Hanoi Real Estate | April 2018

Market Overview

Economy

Target 2018

achieved

CPI

Target2018

achievedIntl. Tourist

4%2.8%

15 -17m

4.2m30.9%

Credit Growth

Target 2018

achieved

17%

2.2% GDP

Target 2018

achieved

6.5-6.8% 7.4%

Source: General Statistics Office of Vietnam, Vietnam

National Administration of Tourism, The State Bank of

Vietnam, State Securities Commission of Vietnam

1Q18 - Vietnam Economic Review

Exchange Rate

1Q17 1Q18

VN

D 2

2,32

5

VN

D 2

2,79

0

VN-Index

1Q17 1Q18

7191,172

63%

2.1%

1Q17 1Q18

90.8135.5

46%

HNX-Index

4

Hong Kong Singapore Japan British Virgin IslandsSouth Korea

Top 5 Countries Investing in Vietnam in terms of registered capital in 1Q18

Source: Ministry of Planning and Investment – Foreign Investment Agency (FIA Vietnam)

1Q18 - Vietnam FDI

0

10,000

20,000

30,000

40,000

2013 2014 2015 2016 2017 1Q18

Vietnam's FDI by year (US$ million)

Registered capital Implemented capital

$3.9 bil.▲7.2% y-o-y

$5.8 bil.▼24.8% y-o-y

59.4%

9.1%

8.4%6.4%5.6%

Others11.1%

Manufacturing

Wholesale and retail trade;repair of motor vehicles

Real estate activities

Construction

Professional, scientific andtechnical activities

Others

Manufacturing

Wholesale and retail trade

Real estate

Construction

Professional, scientific and

technical activities

Top 5 FDI

Attracting Sectors

in 1Q18

1Q18 M&A – Notable Transactions

Acquired a

land plot in

Hanoi CBD

Acquired a

land plot in

Tay Ho District

at USD 30.2

mil

Xuan Thanh

GroupCapitaLand

Acquired

Capri by

Fraser and

IBIS Saigon

South

Nomura Real

Estate

development

Strategic

Hospitality

REIT

Agriseco sold

a land plot at

51 Phan Boi

Chau at USD

12.7 mil

Agriseco

Nomura has

acquired 24%

ownership

interest of Sun

Wah Tower.

Apartmentperformance

1Q2018

Per quarter

1Q17

2Q17

3Q17

4Q17

6,701

5,967

9,388

8,890 FY 2017 31,230

-5.3%

9,174

Projects are only considered as officially launched when

the Sale Purchase Agreements can be signed upon the

completion of foundation.

Source: JLL Research

New Launch

12%

59%

29%

Luxury Premium

Mid-end Affordable

By segment

1Q2018

Per quarter

Source: JLL Research

Units Sold

10,599 FY 2017 30,645

+7.7%

1Q17

2Q17

3Q17

4Q17

8,172

6,067

6,562

9,844

1%9%

59%

31%

Luxury Premium

Mid-end Affordable

By segment

USD/sqm

Source: JLL Research

Average Selling Prices

1,317

2011 2012 2013 2014 2015 2016 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Luxury Premium Mid-end Affordable Overall

-3.9%

-5.2%

2018 new completions – moving to the West

Vinhomes Gardenia

Goldmark City Sapphire block

Eurowindow River Park

Times City - Park Hill Premium

Gelexia Riverside

Diamond Riverside

Vinhomes Lieu Giai

An Binh City

Seasons Avenue

D'. Capitale

Eco Green City

Source: JLL Research

Source: JLL Research, GSO

2011

2012

2013

2014

2015

2016

2017

1Q18

Luxury - less than 1% Premium Mid-end Affordable

7,654,8002017 Hanoi populations

2011-1Q18

Total Completed Stock

151k39%46%14%

50-55k Units

Total new completions by end-2018

25-30k Units

The market will welcome a

wave of project

completions

Sales rates may be impacted

slightly, following the recently

emerging concern about the

apartment fire safety

Demand from owner-occupiers

improving, Affordable and Mid-

end apartments lead the marketFY 2017: 28,315 units

FY 2017: 31,230 units

Residential OutlookTotal new launches in 2018

Officeperformance

Total Supply 2013-1Q18 (NFA, Sqm)

2013 2014 2015 2016 2017 1Q18

1,785,212

Grade A – 528,931 sqm

Grade B – 1,003,197 sqm

Source: JLL Research

Grade C – 253,084 sqm

0

2

4

6

8

10

Hanoi Bangkok

Mil

lio

ns

Hanoi vs. Bangkok Office Stock

1,785,212

8,922,106

5 times

15

Source: JLL Research

Occupancy Rate

93.3%

93.7%

60%

70%

80%

90%

100%

4Q13 4Q14 4Q15 4Q16 4Q17 1Q18

Grade A Grade B

76 bps

606 bps

85 bps

343 bps

Source: JLL Research

Net absorption (Grade A&B)2013-1Q18 (NFA, Sqm)

0

20

40

60

80

100

120

140

160

2013 2014 2015 2016 2017 1Q18

Thousands

24k

Average Rental Rate *

(US$/sqm/month)

10

20

30

40

2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17 1Q18

Grade A Grade B in CBD Grade B in Non-CBD

29.3

21.7

1.0%

2.8%

4.0%

2.6% q-o-q

y-o-y

15.7

5.9%

1.9%

Gross rent includes service charges/ management fees, but exclude VAT.

Average gross rent, q-o-q and y-o-y changes are adjusted to remove the effects of supply additions / removals (i.e. changes are on a like-for-like basis).

Source: JLL Research

18

*Future supply 2020 onward include projects that are under-construction stage at the report time only. This figure is subject to change based upon the latest

announcement/development plan.

Source: JLL Research

Future supply 2Q18- 2020 onward (sqm - NFA)

9M18 2019 2020 onward*

Grade A Grade B Grade C

154.3K

49K

276.8K

Notable upcoming projects 2020

Metropolis Lieu Giai, Ba Dinh Dist.

95,000 sqm

2018

HUD Tower, Thanh Xuan Dist.

56,000 sqm

2018

Discovery Complex, Cau Giay Dist.

45,000 sqm

2018

FLC Twin Tower, Cau Giay Dist.

28,800 sqm

2019

Oriental Sun Tower, Hoan Kiem Dist.

18,648 sqm

2020 onward

Vietinbank Tower, Tay Ho Dist.

145,000 sqm

Sep 2018

Detech Tower II, Cau Giay Dist.

15,520 sqm

*Future supply 2020 onward include projects that are under-construction stage at the report time only. This figure is subject to change based upon the latest announcement/development plan.

Source: JLL Research

Grade A and Grade B rent will

gradually improve throughout 2018

Strong demand from co-working

space, both local and international

brand

166.7kFuture supply in 2018

Sqm NFA

No new Grade A until 2020, most new supply

developed by local developers, focusing on

non-CBD area.

Office Outlook

Limited supply to continue driving

renewal demand of big office occupiers

Retailperformance

2013 2014 2015 2016 2017 1Q18

Total Supply2013-1Q18 (NFA, Sqm)

Source: JLL Research

Non CBD – 951,097 sqm

971,153

CBD - 20,056 sqm

Source: JLL Research

Occupancy Rate

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017 1Q18

CBD Non-CBD

94.6%

82.9%78 bps

655 bps

249 bps

195 bps

Average Rental Rate *

(US$/sqm/month)

0

20

40

60

80

100

120

2013 2014 2015 2016 2017 1Q18

CBD Non-CBD

27.3

84.50.4%

1.7%

0.0%

0.7%

Gross rent includes service charges/ management fees, but exclude VAT.

Average gross rent, q-o-q and y-o-y changes are adjusted to remove the effects of supply additions / removals (i.e. changes are on a like-for-like basis).

Source: JLL Research

9M18 2019 2020 onward *

25

*Future supply 2020 onward include projects that are under-construction stage at the report time only. This figure is subject to change based upon the latest announcement/development plan.

Source: JLL Research

Future supply (sqm - NFA)

139K

133.4K

150K

Updated

2019

Vincom D' Capitale

Cau Giay, 40,000 sqm

2018

Discovery Complex,

Cau Giay, 25,876 sqm

2018

Sun Grand City Thuy Khue

Tay Ho, 20,000 sqm

2019

AEON Mall Ha Dong

74,000 sqm

2018

Sun City Grand Ancora

Hai Ba Trung, 20,000 sqm

2018

Metropolis Lieu Giai

Ba Dinh, 30,000 sqm

2018

FLC Twin Towers, Cau Giay

18,000 sqm

2019

Sunrise Complex

Ha Dong, 17,000 sqm

*Future supply 2020 onward include projects that are under-construction stage at the report time only. This figure is subject to change based upon the latest announcement/development plan.

Source: JLL Research

New supply dominated by retail podiums in non-CBD locations

The rental performance is likely to see mild improvement, a result of growing competition from online shopping recently

The occupancy rate is projected to decline, most likely owing to new properties

Demand from the F&B and entertainment operators remains mainly active

129kNew Retail Supply in 2018

Sqm

Retail Outlook

Industrialperformance

17.778Total Area in Northern Region

ha

291 1 .366Total Leasable Area in Northern Region

ha

Total AreaLeasable Area by Province (Ha)

2.3K

1.4K

2.9K

1.3K

1.0K 1.1K

Bac Ninh Hai Duong Hai Phong Ha Noi Hung Yen Quang Ninh Vinh Phuc

1.2K

$76.6Industrial Land

sqm/lease term

30$2.3–$4.9Standard Factory

sqm/month

Average Net Rent Northern Region

Average Rents by Province

0

2

4

6

8

10

0

40

80

120

160

Bac Ninh Hanoi Hai

Phong

Hai

Duong

Hung Yen Quang

Ninh

Vinh

Phuc

Average Land Rent (LHS) Average Factory Rent (RHS)

USD/sqm/lease term USD/sqm/month

*Factory rent figure covers those projects having this information publicly available only

Source: JLL Research

~81%Northern Regional Industrial

31

Occupancy Rate Occupancy Rate by Province

84%

76%70%

100%

88%

77%

Bac Ninh Hai Duong Hai Phong Ha Noi Hung Yen Quang Ninh Vinh Phuc

76%

18,116Total Area in Northern Region (Ha)

32

Future Supply (Until 2020)

Leasable Area by Province (Ha)

1.4K0.7K

8.1K

1.0K

3.0K

Bac Ninh Hai Duong Hai Phong Ha Noi Hung Yen Quang Ninh Vinh Phuc

3.1K

0.7K

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