Vietnam Property Market Brief
JLL Research
1Q15
Vietnam Property Market Brief – 1Q15
P a g e | 2
Market Highlights Page
Economy of Vietnam 3
Ho Chi Minh City (HCMC)
Office 5
o Supply continues slight increase 5
o Overall vacancy rate scales down 5
o Marginal rental decline 5
Residential 6
o Large supply 6
o Good demand 6
o Prices up in a grand manner 6
Retail 7
o Rise in retail supply q-o-q 7
o Slight decline in occupancy rate 7
o A slight decrease in retail rents 7
Hanoi
Office 8
o Supply remains stable 8
o Demand increases slightly 8
o Rent continues to decline 8
Residential 9
o Increased supply 9
o Demand noticeably stronger 9
o Prices increase further 9
Retail 10
o Supply stable 10
o Demand moderate 10
o Rents decline slightly 10
Glossary 11
Cover Picture: A part of Hanoi City.
Vietnam Property Market Brief – 1Q15
P a g e | 3
ECONOMIC HIGHLIGHTS
Vietnam’s economic growth continues to accelerate in
1Q15: Vietnam achieved GDP growth of 6.0% in 1Q15, the
highest first quarter rate during the 2011-2015 period.
However, the1Q15 result was still lower than the 7.0% of
4Q14. In the national economic overview, the agro-forestry and
fisheries sectors rose 2.1%, a small contribution of 0.28
percentage points to GDP growth; the construction and
industry sectors rose 8.4%, contributing 2.82 percentage
points; and the services sector rose 5.8%, contributing 2.36
percentage points. The Index of Industrial Production (IIP) also
saw improvement, with estimated growth of 9.1% seen in
March 2015 from a year ago. The IIP for 1Q15 increased 9.1%,
much higher than the 5.3% in 1Q14 and 4.9% in 1Q13.
Retail sales increase but international arrivals decline:
Vietnam’s retail sales and service turnover increased 9.2% y-
o-y in 1Q15. Vietnam received more than 2.0 million foreign
visitors in 1Q15, a drop of 13.7% y-o-y. The number of
international visitors to Vietnam each month has declined
consecutively since June 2014, and the drop of 23.4% in
March 2015 was the highest rate recorded during the period.
The reasons are economic difficulties and the currency
devaluation in some countries as well as long-standing
weaknesses in the Vietnam tourism industry, such as
expensive tour packages, outdated tourism products, poor
marketing campaigns, polluted environment and insufficient
support information.
FDI disbursement surges in 1Q15: The disbursement of FDI
increased 7.0% to USD 3.05 billion in 1Q15. Vietnam attracted
USD 1.83 billion from newly registered and added FDI projects
in 1Q15, a 44.9% decline compared with 1Q14. According to
the Foreign Investment Agency, the processing and
manufacturing sectors continued to attract the largest share of
FDI, accounting for USD 1.4 billion or 76.6% of the country’s
FDI inflow. The real estate sector saw the second largest
share, with USD 0.20 billion, accounting for 11.0%. Of the 33
countries investing in Vietnam, South Korea continued to be
the leading source of FDI, with USD 0.49 billion in newly
registered and expanded capital, accounting for 26.7% of total
FDI, followed by British Virgin Islands (USD 0.35 billion), Japan
(USD 0.29 billion) and Hong Kong (USD 0.18 billion).
0.0
2.0
4.0
6.0
8.0
10.0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
09 10 11 12 13 14 15
% Real GDP Growth (y-o-y)
Quarterly GDP GDP ytd
Source: General Statistics Office, JLL Research
-10.0
0.0
10.0
20.0
30.0
40.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Mar
-14
Apr
-14
May
-14
Jun-
14
Jul-1
4
Aug
-14
Sep
-14
Oct
-14
Nov
-14
Dec
-14
Jan-
15
Feb
-15
Mar
-15
% % Retail Sales vs. International Arrivals (ytd, y-o-y)
Real Retail Sales International Arrivals
Source: General Statistics Office, JLL Research
0
3,000
6,000
9,000
12,000
15,000
18,000
21,000
24,000
Mar
-13
May
-13
Jul-1
3
Sep
-13
Nov
-13
Jan-
14
Mar
-14
May
-14
Jul-1
4
Sep
-14
Nov
-14
Jan-
15
Mar
-15
USD mil Foreign Direct Investment FDI (ytd)
FDI Registered FDI Disbursement
Source: General Statistics Office, JLL Research
Vietnam Property Market Brief – 1Q15
P a g e | 4
CPI surges 0.2% in March: Vietnam’s CPI in March 2015
increased by 0.2% m-o-m after four consecutive months of
reduction. The higher fuel prices had pushed prices of three
out of 11 goods that are used to calculate the monthly CPI
increase, including restaurant and catering services (up 0.4%),
cultural, entertainment and tourism activities (up 0.2%) and
housing and building materials (up 0.2%). The increase in gas
prices since 11 March 2015 has also contributed to the surge
in the CPI. This was the lowest level of increase in CPI for a
first quarter during the past decade, during which time the CPI
increased between 4.8% and 16.6%.
Gold prices drop: Gold prices dropped 1.6% m-o-m and 5.4%
y-o-y in March, while US dollar prices increased 0.2% m-o-m
and 1.3% y-o-y during the month.
Vietnam sees trade deficit in 1Q15: According to the General
Statistics Office, the country recorded a trade deficit of USD
1.8 billion in 1Q15. In 1Q15, Vietnam achieved USD 35.7
billion in export revenue and USD 37.5 billion in import value,
up 6.9% and 16.3% y-o-y, respectively. FDI enterprises
contributed to the majority of export value with approximately
70.0%. The EU was the country’s largest export market in
1Q15, accounting for USD 6.9 billion in exports, an increase of
14.2% compared with 1Q14. The largest source of imports was
China, with USD 11.6 billion, a 31.5% rise from the same
period last year.
Vietnam remittances expect to rise in 1Q15: At the time of
this report, details of overseas remittances to Vietnam for
1Q15 have not been released. However, the number of
remittances to Ho Chi Minh City in 1Q15 was around USD 1.2
billion, an increase of 16% compared to the same period last
year and accounting for 24% of the total figure for 2014.
According to the State Bank of Vietnam, the remittances are
mainly for business operations and production purposes.
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
0.0
3.0
6.0
9.0
Mar
-13
May
-13
Jul-1
3
Sep
-13
Nov
-13
Jan-
14
Mar
-14
May
-14
Jul-1
4
Sep
-14
Nov
-14
Jan-
15
Mar
-15
% % CPI - Overall
y-o-y m-o-m
Source: General Statistics Office, JLL Research
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
-5.0
0.0
5.0
10.0
Mar
-13
May
-13
Jul-1
3
Sep
-13
Nov
-13
Jan-
14
Mar
-14
May
-14
Jul-1
4
Sep
-14
Nov
-14
Jan-
15
Mar
-15
% % CPI - Housing & Construction Materials
y-o-y m-o-m
Source: General Statistics Office, JLL Research
-30.0
-20.0
-10.0
0.0
10.0
20.0
-1.5
-0.5
0.5
1.5
2.5
Mar
-13
May
-13
Jul-1
3
Sep
-13
Nov
-13
Jan-
14
Mar
-14
May
-14
Jul-1
4
Sep
-14
Nov
-14
Jan-
15
Mar
-15
% USD bil Merchandise Trade Balance
Actual Levels % of Merchandise Exports
Source: General Statistics Office, JLL Research
Vietnam Property Market Brief – 1Q15
P a g e | 5
HCMC OFFICE
Supply and Demand
Source: JLL Research
Asset Performance
Note: 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
Outlook
Supply / Demand Indicator Grade A Grade B Grade C Suburban Total
Total Stock (sqm) 155,000 431,000 481,000 502,000 1,569,000
Occupancy Rate (%) 92.7 89.8 92.0 87.2 89.9
Q-o-Q Change (bps) 89 52 34 -12 30
Total Stock
Source: JLL Research
Key Performance Indicator Grade A Grade B Grade C Suburban Total
Average Gross Rent (USD/sqm/mth) 46.8 30.2 18.2 16.5 24.4
Average Net Rent (USD/sqm/mth) 39.1 24.3 15.8 12.9 20.0
Q-o-Q Change (%) 0.0 -0.8 0.0 -0.5 - 0.4
Average Net Rents by Grade
Source: JLL Research
Supply Under Construction
Source: JLL Research
Supply continues slight increase
o One Grade C building (Robot Tower) was completed, added 3,200 sqm of
space and pushing total office space up by 0.2% q-o-q.
o Construction progresses of most buildings scheduled for completion in 2015
were in final phase, and some major buildings were ready to be launched.
Overall vacancy rate scales down
o Net absorption rose nearly by 7,600 sqm, with a lower q-o-q rate of increase
owing largely to new vacant spaces in the Suburban sector.
o Tenants were seen relocating to new properties outside the CBD with
reasonable rents and attractive incentives.
Marginal rental decline
o The average net rent dropped by 0.4% q-o-q, with major contributors being
some Grade B and Suburban buildings to fill up vacant spaces.
o Rents of overall market witnessed continuous decline, a 13% decrease
compared to the same period for last five years.
Supply to increase significantly in 2015
o Over 206,000 sqm of office spaces from 10 projects are expected to
increase the stock over the next three quarters.
o Major development with large office space such as Vietcombank Tower,
Viettel Complex and Pearl Plaza will increase to the CBD and non-CBD
supply.
Rents to fall in line with more supply
o Rents are expected to continue in decrease due to the pressure from
future supply.
o Competition from new office spaces and rents will drive leasing activities.
0
500
1,000
1,500
2,000
2010 2011 2012 2013 2014 1Q15
'000 sqm
Grade A Grade B Grade C Suburban
0
20
40
60
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
Grade A Grade BGrade C Suburban
USD/sqm/mth
0 50 100 150 200 250
2017
2016
2015
'000 sqm
Exp
ecte
d co
mpl
etio
n ye
ar
Vietnam Property Market Brief – 1Q15
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HCMC RESIDENTIAL Supply and Demand
[1] Excludes land plot projects. [2] Excludes planned projects not launched for sale yet. Includes fully sold projects. [3] The percentage of [2] that remains unsold at quarter-end. Source: JLL Research
Asset Performance
Note: Q-o-Q and Y-o-Y changes are adjusted to remove effects from supply additions / removals (i.e. changes are on a like-for-like basis). Source: JLL Research
Outlook
Supply / Demand Indicator Apartments Villas / Townhouses [1]
Completed Supply (units) 68,000 3,800
Uncompleted Supply (units) [2]
31,000 500
Unsold Inventory (%) [3]
17.9% 22.6%
Total Stock (Completed Supply) - Apartments
Luxury accounts for less than 1% of total stock Source: JLL Research
Market Segment Asking Price – Primary Market Asking Price – Secondary Market
Q-o-Q Y-o-Y Q-o-Q Y-o-Y
Apartments 1.9% 3.5% 1.4% 4.6%
Villas / Townhouses 0.1% -2.9% 0.7% 2.9%
Average Asking Price by Segment
Source: JLL Research
Upcoming Completions
Source: JLL Research
Large supply
o Apartments: New supply in 1Q15 was up 30% q-o-q to nearly 6,000 units,
with considerable expansion in the Mid-end and Premium segments.
o Villas / Townhouses: New supply was mostly subsequent launches at low-
end projects and totalled 140 units, down 30.0% q-o-q but up 10.0% y-o-y.
Good demand
o Apartments: Sales reached 5,200 units, a record high. District 2 topped
other sub-markets, accounting for nearly 40% of the quarter’s volume.
o Villas / Townhouses: Sales stood at the 4Q14 nine-year high of 170 units.
Prices up in a grand manner
o Primary market:
Apartments: Prices continued to trend upwards, at a higher rate q-o-q
and with significant project-based increases of around 5-6%.
Villas / Townhouses: Chain-linked price changes were few, but the
new supply was mostly quoted at prices higher than at initial launch.
o Secondary market:
Apartments: Prices were generally higher, with properties showing
increases responsible for more than 75% of total secondary supply.
Villas / Townhouses: Price uptrend continued but was below last
quarter’s rate, with marked decreases seen in distant sub-markets.
High-level supply to continue in the next three quarters
o Nearly 11,000 new Apartment units are expected between now and end-
2015, around 30% of which will be in the Premium segment.
o By end-2015, new launches of Villas / Townhouses will come mostly from
Districts 2 and 9, with an estimated supply of more than 230 units.
Strong demand to continue during 2015
o More quality supply and increased sales activity by developers, along with
better credit terms for homebuyers, are likely to boost demand.
o Prices are expected to increase further.
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
2010 2011 2012 2013 2014 2015
units
Affordable
Mid-end
Premium
Luxury
0 5,000 10,000 15,000
Villas / Townhouses
Apartments
Villas / Townhouses
Apartments
Villas / Townhouses
Apartments
2017
20
16
2015
units
0 1,000 2,000 3,000 4,000
Villas / Townhouses
Luxury
Premium
Mid-end
Affordable
All Apartments
Apa
rtm
ents
USD/sqm
Average Primary Price Average Secondary Price
Vietnam Property Market Brief – 1Q15
P a g e | 7
HCMC RETAIL Supply and Demand
Source: JLL Research
Asset Performance
Note: Q-o-Q and Y-o-Y changes are adjusted to remove effects from supply additions / removals (i.e. changes are on a like-for-like basis). Source: JLL Research
Outlook
Supply / Demand Indicator Investment Grade Non-Investment Grade
CBD Non-CBD Total
Total Stock (sqm) 160,000 335,000 495,000 460,000
Occupancy Rate (%) 87.9 92.4 91.0 N.A.
Q-o-Q Change (bps) -80 -105 -89 N.A.
Total Stock – Investment Grade
Source: JLL Research
Key Performance Indicator – Investment Grade CBD Non-CBD Overall
Average Gross Rent (USD/sqm/mth) 70.5 40.4 50.1
Q-o-Q Change (%) -0.5 0.0 -0.2
Average Gross Rents by Segment – Investment Grade
Source: JLL Research
Supply Under Construction – Investment Grade
Source: JLL Research
0
200
400
600
2010 2011 2012 2013 2014 1Q15
'000 sqm
CBD Non-CBD
Rise in retail supply q-o-q
o Vincom Thu Duc opened in February, added approximately 22,500 sqm
to Investment Grade supply, a 5% increase q-o-q.
o Non-investment Grade sector also witnessed one new retail project,
Saigon Square 3 in District 3 with a 1% increase q-o-q.
Slight decline in occupancy rate
o Demand in both CBD and Non-CBD sectors are moderate with few
changes in net absorption recorded.
o Net absorption of the Non-CBD projects always leads the retail market
with good market performance even with large supply.
A slight decrease in retail rents
o The overall average gross rent recorded at USD 50.1 per sqm, slightly
decreased by 0.2% q-o-q.
o The low purchasing power at some retail projects in CBD sector has led a
slight decline in rent by 0.5% q-o-q.
Ample new supply in 2015
o Over the next three quarters, Total Investment Grade supply is expected
to increase by 123,000 sqm from seven properties.
o SC VivoCity and Pearl Plaza are expected to be completed in 2015,
adding nearly 59,000 sqm of space to the Non-CBD retail stock.
Moderate demand in the near future
o Consumers continued to tighten their budgets, prospects of better
demand will increase with improved economic environment.
o Rents are likely to face more pressure due to new supply and the current
fluctuant market performance.
USD/sqm/mth
0
20
40
60
80
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
CBD Non-CBD
0 20 40 60 80 100 120 140
2017
2016
2015
'000 sqm
Exp
ecte
d co
mpl
etio
n ye
ar
Vietnam Property Market Brief – 1Q15
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HANOI OFFICE Supply and Demand
Source: JLL Research
Asset Performance
Note: 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
Outlook
Supply / Demand Indicator Grade A Grade B Grade C Total
Total Stock (sqm) 431,000 847,000 272,000 1,550,000
Occupancy Rate (%) 78.4 82.5 83 81.3
Q-o-Q Change (bps) 764 24 -8 251
Total Stock
Source: JLL Research
Key Performance Indicator Grade A Grade B Grade C Total
Average Gross Rent (USD/sqm/mth) 30.2 19.0 13.9 21.7
Average Net Rent (USD/sqm/mth) 24.1 14.3 9.7 16.6
Q-o-Q Change (%) -3.0 -0.8 0.4 -1.4
Average Net Rents by Grade
Source: JLL Research
Supply Under Construction
Source: JLL Research
Supply remains stable
o No new project completed in 1Q15, the total stock remains unchanged at
more than 1.5 million sqm.
o Few projects saw considerable construction progress in 1Q15.
Demand increases slightly
o Total net absorption reached more than 41,000 sqm in 1Q15, primarily
driven by the Grade A segment.
o The market recorded more leasing transactions of over 1,000 sqm than
in the previous quarter.
Rent continues to decline
o The average rent continued to decline, but at a slower rate q-o-q than in
4Q14. Despite this, the decrease in the Grade A segment was more
considerable in 1Q15.
o Some landlords in the CBD sub-market lowered their asking rents to
compete with newer buildings in the west of the city. However, rents at
more than 80% of projects were kept unchanged in 1Q15.
Supply to be plentiful until end-2015
o Nearly 95,000 sqm of office space is expected to enter the market in
2015, around 95% of which will be from Grade B buildings.
o Demand for office space is likely to increase, driven by new Grade B
buildings and Grade A properties in the non-CBD sub-market.
Downtrend in rent is likely to continue
o Oversupply and expected low rents at new buildings will keep pressure
on rents in existing properties.
o The investment market is expected to remain active.
0
500
1,000
1,500
2,000
2010 2011 2012 2013 2014 2015ytd
'000 sqm
Grade A Grade B Grade C
0
5
10
15
20
25
30
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
Grade A Grade B Grade C
USD/sqm/mth
0 50 100
2017
2016
2015
'000 sqm
Exp
ecte
d co
mpl
etio
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HANOI RESIDENTIAL Supply and Demand
[1] Excludes planned projects not launched for sale yet. Includes fully sold projects. [2] The percentage of [1] that remains unsold at quarter-end. Source: JLL Research
Asset Performance
Note: Q-o-Q and Y-o-Y changes are adjusted to remove effects from supply additions / removals (i.e. changes are on a like-for-like basis). Source: JLL Research
Outlook
Supply / Demand Indicator Apartments
Completed Supply (units) 67,000
Uncompleted Supply (units) [1]
42,000
Unsold Inventory (%) [2]
13.9%
Total Stock (Completed Supply) - Apartments
Luxury accounts for less than 3% of total stock Source: JLL Research
Market Segment Primary Market Secondary Market
Q-o-Q Y-o-Y Q-o-Q Y-o-Y
Apartments 1.9% 5.3% 1.7% 4.6%
Average Asking Price by Segment
Source: JLL Research
Upcoming Completions
Source: JLL Research
010,00020,00030,00040,00050,00060,00070,000
2010 2011 2012 2013 2014 2015
units
Affordable
Mid-end
Premium
Luxury
Increased supply
o New launches totalled 5,600 units, up 13.0% q-o-q. The low-priced
segments remained dominant but not as much as in the past two years.
o Construction progressed well across the market. In addition, resumption
was seen in many long-delayed developments. EWLY COM
Demand noticeably stronger
o Sales were up 30.0% q-o-q to 5,800 units, nearly half the 2014 total. The
trend to buy such units in bulk was increasingly apparent.
o In 1Q15, the ratio of apartments sold to those newly launched reached
72%, versus the 65% in 4Q14 and the 58% for whole year 2014.
Prices increase further
o Primary market
Prices were higher in all segments, with Mid-end developments
showing the largest increase at 2.2% q-o-q.
On a district-wide basis, common growth rates were 1-2% q-o-q.
o Secondary market
Prices continued the uptrend witnessed since 2Q14, but at the
considerably higher rate of 1.7% q-o-q.
Most decreases in 1Q15 were in long-standing buildings, which faced
competition from the newer completed units that were offered in the
primary market at discounts and with favorable payment terms.
Supply to be abundant in the next three quarters
o More than 21,000 new completed apartments are expected in the rest of
2015, nearly 80% of which were launched in 2012 or earlier.
o New supply should remain at high levels until end-2015, as to-be-launched
units at current projects alone are double the 1Q15 number already.
Demand to be strong during 2015
o More quality supply and increased sales activity by developers, along with
better credit terms for homebuyers, are likely to boost demand.
o Prices are expected to increase further over 2015.
0 1,000 2,000 3,000 4,000
Luxury
Premium
Mid-end
Affordable
All Apartments
USD/sqm
Average Primary Price Average Secondary Price
0 5,000 10,000 15,000 20,000 25,000
2017
2016
2015
units
Vietnam Property Market Brief – 1Q15
P a g e | 10
HANOI RETAIL
Supply and Demand
Source: JLL Research
Asset Performance
Note: Q-o-Q and Y-o-Y changes are adjusted to remove effects from supply additions / removals (i.e. changes are on a like-for-like basis). Source: JLL Research
Outlook
Supply / Demand Indicator Investment Grade Non-Investment Grade
CBD Non-CBD Total
Total Stock (sqm) 20,000 778,000 798,000 328,000
Occupancy Rate (%) 88.5 84.8 84.9 N.A.
Q-o-Q Change (bps) 406 8 18 N.A.
Total Stock – Investment Grade
Source: JLL Research
Key Performance Indicator – Investment Grade CBD Non-CBD Overall
Average Gross Rent (USD/sqm/mth) 95.2 25.8 27.5
Q-o-Q Change (%) 0 -0.7 -0.7
Average Gross Rents – Investment Grade
Source: JLL Research
Supply Under Construction – Investment Grade
Source: JLL Research
Supply stable
o Supply was stable in the Investment Grade segment but increased in the
Non-Investment Grade market, thanks to 25,000 sqm at Hoa Binh Green
City – the city’s first rent-free trading center for local enterprises
o The Parkson – Keangnam Hanoi Landmark Tower closed in January
2015. The reason for the closure was that the business had suffered
operational losses since 2011.
Demand moderate
o The overall occupancy rate reached nearly 85%, but the vacancy rates in
several shopping centers in the non-CBD sub-market increased.
o Purchasing power was still weak in spite of many attractive promotions
offered to customers by brands.
Rents decline slightly
o The average gross rents of Investment Grade retail space saw a decline of
0.7% q-o-q in 1Q15, standing at USD 27.5 per sqm per month.
o The average asking rent in the CBD sub-market was nearly four times
higher than in the non-CBD sub-market.
Supply to increase noticeably in 2015
o Stock in the Investment Grade segment will increase by 75,500 sqm
when AEON Mall comes on stream in 2015.
o The Non-Investment Grade segment expects around 11,500 sqm of retail
space from Thang Long Number One Centre over the coming quarters.
Rents are likely to decrease
o Abundant supply and moderate demand will put pressure on existing
centres, which offer high asking rents but experience vacant space.
o Rents at prime retail properties in the city’s core CBD is expected to
remain stable over the coming quarters.
0
200
400
600
800
1,000
2010 2011 2012 2013 2014 2015ytd
'000 sqm
CBD Non-CBD
USD/sqm/mth
0
50
100
150
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
CBD Non-CBD
0 20 40 60 80
2017
2016
2015
'000 sqm
Exp
ecte
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mpl
etio
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ar
Vietnam Property Market Brief – 1Q15
P a g e | 11
Real Estate Glossary
Vietnam Office Market
Current supply The total amount of cumulative office space (in NFA terms) that has been completed at a given time.
Future supply The total amount of office space slated for completion in the future at a given time.
Vacant space The total amount of available office space that remains to be leased by property owner(s) at a given time. This excludes space available for sub-lease by tenants (i.e. shadow space), space physically empty but already pre-leased or reserved, and space to be available for lease in the future.
Occupied space Current supply less vacant space. “Net absorption” refers to the change in occupied space from quarter to quarter.
Gross floor area (GFA) The total amount of all covered areas including columns, walls, common passageways, lift lobbies and toilets.
Net floor area (NFA) The amount of useable floor areas excluding columns, walls, common passageways, lifts, lobbies and toilets. Net lettable area or net leasable area (NLA) refers to the amount of NFA that is available for lease.
Net rent The amount of market rent receivable by landlords after deducting outgoings. Market practices: Net rents may be quoted on an NLA or a GFA basis.
Outgoings The estimated costs set aside by landlords for building maintenance that are passed on to tenants in the form of service charges or management fees. Market practices: Service charges / management fees may or may not be quoted separately from net rents.
Gross rent The total achievable rent to be borne by tenants including service charges / management fees. Gross rents equal net rents plus outgoings. Market practices: Gross rents may be quoted on an NLA or a GFA basis.
Capital value The market value or probable price of a property at a given time from a valuation point of view.
Yield The percentage return on property investment at a given time from a valuation point of view. It is based on current market rents assuming full occupancy.
Grade A A Grade A property meets all of a set of criteria regarding its offerings to a typical sophisticated occupier. These criteria are broadly concerned with the property’s overall profile, location, amenities, management standards and technical specifications.
Grade B A Grade B property meets some of a set of criteria regarding its offerings to a typical sophisticated occupier. These criteria are broadly concerned with the property’s overall profile, location, amenities, management standards and technical specifications.
Grade C A Grade C property meets a set of criteria regarding its offerings to a typical non-sophisticated occupier. These criteria are broadly concerned with the property’s overall profile, location, amenities, management standards and technical specifications.
Suburban A Suburban property is located in a non-CBD or a non-traditional office zone, regardless of its other physical attributes.
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Real Estate Glossary
Vietnam Residential Market
Current supply The total amount of supply available for sale, either through the primary market or the secondary market, regardless of construction status.
Future supply The total amount of supply to be launched for sale in the future.
Completed supply The total amount of supply that has been physically completed and handed over for occupation. Also known as existing supply.
Uncompleted supply The total amount of supply that has not been physically completed and handed over for occupation. Includes supply under construction and supply planned for construction. Also known as supply in the pipeline.
Primary market That part of the market comprising first-hand supply available for sale from developers.
Secondary market That part of the market comprising second-hand supply available for resale from previous buyers.
Launches The estimated amount of new supply (in units) launched for sale during a period. Market practices: Many developers choose to launch their projects in phases which may or may not be publicly announced.
Take-up The estimated amount of supply (in units) sold during a period. Includes sold units from new supply in the period and supply in previous periods. Market practices: Take-up may comprise units sold via capital contributions or sale and purchase agreements.
Total inventory The total amount of uncompleted supply that has been launched for sale.
Primary asking price The stock-weighted average asking price in the primary market.
Secondary asking price The stock-weighted average asking price in the secondary market.
Luxury A luxury property meets all of a set of criteria regarding its offerings to a typical local wealthy household. These criteria are broadly concerned with the property’s overall profile, location, facilities, amenities, and management standards. A majority of luxury properties are located in or near the CBD of the city under review.
Premium A premium property meets some of a set of criteria regarding its offerings to a typical local wealthy household. These criteria are broadly concerned with the property’s overall profile, location, facilities, amenities, and management standards. A majority of premium properties are located in new urban areas outside the CBD of the city under review.
Mid-end A mid-end property meets all of a set of criteria regarding its offerings to a typical local middle-class household. These criteria are broadly concerned with the property’s overall profile, location, facilities, amenities, and management standards. A majority of mid-end properties are located within the inner districts of the city under review.
Affordable An affordable property meets some of a set of criteria regarding its offerings to a typical local middle-class household. These criteria are broadly concerned with the property’s overall profile, location, facilities, amenities, and management standards. A majority of affordable properties are located in the outer districts of the city under review.
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Real Estate Glossary
Vietnam Retail Market
Current supply The total amount of cumulative modern (as opposed to traditional) retail space (in GLA terms) that has been completed at a given time.
Future supply The total amount of modern retail space slated for completion in the future at a given time.
Vacant space The total amount of available modern retail space that remains to be leased by property owner(s) at a given time. This excludes space available for sub-lease by tenants (i.e. shadow space), space physically empty but already pre-leased or reserved, and space to be available for lease in the future.
Occupied space Current supply less vacant space. “Net absorption” refers to the change in occupied space from quarter to quarter.
Gross floor area (GFA) The total amount of all covered areas including columns, walls, common passageways, lift lobbies, toilets and storage rooms.
Gross leasable area (GLA) The total amount of leasable floor areas on which rentals and service charges are based, which may include common areas used for foot traffic.
Gross rent The total achievable rent to be borne by tenants including service charges / management fees but excluding VAT. Market practices: Gross rents in the retail market are usually quoted on a NLA basis.
Capital value The market value or probable price of a property at a given time from a valuation point of view.
Yield The percentage return on property investment at a given time from a valuation point of view. It is based on current market rents assuming full occupancy.
Investment Grade A type of retail property deemed to be of sufficient quality and/or scale to be of interest to a typical institutional investor. This includes department stores, shopping centres and prime retail space. The criteria for grading retail properties include age profile, ease of accessibility, property management as well as the current and potential scale of product offerings.
Supermarket In the local context, a “supermarket” refers to any type of stand-alone retail outlet predominantly run by a single chained retailer that sells a variety of grocery and / or non-grocery products. This includes supermarkets and hypermarkets that sell mixed products as well as those that specialize in a product type (such as electronics or furniture). This also includes wholesale / cash & carry stores, whose main target is business customers, but are also accessible by retail consumers. Most supermarkets are considered non-investment grade.
Shopping Centre In the local context, a “shopping centre” refers to any type of retail property that has a more diverse tenant mix than regular supermarkets. Besides anchored mixed retailers (e.g. department stores and supermarkets), a shopping centre often includes a variety of specialist retailers (e.g. fashion & accessories, food & beverages, consumer electronics and other consumer services). Most major shopping centres are considered investment grade.
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Vietnam Property Market Brief is a quarterly publication providing market updates for different real estate sectors in different
cities. It is part of the comprehensive research package from JLL Research that covers Vietnam along with other major countries
in Asia Pacific:
Publication Geographic Coverage
Product Coverage
Frequency Contents Availability
Vietnam Property Market Monitor
Vietnam All Quarterly Real estate headlines & news summary
Publicly available
Vietnam Property Market Brief
Vietnam cities All Quarterly Stock, vacancy, prices, rents Publicly available
Vietnam Property Market Report
Vietnam cities All Quarterly Stock, vacancy, prices, rents, project-level data, maps
Subscription-based
Asia Pacific Property Digest
Asia Pacific including Vietnam
Investment grade
Quarterly Stock, vacancy, prices, rents Publicly available
The Office Index Asia Pacific including Vietnam
Investment grade
Quarterly Stock-weighted rental value and capital value indices
Publicly available
The Residential Index Asia Pacific (Vietnam to be included)
Investment grade
Quarterly Capital value index Publicly available
Real Estate Intelligence Service
Asia Pacific including Vietnam
Investment grade
Quarterly Stock, vacancy, prices, rents, yields, total returns, forecasts
Subscription-based
Real Estate Daily Asia Pacific including Vietnam
All Daily Real estate headlines & news summary
Subscription-based
Real Estate Transparency Index
Global including Vietnam
All Every two years
Country transparency scores & rankings
Publicly available
For subscription details and enquiries, please contact:
Joseph Yee Tram Nguyen Thu Nguyen
Regional Director Assistant Manager, Research & Consulting Assistant Manager, Research & Consulting Level 26, Saigon Trade Center Level 26, Saigon Trade Center Level 26, Saigon Trade Center 37 Ton Duc Thang, D1, HCMC, Vietnam 37 Ton Duc Thang, D1, HCMC, Vietnam 37 Ton Duc Thang, D1, HCMC, Vietnam +848 3910 3968 ext 911 +848 3910 3968 ext 955 +848 3910 3968 ext 927 [email protected] [email protected] [email protected]
The information in this publication has been compiled from various sources deemed reliable. However, no representation or warranty is made to the accuracy
thereof. This publication may not be reproduced in any form or in any manner, in part or as a whole without the written permission of the publisher, JLL
Vietnam, Ltd.
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