Combined Market Overview

COMBINED MARKET
OVERVIEW
Quarter 4 2007
Presented by
Mr. Naim Khan-Turk – Associate Director
CB Richard Ellis (Vietnam)
CB Richard Ellis | Page 2
Agenda
HCMC:
¾OFFICE MARKET
¾CONDOMINIUMS
¾SERVICED
APARTMENT MARKET
¾RETAIL MARKET
¾HOTEL MARKET
¾INDUSTRIAL
HA NOI:
¾OFFICE MARKET
¾SERVICED APARTMENT

MARKET
¾HOTEL MARKET
¾RETAIL MARKET
¾RESIDENTIAL MARKET
¾MARKET OUTLOOK
CB Richard Ellis | Page 3
WHAT HAS BEEN DRIVING THE PROPERTY MARKET SINCE
2003?
• Limited capital markets
• An emerging condo market in Hanoi and HCMC
• Conspicuous consumption

• Ability to borrow from local banks at 10-11% per annum
• Consistently rising GDP and FDI
• China + 1, APEC, the Stock Market and entry to WTO has put Vietnam on
the radar screen, coupled with the ML reports and the Euro Money
Conference in March 2006/2007
CB Richard Ellis | Page 4
MAP OF VIETNAM
CB Richard Ellis | Page 5
VIETNAM TODAY
• No Starbucks and No MacDonalds
• World leaders in pepper, coffee, cashew, shoes, fish/prawns, oil & gas
exports
• No shortage of land, just good sites
• “If you build it, they will come” no longer exists
• Many similarities to China in the early 90s in terms of work ethic, chaos
on the streets, migration of work force and market driven decisions
• Traffic, complete absence of infrastructure, MRT/MTR, bridges and
tunnels
CB Richard Ellis | Page 6
DEVELOPMENT OPPORTUNITIES
Source: Saigon Times
CB Richard Ellis | Page 7
PROPOSED MRT LINES HCMC
CB Richard Ellis | Page 8
VIETNAM AT A GLANCE
CB Richard Ellis | Page 9
WTO
CB Richard Ellis | Page 10
HO CHI MINH CITY
Source:CBRE

CB Richard Ellis | Page 11
AVERAGE REGIONAL RENTAL AND OCCUPANCY COST
PRIME OFFICE RENTS AND OCCUPANCY COST IN KEY ASIAN CITIES
(As of Q4.2007)
16.5
8.5
24
48
23
126
22
77
13
29
24.5
76
21.5
21.5
45
45
28.5
41
37
39
16.5
14
75
63
141
90.5

23
48
26
76
21.5
50
56
36
Beijing
Shanghai
Guangzhou
Hong Kong
Taipei
Tokyo
Seoul
New Delhi
Bangalore
Jakarta
Kuala
Lumpur
Manila
Singapore
Bankok
HCMC
Sydney
Melbourne
(Source: CBRE)
(unit: US$)
Avarage market rents
(US$/sqm/month)

Total occupancy cost
(US$/sqm/month)
Note:
According to CBRE research all over the world during 2007,
HCMC is ranked as
45
th
in the top 50 cities that offer the highest office asking rents all over the world
13
th
in the top 50 cities that have the highest growth rate on office rental rates
CB Richard Ellis | Page 12
HCMC OFFICE MARKET - HCMC
HCMC Prime Office Stock
(at 2007 ends)
200,000
300,000
400,000
500,000
Q1/04
Q2/04
Q3/04
Q4/04
Q1/05
Q2/05
Q3/05
Q4/05
Q1/06
Q2/06
Q3/06

Q4/06
Q1/07
Q2/07
Q3/07
Q4/07
sqm
Office Stock at the beginning of the quarter New supply during the quarter
Total 165,381 sm office space come on line during 2007
No grade A
62,965 sm Grade B
102,416 sm Grade C
CB Richard Ellis | Page 13
HCMC - OFFICE MARKET
Prime Office Rental Index
0
20
40
60
80
100
120
140
160
180
Q1 98
Q2 98
Q3 98
Q4 98
Q1 99
Q2 99

Q3 99
Q4 99
Q1 00
Q2 00
Q3 00
Q4 00
Q1 01
Q2 01
Q3 01
Q4 01
Q1 02
Q2 02
Q3 02
Q4 02
Q1 03
Q2 03
Q3 03
Q4 03
Q1 04
Q2 04
Q3 04
Q4 04
Q1 05
Q2 05
Q3 05
Q4 05
Q1 06
Q2 06
Q3 06
Q4 06

Q1.07
Q2.07
Q3.07
Q4.07
Index (Q1 1998 = 100)
US-VN Bilateral
Trade Agreement
WTO
And the upward trend will continue due to:
• Growing demand
• Delays in new supply
Source:CBRE
CB Richard Ellis | Page 14
HCMC - OFFICE MARKET
Take up and vacancy rate of
HCMC office buildings Q4.2007
-
20,000
40,000
60,000
80,000
0.0%
2.0%
4.0%
6.0%
8.0%
%
Take-up (Sqm) Vacancy Rate (%)
CB Richard Ellis | Page 15
CB Richard Ellis | Page 16

HCMC - OFFICE MARKET
NEW MAJOR OFFICE BUILDINGS
COMPLETED DURING 2007
Saigon Finance
Centre, Dist. 1
(10,692 sm)
Petro VN,
Dist. 1
(14,493 sm)
Citilight,
Dist. 1
(10,780 sm)
Total Supply in 2007
165,381 sm
E-Town 2
Tan Binh Dist
(27,000 sm)
CB Richard Ellis | Page 17
HCMC OFFICE MARKET – Rental Rates
Rent trends of Grade A
Q1/06 - Q1/07
23
32
Q1/06 Q1/07
* Note: rents are on net area excluding S.C and VAT
unit:US$
growth rate 39%
Q1 - 2006 $23.00
Q1 - 2007 $32.00
Increase of 39%

Occupancy 100%
Q1 – 2008 $63.00
Increase of 97% in
comparison to Q1.07
Occupancy 100%
Rents trends of Grade A
Q1/07 - Q1/08
32
63
Q1/07 Q1/08
Note: rents are on net area excluding S.C and VAT
unit: US$
growth rate 97%
CB Richard Ellis | Page 18
HCMC OFFICE MARKET – Rental Rates
Q1 - 2006 $22.00
Q1 - 2007 $26.50
Increase of 26%
Occupancy 99%
Q1 - 2008 $40
Increase of 51% in
comparison to Q1.07
Occupancy 100%
Rent trends of Grade B
Q1/06 - Q1/07
21
26.5
Q1/2006 Q1/2007
* Note: rents are on net area excluding S.C and VAT
unit:US$

growth rate 26%
Rent trends of Grade B
Q1/07 - Q1/08
26.5
40
Q1/2007 Q1/2008
* Note: rents are on net area excluding S.C and VAT
unit:US$
growth rate 51%
CB Richard Ellis | Page 19
HCMC OFFICE MARKET – Rental Rates
Rent trends of Grade C
Q1/06 - Q1/07
20.5
24
Q1/2006 Q1/2007
* N
ote: rents excluding S.C and VAT
unit: US$
growth rate 17%
Q1 - 2006 $20.50
Q1 - 2007 $24.00
Increase of 43%
Occupancy 97%
Rent trends of Grade C
Q1/07 - Q3/07
24
32
Q1/2007 Q1/2008
*

Note: rents excluding S.C and VAT
unit: US$
growth rate 33%
Q1 - 2008 $32.00
Increase of 33% in
comparison to Q1.07
Occupancy 98%
CB Richard Ellis | Page 20
HCMC OFFICE MARKET
Market Outlook in 2008:
9Vacancy in grade A & B office space still
remains limited.
9 Some new supply of Grade B office
space expected to come on line during
2007.
9Factors driving demand: Strong
economic growth, FDI growth, WTO
access, new multi-national companies,
expansion of existing multi-national
companies, Vietnam companies
upgrading, safety & quality Issues
9 Grade A & B office rental rates reflects
upward momentum and growing demand
vis-à-vis tight supply
9 Vacancy rate remains low, grade A (0%)
and B (<1%)
Expected
year of
completion
Supply of

new grade
A, B & C
buildings
Expected
supply
(sqm)
2008 40 261,949
2009 24 365,969
2010 10 288,156
TOTAL 74 916,074
Source:CBRE
CB Richard Ellis | Page 21
HCMC OFFICE MARKET
UNDER CONSTRUCTION OFFICE DEVELOPMENTS EXPECTED COMPLETION
DURING 2008
20,078
5,170
16,500
22,000
14,600
16,784
15,380
5,700
3,600
12,000
4,810
9,873
10,800
0 5,000 10,000 15,000 20,000 25,000
VP Bank Tower

Golden Tower
Gemadept
International Plaza
Saling Tower
Happiness Square
Sacombank Building
Quoc Cuong Building
Alpha Tower
Saigon Paragon
Office Building BS1
CT Plaza
Waseco Building
Dist 1 Dist 3 Dist 7
Tan
Binh
(Source: CBRE)
sqm
CB Richard Ellis | Page 22
HCMC OFFICE MARKET
Sacom Bank
Tower
Centec
Tower
Asiana
Plaza
Financial
Tower
Vietcombank
Tower
Saigon

Happiness
Square
HCMC OFFICE SUPPLY
24 projects
40 projects

10 projects
0
100,000
200,000
300,000
400,000
(Source: CB Richard Ellis)
Future supply
261,949 365,969 288,156
2008 2009 2010
CB Richard Ellis | Page 23
SUPPLY – LARGER BUILDINGS
Bao Viet
20,000 sqm
(owner
occupied)
2009
VPBank
20,000 sqm
(12,000 sqm
for lease)
HCMC Power
Head Office
20,000 sqm

(10,000 sqm
for lease)
2009
Centec
25,000 sqm
Asiana Plaza
32,000 sqm
Vietcombank
77,000 sqm
Financial Tower
100,000 sqm
M&C Tower
49,000 sqm
2008
2009 2010
73,784 sqm
247,000 sqm
2011
Gemadept
16,500 sqm
(10,000 sqm
for lease)
A & B
21,000 sqm
76,500 sqm
(32,000 sqm
for lease)
2011
2011
Saigon Happiness Square

16,784 sqm
CB Richard Ellis | Page 24
Central
Business
District
Tan Binh
District
Thu Thiem
District 2
District 7
DECENTRALISATION OF OFFICE BUILDINGS
CB Richard Ellis | Page 25
Residential Condo - HCMC
Number of Condos and Projects launched year-by-year
0
4,000
8,000
12,000
16,000
Condos
0
10
20
30
40
50
Projects
Units
648 0 0 0 150 0 0 124 1,234 3,418 6,222 10,474 7,312 15,263
Projects

1000 100 131627412522
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source:CBRE