Hanoi Real Estate Market Insights Q3 2022 (EN)

CBRE Vietnam

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

CBRE Vietnam

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

MARKET INSIGHTS Q3 2022 - HANOI

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

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MARKET INSIGHTS Q3 2022 - HANOI

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Q3 2022 in Review

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI OFFICE MARKET

HANOI Snapshot Q3 2022

Market Snapshot Q3 2022

Grade B welcomes a new office project in the West area (Cau Giay District, 22,000sqm NLA), resulting in a slight increase in average rents and vacancy rates in Grade B segment.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

SUPPLY NLA (sqm)

ASKING RENT (*) US$/sqm/month

VACANCY RATE (*) (%)

GRADE A

GRADE A CBD

GRADE B

603,518 sqm

253,817 sqm

1,019,930 sqm (1 new project: 22,000 sqm)

US$ 26.0 ▲ 0.6% q-o-q ▲ 6.0% y-o-y

28.2%

▼ -0.5 ppt q-o-q ▼ -4.0 ppt y-o-y

US$ 31.3

US$ 14.

0.0% q-o-q ▲ 3.3% y-o-y

▲ 0.6% q-o-q ▲ 3.2% y-o-y

11.1%

11.9%

▲ 2.6 ppt q-o-q ▲ 1.3 ppt y-o-y

▲ 1.6 ppt q-o-q ▲ 0.4 ppt y-o-y

HANOI OFFICE MARKET

Improvement in both rents and occupancy rates across both grades Vacancy rates in Grade B are rising as market welcomed a new building.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Market Performance, Hanoi Office, Q3 2022

HANOI OFFICE MARKET

Flight to Quality Vacancy rates in Grade A CBD are rising as tenants relocated from older Grade A buildings in the CBD to newer buildings elsewhere, while rents in all areas tend to rise slightly,

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Market Performance, Hanoi Office, Grade A, By Cluster, Q3 2022

HANOI OFFICE MARKET

Net Absorption Remains Moderate Due to Limited New Supply

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Net Absorption, Hanoi Office, Q3 2022

HANOI OFFICE MARKET

Rising Desire For Expansion

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Notable Transactions by Purposes, Hanoi, Q3 2022

HANOI OFFICE MARKET

Notable Transactions by Industry, Q3 2022

Notable Transactions by Location, Q3 2022

Technology Industry and the West Area Are Highlights Among Major Transactions Recorded in Q3 2022

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Industry

Area (sqm)

Location

Purpose

IT/Tech

6,800

789 Building (West)

Expansion

IT/Tech

3,000

LeAdvisors (West)

Expansion

Securities

2,000

Capital Place (Midtown)

Expansion

IT/Tech

1,700

PVI (West)

New letting

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Market Performance, Hanoi Office, 2019 – 2023F

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

MARKET INSIGHTS Q3 2022 - HANOI

Retail Market

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

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HANOI RETAIL MARKET

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Hanoi Retail, Asking Rents, Q3 2022

HANOI RETAIL MARKET

Breitling

Marc Jacobs

Berluti

The 1st Boutique Flagship stores in Vietnam 61 Ly Thai To, Hoan Kiem, Hanoi September 2022

56 Trang Tien, Hoan Kiem, Hanoi September 2022

The 1st store in Vietnam 57 Ly Thai To, Hoan Kiem, Hanoi September 2022

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RETAIL MARKET

Expansion in Q3 2022

Future Expansion

Uniqlo – Fashion

Aeon MaxValu – Supermarket

Lyn – Fashion Accessories

Jumbo Seafood – F&B

Tops Market – Supermarket

Annam Gourmet – Supermarket Vincom Mega Mall Times City August 2022

Mothercare - Fashion Accessories Lotte Department Store Hanoi August 2022

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Mojo Boutique Coffee – F&B

HANOI RETAIL MARKET

The Zei Tu Liem District NLA: 9,000 sqm

Hinode City Hai Ba Trung District 10,000 sqm

2022: 19,000 sqm NLA 2023-2024: Over 300,000 sqm NLA of future supply

The Village - Park City Ha Dong District 12,200 sqm

FLC Twin Towers Cau Giay District 14,000 sqm

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Toshin – Starlake Phase 1 Tay Ho District 35,000 sqm

Tien Bo Plaza Ba Dinh District 50,000 sqm

Lotte Mall Hanoi Tay Ho District 72,000 sqm

Aeon Mall Hoang Mai Hoang Mai District 84,000 sqm

Splendora Mall Hoai Duc District 8,450 sqm

Thor Complex Hai Ba Trung District 12,884 sqm

HANOI RETAIL MARKET

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RETAIL MARKET

Market Outlook

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Market Performance 2022 – 2024F, Hanoi Retail

HANOI RETAIL MARKET

Market Outlook

Prime assets to remain well sought after With limited new supply and demand for prime locations remaining firm, space in city centres and along prime high streets will remain keenly sought-after in the coming time.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Consumer experience a top priority Physical retail stores will focus on facilitating consumer experience by integrating in-store utilities and enhancing online order fulfilment capabilities, a trend already evident within the F&B sector

Inflationary pressures may dampen outlook Concerns about challenges and inflationary pressures in the coming time may affect the recovery of retail sector as costs of raw materials, production costs and consumer goods prices expect to increase further, affecting consumer spending and consumer confidence especially for non-necessities.

MARKET INSIGHTS Q3 2022 - HANOI

Residential Market

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RESIDENTIAL MARKET

Hanoi Condominium: Market Snapshot Q3 2022 Limited new supply allows for positive absorption during the quarter albeit primary prices continued to set new heights.

Ultra Luxury

New launch supply (units)

0

0

2,456 ▲8% y-o-y

1,184 ▼2% y-o-y

0

3,640 ▲5% y-o-y

Average Primary Price* (US$ psm)

US$ 25,000

US$ 5,489 ▲8% y-o-y

US$ 2,294 ▲1% y-o-y

US$ 1,653 ▲13% y-o-y

US$ 924 ▲4% y-o-y

US$ 1, ▲23% y-o-y

Sold units

0

47

2,338 ▲67% y-o-y

1,220 ▼6% y-o-y

19 ▼89% y-o-y

3,624 ▲22% y-o-y

Source: CBRE Vietnam Research & Consulting, Q3 2022 *Average Primary Price: US$ psm (excluding VAT and quoted on NSA). This index tracks all projects available for sales during the review quarter, regardless of being launched during the quarter or previously.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RESIDENTIAL MARKET

Condominium, New Launch, Q3 2022

High-end segment covered 61% of new launch in 9M 2022

New Supply from Highend Segment Surpassed Mid-end’s for Three Consecutive Quarters Most of products in township developments offered in high-end price range No new affordable project launched over the past 5 quarters

Ultra Luxury

Luxury

Source: CBRE Vietnam Research & Consulting, Q3 2022 HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

High-end

Mid-end

Affordabl e

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RESIDENTIAL MARKET

Moving towards Higher-end Segments across Locations in Hanoi

Condominum, Primary Prices, Selected Districts in Hanoi Q3 2022

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HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RESIDENTIAL MARKET

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Condominium: Secondary Prices Continued to Increase at a High Rate for Three Consecutive Quarters This is the third consecutive

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Condominium, Secondary Prices, Selected Districts in Hanoi Q3 2022 ▲

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quarter that the market recorded annual secondary price growth of 9% and above – higher than the period before 2021 when the movements were typically between 2-4% yo-y.

Source: CBRE Vietnam Research & Consulting, Q3 2022

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

*Average Secondary Price: US$ psm (excluding VAT and quoted on NSA). This index tracks all projects available for sales during the review quarter, regardless of being launched during the quarter or previously.

HANOI RESIDENTIAL MARKET

Condominium, Sold Units, Q3 2022

Condominium: Sold Units Sustained at a Similar Level to New Launch Absorption remains on par with supply volume, but both numbers lagged behind pre-COVID levels.

Source: CBRE Vietnam Research & Consulting, Q3 2022 HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

RESIDENTIAL MARKET

Future Supply – Hanoi Residential Market – Q4 2022 – 2023F Condominium Projects

Central Residence Hoang Mai Dist. – 1,800 units Newly launched project

Grandeur Palace Pham Hung Tu Liem Dist. ~970 units Newly launched project

Sunshine Crystal River Tay Ho Dist. ~954 units Newly launched project

Vinhomes Galaxy Thanh Xuan Dist. ~3,500 units Newly launched project

The Manor Central Park Hoang Mai Dist.

Newly launched project

Projects at Vinhomes Smart City Tu Liem Dist.

Follow-on launches

Landed Property Project

Vinhomes Wonder Park Dan Phuong Dan Phuong Commune

Vinhomes Co Loa Dong Anh District

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

CEO Me Linh Me Linh District 568 units

Ha Do Charm Villas – Phase 2 Hoai Duc District 100 units

HANOI RESIDENTIAL MARKET

Market Outlook

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

RESIDENTIAL MARKET

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RESIDENTIAL MARKET

Landed Property: New Launch Supply Remained at a High Level Similar to previous quarter, Q3 2022 also recorded a significant large volume of new units launched, the majority of which came from the launch of Vinhomes Ocean Park 2 (VHOCP2) – The Empire.

Units launched from VHOCP2 during Q2 and Q3 alone was almost 89% of the total units launched over the 4-year period from Q1 2018 to Q1 2022.

Out of the new launches, townhouses accounted for the largest proportion of 53%.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Landed Property, New Supply, 2018 - 2022

VS.

HANOI RESIDENTIAL MARKET

Landed Property, Primary Prices by Product, Hanoi Q3 2022

Landed Property: Primary Prices on the Rise Average primary prices of Q3 2022 recorded significant increases due to several new launches coming from high-end projects and by reputable developers (such as Vingroup, Bitexco).

Villa

Average Primary Price* (US$ psm)

US$ 8,077

US$ 6,624

US$ 10,684

US$ 8,462

▲8.4% q-o-q ▲42% y-o-y

▲12.5% q-o-q ▲7% y-o-y

▲8.5% q-o-q ▲50% y-o-y

▲13.7% q-o-q ▲36% y-o-y

Source: CBRE Vietnam Research & Consulting, Q3 2022 *Average Primary & Secondary Prices: US$ psm (excluding VAT and quoted on NSA).

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

HANOI RESIDENTIAL MARKET

Landed Property: Secondary Prices also Climbed Up Significantly Secondary prices remained its upward trend over the past 4 years, indicating strong demand of investors for landed products, along with the prominent future investment value of the properties.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Hanoi Landed Property, Villa Secondary Price Index by District, 2018 - 2022

HANOI RESIDENTIAL MARKET

Landed Property: Strong Market Absorption Q3 2022, together with Q2 2022, recorded a significant amount of sold units compared to previous quarters, following strong launching volume from mostly Vinhomes Ocean Park 2 – The Empire project.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Landed property, New launch vs Sold Units, 2018 - 2022

HANOI RESIDENTIAL MARKET

Landed Property: Market Outlook The upward trend in secondary price is expected to continue but at a slower pace especially as macro factors are shifting quickly.

New supply volume will moderate after 2022, but expects to remain at a high level compared historically.

HANOI REAL ESTATE MARKET INSIGHTS – Q3/2022 | © CBRE, Inc.

Thank you

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