HCMC Market Outlook 2021_EN version

CBRE RESEARCH

RESTART THE UNEVEN RECOVERY VIETN AM

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H C M C R E A L E S TAT E MARKET OUTLOOK

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CONTENT 1. HCMC OFFICE 2 . H C M C R E TA I L 3. VIETNAM INDUSTRIAL

RESTART THE UNEVEN RECOVERY

4. HCMC RESIDENTIAL

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

HCMC OFFICE

REGAIN

44

A YEAR TO LOOK BACK NUMBER OF BANKRUPTED ENTERPRISES

MORE BENEFITS FOR OCCUPIERS

Flexible leasing terms

HCMC

OCCUPANCY RATE DECREAS E D

Hanoi

94%

0

5,000 10,000 15,000

2019

9M 2020

88%

02 More options for occupiers

01

Tenants gained negotiation power

03

2019 2020

Source: CBRE Vietnam Research, Q4 2020. GSO.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

5

SIGNIFICANT DIFFERENCE IN PERFORMANCE BETWEEN GRADE A AND B SEGM ENTS HCMC OFFICE: MARKET SNAPSHOT 2020

GRADE B

GRADE A TOTAL SUPPLY

475,253

NLA (sqm)

ASKING RENT*

US$42.8

947,233 sqm NLA

18 projects

68 projects

US$25.3

5.3% y-o-y

3.6% q-o-q

US$/sqm/month

VACANCY RATE

sqm NLA

18.1%

(%)

2.4% y-o-y 0.2% q-o-q

9.0 ppts y-o-y

9.1%

6.6 ppts q-o-q

4.1 ppts y-o-y 3.0 ppts q-o-q

3

NEW COMPLETIONS In 2020: 65,372 sqm 1 Decentralized Grade A 2 Grade B

31% compared to 3-year average

Source: CBRE Vietnam Research, Q4 2020.

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

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

5

CBRE RESEARCH | © 2021 CBRE, INC.

NEW SUPPLY IN 2020: NEW COMPLETIONS INTRODUCED DURING A YEAR OF DIFFICULTIES

2,000,000

24%

1,750,000

21%

1,500,000

18%

1,250,000

15%

1,000,000

12%

750,000

9%

500,000

6%

250,000

3%

0

0%

2015 Total supply - Grade A

2016 2017 Total supply - Grade B

2018 2019 Growth Rate - Grade A

Growth Rate (%)

HCMC Office, Total Supply by Grade

NLA (sqm)

6

2020 Growth Rate - Grade B

Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

7

CONTRACTIONS GREW SHARPLY AS OCCUPIERS LOOK TO STREAMLINE COST

100% 90%

20%

$40

Asking Rent (US$/sqm/month)

70% 60% 50% 40% 30% 20%

10% 0%

$50

17%

27%

80%

HCMC Office, Performance, 2018 - 2020

HCMC

Hanoi

2018 New Letting

Renewal

HCMC

Hanoi

HCMC

2019 Expansion

Hanoi

2020 Relocation

Contraction

15%

$30 10% $20 5%

$10

$0

2018

2019

Grade A Asking Rent Grade A Vacancy Rate

2020

Vacancy Rate (%)

Vietnam Office, Tenants by Leasing Purpose*, Major Transactions Collected and Closed by CBRE 2018 - 2020

0%

Grade B Asking Rent Grade B Vacancy Rate

Source: CBRE Vietnam Research, Q4 2020. (*): The statistics are based on the total number of transactions ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

8

MAJOR SHARE-UP OF INDUSTRY GROWTH TRENDS AS A RESULT OF COVID -19 HCMC Office, Tenants by Industry, Major Transactions Collected and Closed by CBRE 2018 - 2020 Retail/Trade/E-commerce

Growing sectors

Information Technology

Retail/E-Commerce : 2019 – 2020: 11 ppts 2018 – 2020: 14 ppts

Manufacturing Insurance Logistics

2020 2019 2018

Media/Communication/Marketing Finance/Banking

Flexible workspace

Insurance: 2019 – 2020: 10 ppts 2018 – 2020: 7 ppts

Shrinking sectors

Services Oil & Gas

Flexible workspace: 2019 – 2020: -34 ppts 2018 – 2020: -29 ppts

Others 0%

5% 10% 15% 20% 25% 30% 35% 40%

Source: CBRE Vietnam Research, Q4 2020. (*): The statistics are based on the total NLA. ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Finance/Banking: 2019 – 2020: -5 ppts 2018 – 2020: -7 ppts CBRE RESEARCH | © 2021 CBRE, INC.

9

WHAT TENANTS ARE LOOKING FOR?

High quality management services

Modern specifications, including large floor plates ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Strong location, with good access to existing and future public transportation

Green building technology, with builtin design to save energy and water

A good range of valueadded amenities, such as coffee shop, flexible workspace, gym, convention hall

Competitive financial incentives, such as longer rent free and fit-out periods CBRE RESEARCH | © 2021 CBRE, INC.

10

PARADIGM SHIFT IN OCCUPIER WORKPLACE STRATEGY TOWARDS FLEXIBILIT Y

38%

27%

Will adapt a hybrid model with both remote and office-based work

Will reduce staff density in workplace

Source: “Emerging Trends in Real Estate Asia Pacific 2021 Survey”, PWC. ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

HIGH PREFERENCE ON FLEXIBLE WORKSPACE FROM OCCUPIERS RAISED NEW BUSINESS DEVELOPMENT More Flexible Workspaces Headed Out To NonDistrict 1 Areas

Source: 2020 Global Occupier Sentiment Survey, CBRE Research, September 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

2019

2018

Non-District 1

2020 (estimation)

District 1

2017

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

2015

Supply (sqm)

Different Approaches Of Landlords To Adopt Flexible Workspace Into Their Buildings

2016

11

Source: CBRE APAC, Vietnam Research, Q4 2020.

CBRE RESEARCH | © 2021 CBRE, INC.

12

INFRASTRUCTURE PIPELINE TO LIFT UP OFFICE MARKET 4% 3% 2015

11%

13%

68%

Central East North 4%

South West

Thu Thiem’s Bridge No. 2

11%

7% 2025

19%

58%

Thu Duc City Metroline no. 1 Metroline no. 2 Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Official formation of Thu Duc City, to take effect from Jan 1st, 2021 National Assembly Standing Committee issued Resolution 1111 / NQ-UBTVQH14 on the arrangement of administrative units at district and commune levels and the establishment of Thu Duc city under Ho Chi Minh City Source: The Library of Law

CBRE RESEARCH | © 2021 CBRE, INC.

13

FUTURE OFFICE SUPPLY 2021: > 60,000 sqm NLA

Worc@Q2, District 2 NLA: ~5,000 sqm

AP Tower, Binh Thanh NLA: ~10,000 sqm

PL Tower, District 4 NLA: ~6,000 sqm

Pearl 5 Tower District 3 NLA: 10,944 sqm

The Graces District 7 NLA: 8,295 sqm

Saigon First House, District 3 NLA: 15,348 sqm

Cobi Tower District 7 NLA: 27,127 sqm

2022 and onwards: >110,000 sqm NLA

Under-construction Under-planning

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Spirit of Saigon District 1 40,000 sqm for office

Etown 6 Tan Binh NLA: ~40,000 sqm

Techcombank Tower District 1 GFA: ~30,000 sqm

SCID District 1 GFA: ~6,000 sqm

CBRE RESEARCH | © 2021 CBRE, INC.

14

MARKET OUTLOOK: VIETNAM IS AMONG THE LEAST AFFECTED MARKETS APAC Office, Grade A Rental Forecast 2020F (As of Nov 2020)

Rental growth (%)

5%

2021F (As of Nov 2020)

0% -5% -10% -15% -20%

Source: CBRE APAC Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Sydney

Hong Kong SAR

Melbourne

Shenzhen

Shanghai

Beijing

Brisbane

Jakarta

Tokyo

Guangzhou

Hanoi

Ho Chi Minh City

Singapore

Seoul

Taipei

Bangkok

-25%

CBRE RESEARCH | © 2021 CBRE, INC.

15

MARKET OUTLOOK HCMC Office, Performance Forecast

$45

Best: Metroline operated

by Q3 2021 & Border restriction lifted

35%

2022F

2021F

30%

$40 $35

25%

$30

20%

$25 $20

15%

$15

10%

$10

Vacancy rate

Rental rate (US$/sqm/month)

$50

5%

$5 $0

0% 2020

2021F - Best Grade A - Rent

Source: CBRE Vietnam Research, Q4 2020.

2021F - Neutral

2021F - Worst

Grade B - Rent

2022F - Best Grade A - Vac

2022F - Neutral

2022F - Worst

Grade B - Vac

Note: * Best: Metroline operated by Q3 2021 & Border restriction lifted * Neutral: Nothing significant happens, metroline is operated on time (Q4 2021), border restriction is not fully lifted * Worst: Delay of everything

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

CONTINUED EXPANSION FOR LESS AFFECTED INDUSTRIES INCREASED WORKPLACE FLEXIBILITY & REDUCED DENSITY STABILIZATION OF RENTAL RATES

DECENTRALIZATION

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

20 21

THE

REGAIN OF OFFICE MARKET

CBRE RESEARCH | © 2021 CBRE, INC.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

H C M C R E TA I L

RESHAPE

18 18

A YEAR TO LOOK BACK Total Sales and Services Turnover (y-o-y change)

Vietnam Mobility Index RETAIL & RECREATION

11.8%

12.3%

100%

12.1% 7.7%

-16%

2.7%

2.6%

compared to baseline

GROCERY & PHARMACY

12%

80%

40%

-1.3%

20%

compared to baseline

0% -15.6%

-17%

7%

60%

+9% PARKS

Vacancy Rate Increases

Vietnam

compared to baseline

HCMC 2019

Hanoi 2020

Da Nang

2019 Occupancy

2020 Vacancy

CBD: down 0.5 ppt Non-CBD: up 5.1 ppts

Source: CBRE Vietnam Research, Q4 2020. GSO, Google Mobility index. The baseline is the median value, for the corresponding day of the week, during the 5-week period Jan 3–Feb 6, 2020 ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

19

INSIGNIFICANT CHANGES IN NEW SUPPLY AND PERFORMANCE HCMC RETAIL: MARKET SNAPSHOT 2020

Non-CBD

CBD TOTAL SUPPLY NLA (sqm)

ASKING RENT*

106,853 sqm NLA 12 projects & podiums

US$135.4

47 projects & podiums

US$35.8

Stable y-o-y

1.12%

(%)

3.8% y-o-y 3.9% q-o-q

Stable q-o-q

US$/sqm/month

VACANCY RATE

942,575 sqm NLA

0.5 ppts y-o-y

13.2%

0.5 ppts q-o-q

5.1 ppts y-o-y

1

REOPENING

New supply in 2020: 11,300 sqm

90% average of past three years

0.6 ppts q-o-q

Source: CBRE Vietnam Research, Q4 2020.

Note: Asking rent is quoted on NLA, excluding VAT & Service charges for Ground Floor and First floor.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

19

CBRE RESEARCH | © 2021 CBRE, INC.

20

INSIGNIFICANT CHANGES IN NEW SUPPLY AND PERFORMANCE HCMC Retail, Performance by Year

Asking rent (US$ psm pm)

Accumulated Supply NLA (sqm)

1,200,000 1,000,000 800,000

600,000 400,000 200,000

140

14%

120

12%

100

10%

80

8%

60

6%

40

4%

20

2%

0

2017

2018

2019

2020

Accumulated supply

2018 CBD Rent CBD Vacancy Rate

Vacancy Rate

HCMC Retail, Accumulated Supply

0% 2019

2020 Non-CBD Rent Non-CBD Vacancy Rate

Source: CBRE Vietnam Research, Q4 2020.

Note: Asking rent is quoted on NLA, excluding VAT & Service charges for Ground Floor and First floor.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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21

CHANGE IN VACANCY RATE BY DISTRICT (2020 VS. 2019)

2.

3.

LOW PURCHASING POWER

LOW QUALITY RETAIL SPACE

4.

WEAK POSITIONING / TRADE MIX

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

M O S T I M PAC T E D D I S T R I C T S Increase in vacancy rate (ppts)

1.

LOW POPULATION DENSITY

60% 50% 40% 30% 20% 10% 0% D.6

D.4

D.5 D.11 Tan Phu

D.2 D.10 Tan Binh Binh Thanh

Source: CBRE Vietnam Research, Q4 2020 Vacancy rate recorded for all Shopping centre, Department store and a few notable retail podiums at the districts.

CBRE RESEARCH | © 2021 CBRE, INC.

22

DECREASE IN NUMBER OF NEW ENTRANTS 2019

2020 – New Entrants

2021 Expected

Fashion & Accessories

F&B

From South East Asia

Mid-end

Multi platforms

Others

Awaits vaccine

CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Source: CBRE Vietnam Research, Q4 2020.

CBRE RESEARCH | © 2021 CBRE, INC.

23

STRONG EXPANSION OF EXISTING TENANTS Change in Number of Stores by Categories (y-o-y) Vietnam

80%

HCMC Source: Nikkei Asian Review, Nov. 2020

60%

40% 20% 0% -20%

Milk Tea

Restaurants

Coffee Chain

Fashion Store

Pharmacy

Lifestyle Store

Shopping Centre

Convenience store

Supermarket

-40% Source: Retail News Asia, 2020

Highland

To aim 2,500 stores nationwide in 10 years

Phuc Long

Starbucks

Waynes Coffee, Coffee Bean and Tea Leaf…

Source: QandME Retail Store Status, 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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24

STRONG TENANTS TAKE ADVANTAGE OF THE SITUATION TO EXPAND Who are strong tenants

What they ask

Financially stable

Good location, good quality retail space

F&B

Strong market presence

Fashion & Accessories

Strong tenants

Free fit out period up to 3 months

Omni channels

Adaptability

Rent negotiation

CAPEX support

Special leasing terms Strategy

Source: CBRE APAC Research, Asia Pacific Retail Flash Survey conducted Sept 21 to Oct 20, 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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25

NEW CONSUMER BEHAVIOURS WILL BE HERE TO STAY

“Vietnam's E-commerce Market To Reach $13.1 Bn In 2020: Study “ (up 30.3% y-o-y)

Source: Entrepreneur.com, Dec 2020

% 87

(*)

believe consumers focus on

sustainability and wellness will reshape shopping behaviour

% 61

(*)

expect a significant increase in consumers’

Spending on experience Source: CBRE APAC Research. *Answers from 120 APAC industry leaders, CBRE survey, 2020 Source: QandME Vietnam EC Market, 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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26

FASHION IS AMONGST THE STRONGEST EXPANDING SECTORS IN 2021

Nike to Open 30 Stores in 2021, Continue Investing in Customer Outreach and Supply Chain Source: RetailTouchPoint, Nov. 2020

Louis Vuitton, Christian Dior join Hanoi luxury market Source: Vietnamnet, Nov. 2020

Asia will lead spending recovery, Uniqlo CEO Yanai says Source: NikkeiAsia, Dec. 2020

China and Southeast Asia will drive consumer spending: Taiwan and Vietnam, which have controlled the coronavirus, are enjoying firm spending while Malaysia, Indonesia and the Philippines are stagnant ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Demand for large flagship stores from luxury and fast fashion retailers continue to increase even they pivot to e-commerce

CBRE RESEARCH | © 2021 CBRE, INC.

27

RESIDENTIAL PRODUCTS EXPAND TO SATELLITE MARKETS, SO DOES RETAIL

Japanese developer Tokyu to develop a shopping mall in Binh Duong

4,000 2,000

US$ per year

6,000 CAGR: 12%

Source: Binh Duong News, Nov. 2020

8,000

CAGR: 27%

Central Retail of Thailand to build large trade center in Ben Cat

1,200,000 1,000,000 800,000 600,000 400,000 200,000 -

CAGR: 15%

Source: Vietnam Insider, Dec. 2020

Supply Comparison by Province Total Supply (sqm)

Vietnam’s first Cafe Amazon was launched at Central Retail’s BigC Go! Shopping centre in Ben Tre province

0

HCMC

Binh Dong Nai Duong Total Supply GDP per capita

Featuring an outlet of major Japanese retailer AEON Source: Vietstock, Dec. 2020

First Pedro, Charles & Keith, Beauty Box… stores @ Aeon Mall Canary Binh Duong Watsons opened store @ Sense City Can Tho Source: CBRE Vietnam Research, CAGR is change on supply for the period of 2010-2020, Google Images ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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28

THE FUTURE OF RETAIL PROPERTY: HOW TO INCREASE RETAIL ASSET RESI LIENCE

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

29

MARKET OUTLOOK: PIPELINE WILL PICK UP IN CBD AND THE EAST Over total 550,000

sqm in the pipeline 2022 -2025

2021

(>420,000 sqm)

(57,900 sqm)

CBD

Union Square NLA: 27,900 sqm Under renovation

Socar Mall 30,000 sqm District 2

Elite Mall 42,000 sqm District 8

Vincom Grand Park 48,000 sqm District 9

Central Premium Mall Onehub Saigon 70,000 sqm 24,000 sqm District 9 District 8

Source: CBRE Vietnam Research, Q4 2020. Internet Images.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Alpha Mall

Spirit of Saigon

Centennial Mall

Tax Plaza

Thu Thiem New Urban Area Lotte Empire City Sonkimland Dai Quang Minh

Subway and Underground mall

CBRE RESEARCH | © 2021 CBRE, INC.

30

LIMITED NEW SUPPLY KEEPS VACANCY FROM SURGING

14%

120

12% 10%

100

8%

80

6%

60

4%

40

2%

20

0%

2020

2021F

2022F

CBD Rent

Non-CBD Rent

CBD Vacancy Rate

Non-CBD Vacancy Rate

10% 0% -10% -20% -30% -40% -50% -60%

Shanghai Guangzhou Beijing Brisbane - CBD Shenzhen Sydney - CBD Sydney - Regional Ctr Taipei Perth - Regional Ctr Brisbane - Regional Ctr Singapore Perth - CBD Melbourne - CBD Melbourne - Regional Ctr Tokyo (Ginza) Auckland - Regional Ctr Hong Kong SAR HCMC Hanoi

140

Y-o-Y Change

APAC Retail, Performance Forecast

Vacancy Rate

Asking rent (US$ psm pm)

HCMC Retail, Performance Forecast

2020F

2021F

2019 - 2021 Cumulative

Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

MARKET WILL PICK UP NOTABLY IN H2 2021

Consumer Confidence: • Improving gradually then picking up when vaccines show effect Retail Space Demand • New concept/format • Physical stores need to evolve into experience Tenants: • Rise of Automobiles, Luxury, Home Furnishing & Decor • Looking for opportunities in 2nd – tier cities Landlords • Transforming to regional centres to offer onestop experience • Mixed use developments help drive spending

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

VIETNAM INDUSTRIAL

RESILIENCE

33

A YEAR TO LOOK BACK

20 20

High Occupancy Rate of Industrial Parks

U P B E AT I N D U S T R I A L P R O P E R T Y M A R K E T

Surge of Logistic Property Demand

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Strong Asking Rent Escalation

Limited Industrial Land Supply in Prime Locations

Manufacturing Relocation is Key Demand Driver

New Players Have Joined The Market

CBRE RESEARCH | © 2021 CBRE, INC.

34

MARKET SNAPSHOT - INDUSTRIAL LAND SUPPLY • • • • •

Hanoi Hung Yen Hai Duong Hai Phong Bac Ninh

South Total leasable area: 24,238 ha

North Total leasable area: 9,433 ha

10,000

90%

9,000

80%

250 200

50% 150

40%

5,000

30%

4,000

100

20%

3,000

10%

2,000

0%

1,000 0

300

60%

6,000

HCMC Dong Nai Binh Duong Long An

350

70%

8,000 7,000

• • • •

100%

Binh Duong

Dong Nai

BR-VT Long An HCMC

Total Industrial Land Area (ha)

Hai Phong

Bac Ninh

Hanoi

Hai Duong

Leasable Industrial Land Area (ha)

Significant gap of supply and rental rate between the major industrial regions ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Hung Yen

USD/sqm/remaining term

11,000

PERFORMANCE

50

HCMC Hanoi

90 - 100% Occupancy rate

Occupancy rate

Binh Dong Duong Nai

Long An

Bac Ninh

70 - >80% Occupancy rate

Vacancy rate

Hung Hai Hai BR-VT Yen Duong Phong

0

50 - >60% Occupancy rate

Minimum asking rent

Maximum asking rent

Source: CBRE Vietnam Research, Q4 2020.

Note: Asking rent 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.

CBRE RESEARCH | © 2021 CBRE, INC.

35

MARKET SNAPSHOT - READY-BUILT FACTORY AND WAREHOUSE SUPPLY

ASKING RENT

3.5 3.0 2.5 2.0

HCMC Dong Nai Binh Duong Long An

10 8 6

Ready-built Factory

4

Stable asking rent

2 HCMC Hanoi Binh Dong Bac Hung Bac Hai Hai Duong Nai Ninh Yen Giang Duong Phong

1.5

Warehouse

12

1.0 • • • •

RBF

0

USD/sqm/month

Hanoi Hung Yen Hai Duong Hai Phong Bac Giang Bac Ninh Thai Nguyen Vinh Phuc

Mil. sqm

• • • • • • • •

USD/sqm/month

12

10

0.5 0.0 RBF Supply

WH Supply

Major Northern Provinces Major Southern Provinces Source: CBRE Vietnam Research, Q4 2020.

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. Asking rent is exclusive of VAT and Management/Service charge ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Developed logistics hubs

8

Emerging logistics hubs

Warehouse

6 4

Up 5%-10% y-o-y in selected new projects

2 0

HCMC Hanoi

Binh Dong Duong Nai

Bac Ninh

Hai Phong

Long An

Hung Yen

New supply increases significantly in major industrial regions CBRE RESEARCH | © 2021 CBRE, INC.

36

ABUNDANT NEW SUPPLY OF HIGH-QUALITY RBF & WH IN MAJOR INDUSTRIAL REGIONS

Thai Nguyen

GAW NP Industrial

Hai Phong Hai Duong Bac Ninh

80,000 sqm

BW Industrial

2020 & 2021

>132,000 2020 & 2021

Dong Nai

KTG & Boustead Industrial >48,200 sqm 2021 HCMC, Binh Duong

BW Industrial 2020

244,000 sqm Long An Long An

JD Property 52,390 sqm

Long Hau Corporation >19,800 sqm 2020

2022 Source: CBRE Vietnam Research, Q4 2020.

Image source: GAW NP Industrial, BW Industrial, KTG Industrial, JD Properties, Vnexpress, Long Hau Corp.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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37

LOGISTICS INDUSTRY DOMINATES DEMAND Industrial land is the most sought-after product, especially for logistics property development.

30%

38%

Animal feed and Furniture are two of the biggest beneficiaries from FTAs.

Industrial Land RBF WH

33%

One fifth of leasing enquiries belongs to logistics companies Logistics Electronics 20%

Plastic

35% 12% 7% 2%

5%

Industrial Property Development

6%

4%

6%

Garment Medical Equiment Investment Construction

Automotive Other

Source: CBRE Vietnam Research, Q4 2020.

Note: The statistic is based on industrial property enquiries received by CBRE Vietnam in 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

38

MANUFACTURING RELOCATION IS A KEY DEMAND DRIVER Bac Giang Bac Ninh

Apple’s vendors in Vietnam: Supply Chain Restructuring

Quang Ninh Ha Noi

China+1 Strategy

Manufacturing Relocation

Hai Phong Nghe An

Local Expansion Da Nang

Quang Nam

Supplier by country

Manufacturing location of suppliers in Vietnam

Dong Nai

20% Binh Duong

HCMC Tien Giang

Existing Manufacturing Location

45%

Expanded Manufacturing Location

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

35%

19%

North South Central

China

7%

Vietnam 74%

Other

Source: Supplier List, Apple Supplier Responsibility 2019.

CBRE RESEARCH | © 2021 CBRE, INC.

39

LOCAL MANUFACTURING EXPANSION TO ACCOMMODATE BUSINESS GROWTH FTAs are the strong boost of local manufacturing expansion.

UKVFTA December 2020 Vietnam & UK

Automotive

Electronics

RCEP November 2020 ASEAN+

EVFTA

Agriculture & Garment

Logistics

June 2019 Vietnam & EU August 2020 ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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40

NEW PLAYERS IN THE MARKET Tier-1 industrial cities and provinces are key focused areas.

Phu Tho

Industrial Park Vinh Phuc

Logistics Property

Bac Giang Quang Ninh

Bac Ninh Hanoi Hung Yen

Ha Nam

Hai Duong

Hai Phong

Thai Binh

Nam Dinh

Tay Ninh Binh Duong Dong Nai HCMC Long An BR - VT

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

OUTLOOK

42

ESTABLISHING NEW LOGISTICS HUBS IN MAJOR INDUSTRIAL REGIONS Binh Duong

Chi Lang City

Thai Nguyen Thai Nguyen City

Tay Ninh

Industrial Park International Airport

Vinh Phuc Thu Dau Mot City

Bac Giang

Vinh Phuc City Bac Giang City

Dong Nai Bien Hoa City

Bac Ninh City Quang Ninh Bac Ninh

HCMC Ha Long City

Hai Duong City Hai Duong

Ha Noi

Hai Phong City

Hung Yen

Long An

CBD of HCMC Cat Lai Port

Hai Phong

Phu Ly City Ha Nam

Thai Binh BR - VT Hiep Phuoc Port Cai Mep Port

Ninh Binh City

Nam Dinh

Northern Region ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Southern Region

30 km

Long An International Port

CBRE RESEARCH | © 2021 CBRE, INC.

43

INVESTMENT INTO INFRASTRUCTURE DRIVES DEMAND IN NEW LOCATION Expansion of expressway to border and coastal areas in the North

Lang Son

Thai Nguyen

Mong Cai

Lang Son

Thai Nguyen

Mong Cai Vinh Phuc

Vinh Phuc

Bac Giang Bac Ninh

Bac Giang

Hai Duong Hai Phong

Vinh Phuc

Ha Long

Noi Bai

Bac Giang

Quang Ninh

Bac Ninh Phu Ly

Van Don

Bac Ninh Ninh Binh

Hanoi Hai Duong

Performance of IPs in Tier-1 & Tier-2 region 300

80%

250

200

60%

150

40%

100

20%

50

0% Tier-1 Occupancy rate

0 Tier-2 Min asking rent Max asking rent

USD/sqm/remaining term

Hung Yen

100%

Source: CBRE Vietnam Research, Q4 2020.

Image source: Zing News.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Phu Ly

Completed Expressway

Nam Dinh

Hai Phong

Ha Long

Cat Bi

Thai Binh

Under-construction/planning Expressway

National Road

Tier-1: Hanoi, Bac Ninh, Hai Duong, Hung Yen, Hai Phong Tier-2: Vinh Phuc, Nam Dinh, Bac Giang, Quang Ninh

Construction of Van Don Mong Cai Expressway is expected to complete in 2021.

CBRE RESEARCH | © 2021 CBRE, INC.

44

INVESTMENT INTO INFRASTRUCTURE DRIVES DEMAND IN NEW LOCATION Binh Duong

Expansion of expressway to the west and coastal areas in the South Chon Thanh

Thu Dau Mot

Dong Xoai

Bien Hoa

Tay Ninh

Dong Nai

Bien Hoa Phan Thiet

Chau Doc

Ha Tien

Cao Lanh

Tan Son Nhat

Tan An

Long Thanh

Long Xuyen My Tho Vinh Long

Vung Tau

Rach Gia

Experimental operation of Trung Luong - My Thuan Expressway in December 2020.

HCMC

Can Tho

Cat Lai

Long An Soc Trang Bac Lieu

Performance of IPs in Tier-1 & Tier-2 region 100%

350 300

80%

250

60%

200

40%

150 100

20%

Hiep Phuoc

USD/sqm/remaining term

Ca Mau

Tan An Long An International

Tien Giang My Thuan 2 Bridge

My Tho

Vinh Long

50

0%

0 Tier-1

Occupancy rate

Tier-2 Min asking rent

Can Tho

Max asking rent

Source: CBRE Vietnam Research, Q4 2020.

Image source: Vnexpress, Tuoitre.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Vinh Long Completed Expressway Under-construction/planning Expressway

Construction of My Thuan 2 Bridge started in August 2020.

Construction of My Thuan - Can Tho Expressway & Long Thanh International Airport started in January 2021

CBRE RESEARCH | © 2021 CBRE, INC.

45

IMPROVEMENT OF WAREHOUSE QUALITY INCREASES RENTAL LEVEL

SPECIALIZED FACILITIES FOR ADVANCED DISTRIBUTION NETWORK E-commerce drives leasing demand in 2021. Strong leasing demand condensed in in-city fulfillment centers.

SIGNIFICANT IMPROVEMENT OF WAREHOUSE QUALITY High-cost storage systems such as Automatic Storage & Retrieval Systems (ASRS) are mainly adopted by large e-commerce companies. Such solutions usually require built-to-suit properties or significant upgrade of large-scale new builds.

Technology will lead to significant advances in warehouse operations and efficiency.

Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

46

RESURGE OF INDUSTRIAL PROPERTY DEVELOPMENT New supply is expected to resurge and balance gap with rapid increasing demand.

120

2,500

100

2,000

80

1,500

60

1,000

40

500

20

0

0 2016 2017 2018 2019 2020 2021F 2022F

4,000

180 160 140 120 100 80 60 40 20 0

3,500 3,000 2,500

Ha

3,000

2,000 1,500 1,000 500

0 2016

2017

2018

2019

2020 2021F 2022F

Tier-2 New Supply

Tier-2 New Supply

Tier-1 New Supply

Tier-1 New Supply

Tier-1 Average asking rent (International travel restriction)

Tier-1 Average asking rent (International travel restriction)

Tier-1 Average asking rent (International travel resumes)

Tier-1 Average asking rent (International travel resumes)

Northern Tier-1: Hanoi, Bac Ninh, Hai Duong, Hung Yen, Hai Phong Northern Tier-2: Bac Giang, Nam Dinh, Vinh Phuc, Quang Ninh Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

USD/sqm/remaining term

Southern Region USD/sqm/remaining term

Ha

Northern Region

Southern Tier-1: HCMC, Dong Nai, Binh Duong, Long An Southern Tier-2: Binh Thuan, BR-VT, Binh Phuoc, Tay Ninh, Tien Giang, Vinh Long

CBRE RESEARCH | © 2021 CBRE, INC.

47

INCREASING COMPETITION FROM REGIONAL PEERS Not only Vietnam but also neighboring countries have rapidly established new industrial parks.

Korea - Myanmar Industrial Complex 225 ha South Korea: Korea Land and Housing Corp, Global SAE-A Myanmar: Ministry of Construction

Yangon Amata Smart and Eco City 800 ha Thailand: Amata Corp Myanmar: Ministry of Construction

Yangon, Myanmar

Myanmar Singapore Industrial Park 436 ha Singapore: Sembcorp Myanmar: Pahtama Group, Myanmar Agribusiness

Brebes, Indonesia

Brebes Industrial Park 4,000 ha Indonesia: PT Wijayakusuma Industrial Estate

Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

SIGNIFICANT IMPROVEMENT OF PERFORMANCE OF IPS IN TIER-2 REGIONS ASKING RENT TO INCREASE MODERATELY IN TIER-1 REGION

20 21

WAREHOUSE RENTAL RATE TO ESTABLISHE NEW HIGH LEVEL

THE

NEW SUPPLY IN PRIME LOCATIONS

RESILIENCE

LOCAL MANUFACTURING EXPANSION & PRODUCTION SHIFTS ARE KEY DEMAND DRIVERS

OF INDUSTRIAL MARKET BALANCING DEMAND AND SUPPLY

NEW LOGISTICS HUBS EMERGE IN NON-TRADITIONAL AREAS

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

HCMC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

HCMC RESIDENTIAL

RESUMPTION

50 50

A YEAR TO LOOK BACK

DISRUPTED SALES ACTIVITIES

Limited transactions from foreigners

Lower supply and sales volume

Weak rental market

Lack of Affordable/Mid-end supply

Investors looking for other channels/markets

BUT SHOWING SIGNS OF RECOVERY

New launch and sold units improved in Q4

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Suburban/regional market

Active secondary market

Higher selling price than market average in suburban districts C BCRBER ER REESSEEA AR RC CH H || © © 22002211 CCBBR R EE,, IIN NC C ..

51

LIMITED SUPPLY ESPECIALLY IN MID -END AND AFFORDABLE SEGMENTS

HCMC CONDOMINIUM: MARKET SNAPSHOT 2020 New launch supply: 17,272 units from 21 projects / Sold units: 15,086 units Luxury New launch supply

High-end

Mid-end

1,189 units

13,084 units

2,999 units

3 projects

10 projects

8 projects

35% y-o-y

109% y-o-y

83% y-o-y

$2,519 psm

$1,499 psm

Selling price*

$6,898 psm

Sold units

1,172 units

9,790 units

17% y-o-y

51% y-o-y

9% y-o-y

1% y-o-y

5% y-o-y

3,777 units 81% y-o-y

Affordable

0 unit 0 project

No new project in the last two years

$935

psm

4% y-o-y

LIMITED SUPPLY

347 units 79% y-o-y

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 NSA) ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Source: CBRE Vietnam Research, Q4 2020.

CBRE RESEARCH | © 2021 CBRE, INC.

Lacking of affordable product

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

53

LICENSING ISSUE AND COVID-19 COMPRESSED HCMC MARKET HCMC Condominium, New Launch Supply, 2020 45

90

40

80

New launch supply ('000 units)

(▼ 35% y-o-y)

70

30

60

25

50

20

40

15

30

10

20

5

10

0

Number of projects

17,272 units

35

For the first time, there was no new affordable supply

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Luxury

High-end

Mid-end

Affordable

Number of projects

Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

54

MAP OF NEW LAUNCH SUPPLY

Landed property: 2,120 units in 8 projects (▼33% y-o-y)

18

5 10

4

6

9

8

1

8

6

3

20

12

2

1

7

14

4 11

15 5 7

17 16

21

19

13 3 2

Source: CBRE Vietnam Research & Consulting, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Condominium: 17,272 units in 21 projects (▼42% y-o-y)

The East and the South are two key residential development directions

Landed property: 8 projects Luxury: 3 projects High-end: 10 projects Mid-end: 8 projects Affordable: 0 projects CBRE RESEARCH | © 2021 CBRE, INC.

55

SHRINKING AFFORDABLE SEGMENT IN HCMC 1%

Affordable products

30% 34%

3%

Luxury

35%

2015

31%

High-end

159,040 units*

Mid-end 43%

24%

(*) Accumulated supply since 1997 Source: CBRE Vietnam Research, Q4 2020.

2020 303,287 units*

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

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 CBRE RESEARCH | © 2021 CBRE, INC.

New Records in Pricing Level Across The Market

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

57

PRIMARY PRICES INCREASED HCMC Condominium, Primary Price, 2020

HCMC Landed Property, Primary Price, 2020 6,000 $6,898 (▲9% y-o-y)

7,000 6,000 5,000 4,000

$2,519 (▼1% y-o-y) $1,499 (▲ 5% y-o-y) $935 (▲4% y-o-y)

3,000 2,000 1,000 -

4,000

$3.765 (▲ 3% y-o-y )

3,000

$3.134 (▲12% y-o-y)

2,000 1,000 -

2018 Luxury

$5.562 (▲13% y-o-y)

5,000

Primary price (US$ psm)

Primary price (US$ psm)

8,000

High-end

2019 Mid-end

2020 Affordable

2018 Shophouse

2019 Villa

2020 Townhouse

Selling price: US$ psm (excluding VAT and quoted on NSA) Source: CBRE Vietnam Research & Consulting, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

58

HIGHEST SELLING PRICE FROM INDIVIDUAL PROJECTS BY DISTRICT

▲25% D.12

▲70% Thu Duc

▲47% D.9

▲24% D.2

▲27% D.10

▲30%

▲53%

Nha Be

Nha Be, Thu Duc and District 9 recorded highest price growth.

New projects in these areas quoted higher selling prices by 47%-70% in comparison with surrounding area.

Binh Chanh

(*) Individual project price different to current market level at that location ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

59

MORE ACTIVE SECONDARY MARKET

(*): Compared with launching year.

Based on CBRE’s secondary transactions.

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

Source: CBRE Vietnam Research & Consulting, Q4 2020.

Thanh My Loi

Thao Dien ASIA PACIFIC REAL

Launched supply: 10,570 units Handover supply: 6,401 units Price growth*: 10%-30%

Launched supply: 8,693 units Handover supply: 8,378 units Price growth*: 30%-60% ESTATE MARKET OUTLOOK 2021 | VIETNAM

Thu Thiem

An Phu

Launched supply: 4,547 units Handover supply: 2,378 units Price growth*: 30%-90%

Launched supply: 9,420 units Handover supply: 7,644 units Price growth*: 30%-50%

Cat Lai CBRE

Launched supply: 3,213 units Handover supply: 1,687 units Price growth*: 20%-25% RESEARCH | © 2021 CBRE, INC.

High-end Inventory stacked up

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

61

SOCIAL DISTANCING AND TRAVELLING RESTRICTION REDUCED SOLD UNITS HCMC Condominium, New launch vs. Sold units 35,000

3,000

30,000

2,500 Launch: ▼ 35% y-o-y Sold: ▼ 49% y-o-y

20,000 15,000

Launch: ▲ 101% y-o-y Sold: ▲ 217% y-o-y

2,000

Units

25,000

Units

HCMC Landed Property, New launch vs. Sold units

1,500 1,000

10,000

500

5,000

0

0 2018 New launch supply

2019 Sold units

Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

2020

2018

New launch supply

2019

2020

Sold units

Landed property attracted no shortage of demand from local buyers CBRE RESEARCH | © 2021 CBRE, INC.

62

INVENTORY STACKED UP IN HIGH -END SEGMENT HCMC Condominium, Inventory By Year

HCMC Condominium, Inventory in Q4 2020 15,872 units

25,000

Inventory (units)

20,000

15,000

95%

10,000

5.2%

5,000 +74% 2016 Luxury

2017

High-end

2018 Mid-end

2019

2020

Affordable

Unsold

Sold

Total supply: 303,287 units* *Accumulated supply since 1997.

Source: CBRE Vietnam Research & Consulting, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

63

RENTAL YIELDS COMPRESSED IN TRADITIONAL EXPAT HUBS HCMC Condominium, Rental Yields* by Clusters

Return on Other Investment Channels

8% ▼0.3ppts

Rental yield (%)

7% 6% 5% 4%

▼0.2ppts

2020

▼0.4ppts

▼0.3ppts

2019

3% 2%

2018

1% 0% District 1

District 2 Binh Thanh District 7

2018 • • • •

2019

2020

VN Index: y-o-y change, end of period Bank savings: 12 month deposit SJC gold: y-o-y change of price per tael Rental yield: average of high end projects in D2, Binh Thanh and D7, HCMC. Capital gain not included.

-10%

0%

10%

VND/USD exchange rate Bank deposit Gold (SJC)

20%

30%

40%

Gross residential yield Stock Market (VN Index)

Source: CBRE Vietnam Research; SJC; SBV, Q4 2020 ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

Investors are looking at other markets

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

65

EMERGENCE OF PROVINCIAL MARKETS

Hoa Binh

Vinh Phuc

Bac Ninh

Hai Phong

Quang Nam

Phu Yen

Bao Loc

Binh Thuan

Binh Duong

Long An

Phu Quoc

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Dong Nai

CBRE RESEARCH | © 2021 CBRE, INC.

66

EMERGENCE OF PROVINCIAL MARKETS

HCMC

Binh Duong

5,000 4,000 3,000 2,000 1,000 0

Dong Nai

Binh Long An Duong

Selling price (US$/sqm)

20,000 16,000 12,000 8,000 4,000 0

No condominium supply

Units

Condominium, New Launch Supply and Performance

Thu Dau Mot

Condominium

Dong Nai Long An

Selling price

Landed Property, New Launch Supply and Performance

Units

HCMC

Tan An

Sold units

6,000

6,000

4,000

4,000

2,000

2,000

0

0 HCMC Dong Binh Long Nai Duong An

Landed property

Sold units

Selling price (US$/sqm)

Bien Hoa

Selling price

Source: CBRE Vietnam Research & Consulting, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

POSITIVE

Recovery Prospect

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

Image source: Zing

CBRE RESEARCH | © 2021 CBRE, INC.

68

NEW ALLIES IN 2020

NOTABLE NEW JOIN VENTURE AGREEMENTS

NAM LONG – KEPPEL LAND MALL MANAGEMENT Waterpoint Township

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

PHAT DAT AND DANH KHOI

PHU LONG – KEPPEL LAND

Astral City

Celesta Rise

CBRE RESEARCH | © 2021 CBRE, INC.

69

MARKET OUTLOOK HCMC Condominium, Future Supply and Sold Units

Forecast

17,300 units 16,057 units

New launch supply (units)

30,000 25,000 20,000 15,000 10,000 5,000

7,000

▲ 2-7% y-o-y

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

▲ 4% y-o-y

2,000

▲ 2% y-o-y

1,000

2018 Luxury

Forecast

8,000

Primary price (US$ psm)

Sold

Launch

21,838 units 19,400 units

35,000

HCMC Condominium, Primary Price

2019

High-end

2020

2021F

Mid-end

2022F

Affordable

▲ 1% y-o-y

-

2018 Luxury

2019

High-end

2020 Mid-end

2021F

2022F

Affordable

Source: CBRE Vietnam Research, Q4 2020.

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | © 2021 CBRE, INC.

Improvement in product quality and new branded residence product, driven by the growing number of new join ventures.

Investors/developers are looking for new opportunities in other provinces

20 21

Vaccine for COVID-19 and Vaccine for the market

THE

2021 will be challenging for buyers, because of the continued lack of affordable and mid-end products

OF RESIDENTIAL MARKET

RESUMPTION

Big data, proptech to track customers and drive customization.

Better services, better positioning, better sale management and asset management

ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM

CBRE RESEARCH | Š 2021 CBRE, INC.

A S I A PAC I F I C R E A L E S TAT E MARKET OUTLOOK | VIETNAM

THANK YOU CBRE RESEARCH

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