Hồ Chí Minh City Office market overview
Nghiên cứu thị trường văn phòng cho thuê cảu Savills Việt Nam. Công bố tháng 2-2008.
Ho Chi Minh City Office Market Overview
February 2008
Overall Office Market Overview
Leased Area, Vacancy Rates and Rents, Q4/1996 – Q4/2007
Leased Area (LHS) Vacancy (LHS) Average Rent (RHS)
sq.m. US$ per sq.m. per mth
600,000 40
35
500,000
30
400,000
25
300,000 20
15
200,000
10
100,000
5
0 0
96 97 98 99 00 01 02 03 04 05 06 07
Source: Savills Research & Consultancy
Grade ‘A’ Office Market
Leased Area, Vacancy Rates and Rents, Q4/1996 – Q4/2007
Leased area (LHS) Vacancy (LHS) Average Rent (RHS)
sq.m. US$ per sq.m. per mth
80,000 80
70,000 70
60,000 60
50,000 50
40,000 40
30,000 30
20,000 20
10,000 10
0 0
96 97 98 99 00 01 02 03 04 05 06 07
Source: Savills Research & Consultancy
Grade ‘B’ Office Market
Leased Area, Vacancy Rates and Rents, Q4/1996 – Q4/2007
Leased Area (LHS) Vacancy (LHS) Average Rent (RHS)
sq.m. US$ per sq.m. per mth
140,000 50
45
120,000
40
100,000 35
30
80,000
25
60,000
20
40,000 15
10
20,000
5
0 0
96 97 98 99 00 01 02 03 04 05 06 07
Source: Savills Research & Consultancy
Grade ‘C’ Office Market
Leased Area, Vacancy Rates and Rents, Q4/1996 – Q4/2007
Leased Area (LHS) Vacancy (LHS) Average Rent (RHS)
sq.m. US$ per sq.m. per mth
200,000 30
180,000
25
160,000
140,000
20
120,000
100,000 15
80,000
10
60,000
40,000
5
20,000
0 0
96 97 98 99 00 01 02 03 04 05 06 07
Source: Savills Research & Consultancy
Ho Chi Minh City CBD
Completion 2008
Project / supply / Grade Sacombank
Gemadept 12,000 / B
VP Tower 12,000 / B Centec
EVN Building
Saigon 12,000 / B
Happiness Gemadept
Sailing Tower
Square
Sailing 14,500 / B Asiana Plaza
Tower
Etown 3 13,000 /
Suburban
(Not Shown)
Airport 22,000 /
Business Suburban Sun Wah Tower
(Not Shown)
Center
Completion 2009
Project / supply / Grade
Asiana 27,000 / A Bitexco Tower
Plaza
Centre- 27,000 / B
point (Not Shown) Completion in 2008
Centec 16,000 / B VP Tower
Completion in 2009
Tower
EVN 11,000 / B
Completion in 2010
Current Supply
Future supply will steadily increase
Future Office Supply in HCMC, 2008 – 2012
sq.m. Existing Supply New Supply
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2008 2009 2010 2011 2012
Source: Savills Resaerch & Consutlancy
Grade ‘A’ office rents rose by almost 90% in 2007
Average Rents by Grade, Q4/2006 - Q4/2008E
Grade 'A' Grade 'B' Grade 'C' Suburban
USD per sq.m. per month
120
100
80
60
40
20
0
Q4/06 Q3/07 Q4/07 Q4/08E
Source: Savills Resaerch & Consutlancy Note: Rent is inclusive of service charge but exclusive of VAT
A ‘Full-house’ Scenario is expected in 2008
Occupancy Rates by Grade, Q4/2006 - Q4/2008E
Grade 'A' Grade 'B' Grade 'C' Suburban
%
100
99
98
97
96
95
94
93
Q4/06 Q3/07 Q4/07 Q4/08E
Source: Savills Resaerch & Consutlancy
Strong upcoming take-up is expected
Office Take up in HCMC, 1997 – 2010F
sq.m.
200,000
160,000
120,000
80,000
40,000
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008F
2009F
2010F
Source: General Statistics Office Of Vietnam, Savills Resaerch & Consutlancy
Major office buildings completed in Phu My Hung in 2008 & 2009
Project Expected completition Supply Status
Saigon Paragon Q2-2008 9,000 Under construction
BS1 Building Q4-2008 2,600 Foundation
BS2 Building Q4-2008 7,200 Foundation
Nam Long Capital Tower Q4-2008 6,000 Foundation
Crescent Office Building 2009 7,900 Planning
Saigon Design Center 2009 5,500 Planning
Current Market Comparison
Estimated Highest Achievable
Location Rent & Service Charge Occupancy
(US$/ sq m/ month)
Grade A in CBD $76.80 100%
Grade B in CBD $60.65 100%
Phu My Hung $22.88 100%
Major office bldgs to be completed in Phu My Hung, 2008 & 2009
No new Grade ‘A’ supply in 2008
Office Supply, 2008
sq.m.
70,000
A total of 25 projects providing (7 projects)
173,886 sq.m. in 2008 (13 projects)
60,000
50,000
(5 projects)
40,000
30,000
20,000
10,000
(0 projects)
0
Grade 'A' Grade 'B' Grade 'C' Suburban
Source: Savills Resaerch & Consutlancy
Demand will come from local companies such as banks, securities
companies, funds and trading companies in addition to foreign investors.
New FDI in HCMC, 2008 – 2012
US$ million
3,000
“Currently, the foreign-invested
sector makes up more than 16 per
2,500
cent of the gross domestic product
and 58 per cent of last year’s export 2,000
value providing more than $1.5 billion
to the state budget annually, creating 1,500
1.3 million direct jobs and a million
indirect ones.” 1,000
500
Minister of Planning and Investment
Vo Hong Phuc 0
2000 2001 2002 2003 2004 2005 2006 2007E
VIR: 28-1-2008 Source: General Statistics Office Of Vietnam, Savills Resaerch & Consutlancy
“The reasons for the sharp rise in Japanese investment in Vietnam are increased risks in
investment in China, increased production costs in Vietnam’s neighbours”
Mizuho Corporate Bank
Toshihiro Mitsui
FDI keeps pouring into Vietnam
Registered Investment Capital in Vietnam, 2000 – 2010F
US$ million
35,000
(+16%)
30,000
(+16%)
25,000 (+16%)
(+99%)
20,000
15,000
(+76%)
10,000
(+40%)
(+33%)
5,000
0
2000 2001 2002 2003 2004 2005 2006 2007E 2008F 2009F 2010F
Source: General Statistics Office Of Vietnam, Savills Resaerch & Consutlancy
No. of registered companies rapidly increasing
No. of Registered Companies & Total Registered Capital in HCMC, 2008 – 2012
No. of Registered Local Enterprises (LHS) Total Registered Capital (RHS)
US$ million
16,000 2,000
1,800
14,000
1,600
12,000
1,400
10,000
1,200
8,000 1,000
800
6,000
600
4,000
400
2,000
200
0 0
1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: HCMC Department of Planning and Investmen, Savills Research & Consultancy
Golden Land Sites: In the News!
The Ho Chi Minh City
administration has approved a
US$56.5- million bid made by a
consortium of construction industry
firms for a 6,000-square meter plot
of land at the Van Thanh Market in
Binh Thanh District
The Land [golden triangle area at
Tran Hung Dao & Pham Ngu Lao
Nguyen] attracted an astonishing
VND10.5 trillion ($654.4 million)
[bid]
Thanh Nien Daily
February 21, 2008
Issues facing tenants in Vietnam when leasing
¾ Decentralization Completion dates delayed and sometimes stalled
projects (multiple times in some cases)
¾ Developer elects to self-manage building with little or no experience
¾ Licensing issues - Ensure the Land Lord has the right to lease office
space. Ask for LUR AND business license
¾ Deposits sometimes large and in advance (high costs when added
to fitout costs). This often means the developer is out of money
¾ Leasable Area calculations (what is the usable area? Calculated on
gross or net area)
¾ Car parking (Always an issue, never enough bays.)
¾ Agreement terms and conditions (Land Lord demanding unrealistic
clauses)
¾ Liability clauses
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