REAL ESTATE IN VIETNAM

1. Reasons to invest as an expat2. Economic considerations3. Available inventories4. Pitfalls5. How we can add value

OUTLINE

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1. REASONS TO INVEST AS AN

EXPAT

• State fully opened property market to foreign investors for the first time on 1 July 2015.

• Foreigners only required to have valid Passport and Visa to make purchase.

• Domestic mortgages are available to expats married to Vietnamese citizens.

REASONS TO INVESTAS AN EXPAT

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Investors looking for alternatives to struggling stock markets?Over past year

S&P 500 1-year chart

S&P 500 index 1.34%

MSCI emerging market index 17.87%

UK FTSE 100 index 8.89%

UK FTSE 100 index 16.49%

REASONS TO INVESTAS AN EXPAT

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Neighboring Hong Kong & Singapore property markets joining the struggle?

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HK residential sales

Since beginning 2015, HK residential sales 70%

Since end of 2013, Singapore residential property price index 14 index points

REASONS TO INVESTAS AN EXPAT

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Gross yields higher than most Asian counterparts

Value from relatively low asking prices, leaving more room for capital gains

REASONS TO INVESTAS AN EXPAT

2. ECONOMIC CONSIDERATIONS

• Vietnamese Dong pegged to USD maintaining currency stability• Steady VND depreciation of 2% per year on average vs USD• Central bank rate unchanged since beginning of 2014, facilitating greater

appetite for mortgage lending.• Stable inflation: forcast of 3% for 2016

5-year VND vs USD Central bank rates since ‘08

STABLE MONETARY POLICY

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• Loans to home buyers increased by 22% during 2015

• Buyers substituting cash payments for credit, allowing younger buyers to enter the market

• Urbanization and ever increasing consumer concentration in key hubs of Hanoi and Ho Chi Minh City

• 60% of Vietnamese under age of 35

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IMPROVED MORTAGE ACTIVITY, DEMOGRAPHIC SHIFTS

• Projected that +- 50 000 new residential units will come onto Ho Chi Minh City market by 2017

• If sales increase at same level as 2015 (60% - 100%), demand should comfortably meet supply.

• Jones Lang LaSalle forecast price increases of 2% per quarter during 2016, better than +- 6% total performance during 2015.

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SUPPLY, DEMAND & PRICE FORECATS

3. KEY INVENTORIES

KEY PROJECTS (HO CHI MINH CITY)

TRESOR (CBD)

RIVERGATE(CBD)

ICON 56 (CBD)

SUNRISE CITY (DISTRICT 7)

*All projects developed by

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KEY PROJECTS (HO CHI MINH CITY)

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The Tresor River Gate

KEY PROJECTS (HO CHI MINH CITY)

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Sunrise City Icon 56

SECTORS AVAILABLE THROUGH NOVALAND DEVELOPMENTS

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• Residential: Most projects to be completed during 2017 – 2018. Units tend to sell out rapidly after project commences. 1, 2, 3 bedroom units + penthouses available

• Retail: Most developments offer large retail space. Tends to sell out very quickly

• Office: Available through units knows as “officetels”. Essentially small office space within the residential projects, with prices generally lower than conventional office space.

CURRENT PRICES

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$2,300/sqrM on

average. Incl VAT.

70 – 120 sqrM

Residential

Available upon request

Retail

$3,700 /sqrM on average Incl VAT.

36 – 44 sqrM

Office

KEY LUXURY PROJECT

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Sanctuary Residences @ Ho Tram

• Luxury Beachfront Villas• Luxury Riverfront Villas• Approximately 2.5 hour drive

from Ho Chi Minh City• Fantastic option for families,

weekend getaways and as a lifestyle option

• Suitable as a longer term investment

KEY LUXURY PROJECT

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Surrounding Areas

Bluffs Ho Tram Strip(Greg Norman Designed Golf Course)

Grand Ho Tram Casino & Hotel

4. PITFALLS

PITFALLS

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• Speculative activities by local investors could potentially overinflate prices

• Often difficult to obtain accurate price and sales data• Obtaining local mortgages can be difficult unless married to

Vietnamese citizen• The possibility that banks could be underreporting their non-

performing loans (However mortgages only account for 8% of total bank loans)

5. HOW CAN TENZING ADD VALUE?

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1. Identifying budgetary constraints & assistance with mortgage applications, if necessary.

2. Advising on the feasibility of a physical property investment in the context of a client’s entire investment portfolio, taking into account a client’s return objectives, risk tolerance and retirement goals.

3. Explain & communicate entire purchase process to client. Assistance with obtaining & certifying necessary documents.

4. Act as client point of contact instead of dealing directly with developer.

5. Assist with re-sale on secondary market.

Application of international wealth management model when assisting client with real estate transactions

Risk Tolerance Questionnaire

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• Sven Roering, Managing Partner: svenroering@tpim.co• Aaron Jacobs, Sales Ascociate: aaronjacobs@tpim.co • Company mail: clientservices@tpim.co • Website: www.tpim.co

CONTACT US

THANK YOU!