Post on 03-Aug-2020
Savills Viet NamResearch
Viet NamOffice 2018
UK,
Irela
nd & Channel Islands124Offices
Europe
117Offices
Middle East & Africa273Offices
Asia Pacific
70Offices
Americas & Caribbean64Offices
AmericasAsia
Pacific
Africa
Europe
35,000 employees across a network of over
600 offices in more than, 60 countries
We will be the real estate adviser of choice in the markets we serve. We do not wish to be the biggest, just the best (as judged
by our clients).
Our values capture our commitment not only to ethical, professional and responsible conduct but to the essence of real estate success, an entrepreneurial value-embracing approach.
GLOBAL NETWORK
2
SAVILLS VIET NAM
Over 22 yearsEstablished in Vietnam since
1995. The 1st International Property Firm in the Country
68,000 sqm leased in 2016
200 mil US$Total value
of residential sales in 2016.
Over 5.2 M sqm Under management in 2016 (over 36 buildings in HCMC and over 18 in Hanoi).
Our Research and Consultancy Services are the most innovative in Vietnam
Number one agency in volume of transactions with over USD 100M transacted each year.
CAMBODIA
DANANG
LAOS
MYANMAR HANOI
HCMC
UK,
Irela
nd & Channel Islands124Offices
Europe
117Offices
Middle East & Africa273Offices
Asia Pacific
70Offices
Americas & Caribbean64Offices
AmericasAsia
Pacific
Africa
Europe
35,000 employees across a network of over
600 offices in more than, 60 countries
We will be the real estate adviser of choice in the markets we serve. We do not wish to be the biggest, just the best (as judged
by our clients).
Our values capture our commitment not only to ethical, professional and responsible conduct but to the essence of real estate success, an entrepreneurial value-embracing approach.
GLOBAL NETWORK
Savills Viet Nam | 3
REGIONAL PERFORMANCE
10.2 9.78.6
97%80%
92%92% 96%
79%
23.5
35.229
48
30.836.5
5.51.61.6
BANGKOK HA NOI HCMC MANILAKL JAKARTA
Occupancy, 2017 Gross rent (US$/m²/mth), 2017Supply (million m²), 2017
PotentialViet Nam is <20% of regional peers.
KEY
4
REGIONAL PERFORMANCE
10.2 9.78.6
97%80%
92%92% 96%
79%
23.5
35.229
48
30.836.5
5.51.61.6
BANGKOK HA NOI HCMC MANILAKL JAKARTA
Occupancy, 2017 Gross rent (US$/m²/mth), 2017Supply (million m²), 2017
PotentialViet Nam is <20% of regional peers.
KEY
HCMC HA NOI
Grade Arelatively small HCMC 14% v.Ha Noi 29%
0%
20%
40%
60%
80%
100%
Mill
ion
m²
Mill
ion
m²
HCMC
HA NOI
Supply
Leased area
5n Absorption Av Pa
0
1
2
0
1
2
20162013
2015 2016 201720142013
Supply
Leased area
2014 2015 2017
5n Supply Av Pa
HCMC HA NOI
88,000 m2 123,000 m2
90,000 m2 120,000 m2
Grade A
Grade B
Grade C
Supply by GradeAbsorption
DEVELOPMENT
Savills Viet Nam | 5
5 Large Occupiers (>1,000 m²)
Grade A Whole Floor Availability
HCMC: CBD DEMAND
Manufacturing ICTF.I.R.E Consultancy Utilities
2015 2016
21 102017
1
42% 17% 9% 7% 6%
1 2 3 4 5
Leased Area
# Tenants
Averagedeal
Smaller(<500 m²)
Larger(>1,000 m²)
0% 20% 40% 60% 80% 100%
<500 m²
<500 m²
500-1,000 m²
500-1,000 m²
>1,000 m²
>1,000 m²
m²
leased area
of tenants but
leased area
of tenants
m²
6
5 Large Occupiers (>1,000 m²)
Grade A Whole Floor Availability
HCMC: CBD DEMAND
Manufacturing ICTF.I.R.E Consultancy Utilities
2015 2016
21 102017
1
42% 17% 9% 7% 6%
1 2 3 4 5
Leased Area
# Tenants
Averagedeal
Smaller(<500 m²)
Larger(>1,000 m²)
0% 20% 40% 60% 80% 100%
<500 m²
<500 m²
500-1,000 m²
500-1,000 m²
>1,000 m²
>1,000 m²
m²
leased area
of tenants but
leased area
of tenants
m²
Tenants by Industries
Two year take-up ~1,000 m²
2015
2017
31% 12% 9% 4%4% 6% 7% 4% 23%
Manufacturing
ICT
Consultancy
Utilities
Pharmacy &
Healthcare
Mining
Distribution
Others
F.I.R.E
31% 15% 11% 7% 6% 6% 5% 5% 14%
45 44
29 29
85
-5 -6
-17
F.I.R.E Manufacturing ICT Consultancy Utilities Pharmacy &Healthcare
Mining Distribution Others
HCMC: CBD DEMAND
(Thousand m²)
Savills Viet Nam | 7
Finance
Real Estate
Source: GSO
Source: Statistics Offices in Surveyed Countries
Regional F.I.R.E, 2016
Viet Nam F.I.R.E employment
DEMAND: F.I.R.E(Finance, Insurance, Real Estate)
Malaysia
Indonesia
Thailand
Philipines
Viet Nam
100
200
300
400
500
Q1/2017
Thou
sand
jobs
% to
tal e
mpl
oym
ent
F.I.R.E employment:
Q1/2012 Q1/2013 Q1/2014 Q1/2015 Q1/2016
60% in HCMC,Ha Noi
jobs
Philippines (1.7%),Thailand (2%),
Malaysia (3%)
If F.I.R.E employment
doubles in the next 5 years, CBD
demand to catch up?
m² pa
of total employment v.
Employment growth2012-2016
Finance & Insurance
% pa
% pa
Real Estate
0% 1% 2% 3% 4%
8
Source: Swiss Re Sigma 2017
Source: Savills Research & Consultancy;Various sources
DEMAND: BANKS
Insurance Premium Penetration, 2016DEMAND: INSURANCE
Malaysia
Thailand
Philipines
Viet Nam
Bank
s
In CBD prestige towers:
HCMCHa Noi
2015-2020 CAGR 25% paMoF sector development focus
Low penetrationPromising market
> 40 players. Increasing high-end demand
403020100
Local
Foreign
37
11
12
11
19
Indonesia
Philipines
Thailand
Malaysia
Viet Nam
% G
DP
0 1 2 3 4
Non-life
Life
12
24
20
Savills Viet Nam | 9
200
Thou
sand
peo
ple
ICT Registered FDI
DEMAND: ICT
2013 2014 2015 2016 8M 2017
US$
mill
ion
ICT employment
250
300
350
400
Big Tech Deals
Q1/2013 Q1/2014 Q1/2015 Q1/2016 Q1/2017
0
100
200
300
400
New establishedbusinesses NEB
NEB registered capitalSource: GSO
20
0
60
80
100
120
thou
sand
bus
ines
ses
200
0
400
600
800
1,000
trillion VND
SMEs ~ 50% workforce
HCMC
Registered capital 85% YoY(National ~ $40B)
New enterprises13% YoY
Domestic
Services and Commerce
2013 201620152014
START UPS
10
New establishedbusinesses NEB
NEB registered capitalSource: GSO
20
0
60
80
100
120
thou
sand
bus
ines
ses
200
0
400
600
800
1,000
trillion VND
SMEs ~ 50% workforce
HCMC
Registered capital 85% YoY(National ~ $40B)
New enterprises13% YoY
Domestic
Services and Commerce
2013 201620152014
START UPS
Savills Viet Nam | 11
Source: Savills Research & Consultancy
A & B
Upcoming
HCMC: FORECAST
LimitedSupply
LowVacancy
RisingDemand
HCMC 3nrent forecast
pa
Onwards
Viettel Tower A
Saigon Centre P2
Deutsches Haus
E. Town Central
Viettel Tower B
M&C Tower
Lancaster NT
Nexus
Viet Capital
289 THD
Sun Project
SJC
BIDV Tower
Golden Hill
Spirit Of Saigon
SATRA TAX
Sabeco
Eximbank
201820192017
20202021
0.0
0.3
0.6
0.9
1.2
1.5
mill
ion
m2
0.0
10
20
30
40
50
US$/m
²/mth
2012 2013 2014 2015 2016 2017 2018f 2019f 2020f
Leased Area Vacant Area Avg. Rent
12
4 levels, $5B cost.9,000 trees, egalitarian.
$5B cost, 15n development.50,000 workers.
18m sodas pa.4 levels, no lifts. HUMANISTIC.Walk and talk. People, Place, Planet
The Avg. Number of Years at Tech Disruptors and Titans
0 0.5 1 1.5 2 2.5
Source: Paysa
10%
80% people
real estate
10%
tech
nolog
y
OFFICE TRENDS
And the reason corporates are so keen to make their offices attractives is:
Source: Savills Research & Consultancy
A & B
Upcoming
HCMC: FORECAST
LimitedSupply
LowVacancy
RisingDemand
HCMC 3nrent forecast
pa
Onwards
Viettel Tower A
Saigon Centre P2
Deutsches Haus
E. Town Central
Viettel Tower B
M&C Tower
Lancaster NT
Nexus
Viet Capital
289 THD
Sun Project
SJC
BIDV Tower
Golden Hill
Spirit Of Saigon
SATRA TAX
Sabeco
Eximbank
201820192017
20202021
0.0
0.3
0.6
0.9
1.2
1.5
mill
ion
m2
0.0
10
20
30
40
50
US$/m
²/mth
2012 2013 2014 2015 2016 2017 2018f 2019f 2020f
Leased Area Vacant Area Avg. Rent
Savills Viet Nam | 13
14
Impacts T H E F U T U R E O F G L O B A L R E A L E S TAT E
Social changeHow new generations are changing the demand for real-estate developments
New technologyThe digital influence on properties, their uses, and the cities we live in
Natural forcesWhy the physical world still has an intimate relationship to land values
Economic trendsHow changes in the world economy will impact the future of real estate
Risk and opportunityin global real estateSavills Global has recently published ‘Impacts: the future of global real estate’ a special publication to mark 10 years after the GFC. Based on the research results in the publication, Savills Vietnam will release a series of statements regarding trends shaping the real estate market in coming years.
To open the series is the statement on rent watch in world cities, where it could be found at HCMC ranked #3 worldwide as Cities most likely to see rental growth.
Read more at: http://sav.li/a2z
Savills.com/Impacts
Global Real Estate 20182 Impacts
savills.com
10 things you need to know about global debt The wealth of ages Abundance and scarcity The fifth age of the city Rates and yields The rise of the NORC Resilient cities How rich was Mr Darcy?
Richard Florida creates a recipe for a better city Professor Carlo Ratti imagines how smart cities will adapt to human needs Linda Yueh discusses how investors should view property cycles Melissa Marsh on building design for the digital age Hank Dittmar champions mixed-use living Plus the real-estate challenges of 2018 and beyond
New technologyThe digital influence on properties, their uses, and the cities we live in
Social changeHow new generations are changing the demand for real-estate developments
Natural forcesWhy the physical world still has an intimate relationship to land values
Economic trendsHow changes in the world economy will impact the future of real estate
Impacts
savills.com
T H E F U T U R E O F G L O B A L R E A L E S TAT E
Issue 01. 2018
Impacts 2018 T
he
futu
re o
f glo
ba
l rea
l esta
te
Savills_Impacts_p1_Cover_v1.4.indd 2 13/11/2017 16:34
Savills Viet Nam | 15
Impacts T H E F U T U R E O F G L O B A L R E A L E S TAT E
Social changeHow new generations are changing the demand for real-estate developments
New technologyThe digital influence on properties, their uses, and the cities we live in
Natural forcesWhy the physical world still has an intimate relationship to land values
Economic trendsHow changes in the world economy will impact the future of real estate
Risk and opportunityin global real estateSavills Global has recently published ‘Impacts: the future of global real estate’ a special publication to mark 10 years after the GFC. Based on the research results in the publication, Savills Vietnam will release a series of statements regarding trends shaping the real estate market in coming years.
To open the series is the statement on rent watch in world cities, where it could be found at HCMC ranked #3 worldwide as Cities most likely to see rental growth.
Read more at: http://sav.li/a2z
Savills.com/Impacts
Global Real Estate 20182 Impacts
savills.com
10 things you need to know about global debt The wealth of ages Abundance and scarcity The fifth age of the city Rates and yields The rise of the NORC Resilient cities How rich was Mr Darcy?
Richard Florida creates a recipe for a better city Professor Carlo Ratti imagines how smart cities will adapt to human needs Linda Yueh discusses how investors should view property cycles Melissa Marsh on building design for the digital age Hank Dittmar champions mixed-use living Plus the real-estate challenges of 2018 and beyond
New technologyThe digital influence on properties, their uses, and the cities we live in
Social changeHow new generations are changing the demand for real-estate developments
Natural forcesWhy the physical world still has an intimate relationship to land values
Economic trendsHow changes in the world economy will impact the future of real estate
Impacts
savills.com
T H E F U T U R E O F G L O B A L R E A L E S TAT E
Issue 01. 2018
Impacts 2018 T
he
futu
re o
f glo
ba
l rea
l esta
te
Savills_Impacts_p1_Cover_v1.4.indd 2 13/11/2017 16:34
16
OUR SERVICES
This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. Whilst every effort has been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research.
Troy GriffithsDeputy Managing Director
+84 (0) 933 276 663TGriffiths@savills.com.vn
Do Thu HangAssociate Director Research Savills Ha Noi
+84 (0) 912 000 530DThuHang@savills.com.vn
Please contact us for further information:
Disclaimer:
Our services are delivered by people who combine entrepreneurial spirit and a deep understanding of specialist property sectors with the highest standards of client care. We help our clients to fulfil their real estate needs – whatever and wherever they are.
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