

18% 16%

Vacancy Rate

14%

Some tenants support policies in HCMC:

12% 10%

• 10-50% rent support in May

8% 6%

• Free rent in June

4% 2% 0% Q1

Q2

Q3

Q4

Q1

Q2

2019

Q3 2020

HCMC-Vacancy Rate

Q4

Q1

Q2 2021

Hanoi - Vacancy Rate

Source: CBRE Vietnam Research, Q2 2021 CBRE FORUM 2021 | VIETNAM

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ROBUST M&A AND FRANCHISE ACTIVITIES IN VIETNAM

“SK Group invests 410 million USD for a 16.26% stake in VinCommerce”

“Masan partners Phuc Long to develop Phuc Long Kiosks at WinMart+ stores nationwide” Masan acquired 20% of Phuc Long and aim to open 1,000 kiosks in 24 months.

Source: Tuoi Tre, Thanh Nien, April 2021

“Alibaba, Baring Private Equity Asia consortium complete $400mm investment in The CrownX”

Source: VIR, May 2021

Source: VietnamNews, June 2021

Nova F&B franchises: JUMBO Seafood (Singapore), Crystal Jade Palace (Singapore), Gloria Jean's Coffees (Australia), Mango Tree (Thailand), Lotteria (Korea)…..

Source: Vnexpress, May 2021

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RETAIL NEW ENTRANTS TO VIETNAM EXPECTED TO BE LOW THIS YEAR 2020 new entrants

2021: expansion & potential

Others

Fashion & Accessories

F&B

2019 new entrants

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SOME EXPANSION PLANS NEED MORE THAN ONE TYPE OF FORMAT

RESIDENTIAL PODIUM/SHOPHOUSE

SHOPPING CENTRE Challenges • Slow footfall recovery despite restriction uplift • Lack of tourist activity Opportunities • Good locations for entrants/expansions • Professionalism and providing various options • Occupancy rate can recover quickly

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Challenges • Fewer options for different categories • Quality of the retail property Opportunities • Near resident areas for delivery during work from home • Good for grocery-anchored or mixed stores • Less strict lease terms, termination terms, etc.

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IN-STORE SALES DECLINED IN MOST CATEGORIES

Vietnam in-store sales growth, y-o-y

Vietnam E-commerce sales growth, y-o-y

30%

100%

20%

80%

Growth Projection of Online Sales by 2025 (times growth vs 2020) 3.11

20%

-20%

0% 2016 2017 2018 2019 2020

2016 2017 2018 2019 2020

Apparel & Footwear

Electronics

Health & Beauty

Home & Garden Care

1.8

Electronics

-10%

Apparel & Footware

40%

E-c ommerce

0%

2.20 2.15

Food & Beverage

2.40

2.06

Health & Beauty

60%

Home Care

10%

Source: Euromonitor, retrieved as of June 2021 CBRE FORUM 2021 | VIETNAM

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SECTOR PERFORMANCE VARIES IN 2021

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STRONG PIPELINE IN HANOI AS MARKET ANTICIPATES A COMEBACK ONCE THE PANDEMIC IS BROUGHT UNDER CONTROL Hanoi: Over 300,000 sqm in the pipeline

Hanoi Retail, Market Performance Outlook

2022 – 2024 Forecast

FLC Twin Towers NLA:14,000 sqm

Vincom Mega Mall Smart City NLA : 49,000 sqm

The Zei NLA : 9,000 sqm

Park City NLA : 12,000 sqm

Hinode City Toshin – Starlake NLA : 10,000 sqm NLA: 17,000 sqm

Lotte Mall Hanoi NLA : 72,000 sqm

Aeon Mall Hoang Mai NLA : 84,000 sqm

Asking Rents (USD/sqm/m)

120

14%

100

12% 80

10%

60

8% 6%

40

4% 20

2%

0

0% 2020

Project @ NTH Str. NLA : 55,000 sqm CBRE FORUM 2021 | VIETNAM

16%

Upcoming Vincom Mega Malls

Vacancy Rate (%)

2021

2021Q2

2021F

2022F

2023F

Rental Rate - CBD

Rental Rate - Non CBD

Vacancy Rate - CBD

Vacancy Rate - Non CBD

Source: CBRE Research, Data as of June 2021.34 For Hanoi and HCMC, data is updated till Jul 2021.

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HCMC: MUCH EXPECTATION FOR THE OPENINGS OF MAJOR PROJECTS IN THE CBD HCMC’S NEW SUPPLY 2022-2023

Over 200,000 sqm in the pipeline

Ho Chi Minh Retail, Market Performance Outlook

Central Premium Mall 24,000 sqm District 8

Vincom Grand Park 48,000 sqm District 9

160

16%

140

14%

120

12%

100

10%

80

8%

60

6%

40

4%

20

2%

-

0%

2020

One Central 33,700 sqm District 1 CBRE FORUM 2021 | VIETNAM

Saigon One 12,000 sqm District 1

Sun Tower 20,000 sqm District 1

Vacancy Rate

Socar Mall 35,000 sqm District 2

Rental Rate (USD/sqm/month)

Forecast

2021 Q2

2021

2022

2023

Rental Rate - CBD

Rental Rate - Non-CBD

Vacancy Rate - CBD

Vacancy Rate - Non-CBD

Note: Asking Rent is average of Ground Floor and First floor, excluding of Service Charge and 10% VAT. Source: CBRE Research, Q2 2021 35

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FACTORS THAT BOOST OUR CONFIDENCE

Physical stores: Consolidation is inevitable, but store upgrades will continue

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Omni-Chanel/Online enhancement is Crucial Customer engagement: Time to create new initiatives

For landlords: Consideration to adopt various schemes such as TOS, CAPEX support, Franchise, Partnership Local tenants is a focus

Vaccination 7075% population in 2021 Hanoi and HCMC can be the first to recover

Pandemic control measures from the Government

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INDUSTRIAL MARKET CBRE FORUM 2020 2021 | VIETNAM

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INDUSTRIAL LAND MARKET SNAPSHOT 6M 2021

Ha

NORTH

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

≈17,900 ha Leasable Industrial Land

≈69.0%

Ha

Hai Phong

SOUTH

Bac Ninh

Hanoi

Hung Yen

Hai Others Duong (*)

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0

Average Occupancy Rate

≈30,000 ha Leasable Industrial Land Binh Dong BR-VT HCMC Long Others Duong Nai An (*) Total land area

Land for lease

≈75% Average Occupancy Rate

Source: CBRE Vietnam Research & Consulting, Q2 2021. (*) Other provinces in Northern Vietnam include Thai Nguyen, Vinh Phuc, Quang Ninh, Ha Nam, Nam Dinh, Ninh Binh, Bac Giang Other provinces in Southern Vietnam include Tay Ninh, Binh Thuan, Binh Phuoc

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READY-BUILT FACTORY & WAREHOUSE MARKET SNAPSHOT Q2 2021

SOUTH

NORTH

WH SUPPLY Q2 2021

≈1.1

mil sqm

RBF SUPPLY

≈2.3

4.4% y-o-y RBF : 1.9% y-o-y

Q2 2021

Q2 2021

mil sqm

Q2 2021

WH:

SUPPLY GROWTH

mil sqm

RBF SUPPLY

≈3.2

Q2 2021

mil sqm

WH SUPPLY

≈3.5

SUPPLY GROWTH

46% 10% CAGR 2021-2023E

Q2 2021

10% y-o-y RBF : 8% y-o-y WH:

22% 14%

New supply increases significantly in major industrial regions

CAGR 2021-2023E

Source: CBRE Vietnam Research & Consulting, Q2 2021.

Note: Northern RBF supply is calculated for Bac Ninh, Hai Duong, Hai Phong, Thai Nguyen, Vinh Phuc, Hung Yen, Bac Giang.

Northern WH supply is calculated for Bac Ninh, Hanoi, Hai Duong, Hai Phong, Hung Yen. Southern RBF and WH supply is calculated for HCMC, Binh Duong, Dong Nai, Long An.

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M O D E R AT E R E N TA L E S C A L AT I O N F O R I N D U S T R I A L L A N D W H I L E R E N T S R E M A I N E D S TA B L E F O R F A C T O R Y A N D W A R E H O U S E Warehouse/Ready-built factory asking rents, Q2 2021

Up 5% - 10% y-o-y in good location industrial 12

300

10

Hung Yen

Hai Phong

Hai Duong

Bac Giang

Hanoi

Maximum rent

Thai Nguyen

Minimum rent

Bac Ninh

HCMC

Thai Nguyen

Nghe An

Ha Nam

Hung Yen

Hai Phong

Hai Duong

Bac Giang

Ha Noi

Bac Ninh

Maximum rent

Quang Ngai

Minimum rent

Quang Ngai

Quang Nam

Danang

Tay Ninh

BR-VT

0

Dong Nai

0 Long An

2 Binh Duon g

50

Quang Nam

4

Da Nang

100

6

Tay Ninh

150

8

BR-VT

200

Stable asking rent

Dong Nai

250

Warehouse

Stable asking rent

Binh Duong

US$/sqm/month

350

HCMC

US$/sqm/remaining leasing term

parks in Binh Duong, Dong Nai, Long An

Ready-built Factory

Long An

Industrial land asking rents, Q2 2021

Note: Asking rent of industrial land and ready-built factory/warehouse is exclusive of VAT and Management/Service charge. The asking industrial land rent is quoted on remaining lease term of industrial parks. Normally, the remaining lease term is from 30 – 45 years.

Source: CBRE Vietnam Research & Consulting, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

INFRASTRUCTURE EXPANSION & IMPROVEMENT EXPANSION OF EXPRESSWAY TO BORDER AND COASTAL AREAS IN THE NORTH H

Chi Lang City

a N

China

oi –

Thai Nguyen City

y Ex pr es sw a n Expre

• Hai Phong – Ha Long

i

8

CONSTRUCTION OF VAN DON - MONG CAI EXPRESSWAY is expected to complete in 2022.

Ha Long City

Hai Phong – Ha Long Expressway

Hai Duong Hung Yen

Hai Phong City

Ha Noi – Ha i Phong Expressway

Hai Phong

Ha Nam

ay ress w

Thai Binh

Exp

Phu Ly City

• Van Don Ninh Binh City

Nam Dinh

Major Sea Port/ River Port International Airport

Ha i

• Cat Bi

Major Sea Ports/ River Ports:

Ca

National Road 5

Pho ng

• Noi Bai

Ha Noi

–

g on

y

Ha Long – Van Don Expressway

Hai Duong City

ssway

International Airports:

nal Ro ad 1

Nin hB inh –

• Huu Nghi – Chi Lang

Natio

Bac Ninh

n Do

M

a sw es pr Ex

Quang Ninh

Lang – Hoa Lac Expressway

Expre h Binh i – Nin

• Ninh Binh – Hai Phong

n Va

Bac Ninh City

Ha No

• Van Don – Mong Cai

Bac Giang

Bac Giang City

ssway

• Ha Noi – Hai Phong

Under construction/ planning expressways:

La ng

Nguye

Vinh Phuc City

• Ha Noi – Thai Nguyen

• Ha Long – Van Don

i–

Vinh Phuc

So

i i – Tha

y

• Ha Noi – Ninh Binh

n

Ha No

a sw es pr Ex

• Ha Noi – Lao Cai

No

ai C

• Lang – Hoa Lac

Ha

o La

Completed expressways:

Thai Nguyen

Industrial park

• Hai Phong Port Complex

Major city

• Quang Ninh Port Source: CBRE Vietnam Research & Consulting, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

INFRASTRUCTURE EXPANSION & IMPROVEMENT EXPANSION OF EXPRESSWAY TO THE WEST AND COASTAL AREAS IN THE SOUTH

Completed expressways:

Binh Phuoc

• HCMC – Long Thanh – Dau Giay • HCMC – Trung Luong

Under construction/planning expressways: • Ben Luc – Long Thanh

Trung Luong - My Thuan Expressway in Apr 2021

Tay Ninh

Long Thanh International Airport in Mar 2021

Dau Giay – Phan Thiet in Mar 2021

• HCMC – Moc Bai • Bien Hoa – Vung Tau

Vinh Hao - Phan Thiet

Binh Duong

• Trung Luong – My Thuan • Dau Giay - Phan Thiet • Vinh Hao - Phan Thiet

Binh Thuan

Moc Bai - HCMC

• Ring Road no.3 of HCMC

Thu Dau Mot

International Airports:

Dong Nai Dau Giay - Phan Thiet

Bien Hoa C – Da Lo u ng G Th ia y anh

Major Sea Ports/ River Ports:

International Airport

H –

Ben Luc – Long Thanh

oa ng Vu

HCMC - Trung Luong

u Ta

• Long An International Port

Long An

Major Sea Port/ River Port

en

• Hiep Phuoc Port Complex

Bi

• Cat Lai Port

HCMC

HC M

• Long Thanh (Future)

• Cai Mep Port Complex

Industrial park

BR - VT

Source: CBRE Vietnam Research & Consulting, Q2 2021.

Trung Luong - My Thuan

CBRE FORUM 2021 | VIETNAM

Phan Thiet

–

• Tan Son Nhat

Vung Tau

42

Major city

CBRE RESEARCH | © 2021 CBRE, INC.

LOCAL EXPANSION

FACTORY EXPANSION OF ANCHOR TENANTS TO ACCOMMODATE BUSINESS GROWTH

Emerging industries

Active industries

Logistics

Packaging

Automotive

Furniture

Medical equipment

Electronics

Source: CBRE Vietnam Research & Consulting, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

PRODUCT SHIFTING FROM CHINA TO SEA REMAINS MAINSTREAM Tighten regulation

Rising labor cost

Unexpected events

Benefits of FTAs & Incentives

The COVID-19 and trade tension accelerate manufacturing relocation Source: CBRE Vietnam Research & Consulting, Q2 2021.

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Bordering location

Significant improvement of infrastructure CBRE RESEARCH | © 2021 CBRE, INC.

LOGISTICS DRIVES DEMAND FOR INDUSTRIAL LAND LAND FOR LOGISTICS DEVELOPMENT IS THE MOST SOUGHT AFTER INDUSTRIAL PROPERTY Industrial leasing enquiries by property type

Industrial leasing enquiries by land type, 6M 2021

6M 2021 2020

33%

67%

Industrial Land

WH

Logistics land

RBF

Manufacturing land

Source: CBRE Vietnam Research & Consulting, 6M 2021.

Note: The provided information is based on industrial leasing enquiries recorded by CBRE from January to June 2021.

CBRE FORUM 2021 | VIETNAM

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CBRE RESEARCH | © 2021 CBRE, INC.

APAC AGGREGATE BASE ON THE TOTAL AREA OF LEASING % OF LEASING TRANSACTIONS Y-T-D

MAJOR RBF & WH NOTABLE TRANSACTIONS, VIETNAM Transaction

Logistics (WH) Retailer (WH) 3PL (WH) 3PL (WH) Furniture (WH) Electric components (RBF) Manufacturing (RBF) Food processing (RBF) Shoes (RBF) Plastic (RBF) Unknown (RBF) 3PL (WH) Logistics (WH) Retailer (WH) E-commerce (WH) Manufacturing (RBF) Logistics (WH)

Others 15% Manufacturing

6%

40% 2020 (E-commerce + 3PL: 62.8%)

Retail, F&B

3PL

14%

25% E-commerce

% of Warehouse Leasing Transactions y-t-d (APAC aggregate base on the total sqm)

HCMC HCMC Dong Nai Dong Nai Binh Duong HCM Dong Nai Long An Long An Long An Long An Bac Ninh Bac Ninh Bac Ninh Bac Ninh Thai Nguyen Hai Phong

Size (sqm)

25,000 10,000 5,000 17,000 40,000 5,000 5,000 20,000 2,700 2,700 5,000 46,000 25,000 20,000 14,000 14,500 14,000

Note: The provided information is based on industrial leasing transactions recorded by CBRE in 6M 2021.

Source: CBRE Vietnam Research & Consulting, 2021. APAC reports 2020

CBRE FORUM 2021 | VIETNAM

Location

46

CBRE RESEARCH | © 2021 CBRE, INC.

INDUSTRIAL LAND EXPANSION OF EMERGING REGIONS – THE NORTH Thai Nguyen H

Chi Lang City

a N

China

oi –

Thai Nguyen City

o La n Va

n Expre

Bac Giang City

ssway

Natio

Lang – Hoa Lac Expressway

nal Ro ad 1

8 Ha Long City

Hung Yen

Thai Binh Quang Ninh

Thai Binh

Major Sea Port/ River Port

Ninh Binh City

Nam Dinh

International Airport Industrial park Major city Source: CBRE Vietnam Research & Consulting, Q2 2021.

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Occupancy rate

Ha Nam

ay

Hai Phong

Phu Ly City

Ha Nam

250 200 150 100 50 0 Tier-1

Tier-2

100%

ress w

Bac Giang

300

Average occupancy rate, Northern region

Exp

Hai Duong

Hai Phong

Pho ng

Thai Nguyen

Asking industrial land rent, Northern region

Northern Region

Ha i

Bac Ninh

Hung Yen

Hai Phong City

y

Ha Noi – Ha i Phong Expressway

Nin hB inh –

Vinh Phuc

Hai Phong – Ha Long Expressway

Hai Duong

w ay Express

Hanoi

h Binh i – Nin

Tier-2

National Road 5

Ha No

Tier-1

C

Ha Long – Van Don Expressway

Hai Duong City

Ha Noi

g on

Quang Ninh

Bac Ninh City

Bac Ninh

n Do

–M

a ssw re xp

USD/sqm/remaining term

So La ng i– No

Vinh Phuc City

Bac Giang

Ha

y

i Nguye i – Tha

n

Ha No

a sw es pr Ex

Ex pr es sw a

y

ai C

Vinh Phuc

E ai

80% 60% 40% 20% 0% Tier-1

Tier-2

Northern Region CBRE RESEARCH | © 2021 CBRE, INC.

INDUSTRIAL LAND EXPANSION OF EMERGING REGIONS – THE SOUTH

Tier-2

HCMC

Tay Ninh

Binh Duong

Binh Phuoc

Dong Nai

Ba Ria – Vung Tau

Long An

Binh Thuan

USD/sqm/remaining term

Tier-1

Asking industrial land rent, Southern region

Binh Phuoc Tay Ninh

350 300 250 200 150 100 50 0

Vinh Hao - Phan Thiet

Tier-1

Tier-2

Southern Region Average occupancy rate, Southern region

Tien Giang

100%

Binh Thuan Moc Bai - HCMC

Thu Dau Mot

Dong Nai Dau Giay - Phan Thiet

Bien Hoa

80%

Occupancy rate

Binh Duong

60% 40% 20% 0%

Phan Thiet C – Da Lo u ng G Th ia y anh

–

Tier-1

Southern Region

Bi

HC M

HCMC

en

Major Sea Port/ River Port

H –

Ben Luc – Long Thanh

oa

Long An

Tier-2

ng Vu u Ta

HCMC - Trung Luong

BR - VT

International Airport Industrial park

Trung Luong - My Thuan

Major city CBRE FORUM 2021 | VIETNAM

Vung Tau

48

Source: CBRE Vietnam Research & Consulting, Q2 2021.

CBRE RESEARCH | © 2021 CBRE, INC.

NEW DEVELOPERS ARE EYEING ON THE MARKET

Frasers Property Vietnam unveils first industrial development May 17, 2021 | 09:18

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CBRE RESEARCH | © 2021 CBRE, INC.

DEVELOPMENT OF HIGH-RISE WAREHOUSE AND FACTORY IN THE CONTEXT OF LIMITED INDUSTRIAL LAND IN URBAN AREAS

High-rise Factory

9%

91%

◼ High-rise RBF ◼ Low-rise RBF

High-rise RBF supply proportion, Q2 2021 5%

High-rise Warehouse 95%

◼ High-rise and Builtto-suit warehouse ◼ Normal warehouse

High-rise WH supply proportion, Q2 2021 Image source: BW Industrial, TLS, Tan Thuan EPZ, CBRE. CBRE FORUM 2021 | VIETNAM

Source: CBRE Vietnam Research & Consulting, Q2 2021.

50

CBRE RESEARCH | © 2021 CBRE, INC.

MARKET OUTLOOK

NEW INVESTORS AND

MANUFACTURING EXPANSION

DESPITE THE 4TH WAVE OF

DEVELOPERS ACTIVELY

OF EXISTING TENANTS

COVID-19, MARKET SENTIMENT

Land search activities to expand outside

TO REMAIN STRONG

ACQUIRE PROPERTIES VIA M&A. Industrial properties in emerging areas/ underperforming assets are

existing major industrial regions

Supply growth expected to slow down while demand to remain stable

prominent targets.

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CBRE RESEARCH | © 2021 CBRE, INC.

RESIDENTIAL MARKET CBRE FORUM 2020 2021 | VIETNAM

CBRE RESEARCH | © 2020 2021 CBRE, INC.

THE PANDEMIC HAS CHANGED THE NATURE OF RESIDENTIAL SALES Number of new launch H1 2021

H1 2020

Developer

Local buyers Foreign buyers

Wait and See mode

Wait and See mode

H1 2021 • Innovative sales policies • New product features • Application of technology in sales and marketing activities • Adapting to the “new normal” – work from home • Steady fundamental demand

• Pending vaccine and borders opening • Maintained interest in Vietnam market

▼ 9% y-o-y in HCMC (5,864 units) ▲10% y-o-y in Hanoi (7,947 units) Number of sold units H1 2021

▲ 28% ▲ 20%

y-o-y in HCMC (7,374 units) y-o-y in Hanoi (8,073 units)

Absorption Rate*

▲ 6 ppts in HCMC (80%) ▲ 3 ppts in Hanoi (47%) Avg. Selling Prices

▲16% y-o-y in HCMC ▲7% y-o-y in Hanoi

(*) Absorption rate: Sold units of newly launch projects in 1H 2021/ new launch supply during the period Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

WORK FROM HOME: POTENTIAL LONG-TERM IMPACT

POTENTIAL LONG-TERM CHANGES

84%

Locational preferences may change

Prefer To Work Remotely

Being less geographically constrained enables a move to a cheaper location, further away from CBD

Source: COVID-19 Update: potential long-term change, CBRE Research, 2020; Working from home survey 2020, CBRE Research, 2020; Workforce Sentiment Survey, CBRE Research, 2020.

CBRE FORUM 2021 | VIETNAM

54

Internal layouts will come under more scrutiny

The need for designated WFH space will be considered.

Light, and outside space are also important.

Being at home means watching the bills

Households WFH will increasingly become more energy conscious

CBRE RESEARCH | © 2021 CBRE, INC.

UNLOCKING NEW RESIDENTIAL AREAS - INFRASTRUCTURE

IS A KEY

CBRE FORUM 2021 | VIETNAM

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CBRE RESEARCH | © 2021 CBRE, INC.

HANOI: IMPROVEMENT OF INFRASTRUCTURE SYSTEM OVER THE YEARS FACILITATES THE DEVELOPMENT OF NEW RESIDENTIAL AREAS

Significant townships of greater than 70ha

National Rd. 5

Thang Long Ave.

CORE DISTRICTS

Ring Ro

Rd

al R d. 3 2

Na tio na l

Ring Road 3

Na tion

Future

.1 A

Existing

ad 2 na

tio Na lR

ng Ri

d.

5b

ad Ro 5 3.

CBRE FORUM 2021 | VIETNAM

Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

HCMC: MORE INFRASTRUCTURE DEVELOPMENT REQUIRED TO ADDRESS THE CURRENT SUPPLY CONSTRAINTS My P

hu ex oc pr – T es a sw n ay Va n

Ring R oa d 3

HC MC –

Saigon Binh An

CORE DISTRICTS g Rin

Waterpoint

Lu ng Tru y C – esswa M HC expr

a Ro

d

Tau ung –V oa ssway nH Bie Expre

Vinhomes Grand Park

Lon g exp Thanh ress – way Dau G

Aqua City

2

Waterpoint

ong

Significant townships of greater than 70ha Existing

Source: CBRE Vietnam Research, Q2 2021.

CBRE FORUM 2021 | VIETNAM

iay

57

Future

Infrastructure Existing

Future

CBRE RESEARCH | © 2021 CBRE, INC.

MID-END IS THE MAIN THEME COVERING 79% OF TOTAL NEW LAUNCH IN BOTH MARKETS HCMC Condominium, New Launch Supply, Q2 2021 (6M: ▼ 9% y-o-y)

Q2: ▲ 1.3x q-o-q New launch slowed down in June due to Covid-19 wave in the South

12,000 10,000 8,000 6,000 4,000

8,000 6,000 4,000

0

Q3

2019

Q4

Q1

Q2

Q3

2020

Q4

Q1

due to Covid-19 wave from May and started to recover in June

10,000

2,000 Q2

Q2:▼20%q-o-q

12,000

2,000 Q1

(6M:▲10% y-o-y)

14,000

New launch (units)

14,000

New launch (units)

Hanoi Condominium, New Launch Supply, Q2 2021

Q1

Q2

Q2

Q3

2019

2021

Q4 Q1

Q2

Q3

Q4

2020

Q1

Q2

2021

◼ LUXURY: >US$4,000 psm | ◼ HIGH END: US$2,000 – 4,000 psm | ◼ MID END: US$1,000 – 2,000 psm | ◼ AFFORDABLE: < US$1,000 psm Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

NEW LAUNCH IN 6M2021

HCMC: West and South took lead from East for new launch projects Hanoi: East and West continued to be key areas of supply contribution

HCMC Residential, Map of New Launch Supply H1 2021

Hanoi Residential, Map of New Launch Supply H1 2021

NORTH (17%)

WEST (31%)

NORTH (1%) CENTRAL (4%)

EAST (22%) WEST (39%)

CORE DISTRICTS (1%)

SOUTH (26%)

Landed property

EAST (39%)

SOUTH (19%)

Luxury

High-end

Mid-end

Affordable

Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

New heights in pricing of luxury products

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CBRE RESEARCH | © 2021 CBRE, INC.

CONDOMINIUM PRIMARY PRICES CONTINUED TO INCREASE HCMC Condominium, Primary prices, Q2 2021 HIGH-END $2,577 (▲0.4% y-o-y)

MID-END $1,552 (▲8.3% y-o-y)

AFFORDABLE $954 (▲1.6% y-o-y)

LUXURY $5,100

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 -

Primary price (US$ psm)

Primary price (US$ psm)

LUXURY $6,882 (▲9.2% y-o-y)

Hanoi Condominium, Primary prices, Q2 2021

LUXURY: >US$4,000 psm |

2020

MID-END $1,395 (▲ 6.7% y-o-y)

AFFORDABLE $883 (▲9.1% y-o-y)

8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019

HIGH-END $2,368 (▲2.2% y-o-y)

2021

2019

HIGH END: US$2,000 – 4,000 psm |

MID END: US$1,000 – 2,000 psm |

2020

2021

AFFORDABLE: < US$1,000 psm

(*) Selling price: US$ psm (excluding VAT and quoted on NSA) Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

VILLA/TOWNHOUSE SECONDARY PRICES: UPTREND ACROSS ALL PRODUCT TYPES HCMC Villa/Townhouse, Secondary prices, Q2 2021 VILLA

TOWNHOUSE

SHOPHOUSE

VILLA

TOWNHOUSE

SHOPHOUSE

$4,901

$4,202

$5,595

$4,869

$5,127

$6,774

(▲4% y-o-y)

(▲18% y-o-y)

(▲6% y-o-y)

(▲12% y-o-y)

$10,000

$10,000

$8,000

$8,000 US$/sqm

US$/sqm

Hanoi Villa/Townhouse, Secondary prices, Q2 2021

$6,000 $4,000

(▲14% y-o-y)

(▲11% y-o-y)

$6,000 $4,000 $2,000

$2,000

$0

$0

Q1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 Villa

2020 Townhouse

Q2

Q3

Q4

Q1

2019

20212021

Villa

Shophouse

Q2

Q3

2020 Townhouse

Q4

Q1

Q2

2021 Shophouse

Secondary prices increased among all products, especially townhouses Selling price: US$ psm (including construction, excluding VAT and quoted on land area) Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

LUXURY SEGMENT PRICING: REACHING REGIONAL LEVELS SEA prime residential prices 25,000

0.05% at >$18,000 psm

US$ psm

20,000 15,000 10,000

3% at ~$7,000 psm Luxury

5,000

31%

High-end

0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 Jakarta

Bangkok

Hanoi

HCMC

Singapore

43%

Mid-end

Phnom Penh

24%

Affordable

LUXURY: >US$4,000 psm | HIGH END: US$2,000 – 4,000 psm | MID END: US$1,000 – 2,000 psm | AFFORDABLE: < US$1,000 psm Source: CBRE Vietnam Research, Q2 2021.

(*) Selling price: US$ psm (excluding VAT and quoted on land area) CBRE FORUM 2021 | VIETNAM

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CBRE RESEARCH | © 2021 CBRE, INC.

HCMC CONDO SECONDARY PRICE GROWTH SLOWED DOWN YET STILL SEEING INCREASES BY 10-15% Y-O-Y

Launching price

2020 asking price*

Vinhomes Grand Park (2019)

Centum Wealth (2018)

Saigon Gateway (2017)

Him Lam Phu An (2016)

Lavita Garden (2015)

Kingdom 101 (2018)

Q2 Thao Dien (2018)

Current asking price

Price growth rate 2021 VS. 2020(%)

35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20%

Mid-end

Masteri An Phu (2018)

One Verandah (2018)

Millennium (2016)

Feliz En Vista (2016)

Estella Heights (2015)

The Nassim (2015)

Gateway Thao Dien (2015)

High-end

Lavita Charm (2017)

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Masteri Thao Dien (2014)

Secondary selling price (US$ psm)

HCMC condominium, Secondary prices in notable projects, Q2 2021

Price growth rate

LUXURY: >US$4,000 psm | HIGH END: US$2,000 – 4,000 psm | MID END: US$1,000 – 2,000 psm | AFFORDABLE: < US$1,000 psm Source: CBRE Vietnam Research, Q2 2021.

(*) Selling price: US$ psm (excluding VAT and quoted on land area) CBRE FORUM 2021 | VIETNAM

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CBRE RESEARCH | © 2021 CBRE, INC.

HANOI SAW STRONGER PRICE GROWTH IN SELECTED MID-END CONDOS, YET LAGGED BEHIND HCMC’S

2,500

High-end

10%

Mid-end

8%

2,000

6% 1,500

4% 2%

1,000

Y-o-y growth

Secondary selling price (US$ psm)

Hanoi condominium, Secondary prices in notable projects, Q2 2021

0% 500

-2%

-

-4% Indochina Park Hill - Hoang Cau Vinhomes Plaza Hanoi Ti mes City - Skyline Skylake - 2009 2015 2016 2016

Seasons Avenue 2015

Q2 2019

An Binh My Dinh Green Pearl Vinhomes Imperi a Sky Cau Giay Mipec Ci ty - 2016 Pearl - 2017 Greenbay - Garden Center Rubik360 2016 2017 2017 Point 2019 2018 Q2 2020

Q2 2021

y-o-y growth

LUXURY: >US$4,000 psm | HIGH END: US$2,000 – 4,000 psm | MID END: US$1,000 – 2,000 psm | AFFORDABLE: < US$1,000 psm Source: CBRE Vietnam Research, Q2 2021.

(*) Selling price: US$ psm (excluding VAT and quoted on land area) CBRE FORUM 2021 | VIETNAM

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CBRE RESEARCH | © 2021 CBRE, INC.

WEAKENED RENTAL MARKETS DUE TO A DECREASE IN DEMAND OF EXPATS AND FOREIGNERS

Hanoi Condominium, Rental yields, Q2 2021

8%

8%

7%

7%

6%

6%

Rental yields

Rental yield

HCMC Condominium, Rental yields, Q2 2021

5% 4% 3% 2% 1%

Expats fret as Vietnam tightens visa policies

5% 4% 1 7

3%

J u n e

2 0 2 1

2% 1%

0% District 1 2019

District 2

Binh Thanh

2020

Q2 2021

District 7

0% CBD

Midtown Tay Ho 2019

2020

West

South

Q2 2021

LUXURY: >US$4,000 psm | HIGH END: US$2,000 – 4,000 psm | MID END: US$1,000 – 2,000 psm | AFFORDABLE: < US$1,000 psm

(*) Selling price: US$ psm (excluding VAT and quoted on land area) Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

INNOVATIVE SALES POLICIES INTRODUCED

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CBRE RESEARCH | © 2021 CBRE, INC.

INCREASINGLY COMPETITIVE SALES POLICIES TO ENTICE BUYERS

Move in after paying

0%-20% of unit value.

AND SALES METHOD

ONLINE PLATFORM

New City Thu Thiem: Move in after paying 30% of unit value

CBRE FORUM 2021 | VIETNAM

Limited buyers per section to ensure 5K policy to prevent COVID-19

68

CBRE RESEARCH | © 2021 CBRE, INC.

NUMBER OF SOLD UNITS EXCEEDED SUPPLY IN BOTH HCMC AND HANOI 1H2021 HCMC Condominium, Sold units, Q2 2021 (6M: ▲ 28% y-o-y)

16,000

(6M: ▲20% y-o-y)

16,000

Q2: ▲ 76% q-o-q Sold units slowed down in June due to Covid-19 wave in the South

12,000 10,000 8,000

Q2: ▼6% q-o-q

14,000

Slight decline due to disruption in May

12,000

Sold Units

14,000

Sold units

Hanoi Condominium, Sold units, Q2 2021

6,000 4,000 2,000

10,000 8,000 6,000 4,000 2,000

0

Q1

Q2

Q3

2019

Q4

Q1

Q2

Q3

Q4

2020

Q1

Q2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2021

2019

2020

2021

◼ LUXURY: >US$4,000 psm | ◼ HIGH END: US$2,000 – 4,000 psm | ◼ MID END: US$1,000 – 2,000 psm | ◼ AFFORDABLE: < US$1,000 psm

High-end continued to absorb remaining units in township projects

Projects from township developments covered ~60% of sold units in H1 2021 Source: CBRE Vietnam Research, Q2 2021.

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CBRE RESEARCH | © 2021 CBRE, INC.

STRONG MOMENTUM IN LANDED PROPERTY MARKET, BUT SUPPLY AVAILABILITY DIVERGES BETWEEN THE TWO MARKETS HCMC Villa/Townhouse, Sold units, Q2 2021

Hanoi Villa/Townhouse, Sold units, Q2 2021

(6M: ▼ 78% y-o-y)

3,000 Q2: ▼ 56% q-o-q Small launching scale per event due to COVID-19

Units

2,000 1,500

Q2: ▲ 9.7x q-o-q New projects launched in Q2 experienced good absorption

2,500 2,000 Units

2,500

(6M: ▲115% y-o-y)

3,000

1,500

1,000

1,000

500

500 0

0 Q1

Q2

Q3

Q4

2019 New supply

Q1

Q2

Q3

2020

Q4

Q1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Q2

2019

2021

New launch

Sold units

2020

2021

Sold units

Landed property in high demand

Sold units dropped due to lack of supply Source: CBRE Vietnam Research, Q2 2021.

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MARKET OUTLOOK

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ENCOURAGING SIGNS OF PROGRESS WITH INFRASTRUCTURE PROJECTS, BUT COMPLETION SCHEDULE REMAINS UNCERTAIN

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STRONGER NEW SUPPLY EXPECTED OVER THE NEXT TWO YEARS, BUT WILL YET RETURN TO PRE-COVID 19 LEVEL

HCMC Condominium, New launch supply vs. Sold units 40,000

Hanoi Condominium, New launch supply vs. Sold units 40,000

Forecast

35,000

35,000

30,000

30,000

25,000

25,000

20,000

20,000

15,000

15,000

10,000

10,000

5,000

5,000

-

Forecast

2018

2019

New launch supply

2020

2021F

2022F

2018

Sold units

2019 New Launch

2020

2021F

2022F

Sold Units

Source: CBRE Vietnam Research, Q2 2021.

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PRIMARY PRICES EXPECTED TO BE HIGHER ACROSS ALL SEGMENTS HCMC Condominium, Forecast primary price

Hanoi Condominium, Forecast primary price LUXURY – Branded residence project to introduce at new record high

Forecast $8,000

$8,000

▲ 6% y-o-y

Forecast

$7,000

$6,000 $5,000 $4,000 $3,000

▲ 4% y-o-y

$2,000

▲ 3% y-o-y

Primary Pricing (US$ psm)

Primary pricing (US$ psm)

$7,000

$6,000 $5,000 $4,000

▲ 7% y-o-y

$3,000

▲ 4% y-o-y

$2,000 $1,000

$1,000

▲ 1% y-o-y

$2018 Luxury

2019 High-end

2020

2021F

Mid-end

▲ 4% y-o-y

$0 2018

2022F

High-end

Affordable

2019

2020

Mid-end

2021F

2022F

Affordable

Source: CBRE Vietnam Research, Q2 2021.

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FORECAST TRENDS

Home office solutions for condominiums as Work From Home prolongs

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Investors from the South will look for more opportunities in Northern provinces

Branded Residence enhances luxury living

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Township projects in neighboring provinces continue to attract investors

Vaccine visa and increasing vaccine rates will drive foreign buyers back to Vietnam

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Disclaimer: All materials presented in this report, unless specifically indicated otherwise, is under copyright

and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only, exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorised publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

For more information regarding this presentation please contact: CBRE Vietnam Co., Ltd. – Research & Consulting T: +84 28 3824 6125 | E: research.vietnam@cbre.com CBRE FORUM 2021 | VIETNAM

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