CBRE VN Market Outlook 2021 Hanoi en

H A N O I R E A L E S TAT E
CBRE RESEARCH
MARKET OUTLOOK
RESTART
THE UNEVEN
RECOVERY
VIETN AM
ASIA PACIFIC REAL ESTATE
MARKET OUTLOOK 2021 | VIETNAM
CONTENT
1. HANOI OFFICE RESTART
2 . H A N O I R E TA I L THE UNEVEN
3. VIETNAM INDUSTRIAL RECOVERY
4. HANOI RESIDENTIAL
ASIA PACIFIC REAL ESTATE MARKET OUTLOOK 2021 | VIETNAM CBRE RESEARCH | © 2021 CBRE, INC.
HANOI OFFICE
REGAIN
44
A YEAR TO LOOK BACK
Vietnam’s business environment The economy was hit hard as the Office vacancy rate increased due to
returned to normal number of enterprises entering COVID-19 and new supply
bankruptcy soared
Workplace visit 9%
as at 29 Dec 2020 17%
+17%
Compared to pre-COVID level
HCMC
30%
20%
10%
Hanoi
0%
-10% 2019 2020
-20% 0 5,000 10,000 15,000 Occupancy Vacancy
-30%
2019 9M 2020
18-Feb 29-Dec
Source: CBRE Research, GSO, Google Mobility index. Pre-COVID level is the median value, for the corresponding day of the week, during the 5-week period Jan 3–Feb 6, 2020
5
HANOI OFFICE: MARKET SNAPSHOT 2020
GRADE A GRADE B
TOTAL
SUPPLY 528,000 sqm NLA 974,000 sqm NLA
NLA (sqm) 21 projects 71 projects
ASKING 126,000 SQM

RENT* US$26.8 2.2% y-o-y US$13.8 -3.7% y-o-y
US$/sqm/month 0.3% q-o-q -0.5% q-o-q
NEW SUPPLY
1 Grade A and 1 Grade B
Projects
VACANCY 15.7 ppts y-o-y
RATE 23.2% 13.6% 4.3 ppts y-o-y
(%) -1.1 ppts q-o-q 2.1 ppts q-o-q
Source: CBRE Vietnam Research, Q4 2020.

Note: Asking rent is quoted on NLA, excluding VAT & service charges.
6
LARGEST NEW SUPPLY SINCE 2014
Hanoi Office, Total Supply 2014 - 2020
1,600
1,400
1,200
NLA (thousands sqm)
1,000
Capital Place
800 Grade A
NLA: 93,000 sqm
600
400
200
0
2014 2015 2016 2017 2018 2019 2020
Existing supply New supply
Century Tower
Grade B
Source: CBRE Vietnam Research, Q4 2020 NLA: 33,000 sqm
7
HIGHEST VACANCY RATE SINCE 2014
Hanoi Office, Vacancy Rate

300 30%
250 25%
NLA (thousands sqm)
200 20%
150 15%
100 10%
50 5%
0 0%
2014 2015 2016 2017 2018 2019 2020
Vacant space Grade A - Vacany rate Grade B - Vacancy rate
Source: CBRE Vietnam Research, Q4 2020
8
RENTAL GROWTH DISRUPTION BY COVID -19
Hanoi Office, Asking Rent

Impact of new project
30
25
Grade A
USD/sqm/month
20
2.9% y-o-y
15 (without new project)
10
Grade B
5
3.7% y-o-y
0
2014 2015 2016 2017 2018 2019 2020
Grade A Grade B
9
CONTRACTION GREW SHARPLY AS OCCUPIERS LOOK TO REDUCE COSTS
Major Transaction Types Collected And Closed Hanoi Office, Net Absorption
By CBRE, 2018 - 2020
100% 160
90% 140
80% 120
NLA (thousands sqm)

70%
100
60%
80
50%
40% 60
30% 40
20% 20
10%
0
0% 2014 2015 2016 2017 2018 2019 2020
HCMC Hanoi HCMC Hanoi HCMC Hanoi -20
2018 2019 2020 Grade A Grade B

New Letting Renewal Expansion Relocation Contraction
10
KEY DEMAND DRIVERS CONTINUE TO SHIFT AS THE PANDEMIC UNFOLDS
Tenant’s Industry, Major Transactions Collected And Closed By CBRE, 2018 – 2020
IT/Tech
Manufacturing Some sectors still take the lead,…
Banking/Finance/Insurance
Ecommerce
Logistics … some are rising,…
Education
Energy
Flexible workspace
… while some fall behind.
0% 5% 10% 15% 20% 25% 30%

2018 2019 2020
11
A SHIFT IN REAL ESTATE STRATEGY?
38%
Will adapt a hybrid
27%
Will reduce staff
model with both density in workplace
remote and office-
based work
8% 8% 7%
Will use (more) satellite Wil l not Will use more coworking
offices to cater to change space (including serviced
decentralized offices and coworking)
workforce
6% 4% 2%
Will consolidate Will reduce Will use less coworking
office locations open-office space (including
to cut costs layout serviced offices and
coworking)
Source: “Emerging Trends in Real Estate Asia Pacific 2021 Survey”, PWC.
12
FIRMS INCORPORATE FLEXIBILITY AND DISTANCING
APAC Office, Leadership Attitudes Towards Working Location The importance of flexible workspace at the
current time in accommodating employees of
your organization?
No universal answer 17%
Encourage employees to work from

18%
home; work in the office when 11% 26%
needed
Encourage employees to work in the
office; allow them to work from home 35%
if they wish
27%
Bring everyone back to the office,
27%
rethink workplace design
29%
Bring everyone back to the office, no

11%
changes needed Very important Important
Slightly important Not important
N = 106
Source: “The Real Estate Reset” of CBRE APAC, Q4 2020. Source: “Emerging Trends in Real Estate Asia Pacific 2021 Survey”, PWC.
13
WHAT TENANTS ARE LOOKING FOR?
A good range of value-

High quality Strong location, with good added amenities, such
management access to existing and future as coffee shop, flexible
public transportation workspace, gym,
services
convention hall
Modern specifications, Green building Competitive financial

including large technology, with built-in incentives, such as longer
floor plates design to save energy rent free and fit-out
and water periods
14
FUTURE OFFICE SUPPLY
Hanoi Office, Notable Future Projects Awaiting Large-scale Projects
200,000
2021
150,000
Techno Park Tower, HUD Tower, Thai Building, BRG Tower,
Gia Lam Thanh Xuan Cau Giay Hoan Kiem
NLA: 115,000 sqm NLA: 48,000 sqm NLA: 24,000 sqm
100,000
NLA: 5,000 sqm
50,000
2022
onward 0
2020 2021F 2022F
BRG Grand Plaza, The Valley Smart Building, Lotte Mall Hanoi,
Dong Da Nam Tu Liem Tay Ho Grade A Grade B
NLA: 26,000 sqm NLA: 39,500 sqm NLA: 45,000 sqm Source: CBRE Vietnam Research, Q4 2020
15
MARKET OUTLOOK: LIMITED GROWTH PROSPECT,
BUT AMONGST THE LEAST AFFECTED COUNTRIES
APAC, Grade A Office Rental Growth Outlook

2020 2021F
5%
0%
-5%
-10%
-15%
-20% Singapore
Shenzhen
Bangkok
Hanoi
Guangzhou
Jakarta
Tokyo
Beijing
Hong Kong SAR

Melbourne
Taipei
Seoul
Shanghai
Ho Chi Minh City
16
MARKET OUTLOOK
Hanoi Grade A Office, Performance Outlook Hanoi Grade B Office, Performance Outlook
28 30% 14 30%
Asking rents (US$/sqm/month)
Asking rents (US$/sqm/month)

27 20% 13 20%
Vacancy rate
Vacancy rate
26 10% 12 10%
25 0% 11 0%
2020 2021F 2022F 2020 2021F 2022F
Asking rent - Best case Asking rent - Worst case Asking rent - Best case Asking rent - Worst case
Vacancy rate - Best case Vacancy rate - Worst case Vacancy rate - Best case Vacancy rate - Worst case
Notes:
Best case scenario: border restriction is lifted at the end of H1 2021
Worst case scenario: border restriction continue to the end of 2021
17
WILL LINE NO. 2A IMPACT RENTS IN 2021?
No connectivity
with Line No. 3
during 2021
Public perceptions
will need time to
adapt
Potential public
advocacy issues
should COVID-19
resurge in Hanoi
CONTINUED EXPANSION FOR LESS 20
AFFECTED OCCUPIER SECTORS
21
OCCUPIERS WILL CONTINUE
TO RESTRUCTURE & ADOPT
FLEXIBLE STRATEGIES
THE
SIGNIFICANT NEW SUPPLY TO

COME ONLINE
REGAIN
OF OFFICE
RENTAL RATES TO STABILISE MARKET
H A N O I R E TA I L
RESHAPE
20
20
A YEAR TO LOOK BACK
Vietnam Mobility Index Total Sales and Services Turnover Vacancy Rates Increase
(Y-o-y change)
12.3% 12.1% 16%
RETAIL & RECREATION 11.8%
7.7% 14%
-16%
compared to pre-COVID level
2.6% 2.7%
12%
10%
8%
GROCERY & PHARMACY -1.3%
6%
4%
+9% 2%
compared to pre-COVID level -15.6%
0%
Vietnam HCMC Hanoi Da Nang CBD Non-CBD
PARKS
2019 2020 2019 2020
-17%
compared to pre-COVID level
Source: CBRE Vietnam Research, GSO, Google Mobility index. The pre-COVID level is the median value, for the corresponding day of the week, during the 5-week period Jan 3–Feb 6, 2020
21
SLIGHT GROWTH IN NEW SUPPLY AND SIGNIFICANT CHANGES IN PERFORMAN CE
HANOI RETAIL: MARKET SNAPSHOT 2020
CBD Non-CBD
TOTAL
~56,017 sqm NLA ~998,172 sqm NLA
SUPPLY 13 projects 34 projects
2 NEW
NLA (sqm)
PROJECTS
ASKING ▲ 9.2% q-o-q ▼ 0.1% q-o-q New supply:
RENT (*) US$ 107.7 US$ 24.5 41,018 sqm
US$/sqm/month ▲ 9.7% y-o-y ▼ 1.3% y-o-y
▼ 53% average of
past three years
VACANCY ▲ 1.0
14.3% ▲ 3.2 ppts q-o-q 12.3% ppt q-o-q
RATE (%)
▲12.9 ppts y-o-y ▲ 3.3 ppts y-o-y

Note: (*) Asking rent is quoted on NLA, excluding VAT & Service charges for Ground Floor and First floor.
22
STRONG EXPANSION OF EXISTING TENANTS
UNIQLO opened 3 outlets in Vincom Pham Ngoc

Number Of Stores Change Y-o-y By Category
Thach, Vincom Center Metropolis, Aeon Mall Long
(2019 Vs. 2020) Bien
Source: tuoitre.vn
MLB opened 2 outlets in Trang Tien Street & Vincom

Center Ba Trieu
Source: Vincom.com
80% Haidilao entered Hanoi market with 3 new

branches in Vincom Pham Ngoc Thach, Vincom
60%
Tran Duy Hung & Vincom Megamall Times City
40% Source: CBRE
20% New launching coffee shop of The Coffee House in

Hinode City
0%
Source: CBRE
-20%
A brand new concept of Kichi Kichi in Trang Tien
-40% Plaza
Source: CBRE
Hanoi Vietnam
Nars opened its first boutique store on Trang Tien

street
Source: CBRE
Source: QandME Retail Store Status, 2020.
23
DECREASE IN NUMBER OF NEW ENTRANTS
2019 2020 – New Entrants 2021 Expected
From South
F&B
East Asia
Fashion & Accessories
Mid-end
Multi platforms
Awaits Vaccine
Others
CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective Source: CBRE Vietnam Research, Q4 2020.
owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE
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
Fashion & market Rent negotiation
Accessories presence
Strong Free fit out period up to 3 months

tenants
Omni CAPEX support
Adaptability
channels
Special leasing terms

Strategy
Source: CBRE APAC Research, Asia Pacific Retail Flash

Survey conducted Sept 21 to Oct 20, 2020.
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)
87%
Source: Entrepreneur.com, Dec 2020
(*)
believe consumers focus on

sustainability and wellness
Which will reshape shopping behaviour
61% (*)
expect a significant increase in consumers’

spending on experience
Source: CBRE APAC.

Source: QandME Vietnam EC Market, 2020.
*Answers from 120 APAC industry leaders, CBRE survey, 2020
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 Demand for large flagship stores from luxury
spending: Taiwan and Vietnam, which have controlled and fast fashion retailers continues to
the coronavirus, are enjoying firm spending while increase even as they pivot to e-commerce
Malaysia, Indonesia and the Philippines are stagnant”
27
THE FUTURE OF RETAIL PROPERTY: HOW TO INCREASE RETAIL ASSET RESI LIENCE
28
MARKET OUTLOOK: LARGE-SCALE PROJECTS WILL DOMINATE FUTURE PIPELI NE
Over 300,000 sqm in the pipeline Hanoi Retail Forecast
2021 2022-2023 120 20%
100
15%
US$/sqm/month
80
60 10%
FLC Twin Towers
NLA:14,000 sqm The Manor Central Park 40
NLA : 70,000 sqm 5%
Lotte Mall Hanoi 20
NLA : 72,000 sqm
- 0%
2020 2021F 2022F 2023F
Vincom Mega Mall Smart City CBD Asking Rent
NLA : 49,000 sqm Park City
NLA: 12,000 sqm Non-CBD Asking Rent
CBD Vacancy Rate
Non-CBD Vacancy Rate
Aeon Mall Giap Bat

Upcoming Vincom Source: CBRE Vietnam Research, Q4 2020
Hinode City NLA : 84,000 sqm
Mega Malls Note: Asking rent is quoted on NLA, excluding VAT & Service
NLA : 10,000 sqm charges for Ground Floor and First floor.
29
MARKET OUTLOOK: VIETNAM IS AMONGST THE LEAST AFFECTED
APAC Retail, % Changes in Rental rates Forecast
10%
0%
-10%
Y-o-Y Change
-20%
-30%
-40%
-50% 2020F 2021F 2019 - 2021 Cumulative
-60%
Beijing
Hanoi
Guangzhou
Shenzhen
Perth - CBD
Melbourne - CBD
Sydney - CBD
Singapore
Shanghai
Hong Kong SAR

Taipei
Perth - Regional Ctr
HCM
Brisbane - CBD
Melbourne - Regional
Tokyo (Ginza)
Brisbane - Regional
Auckland - Regional
Sydney - Regional Ctr
Ctr
Ctr
Ctr
Source: CBRE Vietnam Research, January 2021
Note: Asking rent is quoted on NLA, excluding VAT & Service charges for Ground Floor and First floor .
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 one-
stop experience
• Mixed use developments help drive spending
INDUSTRIAL
RESILIENCE
32
A YEAR TO LOOK BACK
20
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
20
High Occupancy Surge of Logistic Strong Asking Limited Manufacturing New Players Have
Rate of Property Demand Rent Escalation Industrial Land Relocation is Key Joined The Market
Industrial Parks Supply in Prime Demand Driver
Locations
33
MARKET SNAPSHOT - INDUSTRIAL LAND
SUPPLY PERFORMANCE
South North 100% 350
11,000
Total leasable area: 24,238 ha Total leasable area: 9,433 ha
• Hanoi 10,000 90%
300
• Hung Yen 80%
9,000
USD/sqm/remaining term
• Hai Duong
• Hai Phong 70% 250
• Hung Yen
8,000
60%
7,000 200
50%
6,000 150
40%
5,000
30% 100
4,000
20%
3,000 50
10%
• HCMC
2,000 0% 0
HCMC Hanoi Binh Dong Long Bac Hung Hai Hai BR-VT
• Dong Nai
1,000 Duong Nai An Ninh Yen Duong Phong
• Binh Duong
90 - 100% 70 - >80% 50 - >60%
• Long An 0 Occupancy Occupancy rate Occupancy
Binh Dong BR-VT Long An HCMC Hai Bac Hanoi Hai Hung rate rate
Duong Nai Phong Ninh Duong Yen
Occupancy rate Vacancy rate
Total Industrial Land Area (ha) Leasable Industrial Land Area (ha) Minimum asking rent Maximum asking rent
Significant gap of supply and rental rate between Source: CBRE Vietnam Research, Q4 2020.
the major industrial regions

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.
34
MARKET SNAPSHOT - READY-BUILT FACTORY AND WAREHOUSE
SUPPLY ASKING RENT

RBF
12
10
USD/sqm/month
• Hanoi 3
• Hung Yen
• Hai Duong 8
•
•
Hai Phong
Bac Ninh 6 Ready-built Factory
• Thai Nguyen 4
• Vinh Phuc Stable asking rent
• Bac Giang 2 2
Mil. sqm
0
HCMC Hanoi Binh Dong Bac Hung Bac Hai Hai
Duong Nai Ninh Yen Giang Duong Phong
1 12 Warehouse
USD/sqm/month
10
Developed logistics hubs Emerging logistics hubs
8
• HCMC
• Dong Nai
6 Warehouse
• Binh Duong 0 4
• Long An
RBF Supply WH Supply 2
Up 5%-10% y-o-y
0 in selected new
Major Northern Provinces HCMC Hanoi Binh Dong Bac Hai Long Hung projects
Major Southern Provinces Duong Nai Ninh Phong An Yen

Note: Northern RBF supply is calculated for Bac Ninh, Hai Duong, Hai Phong, Thai Nguyen,
Vinh Phuc, Hung Yen, Bac Giang. New supply increases significantly in
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
major industrial regions
35
LOGISTICS INDUSTRY DOMINATES DEMAND
Industrial land is the most sought-after product, especially for Animal feed and Furniture are one of the biggest
logistics property development. beneficiaries from FTAs.
30% 38% Industrial Land
RBF
WH
33%
One fifth of leasing enquiries belongs to logistics companies

Logistics
Electronics
20% Industrial Property Development
35% Plastic
Garment
12%
Medical Equiment
Investment
7%
6% Construction
2% 6%
5% Automotive
4%
Other
Note: The statistic is based on industrial property enquiries received by CBRE Vietnam in 2020.
36
MANUFACTURING RELOCATION IS A KEY DEMAND DRIVER
Bac Giang
Apple’s vendors in Vietnam: Supply Chain Restructuring
Bac Ninh China+1 Strategy
Manufacturing Relocation
Quang Ninh
Ha Noi
Hai Phong
Nghe An
Local Expansion
Da Nang
Quang Nam Supplier by country

Manufacturing location of suppliers in Vietnam
Dong Nai
20% 19%
North China
Binh Duong 45%
HCMC 7%
South Vietnam
35% Central 74% Other
Tien Giang
Existing Manufacturing Location Expanded Manufacturing Location Source: Supplier List, Apple Supplier Responsibility 2019.
37
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+
Agriculture
& Garment Logistics
EVFTA
June 2019
Vietnam & EU
August 2020
38
NEW PLAYERS IN THE MARKET
Tier-1 industrial cities and provinces are key

focused areas.
Industrial Park Logistics Property
Vinh Phuc
Phu Tho Bac Giang
Bac Ninh Quang Ninh

Hanoi
Hung Hai
Duong Hai
Yen
Phong
Ha Nam Thai Binh
Nam Dinh
Tay Ninh
Binh Duong
Dong Nai
HCMC
Long An
BR - VT
OUTLOOK
40
ESTABLISHING NEW LOGISTICS HUBS IN MAJOR INDUSTRIAL REGIONS
Thai Nguyen Chi Lang City Binh Duong

Industrial Park
Thai Nguyen City
Tay Ninh
International Airport
Vinh Phuc
Bac Giang Thu Dau Mot City

Vinh Phuc City Dong Nai
Bac Giang City Bien Hoa City
Bac Ninh City
Quang Ninh
Bac Ninh HCMC
Ha Long City
Hai Duong City
Ha Noi Hai Duong

Hai Phong City Long An CBD of HCMC
Hung Yen
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
Long An
30 km International Port
Northern Region Southern Region
41
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

Thai Nguyen Lang Son
Mong Cai
Vinh Phuc
Bac Giang Vinh Phuc
Bac Ninh
Bac Giang
Hai Duong
Vinh Phuc
Hai Phong Ha Long Noi Bai Bac Giang
Quang Ninh
Bac Ninh
Phu Ly
Van Don
Bac Ninh
Ninh Binh
Hanoi
Hai Phong Ha Long

Hai Duong
Performance of IPs in Tier-1 & Tier-2 region Hung Yen Cat Bi

100% 300 USD/sqm/remaining term
80% 250
200
60% Phu Ly Thai Binh
Nam Dinh
150
40%
100
20% 50 Completed Expressway Under-construction/planning Expressway
0% 0 National Road
Tier-1 Tier-2
Construction of Van Don -
Occupancy rate Min asking rent Max asking rent
Tier-1: Hanoi, Bac Ninh, Hai Duong, Hung Yen, Hai Phong Mong Cai Expressway is
Source: CBRE Vietnam Research, Q4 2020. expected to complete in 2021.
Tier-2: Vinh Phuc, Nam Dinh, Bac Giang, Quang Ninh
Image source: Zing News.
42
INVESTMENT INTO INFRASTRUCTURE DRIVES DEMAND IN NEW LOCATION
Binh Duong
Expansion of expressway to the west and coastal areas in the South
Chon Thanh Dong Xoai Thu Dau Mot
Tay Ninh Bien Hoa
Bien Hoa
Dong Nai
Chau Doc Phan Thiet
Cao Lanh Tan An

Tan Son Nhat
Ha Tien
Long Xuyen Long Thanh
My Tho
Vinh Long
Vung Tau
Experimental operation of Trung
Rach Gia Can Tho HCMC Luong - My Thuan Expressway in
Long An Cat Lai
December 2020.
Soc Trang
Bac Lieu
Ca Mau
Hiep Phuoc
Performance of IPs inTier-1 & Tier-2 region USD/sqm/remaining term
Tan An
Long An International
100% 350
300
80%
250 Tien Giang My Tho
60% 200
40% 150 My Thuan 2 Vinh Long

Bridge
100
20%
50
0% 0 Can Tho
Tier-1 Tier-2 Vinh Long
Completed Expressway
Occupancy rate Min asking rent Max asking rent Construction of My Thuan - Can Tho
Construction of My Thuan 2 Bridge
Under-construction/planning Expressway & Long Thanh International
Source: CBRE Vietnam Research, Q4 2020. started in August 2020.
Expressway
Image source: Vnexpress, Tuoitre. Airport started in January 2021
43
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.
44
RESURGE OF INDUSTRIAL PROPERTY DEVELOPMENT

New supply is expected to resurge and balance gap with rapid increasing demand.
Northern Region Southern Region

3,000 120 4,000 180
160
2,500 100 3,500
3,000 140
2,000 80 120
2,500
1,500 60 100
Ha
Ha
2,000
80
1,000 40 1,500
60
1,000 40
500 20
500 20
0 0 0 0
2016 2017 2018 2019 2020 2021F 2022F 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 Southern Tier-1: HCMC, Dong Nai, Binh Duong, Long An
Northern Tier-2: Bac Giang, Nam Dinh, Vinh Phuc, Quang Ninh Southern Tier-2: Binh Thuan, BR-VT, Binh Phuoc, Tay Ninh, Tien Giang, Vinh Long
45
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

Yangon, Myanmar: Ministry of Construction
Myanmar
Myanmar Singapore Industrial Park

436 ha
Singapore: Sembcorp
Myanmar: Pahtama Group, Myanmar Agribusiness
Brebes,
Brebes Industrial Park
Indonesia
4,000 ha
Indonesia: PT Wijayakusuma Industrial Estate

SIGNIFICANT IMPROVE OF PERFORMANCE
OF IPS IN TIER-2 REGIONS
ASKING RENT INCREASE MODERATELY

IN TIER-1 REGION
20
21
WAREHOUSE RENTAL RATE ESTABLISHES
NEW HIGH LEVEL. THE
NEW SUPPLY IN PRIME LOCATIONS
RESILIENCE
LOCAL MANUFACTURING EXPANSION & OF INDUSTRIAL MARKET
PRODUCTION SHIFTING ARE KEY
DEMAND DRIVERS BALANCING DEMAND AND SUPPLY
NEW LOGISTICS HUBS EMERGE IN

NON-TRADITIONAL AREAS
HANOI REAL ESTATE
HANOI RESIDENTIAL
RESUMPTION
48
48
A YEAR TO LOOK BACK
DISRUPTED SALES ACTIVITIES
Limited transactions Lower supply Weak rental Investors looking

from foreigners and sales volume market for other
channels/markets
BUT SHOWING SIGNS OF RECOVERY
New launch and

sold units bounced Increase in new Sold units exceeded Price growth as projects
back in Q4 (similar to supply in new supply near completion
pre-COVID level) neighboring
provinces
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49
NEW LAUNCH DOWN 52% Y-O-Y, BUT BOUNCED BACK BY YEAR END
HANOI CONDOMINIUM: MARKET SNAPSHOT 2020

Total units sold: 18,514 - Total units launched: 17,974 from 34 projects
Luxury High-end Mid-end Affordable
New launch 0 project 3 projects 7 projects

24 projects
supply 0 unit 1,989 units 2,725 units
13,260 units
1 project relaunched ▲ 12% y-o-y ▼ 55% y-o-y ▼ 54% y-o-y
Selling US$ 5,100/sqm US$ 2,168/sqm US$ 1,361/sqm US$ 830/sqm

price* ▼ 7% y-o-y ▲ 4% y-o-y ▲ 6% y-o-y
DECLINE
Sold 59 units 1,823 units 13,838 units 2,794 units IN NEW
units ▲ 26% y-o-y ▼ 31% y-o-y ▼ 55% y-o-y
▼ 19% y-o-y LAUNCH
(*) Selling price: US$ psm (excluding VAT and quoted on NSA) LUXURY: >US$4,000 psm | HIGH END: US$2,000 – 4,000 psm
Source: CBRE Vietnam Research, Q4 2020. MID END: US$1,000 – 2,000 psm | AFFORDABLE: < US$1,000 psm
Limited New Supply Due to
Disruption of COVID-19
A Image:
S I A P A CNhan
I F I C R Dan.com.vn
EAL ESTATE MARKET OUTLOOK 2021 | VIETNAM CBRE RESEARCH | © 2021 CBRE, INC.
51
LOWEST NEW SUPPLY VOLUME SINCE 2015
Hanoi Condominium, New Launch Supply, 2020
17,974 units
40,000 (▼ 52% y-o-y) 100
90
35,000
80
30,000
70
Number of projects
Number of units
25,000
60
20,000 50
40
15,000
30
10,000
20
5,000
10
- 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Luxury High-end Mid-end Affordable Number of projects launched

52
NEW SUPPLY IN 2020: THE EAST LED THE NEW LAUNCH SUPPLY
Landed property:
NORTH 844 units (▼ 80% y-o-y) from
8 projects
Condominium:
17,974 units (▼ 52% y-o-y) from
34 projects
5%
11%
WEST EAST
NO NEW LAUNCH IN
4 CORE DISTRICTS (*)
IN 2020 44%
40%
East West South North

8 Landed property
0 Luxury
SOUTH EAST took the lead in
3 High-end
24 Mid-end
number of units launched
7 Affordable
(*) 4 core districts: Hoan Kiem, Hai Ba Trung, Dong Da, Ba Dinh districts
Future bridge in 2020
53
RENTAL YIELDS COMPRESSED IN TRADITIONAL EXPAT HUBS
Hanoi Condominium, Rental Yields By

Clusters
6.0%
5.0%
4.0%
Rental Yield
3.0%
2.0%
1.0%
0.0%
CBD Midtown Tay Ho West South
2018 2019 2020

Selected projects only, capital gain not included.
54
INVESTORS LOOKING FOR OTHER CHANNELS
Returns Of Different Investment Channels

New stock trading accounts hit
record high
2020
06/12/2020
Gold prices hit new record 2019
21/07/2020
2018
Bitcoin soars above $35,000, -10.00% 0.00% 10.00% 20.00% 30.00% 40.00%
hitting new high
VND/USD exchange rate
06/01/2021 Gross residential yield
Bank deposit
Stock Market (VN Index)
Source: CBRE Vietnam Research; SJC; SBV, Q4 2020
• VN Index: y-o-y change, end of period
Gold (SJC)
• Bank savings: 12-month deposit
• SJC gold: y-o-y change of price per tael Return > 15% in one year
Selling prices are
set at higher
levels across
locations
Image: Nhandan.com.vn
56
HANOI CONDOMINIUM: DELAY IN LAUNCH OF PROJECTS AT PRIME LOCATION S
LEADING TO LOWER PRIMARY PRICING FOR HIGH -END SEGMENT
Hanoi Condominium, Primary Prices, 2020 Hanoi Condominium, New Launch Vs. Sold Units
Lower Supply Volume Allows Sales To Catch Up
$6,000 40,000
$5,000 $5,100 35,000

30,000
$4,000 Launch: ▼ 52% y-o-y
25,000 Sold: ▼ 35% y-o-y
Units
$3,000 $2,168 20,000
(▼7% y-o-y)
$2,000 $1,361 15,000
(▲ 4% y-o-y)
10,000
$1,000 $830
(▲6% y-o-y) 5,000
$0
-
2018 2019 2020
2018 2019 2020
New launch Sold units
Selling price: US$ psm (excluding VAT and quoted on NSA)
57
NEW RECORDS
DEVELOPERS SET BY
NEWDISTRICTS
PRICING LEVELS ACROSS CLUSTERS
First two new Nha

high-end projects
Be, Thu Duc and
Luxury project relaunched in launched inDistrict
Long Bien
9 recorded highest
Cau Giay district and Gia Lam districts
price growth. New
projects in these area
quoted higher selling
CAU GIAY prices by 47%-70% in
comparison with
▲ 35% y-o-y EAST
WEST surrounding area.
LONG BIEN
▲ 11% y-o-y
NAM TU LIEM
▲ 10% y-o-y
GIA LAM
New high-end project offered ▲ 20% y-o-y
higher pricing
DISTRICT Upgrade in position of

Primary Price▲% (% differences between the SOUTH large-scale township
highest offerings in 2020 and average
selling price of the same location in 2019)
Source: CBRE Vietnam Research, Q4 2020. HUNG YEN
(Selling price: US$ psm (excluding VAT and quoted on NSA) ▲ 12% y-o-y
58
HANOI LANDED PROPERTY: LIMITED NEW SUPPLY LEADING TO STRONG PRIC E GROWTH
Hanoi Landed Property, Secondary Prices, 2020 Hanoi Landed Property, New launch vs. Sold units
Launches mostly from smaller scale projects compared to
previous years
6,500
▲ 8% y-o-y
Secondary price (US$/sqm)
6,000
6,000
5,500 5,000
▲ 9% y-o-y
5,000 4,000
Units
4,500 3,000
▲ 6% y-o-y
4,000 2,000 Launch: ▼ 80% y-o-y
Sold: ▼ 88% y-o-y
3,500
1,000
3,000
2018 2019 2020 -
2018 2019 2020
Villa Townhouse Shophouse
New launch Sold units
Prices are quoted per sqm of land inclusive of construction cost, exclusive of VAT
POSITIVE
Recovery Prospects
60
MARKET OUTLOOK
Hanoi Condominium, New Launch and Sold Units Forecast
40,000
Launch: ▲ 40% y-o-y
35,000
Sold: ▲ 38% y-o-y
30,000
Number of units
25,000 25,500
25,000
20,000
15,000
10,000
5,000
-
2018 2019 2020 2021F 2022F
New launch
61
MARKET OUTLOOK
Hanoi Condominium, Primary Price Forecast
$7,000
$6,000
$6,000
Primary Pricing (US$ psm)
$5,000
$4,000 $4,600
$3,000 ▲ 10% y-o-y ▲ 5% y-o-y
$2,000 ▲ 2% y-o-y
▲ 4% y-o-y
$1,000
▲ 4% y-o-y ▲ 4% y-o-y
$0
2018 2019 2020 2021F 2022F
62
FOREIGN DEVELOPERS AND SOUTHERN BASED DEVELOPERS GO NORTH
A HCMC-based company
bought 50% share of Splendora
21/08/2020
Japanese real estate giant

Nomura invests in Ecopark
12/11/2020
Phu My Hung bought a

company owned 200ha in Bac
Ninh
MASTERISE HOMES LAUNCHED MASTERI FUJITA CORPORATION & TAKARA 08/09/2018
WATERFRONT @ VINHOMES OCEAN LEBEN LAUNCHED THE MINATO
PARK RESIDENCE IN HAI PHONG
Image source: Vneconomy.vn
Image source: Cafebiz.vn
63
EMERGENCE OF SUBURBAN DISTRICTS AND PROVINCIAL MARKETS FOCUSING
ON LANDED PROPERTY PRODUCTS
Landed Property, New Launch Forecast, 2021F
3,000
2,500
Number of units
2,000
1,500
1,000
500
-
Hung Yen Bac Ninh Hai Thai Bac Giang
(*) Duong Nguyen

(*) Hung Yen excludes Ecopark
64
RESIDENTIAL CLUSTERS IN HANOI: EXPANSION AND UPGRADING
2020 2030F Affordable projects to

move further and
further away from
RING ROAD 3
(*) 4 core districts: Hoan Kiem, Hai Ba Trung,

Dong Da, Ba Dinh districts
LUXURY HIGH-END MID-END AFFORDABLE
Improvement in product quality, driven by
new joiners to Hanoi market
Investors looking for new opportunities in 20

2nd tier provinces 21
Vaccine for COVID-19 and Vaccine for market THE
New supply bounced back in 2021 RESUMPTION

OF RESIDENTIAL MARKET
Big data, technology, proptech
to track customers and drive customization.
Better services, better positioning, better sale
management and asset management
A S I A PAC I F I C R E A L E S TAT E
MARKET OUTLOOK | VIETNAM
THANK YOU
CBRE RESEARCH
This report was prepared by the CBRE Asia Pacific Research Team, which forms part of CBRE Research – a network of preeminent researchers who collaborate to provide real estate
market research and econometric forecasting to real estate investors and occupiers around the globe.
All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been
obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee,
warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication.
This report is presented for information purposes only exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell
or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any
way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorized publication or redistribution of CBRE research reports is
prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.
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© 2021 CBRE, Inc.

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H A N O I R E A L E S TAT E

A YEAR TO LOOK BACK

HANOI OFFICE: MARKET SNAPSHOT 2020

ASKING 126,000 SQM

Source: CBRE Vietnam Research, Q4 2020.

LARGEST NEW SUPPLY SINCE 2014

Hanoi Office, Total Supply 2014 - 2020

HIGHEST VACANCY RATE SINCE 2014

Hanoi Office, Vacancy Rate

Source: CBRE Vietnam Research, Q4 2020

RENTAL GROWTH DISRUPTION BY COVID -19

Hanoi Office, Asking Rent

CONTRACTION GREW SHARPLY AS OCCUPIERS LOOK TO REDUCE COSTS

NLA (thousands sqm)

2018 2019 2020 Grade A Grade B

KEY DEMAND DRIVERS CONTINUE TO SHIFT AS THE PANDEMIC UNFOLDS

0% 5% 10% 15% 20% 25% 30%

Source: CBRE Vietnam Research, Q4 2020

A SHIFT IN REAL ESTATE STRATEGY?

FIRMS INCORPORATE FLEXIBILITY AND DISTANCING

Encourage employees to work from

Bring everyone back to the office, no

WHAT TENANTS ARE LOOKING FOR?

A good range of value-

Modern specifications, Green building Competitive financial

FUTURE OFFICE SUPPLY

Hanoi Office, Notable Future Projects Awaiting Large-scale Projects

APAC, Grade A Office Rental Growth Outlook

Hong Kong SAR

Source: CBRE Vietnam Research, Q4 2020

Asking rents (US$/sqm/month)

WILL LINE NO. 2A IMPACT RENTS IN 2021?

SIGNIFICANT NEW SUPPLY TO

A YEAR TO LOOK BACK

SLIGHT GROWTH IN NEW SUPPLY AND SIGNIFICANT CHANGES IN PERFORMAN CE

HANOI RETAIL: MARKET SNAPSHOT 2020

Source: CBRE Vietnam Research, Q4 2020

STRONG EXPANSION OF EXISTING TENANTS

UNIQLO opened 3 outlets in Vincom Pham Ngoc

MLB opened 2 outlets in Trang Tien Street & Vincom

80% Haidilao entered Hanoi market with 3 new

20% New launching coffee shop of The Coffee House in

Nars opened its first boutique store on Trang Tien

DECREASE IN NUMBER OF NEW ENTRANTS

2019 2020 – New Entrants 2021 Expected

STRONG TENANTS TAKE ADVANTAGE OF THE SITUATION TO EXPAND

Who are strong tenants What they ask

Strong Free fit out period up to 3 months

Special leasing terms

Source: CBRE APAC Research, Asia Pacific Retail Flash

NEW CONSUMER BEHAVIOURS WILL BE HERE TO STAY

“Vietnam's E-commerce Market To Reach

believe consumers focus on

expect a significant increase in consumers’

Source: CBRE APAC.

FASHION IS AMONGST THE STRONGEST EXPANDING SECTORS IN 2021

Nike to Open 30 Stores in 2021, Continue Investing in

Louis Vuitton, Christian Dior join Hanoi luxury market

Asia will lead spending recovery, Uniqlo CEO Yanai