100810 Service Apartment Overview-En

8/8/2019 100810 Service Apartment Overview-En

1/11

Serviced Apartment OverviewPresented by Mr. MARC TOWNSENDManaging Director CB Richard Ellis (Vietnam) Co., Ltd.10 August, 2010

CB Richard Ellis | Page 2

Client LogoGoes Here

FUNDAMENTALS FOR GROWTH

HCMC GDP growth back to2008 levels,Q2: 11% y-o-y

1H 2010: 11% y-o-y

Tentative improvement inFDI in Q2: 14.5% q-o-q, yet1H 2010: -5.9% y-o-y

TOTAL COMMITTED FDI IN HCMC

0

1

2

3

4

5

6

7

8

9

10

2005 2006 2007 2008 2009 1H 2010

F D I ( U S $

B i l l i o n s

)

Increased Capital in Existing Projects

New Investment Capital

NOMINAL GDP AND REAL GDP GROWTH RATE OF HCMC

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

1 H 2 0 1 0

N o m

i n a

l G D P ( V N D B i l l i o n s )

0%

2%

4%

6%

8%

10%

12%

14%

R e a

l G r o w

t h R a t e ( % )

Nominal GDP Real GDP Growth Rate

Source: HCMC Statistics Office


2/11


3/11



HCMC Serviced Apartments SUPPLY vs. DEMAND

TOTAL SUPPLY AND OCCUPANCY RATE OF SE RVICED APARTMENTSIN HCMC (July 2010)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2003 2004 2005 2006 2007 2008 2009 Jul-10

U n

i t s

40%

50%

60%

70%

80%

90%

100%

Total Supply (Units) Occupancy Rate (%)

MARKET SNAPSHOT, July 2010 GRADE A GRADE B GRADE C TOTAL

Total supply (units) 979 1,461 +36(LTT Court opened) 770 3,246

Vacancy rate (%) 14% 22% 15% 17.9%

% change (y-o-y) 0 pt 12 pts 2 pts 20.1 pts

Average asking rents (US$/sm/month) $30.70 $25.56 $18.62 $25.46

% change (q-o-q) 5.5% 0.2% 0.6% 3.0%

% change (y-o-y) -5.1% -3.2% -5.0% -1.5%

Source: CB Richard Ellis Vietnam



HCMC Serviced Apartments KEY PLAYERS

New player InterContinental Asiana Saigon: leased 70% after 11 months of operationGarden View Court and Saigon Court (comparable to LTT Court): nearly 90% occupied

TOTAL STOCK AND OCCUPANCY RATE OF MAJOR SERVICED APARTMENTS(10 AUGUST 2010)

260

42

89

126

162

55 41

240

160 172

7656

0

50

100

150

200

250

300

I n t e r C o n

t i n e n

t a l A s

i a n a

S a

i g o n

D i a m o n

d P l a z a

S e

d o n a

S u

i t e s

N o r f o

l k M a n s

i o n

S a

i g o n

S k y

G a r d e n

I n d o c

h i n e

P a r k

T o w e r

N g u y e n

D u

P a r k

V i l l a s

S h e r w o o

d R e s

i d e n c e

S o m e r s e

t H C M C

S o m e r s e

t C h a n c e

l l o r

C o u r t

G a r d e n

V i e w

C o u r t

S a

i g o n

C o u r t

40%

50%

60%

70%

80%

90%

100%

Existing Stock (units) Occupancy Rate (%)



4/11



HCMC Serviced Apartments FUTURE STOCK

Total Future Stock:

2H 2010F: 395 units

2011F: 809 unitsSource: CB Richard Ellis Vietnam

FUTURE GRADE A & B SERVICED APARTMENT IN HCMC(2H 2010 - 2014)

111

100

100

420

120

624

1000

120

480

288

0 100 200 300 400 500 600 700 800 900 1000

Crescent Residence 2 (2010)

The Vista (2011)

Fraser Place (Beautiful Saigon 4) (2011)

Savico Tan Binh (2011)

Savico Ho Tung Mau (2012)

Royal Centre (2012)

Him Lam-TSN (2013)

EVN Tower (2013)

Tan Phong Shopping Complex (2013)

VFC (2014)

No. of units



Serviced Apartments REGIONAL COMPARISON

Monthly Rents (US$/sm) in the CBD, including Service Charge andVAT if applicable

$46.6$46.4$48.4$60.511,003Shanghai

ExistingSupply

Studio 1bedroom

2bedrooms

3bedrooms

Bangkok 15,803 $35.7 $31.6 $29.1 $28.5

Beijing 8,048 $57.0 $41.2 $37.7 $39.8

Da Nang 2,200 N/A $13.5 $13.0 $10.0

Hanoi 1,890 $36-$55 $30-$44 $25-$41 $24-$35HCMC 3,246 $48.8 $36.4 $32.6 $31.3

Hongkong Over 14,000

$31.0 $49.0 $50.0 N/A

Kuala Lumpur 4,950 $43-$55 $33-$47 $28-$47 $27-$46

Taipei 1,020

(premium)

$44-$58 $42-$56 $41-$53 $20-$57



5/11



HCMC Serviced Apartments CHANGING FACES

EXPAT TENANT PROFILEBEFORE NOW

FamilyLong-term

Western senior executives

Single (70:30)Project-based

Asian senior executivesExpat coming back, but NOThousing budgets

Change in Residential Leasing enquiries budget, unit size, location,standard of accommodations

52%

43%

5 %

$800-$2,000

$2,100-$4,000

$4,000up

60%

35%

5 %

$800-$2,000

$2,100-$4,000

$4,000up

2009 Expat budget falling by up to 20% 2010



HCMC Serviced Apartments CHANGING FACES

Severe competition from alternatives: BUY-TO-LET APT. andsemi-serviced apt. (for mid-level budget) andVILLA (for deep-pocket tenants) Notable buy-to-let projects 1,400 units in total : Avalon,

Saigon Pearl, The Manor, Sailing Tower, Cantavil Hoan Cauand International Plaza, etc.

Tighter housing allowances driving tenants away from the CBD toneighbouring districts: District 2 and District 7

Landlords have become more flexible: To offer weekly or daily rates To compete based on age of property, dcor (style),

promotional programmes, facilities and SERVICES


6/11



Serviced Apartments LONG-TERM ADVANTAGES

SUITABLE LOCATION : within 15 drive from CBD or in well-developed districts near International schools, bars, restaurants,office buildings, etc.FLEXIBILE LEASE TERM

CLEAN PAYMENT & BILLINGPROFESSIONAL SERVICES & SECURITYCOMFORT WITH A VARIETY OF FACILITIESFOREIGN LAYOUT : Open kitchen for Westerners and enclosedkitchen for Asian; direction particularly important for ChineseSTYLISH DESIGN, FITTING OUT, FURNITURE: Western style for Westerners and Asian flavour for Asian (carpets, furniture)VALUE ADDED: shuttle bus, library, mini cinema, discountservices, etc.IMMEDIATE CHECK-IN/CHECK-OUTSELF-IMAGE

SECURITY OF TENURE:(NOT BE TERMINATED IF LANDLORDDECIDED TO SELL THE APARTMENT)



Serviced Apartments LONG-TERM ADVANTAGES

One RED receipt instead of 10+ covering: Home rental Electricity Water Phone Cable

ADSL Cleaning Security Parking Meals (optional) Laundry (optional) Gardening Pest Control Pool Maintenance


7/11



New Opportunity BOUTIQUE STYLISH SERVICED APT.

Ovolo Hongkong : http://www.ovolo.hk/Shama Hongkong: http://www.shama.com/M Place Bangkok:http://www.hotelthailand.com/bangkok/m-place-service-apartment/

Accessed in Aug 2010



New Opportunity HOW BOUTIQUE SA OPERATES?

Location: in the heart of a citys prime commercial and/or residential districtRoom standard of 5-star hotel - LuxuryAt the price of budget hotel - Well-pricedBoutique (small scale of below 30 units) but Stylish

(East-meets-West, contemporary, ultra-chic etc.)Offering personalised services - Home comfort


8/11



New Opportunity HOW BOUTIQUE SA OPERATES?

Online marketing Effective websites: eye-catching, full details(room layout , photo gallery, map, updated rates , services provided,and online booking , etc.)Value-added services: Through LIFESTYLE PROGRAMME:

Personal concierge service Access to the citys leading members-only clubs and fitness

centres A constantly updated selection of trendiest retail (fashion,

beauty & health) and dining privileges 2 benefits of this outsourcing:

Live like a local for tenants Overcome the shortage of in-house facilities due to small-scale

building

Ovolo boasts a lifestyle focused programmeindulge 'no boundaries' is Shama's exclusive lifestyle programme



LTT COURT OPENED IN AUGUST!!

Address: 10 Ly Tu Trong, D.1Boutique serviced apartment: 12 floors 36 fully-furnished unitsQuiet living environmentRoof-top swimming poolAmple car parking

3 types of luxury room: 1 bedroom Studio: 48 sm 2 bedrooms: 95 sm 3 bedrooms: 115 sm

+ Penthouse: 150 sm

Well-priced at US$2,700$3,300/monthDaily rates are availableProfessionally managed by CBRE


9/11



LTT COURT READY TO MOVE IN!!

Ideal location: In the heart of HCMC Convenient transport links Walking distance to

Japanese streets; cultural,night-life andentertainment venues

Proximity to essentialamenities, such asshopping centres andmajor office buildings, etc.



LTT COURT - Options

115 sm 3 bedroomsRiver view

115 sm 3 bedroomsRiver view

95 sm 2 bedroomsRiver & City view


10/11



LTT COURT Indulgent Living Experience!



CBRE Next Event


11/11

CB Richard Ellis | RESEARCH & CONSULTANCY | Page 21

CBRE Global Office Locations

THANK YOU!

2010 CB Richard Ellis, We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracyand make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rentalor other conditions, prior sale, lease or financing or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conductyour own investigation of the property and transaction.

100810 Service Apartment Overview-En

Documents

Transcript of 100810 Service Apartment Overview-En