CONTENTS
HO CHI MINH CITY | Q1/2020
01
02
Common
Appendix
Retail
Market
03
04
Apartment
for Sale
Market
Villa/
Townhouse
Market
Q1 Quarterly Report
Common Appendix
HCMC
March 2020
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
1
Contents
Appendix 1: Economic Overview....................................................................................... 3
Appendix 2: Policy Updates ............................................................................................... 9
Appendix 3: Infrastructure............................................................................................... 14
Disclaimer .......................................................................................................................... 45
Figures
Figure 1: GDP current prices & growth ...................................................................................................................................... 3
Figure 2: Trade balance .................................................................................................................................................................... 4
Figure 3: Retail sales .......................................................................................................................................................................... 5
Figure 4: CPI growth .......................................................................................................................................................................... 6
Figure 5: FDI ....................................................................................................................................................................................... 7
Tables
Table 1: New legal documents ...................................................................................................................................................... 9
Table 2: Infrastructure Q1/2020 – HCMC ................................................................................................................................14
Table 3: Infrastructure Q1/2020 – Hanoi .................................................................................................................................31
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
2
APPENDIX 1: ECONOMIC OVERVIEW
COVID-19 had major impact across all sectors of the economy.
Gross Domestic Product (GDP)
GDP growth in Q1/2020 reached 3.8% year on year (YoY), the lowest first quarter performance
in ten years. COVID effects resulted in 2020 GDP being re-forecast below the 6.8% target.
However, Vietnam retains the highest 2020 GDP growth forecast in Asia. In April, The World
Bank forecast estimated 4.9% GDP growth in 2020; ADB estimates 4.8% and the IMF projects
2.7%.
Manufacturing and Processing remain the main GDP driver, up 5.2% YoY, followed by Services
with 3.3% YoY. Agriculture, Forestry and Fishery squeaked up 0.1% YoY, the lowest increase in
all Sectors, due to climate change effects, African Hog Cholera and COVID-19 related border
restrictions.
The economic structure remained stable with Services, Industry and Construction providing
approximately 80% of total GDP.
Figure 1: GDP current prices & growth
60
US$ billion
GDP,current price (LHS)
Economic growth (RHS)
%
8
50
6
40
30
4
20
2
10
0
0
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Source: GSO, April 2020
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
3
Trade Balance
Covid-19 impeding key markets; China, Korea, Japan, Europe and USA, severely affected import
and export values. The first quarter trade surplus of US$2.8 billion was attributed to a US$7.2
billion surplus in FDI, including Crude Oil.
Exports reached US$59.1 billion, up 0.5% YoY and the USA, with US$15.5 billion, up 16.2%
▪
YoY remains the preeminent export market.
Imports of US$56.3 billion were down -2.9% YoY. China continues as the largest importer
▪
with US$13.3 billion, though down -18% YoY.
Figure 2: Trade balance
60
US$ billion
Trade balance (RHS)
Export (LHS)
Import (LHS)
US$ biliion
55
4
3
50
2
45
40
1
35
0
30
-1
25
20
-2
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Source: GSO, April 2020
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
4
Retail Sales
Retail Goods and Services sales reached US$54 billion, up 4.7% YoY.
Essential products maintained strong YoY growth supported by the rapid development of
▪
online shopping with relatively stable prices. Food and Foodstuffs increased 7.7% YoY; Oil
and Gas, by 8.4% YoY; and Household Appliances, Tools and Equipment were up 7.7% YoY.
Restaurants and Hotels shuttered following international travel restrictions and social
▪
distancing led to Tourism revenues falling -27.8% YoY and Accommodation & Catering
Services revenue declining -9.6% YoY.
Figure 3: Retail sales
60
US$ billion
Retail sales, current price
%
Real growth rate (YoY)
50
10
8
40
6
30
4
20
2
10
0
0
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Source: GSO, April 2020
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
5
Consumer Price Index (CPI)
First quarter CPI was up 5.6% YoY, to its highest level in five years. Growth came from higher
priced Food & Foodstuffs during Tet, and then COVID-19 effects had Medical Products up 1.4%
YoY, Electricity up 9.9% YoY, and Water up 4.8% YoY. Closed borders limiting low-priced imports
from China resulted in significant Fruit & Vegetable price increases.
Figure 4: CPI growth
6
%
5
4
3
2
1
0
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Source: GSO, April 2020
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
6
Foreign Direct Investment (FDI)
COVID-19 slowed new and existing FDI. Total registered FDI, including newly registered, and
M&As were down -21% YoY to US$8.6 billion. Of which, newly registered FDI capital of US$5.5
billion from 756 projects was down -3.4% YoY, but up 45% in registered capital.
Singapore with US$4.2 million was the largest investor and accounted for 76% of newly
▪
registered capital; next was China with 8.2%, and Korea with 5.1% percent.
Over US$4 billion into Electricity Production and Distribution, represented 47.5% of newly
▪
registered FDI. Manufacturing and Processing with US$2.3 billion, accounted for almost
thirty two percent. Wholesale and Retail was US$682 million further invested and Real Estate
claimed US$264 million.
Disbursed FDI decreased -6% YoY to a little over US$3.9 billion; 74%, or over US$2.8 million,
went into Manufacturing and Real Estate claimed 11% of the total.
Figure 5: FDI
12
US$ billion
Total registered capital
FDI disbursement
10
8
6
4
2
0
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Source: GSO, April 2020
Note: Total registered capital includes newly and additional registered capital, and M&A capital.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
7
Others
In Q1/2020, over 29,700 enterprises were newly established, up 4.4% YoY. Services sector with
71% dominated. Around 18,600 Operations up 26% YoY, were forced into temporary
suspension and 12,200 enterprises, up 20.6% YoY, were closed and awaiting official dissolution.
Tourism was severely affected. The Vietnam National Administration of Tourism (VNAT),
reported first quarter international visitors of nearly 3.7 million, were down -18% YoY to their
steepest fall in ten years. Despite China inbounds decreasing -32% YoY, and Koreans -26% YoY,
they remained the two leading sources of visitors.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
8
APPENDIX 2: POLICY UPDATES
Table 1: New legal documents
No.
Document
Issuing Dept.
Issued
Details
Prescribes general fire safety requirements in construction works and is compulsory in all stages of
1
Circular No.
Ministry of
01/2020/TT-BXD
Construction
6 April 2020
new construction, renovation, repairing or changing functions, and specifying house fire grading
techniques, building components and construction materials.
The Circular is effective 1 July 2020.
Regulations on HCMC land prices. The land price list is used for the following cases:
2
▪
Calculating land use fee (LUF) and land use tax.
▪
Calculate management fees and charges.
▪
Calculate management fees and charges.
Decision No.
HCMC People's
16 January
▪
Calculating fines for Real Estate administrative violations.
02/2020/QĐ-UBND
Committee
2020
▪
Calculate compensation fees to the State for damage caused in land management and use.
▪
Calculating the land value voluntarily returned to the State.
▪
Being the basis in determining specific prices by the coefficient method adjusted.
▪
Calculating High-Tech Park land rent.
Effective: 26 January 2020.
3
4
Decision No.
HCMC People's
16 January
Land price adjustment coefficients to determine land price in 2020.
03/2020/QĐ-UBND
Committee
2020
Effective: 26 January 2020.
Document No.
HCMC People's
1225/UBND-DT
Committee
Settlement difficulties and problems regarding HCMC construction project investment procedures.
8 April 2020
Includes recommendations for handling business land after equitization and projects under shortterm lease using State land.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
9
No.
Document
Issuing Dept.
Issued
Details
Attached to this Circular are the National Technical Regulations on Apartment buildings, No. QCVN
04:2019/BXD will come into force July 1, 2020.
These Regulations prescribe technical requirements to be applied upon constructing a new or
reconstructing apartment building up to 150 m in height and up to 3 basements, including
5
Circular No.
Ministry of
31 December
21/2019/TT-BXD
Construction
2019
apartment buildings constructed for residential purpose and mixed-use purpose.
With respect to apartment buildings over 150 m with 4 basements or more, apart from these
Regulations, technical requirements and solutions in terms of organization and satisfactory
technical construction for fire prevention and firefighting requirements of said apartment buildings,
on the basis of standard documents applicable as per the Law must be added. The requirements
and solutions mentioned above must be approved by competent specialized agencies.
Penalize administrative geodesic and cartographic violations:
1. This Decree prescribes administrative violations, sanctioning forms and levels, and remedial
6
Decree No.
18/2020/ND-CP
Government
11 February
2020
measures; sanctioning competence, and competence to make records on administrative violations
in Measurement and Cartography.
2. Other administrative geodesic and cartographic violations not prescribed in this Decree shall
apply provisions of Government Decree on sanctioning of administrative violations, in the field of
other state management related to sanctions.
Amendments and supplements Articles of Decree No. 139/2017/ND-CP dated November 27, 2017
regarding Government penalties for administrative violations against Investment and Construction
7
Decree No.
21/2020/ND-CP
Government
17 February
regulations on; Extraction, Processing and Trading of Minerals used in Construction, Production,
2020
and Trading of Minerals used in construction; Production and Prading of Building Materials;
Infrastructure Construction Management; Real Estate business, Housing Development Management
and Apartment Building and Office Building Operations.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
10
No.
8
Document
Official Dispatch No.
703/BTNMT-TCQLĐĐ
Issuing Dept.
Ministry of Natural
Resources &
Environment
Issued
Details
Provides specific guidelines on the land use regime for new types of Real Estate (tourist
14 February
Apartments, Tourist Villas, Office combined with Accommodation) in accordance with tProvisions of
2020
Law, the Ministry of Resources and Environment provide guidance on land use regimes and nonresidential construction ownership certification.
Details implementation of Bidding Law Articles regarding selection of investors for project
implementation, including:
a. Investment projects in the form of public-private partnership (PPP) in accordance with the law on
9
Decree No.
25/2020/ND-CP
Government
28 February
PPP investment;
2020
b. Investment projects using land to build commercial houses; commercial and service works; multifunction works, multi-purpose complexes for business purposes;
c. Projects not falling under the provisions of Clause Points A and B but having to organize bidding
according to the provisions of specialized laws and the Law on Socialization.
This Circular provide implementation guidelines for content in Decree No. 100/2015/ND-CP dated
Consolidated
10
Document No.
05/VBHN-BXD
October 20, 2015 on Social Housing Development and Management: the minimum standards of
Ministry of
Construction
9 March 2020
Social Housing for households and individuals investing in construction; methods of determining
selling prices, renting prices, renting prices for buying Social Houses; forms of papers evidencing
subjects, conditions to enjoy Social Housing support policies, and forms of Social Housing sale,
lease or lease-purchase contracts.
Promulgate the land price adjustment coefficient in 2020 according to law provisions as a basis for
11
Decision No.
Hanoi People’s
04/2020/QD-UBND
Committee
calculation: Land rent collection; determination of reserve prices for auction of leased land use
2 March 2020
rights; collecting land use levies for households and individuals that are recognized by the State as
land use rights, allowing the change of land use purposes for residential land areas beyond the City
limits.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
11
No.
Document
Issuing Dept.
Issued
Details
Promulgate the land price adjustment coefficient in 2020 in cases where the coefficient is applied
12
Decision No.
Hanoi People’s
03/2020/QĐ-UBND
Committee
as prescribed by Law as a basis for calculating: Collecting land use levies when land is allocated
2 March 2020
without auction; collecting land use levies when organizations have recognized land use rights and
changing land use purposes; collecting land use fee when selling Social Houses; Determining the
reserve price for auction of land use rights in Hanoi.
13
Resolution No.
Hanoi People’s
24 February
Resolution No. 01/NQ-HDND of Hanoi People's Council on merging, naming and renaming
01/NQ-HDND
Council
2020
hamlets and groups of 11 districts in Hanoi in 2020 and directing implementation.
Decree specifies duration of extension for value added tax (VAT) payments Corporate Income Tax
(CIT), and land-use fees (LUFs).
Of the 5 subjects extended, in addition to the group of businesses in Real Estate; Transporting
Warehousing; Education; Accommodation and Catering Services; Medical; Labour Service activities
and Employment, there are also businesses, organizations, households and individuals engaged in
production activities in the Agriculture, Forestry and Fishery Sectors; producing Costumes; Food
Production and Processing; Weaving; group of Credit Institutions, foreign bank branches
14
Decree No.
41/2020/ND-CP
Government
08 April 2020
implement solutions to support customers who are enterprises, organizations and individuals
affected by Covid-19 epidemic in accordance with State Bank of Vietnam regulations.
VAT:
▪
The March: 30 September 2020 at the latest.
▪
The April: 20 October 2020 at the latest.
▪
The May: 20 November 2020 at the latest.
▪
The June: 20 December 2020 at the latest.
▪
Q1/2020: 30 September 2020 at the latest.
▪
Q2/2020: 30 December 2020 at the latest.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
12
No.
Document
Issuing Dept.
Issued
Details
CIT: 5 months extension of the CIT payment deadline as per the Tax Administration Law.
VAT and PIT of business households and individuals: 31 December 2020.
LR: 5 months extension from 31 May 2020.
Decree takes effect April 8, 2020.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
13
APPENDIX 3: INFRASTRUCTURE
Table 2: Infrastructure Q1/2020 – HCMC
No.
Project
Location/ Description
Capacity/ Remarks
Status
Approved
Road connecting Vo
1
Van Kiet Highway
with HCMC – Trung
Luong Highway
22nd
Oct 2010
Binh Chanh district.
Construction started 25th Oct 2015
National Highway 1A and Vo Van Kiet Highway intersection
Slow site clearance and investor payment
to Tan Kien intersection end, connecting Tan Tao – Cho
Est. investment US$97million.
delays; contract delayed from 10/2014 to
Dem, HCMC – Trung Luong highway.
3/2017.
Approx. 2.7km, 10 lanes and 60m wide.
200/250 relocated households, 80% finished.
Expected complete June 2021.
2
Ring roads 1, 2, 3
and 4
Ring road 1: 13.6km, from Tan Son Nhat Airport via Binh Loi
Ring road 1: Opened Q1/2015.
Bridge and ending at Linh Xuan intersection.
Ring road 2: Started end 2017 and 54km
Ring road 2: is 64km across nine districts: 2, 7, 8, 9, 12, Thu
completed. 4 sections over 11km incomplete:
Duc, Hoc Mon, Binh Chanh, Binh Ta; from Nguyen Van Linh
Sections 1 and 2 start expected in Q2/2020.
boulevard via Phu My Bridge and Go Dua intersection to
Est. investment:
Section 3 completed end 2020.
Highway 1.
Ring road 1: US$340 million.
Section 4 under site clearance.
Ring road 3: is 97.7 km with four sections:
Ring road 2: US$2.5 billion.
Ring road 3:
Tan Van to Nhon Trach: 34.3 km (Dong Nai)
Ring roads 3 & 4 ~ US$7 billion. Phase 1: Tan Van – Nhon Trach under-
Binh Chuan to Tan Van: 16.7 km (Binh Duong)
Ring road 4 ~ US$4.5 billion.
construction.
National Road 22 to Binh Chuan: 19.1 km (Binh Duong &
Phase 2: Binh Chuan - Tan Van section
HCMC).
completed and in operation.
Ben Luc district to National Road 22: 28.9km (Long An)
Phases 3: Binh Chuan – highway 22 under
approvals process.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
14
No.
Project
Location/ Description
Capacity/ Remarks
Status
Ring road 4: is 197.6km, 6-8 lanes,
Ring road 4:
5 provinces/cities.
To start Q3/2020 and complete in Q1/2023.
HCMC (20.3km).
Ba Ria – Vung Tau (17.3km).
Dong Nai (46.9km).
Binh Duong (44km).
Long An (68km).
Thu Thiem 1 is 1.25 km with 6 lanes, connecting districts 2
and Binh Thanh.
3
Thu Thiem bridges
Thu Thiem 1: Operational.
Thu Thiem 2 > 1.4 km, 6 lanes, districts 1 and 2.
Thu Thiem Bridge 2:
Thu Thiem 2: Commenced 3/2/2015,
Thu Thiem 3 Ton Dan district 4, via Nguyen Tat Thanh street,
US$140.8 million investment.
expected complete in 2021.
Ben Thanh harbour – Khanh Hoi, over Saigon River
Thu Thiem bridge 4:
Thu Thiem 3: approved and in planning.
connecting Thu Thiem NUA, district 2.
Est. US$226 million investment
Thu Thiem 4: port relocations expected to
Thu Thiem 4 about 2.16 km with 6 lanes, connecting districts
commence in 2022.
2 and 7.
4
Metro lines
Line 1: Ben Thanh – Suoi Tien 2.6km underground section
Investment:
Line 1: Started 08/2012 completed 72%.
with 3 stations and a 17.1km elevated section with 11
Line 1: ~ US$2.5 billion.
Expected to finish in Q3/2021.
stations through districts 1, 2, and 9, Binh Thanh, Thu Duc
Line 2: ~ US$2.1 billion.
Line 2: Building support infrastructure and
and Di An, Binh Duong province.
Line 3A: US$ 1.1 billion
under site clearance. Expected to commence
Line 2: Ben Thanh – Tham Luong, 19km with 11 stations.
Line 3B: ~ US$1.5 billion
in 2021 and finish in 2026.
Line 3A, Ben Thanh – Tan Kien, comprises 14 stations. Line
Line 4: ~ US$4.4 billion.
Line 3A: Completed funding application.
3B, Cong Hoa – Hiep Binh Phuoc, comprises 11 stations.
Line 5: ~ US$4.6 billion.
Line 3B: Project boundary approved and
Line 6: ~ US$1.3 billion.
handed over to Local Planning Committee.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
15
No.
Project
Location/ Description
Capacity/ Remarks
Status
Line 4: Ben Cat bridge – Nguyen Van Linh highway, 24km
Line 4: Initial design approved.
with 29 stations.
Line 5: Phase 1 appraisal complete.
Line 5: Sai Gon Bridge – Can Giuoc bus terminal, includes 1
Line 6: Initial design under completion; calling
branch line Cong Hoa station – Tan Son Nhat Airport (2km
for investors
with 2 stations), total 17km with 22 stations: 15
Phase 2 pre-feasibility under completion.
underground and 7 elevated.
Line 6: Ba Queo – Phu Lam, 6km with seven underground
stations.
3.2km, 30-40m wide, four lanes connecting districts 6, 8 and
5
Binh Tien bridge
Binh Chanh.
Total investment US$159
Binh Tien Bridge from Pham Van Chi in district 6, over Tau
million.
80% progressed, expected complete in 2020.
Hu canal to districts 8 and Binh Chanh.
6
Binh Loi Railway
Replacing existing. New: 480m across Sai Gon River,
Total investment US$59.1
Commenced in 04/2016. Completed on
Bridge
connecting districts Thu Duc and Binh Thanh.
million.
14/9/2019.
69km with six to eight lanes. Connect HCMC to Binh Phuoc
Total investment US$478
Under site clearance.
province.
million.
Construction to start in 2020.
HCMC – Thu Dau
7
Mot – Chon Thanh
Highway
Highway 84.5km, 17m wide, 4-6 lanes, connecting Moc Bai
8
HCMC – Moc Bai
Urban Area to HCMC Ring roads 3 & 4.
Investment: US$1.4 billion,
Phase 1: 55.5km includes 4km Ring Road 3 and 51.5km road
Including:
Awaiting investment approval.
parallel with Highway 22.
Phase One US$667.3 million
Expected to commence in 2021.
Phase 2: Build an additional 29km section including viaducts
Phase Two US$715.6 million.
on Xuyen A road (20km) and a 9km viaduct on Highway 22.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
16
No.
Project
HCMC – Trung
9
Luong – My Thuan
– Can Tho Highway
10
Location/ Description
Three routes:
▪
HCMC – Trung Luong: 51.1 km
▪
Trung Luong – My Thuan: 51.1 km
▪
My Thuan – Can Tho: 23 km.
Capacity/ Remarks
Total investment: HCMC –
HCMC – Trung Luong: opened 6/2012.
Trung Luong: US$425.2 million.
Trung Luong – My Thuan: over 40% complete,
Trung Luong – My Thuan:
handover expected in 2021.
US$550.5 million. My Thuan –
My Thuan – Can Tho: feasibility study
Can Tho: US$206.4 million.
approved for the Public Private Partnership.
Two Bridges in Binh
Binh Quoi – Thu Duc Bridge and Binh Quoi – Rach Chiec
Total investment US$183
Thanh
Bridge to improve Thanh Da Peninsula connectivity.
million.
11
Binh Khanh bridge
12
Phuoc Khanh bridge
A 3.4 km four-lane and 22m wide cable bridge connecting
Can Gio and Nha Be.
Connecting Nhon Trach (Dong Nai) and Can Gio district. 3.2
km, four lanes, 21.7m wide.
Status
US$137.8 million investment
US$130 million investment.
On hold.
Commenced August 2015, progressed 70%.
April 2019 on hold.
60% complete Q1/2020.
On hold.
Six routes.
BRT Route 1: An Lac intersection to Cat Lai intersection, 24
km with 32 stations.
BRT Route 2: Ben Thanh - Ba Queo fork, 9.1 km.
13
Bus Rapid Transit
(BRT)
BRT Route 3: Bach Dang port to Quang Trung IT park, 15 km.
BRT Route 4: Cay Go roundabout to Ha Noi highway, 22km.
BRT Route 5: District 8 bus station to Hang Xanh, 13km. BRT
Total investment ~ US$137.5
million.
Line 1 planned operational in 2020.
On hold for design updates and adjustments.
Route 6: Bach Dang port to 23/9 park, 15 km. BRT Route 7:
Ben Thanh market to An Suong bus station, 16 km. BRT
Route 8: Ba Queo fork to 3/2 street and route 4 connection,
5 km.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
17
No.
Project
Expansion of Ha Noi
14
Highway (Parallel
road)
15
Saigon Metro Line 1 bridge
Parallel road with
16
HCMC – Long
Thanh –Dau Giay
Highway
Location/ Description
Expanding Hanoi Highway in Districts 9, two sections from
Sai Gon bridge to Binh Thai and Tan Van intersections.
Capacity/ Remarks
US$175 million investment.
267.5m, 11.1m wide, adjacent to existing, district 2.
N/a
Section 1 An Phu intersection in district 2, to Xuan Hop
Section 2 from road D11, within Phu Huu planned
US$38.2 million investment.
residential area; endpoint ring road 2 intersection in district
Thanh Highway
Start includes packages A1, A2-1, A2-2 and A3 via HCMC
District
Expansion/upgrades
19
to 1A National Road
1A National Road in Binh Chanh will expand 9.6km from
23.5m to 35m width, 4 lanes and 2 mixed use lanes.
Early March 2020:
HCMC People's Committee requested land
fund reclamation following slow progress.
9. Total 680m and 14m wide.
and HCMC
through Binh Chanh
Connected to Sai Gon bridge Sep 2016.
Commenced in 04/2017.
Street, district 9. Over 3km and 20m wide.
Started 07/2014, slow progress due to site
clearance issues.
US$1.6 billion investment.
Expected complete in 2023.
70-80% finished.
and Long An province; funded by ADB. Total 18.7 km
18
Slow progress due to site clearance issues.
Expected to finish in Q4/2021.
Ben Luc – Long
1A National Road
Began in 2010, progressed over 73%.
Construction started Dec 2013.
58km, 4 lanes and 2 emergency lanes via Long An, Dong Nai
17
Status
On hold.
US$827 million investment.
Slow progress and site clearance issues.
US$17.4 million investment.
On hold since 2017.
From Binh Phuoc bridge to An Suong crossroad, district 12,
expansion of 12km including signal lights installation,
guidance signage, CCTV; road and sidewalk widening.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
18
No.
Project
Location/ Description
Capacity/ Remarks
Status
Branch N1: Started in January 2017, went into
An Suong intersection, district 12: two-way tunnel along
20
An Suong tunnel
Truong Chinh – Highway 22 to reduce congestion at Tan
operation on March 2018.
US$22.5 million investment.
Phu intersection and north west area gateway.
Branch N2: Recommence after on hold to
wait for the site clearance and expected to
complete in the end 2020.
Approved following 2016-2020 Public
21
Vo Thi Sau flyover
Vo Thi Sau St, district 3 to Ba Thang Hai street, over Cong
for motorbikes
Truong Dan Cu roundabout.
US$12.3 million investment.
Investment Policy guidelines.
Construction commenced 2018
Scheduled complete 2020.
22
23
Le Dai Hanh – Lanh
Binh Thang flyover
Tran Nao expansion
Le Dai Hanh – Lanh Binh Thang intersection in district 11.
Under planning.
13 km, 30m wide, 6 lanes, connecting Nguyen Van Huong
Slow progress in site clearance, additional
street with the Tran Nao – Luong Dinh Cua intersection in
US$15.6 million investment.
district 2.
24
Rach Lang flyover
Phan Chu Trinh Street, Binh Thanh district. 2.9 km.
submission accepted, expected complete in
2020.
Total capital US$238 million.
Operational Nov 2018.
Connecting East – West avenue and Thu Thiem NUA in
25
Expansion of Luong
district 2.
Total investment US$30
Started 06/2015, clearance 60% completed.
Dinh Cua street
2.3km from Tran Nao Street to Nguyen Thi Dinh Street.
million.
Expected complete end 2020.
Luong Dinh Cua Street expanded from 7-8m to 30m wide
Four main routes including Arc Avenue, Lakeside Avenue,
27
R4 complete. R1, R2, R3 slow progress in site
Routes in Thu
Riverside Avenue and a subway connecting eight functional
Total investment US$548.1
clearance, expected complete in 2020.
Thiem Urban Area
areas in Thu Thiem NUA, District 2. North-South Road
million.
North-South Road: part from Thu Thiem
connecting Thu Thiem Bridge and future Thu Thiem 4.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Bridge to Ring Road 4 is complete.
19
No.
Project
Location/ Description
Capacity/ Remarks
Lam Vien – Dong
28
Dinh road, crossing
Can Gio Salting
June 2014, Project Investment approved; Jan
3.5 km, 6m wide with 2 lanes in Can Gio district.
Total investment US$8.6
2015 received US$856 million to start.
million.
Environmental impact and feasibility studies
Forest.
29
Status
underway.
Crossroads over
Part of the extended Ha Noi Highway from Suoi Tien park.
Vietnam National
1.9 km, 8 main lanes, 2 bridges, 4 lanes, 2 pedestrian lanes
University, HCMC
in District 9
Total investment US$7.5
Started in April 2016, completed and
million.
operational in October 2017
Phase 1: Ring road 2 overpass crossing Nguyen Thi Dinh
street, district 2 and My Thuy crossroad motorbike
30
My Thuy crossroad
underpass.
Phase 1:
Phase 2: new 6 lane 124m My Thuy 3 bridge between My
US$40.5 million investment
Phase 1: Started 06/2016, open 29/06/2018.
Thuy 1 and My Thuy 2 bridges.
Phase 2:
Phase 2: Under site clearance
725m two-lane overpass at Cat Lai port to Phu My bridge;
US$62.3 million investment.
and 75m four-lane Ky Ha 4 bridge from Phu My bridge to
Cat Lai port.
31
North-South Axis
7.5 km with 6 lanes. Nguyen Van Linh boulevard to Ba
Total investment US$387
PPP changed to Published Investment to
Chiem crossroad in Nha Be district.
million.
speed up progress. Expected start: Q3/2020.
Opening road to Sai Gon - Hiep Phuoc port in Nha Be
32
D3 road
District, supporting district four port relocation.
2,730m, including Rach Rop II and Muong Lon II bridges.
Expand 2 sides of Binh Thanh district bridge. Chu Van An,
33
Binh Trieu 2 Bridge
Ung Van Khiem streets expansion and upgrade. All branch
lines to connect with bridge intersections.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Total investment US$13.7
million.
Completed end 2016.
Total investment US$87
Started 2017.
million.
Expected completion 2020.
20
No.
Project
Location/ Description
Capacity/ Remarks
Districts 1, 4, 7, 8, Binh Chanh and Nha Be.
34
Flood prevention
Construction of 6 sewers and dykes along Sai Gon River;
Total investment US$438
from Vam Thuat to Kinh River; and 25 smaller sewers from
million.
Vam Thuat to Muong Chuoi.
35
36
Status
Started 26/8/2016. One temporary
construction suspension but 72% complete.
Handover expected 2020.
New bridge to
4.5 km with 6 lanes, connecting district 2 with Nhon Trach
Total investment US$250
Under Operating Plan selection process.
replace Cat Lai ferry
suburban district and Dong Nai province.
million.
Expected complete 2024.
560m, Tham Luong Canal, between Tan Phu and Binh Tan
Total investment US$22.6
district.
million.
Bung bridge
Started July 2017 and 40% finished.
Progress slowed by site clearance issues.
Expected complete in 2020.
1. Tan Son Nhat flyover: Truong Son – Tan Son Nhat – Binh
6 projects to reduce
congestion on main
37
routes to Tan Son
Nhat airport.
Loi outer ring road intersection steel bridge, Y-shaped.
1. Tan Son Nhat flyover complete July 2017.
Truong Son street section to domestic terminal, other to
2. Nguyen Thai Son - Nguyen Kiem flyover
international terminal. Truong Son road tunnel, domestic
started 02/2017, opened Jan 18th 2019.
terminal entrance road to Hong Ha street.
Total investment US$60.5
3. Hoang Minh Giam road expansion
2. Flyover: Nguyen Thai Son and Nguyen Kiem intersection.
million.
completed in 2018.
3. Hoang Minh Giam street expansion.
4. Cong Hoa street expansion expected to
4. Cong Hoa Street expansion, Tan Binh district.
commence in Q2/2020.
5. Hoang Van Thu street expansion Phu Nhuan district.
5. Proposal awaiting approval.
6. Phan Thuc Duyen street expansion, Tan Binh district.
Go May intersection at highway 1 – Le Trong Tan and
38
Go May flyover
Nguyen Thi Tu, Binh Tan district.
Total investment US$22.4
Commenced 09/2016.
bridge
539 m flyover
million.
Completed 03/2017.
24m wide 4 vehicular lanes, 2 mixed bike lanes.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
21
No.
39
40
Project
Nguyen Khoai
Bridge
An Phu Dong
Bridge
Connecting road
from Pham Van
41
Dong to Go Dua
intersection, Thu
Duc district.
42
43
Elevated highway
No. 5
Location/ Description
D1 street in Him Lam Residence district 7 to Ben Van Don
Street district 4, one km.
346m and 22.5 wide bridge.
Vam Thuat river, connecting districts 12 and Binh Thanh.
Capacity/ Remarks
Total investment US$54.8
million.
Total investment US$35.5
million.
Status
Under investment proposal.
Commenced Feb 2020
Expected open end 2020.
Phase 1 construct two branches 10.5 m wide and three lanes
parallel to main road.
Three bridges: Lung Canal, Ong Viet Canal and Go Cat
Total investment: US$41.4
Canal. Phase 2 (main roads) a separate project.
million.
Improve Pham Van Dong connection to Go Dua
Commenced Dec 2017.
>60% complete in 2019.
Expected complete 2020.
intersection, Thu Duc district.
Highway 1A – HN highway to Tan Tao – Cho Dem Binh Tan
district intersection. 34 km, parallel to 1A highway, 17.5 m
wide and 4 lanes.
Total investment US$745
million.
Project was approved.
Drainage
Upgrade CBD and NUA districts 1, 2, 4 and 7 drainage and
Total investment US$19.7
Construction to start 2018
improvements
sewage systems
million.
Scheduled complete in 2020.
Increased traffic capacity and improved Ha Noi and HCMC
44
North-south
connection via 20 Provinces.
Total investment US$4.4
Under site clearance
highway
Phase 1 is 713 km highway
billion.
Go ahead expected 2020-2021.
Phase 2 awaiting scale approval.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
22
No.
45
46
47
Project
Y bridge expansion
and upgrades.
Location/ Description
Three branches of the Y shaped bridge connecting districts
5 and 8, widened from 9m to 12m to reduce bridge and
surrounding area congestion.
Capacity/ Remarks
Status
Total investment US$8.2
Started Q3/2017
million.
Expected complete 2020.
HCM-Long Thanh-
Underpass connecting Mai Chi Tho street, district 2 to HCM-
Dau Giay highway
Long Thanh-Dau Giay highway.
Total investment US$45
Completing procedures.
flyover and
Flyover will connect Luong Dinh Cua street district 2, to
million.
Start expected in 2020.
underpass.
HCM-Long Thanh-Dau Giay highway.
Tan Son Nhat
Two new terminals and runway upgrades.
Total investment US$860
Airport
45 million pa capacity upon completion in 2020.
million.
Approved, options under review.
Construction expected to commence 2020
and complete in 2022.
Lang Cha Ca intersection connecting Bui Thi Xuan; Nhieu
48
Elevated highway #
Loc Canal; Thi Nghe; Nguyen Huu Canh; Binh Thanh; Tan
Total investment US$716
Under clearance
1
Binh. 10.8 km with 4 lanes. Construction of 4 inter-level
million
Expected to start in 2020.
intersections.
Total investment:
Le Van Tam Park: US$76
49
Underground
Parking
Underground car parks in:
million
district 1, Le Van Tam Park, Tao Dan Park; Hoa Lu Stadium
Tao Dan Park and Hoa Lu
and Trong Dong Music Stage.
Stadium: US$195 million
Trong Dong Music Stage:
US$32 million
50
Ong Nhieu Canal
Dredging and clearance in districts 2 and 9.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Total investment US$64
million.
Le Van Tam Park and Trong Dong Music
Stage Park on hold after calling for investors.
Tao Dan Park section preparing for feasibility
study, planned in operation within 2022.
Hoa Lu Stadium preparing for feasibility
study.
Started 2017 and expected complete in 2020.
23
No.
51
52
53
54
Project
Location/ Description
Capacity/ Remarks
Status
Intelligent traffic
Traffic signals and CCTV installation on 78 routes and 300
Total investment US$263
Phase 1 completed Q1/2019.
management centre
intersections.
million.
Phase 2 expected to start 2020.
Total investment US$5 billion.
Expected to commence in Q2/2020.
Railway connecting
HCMC- Can Tho
Tan Kien railway station, Binh Chanh district, HCMC) to Cai
Rang station, Cai Rang district, Can Tho City, passing 10
stations. Standard 1.4m gauge and 173km.
Eastern ring road
My Thuy intersection district 2 to Phu Huu Bridge in district
Total investment US$11
upgrades
9.
million.
Ba Cua Bridge
Eastern ring road second section, district 2.
Total investment US$13
million.
Complete June 2018.
Progressing and expected complete in 2020.
River bus route No. 1 is 11 km, from Bach Dang Station,
55
River Bus System
district 1 to Linh Trung, Thu Duc district.
Proposed new routes: No.2, Bach Dang to Lo Gom; and from
Total investment US$6 million.
Route 1: started in 2012
In operation 11/2017.
Bach Dang to Phu My Hung, district 7
56
57
58
Nguyen Huu Canh
Binh Thanh district, raising height 30-50cm.
street upgrades.
Tan Ky Tan Quy
83m and 16m wide, 4-lane bridge in Tan Phu.
bridge
Tunnels & elevated
Two at districts 7 and Nha Be intersection, 400m tunnel
sections at the
under Nguyen Van Linh Blvd., at the Tan Thuan Industrial
Nguyen Van Linh
Zone (IZ) and Highway 1A intersection. Nguyen Huu Tho
and Nguyen Huu
street, city centre and Hiep Phuoc IZ intersection. From city
Tho intersection
centre: Le Van Luong street and Nha Be district.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Total investment US$20
Commenced October 2019.
million.
Expected complete in 2021.
Total investment US$13.6
Construction 70% complete.
million.
On hold on for site clearance.
Phase 1 Nguyen Van Linh Blvd. tunnel.
Total investment US$36
Phase 2 the remainder.
million.
Expected to commence April 2020
Completion expected in June 2022.
24
No.
Project
Rach Dia bridge,
59
Long Kieng bridge
on Le Van Luong
road.
Location/ Description
New Nha Be district bridges
Long Kieng: 318 m, 15 m wide, ex. road section.
Rach Dia: 329m, 10.5m wide.
Capacity/ Remarks
Status
Total investment US$39.4
Long Kieng Bridge: 50% complete.
million.
Expected to finish in 2020.
N/A
Awaiting capital, expected to start in 2020.
88km, from Nhi Thien Duong bridge, district 8, connecting
60
Upgrading 50
Can Giuoc town centre, through Can Giuoc district to Tien
National Road
Giang province. Crossing Ben Luc - Long Thanh and ring
road 4.
New intersection connecting Pham Hung, district 8 with Cai
61
Parallel 50 National
Khe Canal; endpoint will connect highway 50 at Km12 +
Total investment US$237
Road
600, Tan Kim intersection in Long An province. 8.6km, 6
million.
Expected complete in 2020.
lanes, 80kmh speed limit
New road, Ba Chiem
62
bridge to Hiep
2.2 km section improvements to 30 m wide, 4-lane, Nha Be
Total investment US$18
Started 29/03/2018.
Phuoc IZ
district.
million.
Stage 3 completing.
Him Lam
Connecting Sai Gon University with Nguyen Van Linh street,
Total investment US$12.7
Residential Area,
district 7.
million.
intersection.
D1 road project and
63
In operation since 9/2018.
district 7.
64
New Rach Gia
bridge
51m, 10.5m wide in An Phu Tay Street, Binh Chanh district.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Total investment US$2.8
Under investment proposal.
million.
Expected to commence in 2020.
25
No.
Project
Bridge between
65
Nguyen Tri Phuong
bridge and Vo Van
Kiet street.
Upgrade and
66
expand Nguyen Tat
Thanh street
67
68
69
70
71
72
Location/ Description
N1 branch is 122.15m, one-lane 6.5 m wide.
N3 bridge 173.8m, 6.46m wide.
Nguyen Tri Phuong bridge cross-section to 19.25 m width
Near Khanh Hoi port, district 4.
Expand width from 20m to 37m.
Phat street
Expand width from 20m to 30m.
Upgrade Nguyen
District 7.
Thi Thap street
Expand width to 35m.
Pham Van Dong boulevard. Increases to 30m width.
Path from Rach Tra bridge to provincial road 8, Cu Chi
expand Provincial
district. 5.76km long, 2nd-grade construction, 60km/h speed
Road 9
limit.
Expansion
Vam Sat 2 Bridge
N1 and N3 completed 25/10/2017.
million
N4 completed Jan 2019.
N/A
Under site clearance.
Started Q1/2018.
Total investment US$13 million
District 7. Expand bridge to 16.5m wide
From Ly Nhon street Can Gio to the conjunction of Ly Nhon
and Soai Rap, 1,080m long and 10m wide.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Drains completed. Expansion progressing.
Expected to complete in 2021.
N/A
Thu Duc district. Directly connecting Ha Noi expressway and
Upgrade and
Kenh Te Bridge
Total investment US$6.6
after completion.
District 4.
Van street
Status
Connecting districts 5 and 8 to district 1.
Upgrade Huynh Tan
Expand To Ngoc
Capacity/ Remarks
N/A
Total investment US$46 million
Total investment US$4 million
Total investment US$15 million
Awaiting investment proposal.
Started 2018
Expected complete in 2020.
Investment proposal approved
Under site clearance; slow progress.
Started 2017 and completed in 2019.
Commenced March 2018
Expected to finish in June 2020.
26
No.
Project
Location/ Description
Capacity/ Remarks
Status
Upgrades from 990 Road to ring road 2, district 9.
73
Upgrade and
Expand section from the Vo Chi Cong, HCMC Long Thanh,
expand Nguyen
Nguyen Duy Trinh expressway intersection, to the Phu Huu
Duy Trinh Street
port forked intersection.
Total investment US$32 million
Approved, under implementation.
Phase 1: investment US$49
Approved early 2017 and constructed in late
million
2018. Expected complete in 2020.
N/A
Project adjustment approved.
2.2 km, 7-8 m width expanded to 30 m
74
Invest, upgrade and
3km, width to 30m to improve Tan Son Nhat airport
expand To Ngoc
connectivity to districts Tan Binh, Go Vap, Binh Thanh and
Van Street
Thu Duc.
4 lanes from Tan
75
Son Nhat Golf
Expand Tan Son road 659m and from 2- to 4 lanes from
Course to Quang
Golf Course entry gate to Quang Trung street.
Trung street,
Nguyen Sy Sach road 37m and 18.5m wide connecting to
districts Tan Binh
Pham Van Bach street .
and Go Vap.
Tac river dredging
76
and Truong Phuoc
Replacing old Long Thuan street bridge in district 9.
bridge construction.
77
The expansion of
In Cu Chi district. Traffic axis connecting Duc Hoa IZ with
Tran Dai Nghia
Sing Viet urban area and Le Minh Xuan IZ; and with the
Street
HCMC - Trung Luong expressway.
Nha Trang – HCMC
78
railway line
Improvements to Nha Trang – Sai Gon railway.
upgrades
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Total investment US$50
million.
Total investment US$202
million.
Approved and expected complete in 2020.
Under planning.
Total investment US$656
Proposal approved 10/2019.
million.
Commenced 4/2020, est. completed in 2021.
27
No.
Project
Location/ Description
Capacity/ Remarks
Status
Parallel road with
79
Nguyen Van Tao
4.5km, 60m wide.
Total investment US$85 million
Northern radial
8km. Long An to Vinh Loc IP, via districts Binh Tan and Binh
Total investment US$217
road
Chanh.
million.
between Thoi An
Section 1: 3,4 km, 30 m wide.
Section 1: investment US$80
and Thanh Xuan
Section 2: 4.5 km, 30 m wide.
million.
Roads along Saigon
Thi Nghe canal to the border of Tan Cang Residences, 1.2
Total investment US$26
River
km, 35m wide.
million.
Upgrade and
5m wide section from Binh Chanh district and Tan Thoi Nhi
expand Duong
commune boundary expanded to 7m with drainage system
Cong Khi street.
upgrades.
Calling for investors.
street.
80
Calling for investors.
Connecting street
81
Calling for investors.
Ward
82
83
84
85
86
Phase 2 Sanitation.
Total investment US$ 24
Started 2019
million
Expected complete in 2020.
480,0003/day capacity wastewater treatment facility and Q2
Total investment US$ 524
area sewer.
million
Upgrade and
904m, 60m wide with 10-12 lanes.
expand Truong
Truong Chinh - Au Co junction to Truong Chinh - Cong Hoa
Trinh sstreet
junction.
Phuoc Loc Bridge
351m, 10.5m wide with 455m bridge access road
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Calling for investors.
Commenced September 2019.
Expected to complete 2029.
Slow progress due to lack of capital.
Total investment US$ 93million
Selecting investors and design plan.
Total investment US$ 15
Commenced 2012 and 70% complete.
million
On hold due to site clearance.
28
No.
87
Project
Location/ Description
Capacity/ Remarks
Expand Nguyen Thi
My Thuy intersection to Cat Lai ferry.
Total investment US$ 62
Dinh street
1.9 km, expand from 70 to 77m wide.
million
Status
Under investment proposal.
New Hang Ngoai
88
bridge & Duong
Total investment US$17
Quang Ham street
million.
Expected to commence in 2020.
expansion.
89
90
91
92
93
94
Le Van Quoi street
Overpass 3 and
footbridge
Elevated route No.
1
Elevated route No.
3
Elevated route No.
2
Elevated route No.
4
Extend Ma Lo to national highway 1A section, Binh Tan
Total investment US$36
district.
million.
Overpasses to the front of new district 9 Eastern bus station.
9.5 km,17.5 m wide.
8.1 km, 17.5m wide.
11.8 km, 17.5 m wide.
7.3 km, 17.5m wide.
Total investment US$19
million.
Total investment US$703
million.
Total investment US$671
million.
Total investment US$977
million.
Total investment US$923
million.
Expected to commence in 2020.
Under site clearance.
Calling for investors.
Calling for investors.
Calling for investors.
Calling for investors.
Road connecting
east ring road Rach
101
Chiec bridge to
Binh Thai
Districts 9 and Thu Duc.
Total investment US$261
3.82 km; Phase 1: 67m wide.
million.
Calling for investors.
intersection
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
29
No.
102
103
104
Project
Location/ Description
Expand Tan Ky Tan
Le Trong Tan street, Tan Binh district to Cong Hoa street,
Quy Road
Tan Phu district. 644.5m, 30 m wide, 6-lanes.
Upgrade 22
National Road
An Suong to Nguyen Van Bua Street
Expand Dong Van
Add 2 more lanes, Giong Ong To to My Thuy crossroad,
Cong Street
district 2.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Capacity/ Remarks
Total investment US$32 million
N/a
N/a
Status
Contractors confirmed June 2019.
Expected to commence in 2020.
Proposed.
Commenced Feb 2020.
Expected complete in 2020.
30
Table 3: Infrastructure Q1/2020 – Hanoi
No.
Project
District
1
Dong Du - Duong Xa road,
Gia Lam District
2
Long Bien bridge – Bac Co –
Vinh Tuy bridge road
renovation
Long Bien
3
My Dinh – Ba Sao – Bai Dinh
Highway
Ha Noi (Ung Hoa, My
Dinh), Ha Nam, Hoa
Binh, Ninh Binh
4
Road surrounding Chu Van An
Memorial Park
4.3 km, starting at Red river dike
intersection and ending at Highway 5
Capacity/ Remarks
Status Q1/2020
US$38 million
Completed in January 2020
US$44 million
Ha Noi Municipal People's Committee
approved the plan
78 km long, 6-lane
US$189 million
Construction and site clearance at the
same time
Hoang Mai, Thanh Tri,
Ha Dong
2.5km. Around Chu Van An Memorial
Park in Hoang Mai, Thanh Tri and Ha
Dong districts.
US$84 million
Completed in January 2020
5
Renovation and expansion of
National highway 21 from Son
Tay to Xuan Mai
Thach That, Quoc Oai
va Chuong My
Son Tay - Hoa Lac - Xuan Mai in Son Tay
commune, Thạch That, Quoc Oai and
Chuong My districts.
29.36 km with 6 lanes
US$355 million
Under construction, behind schedule
due to limited investment and slow
site clearance.
6
Road connected Tu Lien
bridge to new Highway 3
Hoai Duc
8.3 km
N/A
Defining red line boundary, 1/500
plan
7
Road connected to the
Highway 4
Dong Anh
9km
N/A
Defining red line boundary, 1/500
plan
8
Provincial road 72 (section
from Bien Sat junction of Ring
road 4)
Bac Tu Liem
5.9km
N/A
Red line boundary, 1/500 plan
approved
Soc Son
Approximately 16.2 km. Phu Lo bridge
(Ca Lo river) to Da Phuc bridge (Cong
river)
N/A
Red line boundary, 1/500 plan
approved
9
Expand the old route 3
(Hanoi - Soc Son)
Gia Lam
Description
4.7 km. Two phases.
The first from Long Bien to Tran Hung
Dao and Luong Yen to Minh Khai.
The second is the Tran Hung Dao Luong Yen flyover.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
31
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
10
Expand & constructing Tam
Trinh street
Hoang Mai
3.5km from Mai Dong Bridge to Ring
Road 3.
US$87 million
Not yet reached planning agreement.
11
Road connecting Road 70 to
Phap Van - Cau Gie
Nam Tu Liem
N/A
N/A
Investment approved.
12
70 Street renovation
Nam Tu Liem
1.3km long, 50m wide. From Tran Huu
Duc street to extended NH 32.
US$12 billion
Under construction.
13
Road linking road 70 to Ring
Road 4
Bac Tu Liem, Nam Tu
Liem, Hoai Duc, Dan
Phuong
6.52km long, 50m wide. Along with
NH32, from road 70 to Ring road 4.
N/A
Red line boundary, 1/500 plan
approved
14
Connecting road from Thanh
Tri Bridge to Phu Thi flyover
Long Bien, Gia Lam
4.2km long. Section 1 is 17m wide,
section 2 is 22m wide
N/A
Modified investment policy
15
Connecting road from Hoa
Binh Bridge to South Linh
Dam Lake NUA
Thanh Tri
25m wide. 2 sections.
N/A
Red line boundary, 1/500 plan
approved
16
Renovation of the two sides of
Ring Road 1
Hai Ba Trung
From O Dong Mac to Nguyen Khoai
N/A
Under construction
17
Renovation of two sides of
Ngo Gia Tu street
Long Bien
N/A
N/A
Ha Noi Municipal People's Committee
approved detailed construction &
1/500 plans.
18
Road Nam Hong - Tien
Duong
Dong Anh
From Nam Hong to Tien Duong, Dong
Anh.
7.6km long, 30m wide
N/A
Ha Noi Municipal People's Committee
approved red line boundary, 1/500
plan.
19
Renovate, expand Vu Trong
Phung street.
Thanh Xuan
Vu Trong Phung street from Nguyen Huy
Tuong to Nguyen Trai
0.5km long x 20m wide
N/A
Site clearance.
20
Road connecting National
Highway 32 with National
Highway 32 bypass
Ba Vi
0.5km long, 23m wide
N/A
Postponed due to site clearance.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
32
No.
Project
District
Description
21
Right section along Red River
from Thuong Cat bridge to
Thanh Tri bridge
Dong Anh, Long Bien,
Bac Tu Liem
From Thuong Cat bridge to Thanh Tri
bridge, right bank.
US$1.3 billion
Delayed for Red River urban planning.
22
Left section along Red River
from Thuong Cat bridge to
Thanh Tri bridge
Dong Anh, Long Bien,
Bac Tu Liem
From Thuong Cat bridge to Thanh Tri
bridge, left bank.
US$1 billion
Delayed for Red River urban planning.
23
Road connecting Thuong Cat
bridge to Highway 5
Dong Anh
4km
US$69 million
Site clearance.
24
Road connecting Thuong Cat
bridge to Highway 32
Bac Tu Liem
4km, 60m wide
US$64 million
Under construction.
25
Intersection of Ring road 3.5
and Thang Long Avenue
Nam Tu Liem
Flyover and 3-floor
US$111 million
Approved 1/500 plan.
26
Road from Le Trong Tan to
Ring Road 3
Thanh Xuan, Hoang
Mai, Ha Dong
2.85 km, 30m wide. Connect with Ring
Road 2, passes through Ring Road 2.5
and connects with Ring Road 3
US$61 million
Plan approved by the People's
Committee of Hanoi.
27
Project to build Minh Khai –
Vinh Tuy – Yen Duyen Road,
connecting from Minh Khai
Road to Ring Road 2.5)
Hoang Mai, Hai Ba
Trung
1.8km, connecting Minh Khai to Ring
Road 2.5
US$58 million
Site clearance. Local authority and
investor are working on
compensatory solutions for
households.
28
5 connecting roads in NUA (2,
3, 4, 6, 7) in Ha Dong, Hoai
Duc districts
Ha Dong, Hoai Duc
6.2 km.
US$85 million
Red line boundary, 1/500 plan
approved.
29
Road from the Red river dyke
to the new urban area C2Gamuda Gardens
Hoang Mai
2.6km, 4m wide
US$43 million
In planning.
30
Phu Thuong street, Line No.3
Tay Ho
US$11 million
Ha Noi People's Committee
approved.
1.8943 ha in Phu Thuong ward.
around 1.4 km; 13.5 m wide
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Capacity/ Remarks
Status Q1/2020
33
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
31
Renovating and upgrading
Xuan Dieu road
Tay Ho
2.8 ha, Quang An ward
N/A
Speeding up construction schedule to
ensure completion pre-June 30, 2020.
32
Dang Thai Mai street
Tay Ho
6.5 ha, Quang An Ward
US$24 million
Approved by Hanoi People's
Committee.
33
To Ngoc Van street
Tay Ho
13.5-17.5m, Quang An ward
N/A
In planning
34
Expand the road adjacent to
Lotus Pond
Tay Ho
0.5ha, Quang An ward
N/A
In planning
35
Expand the road from Tay Ho
street to Quang Khanh street
Tay Ho
0.45ha, Quang An ward
N/A
In planning
36
Renovating Lac Long QuanCong Do street
Tay Ho
0.5ha, Quang An ward, Tay Ho.
N/A
In planning
37
Expanding Linh Nam street
Hoang Mai
3.1ha, Vinh Hung ward, Mai Dong
N/A
Red line boundary proposed.
38
Renovating and expanding
Nguyen Tuan street
Thanh Xuan
1.72ha, Thanh Trung Xuan ward
N/A
Hanoi People's Committee approved.
39
Tay Thang Long street
Bac Tu Liem
The area is 21.17ha. The section from Van
Tien Dung street goes to Pham Van Dong
street, Co Nhue 2 ward, Minh Khai.
N/A
Site cleared 20% of route,
construction started.
40
Road from Pham Hung road
to Le Duc Tho street (phase 1)
Nam Tu Liem
9.6ha, My Dinh 2 ward.
N/A
Approved red line boundary, 1/500
plan.
41
Road from To Huu Street to
Road 70 lasts
Ha Dong, Nam Tu Liem
6.2ha. The section from Van Phuc village,
Ha Dong district to TDP Thap, Dai Mo
ward, Nam Tu Liem district.
N/A
Site clearance.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
34
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
42
Luong The Vinh extended
road.
Nam Tu Liem
The area is 0.57ha, Me Tri ward.
N/A
Awaiting Government approval.
43
Road No. 4 from Nguyen Van
Linh street to Duong river dike
(through Eco-urban area)
Long Bien
8.1ha, Phuc Dong ward, Viet Hung
N/A
Plan approved.
44
The route from Ngoc Thuy
dyke to EIA Thuong Thanh
under BT form
Long Bien
9.81ha. Ngoc Thuy ward
N/A
30% completed.
45
Yen So - Song Phuong road
along Dan Hoai canal
Hoai Duc
0.3ha. Yen So commune, Dac So
N/A
Plan approved.
46
Expand Huu Hong dike,
section of Hai Ba Trung
district
Hai Ba Trung
N/A
Planned approved by Hanoi
Municipal People's Committee.
47
Route Thai Ha - Voi Phuc
Dong Da, Ba Dinh
N/A
N/A
Planned approved by Hanoi
Municipal People's Committee.
48
Lower Nghi Tam Street
Tay Ho
Lowering height of one section of Red
River dike (from Thang Loi Hotel to Gate
An Duong) to plus 12,4
N/A
Hanoi Municipal People's Committee
proposed the project to the Ministry
of Agriculture & Rural Development.
49
Ring road 1 (Hoang Cau - Voi
Phuc)
Dong Da, Ba Dinh
2.3 km, 50m wide
US$313 million
50
Enlarged Ring road 2 (Vinh
Tuy bridge - Mo Market - Nga
Tu Vong)
Hoang Mai, Hai Ba
Trung
3.1km, 8 lanes
N/A
Under construction.
51
Ring Road 2 (Vinh Tuy bridge
- Nga Tu So)
Hoang Mai, Hai Ba
Trung, Thanh Xuan,
Dong Da
5km
US$412 million
Progress accelerating.
52
Ring road 2.5 in Hoang Mai
district
Hoang Mai
2.1km. Dam Hong to Dinh Cong bridge
N/A
Slow site clearance.
Embankment extends 5m to 7m.
170m corridor road renovation.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
Site clearance.
Land acquired for construction.
35
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
53
Ring Road 3.5, from Thang
Long Avenue to Highway 32
Hoai Duc
5.6 km, 60m wide. Two phases.
US$44 million
Lower section opened.
54
Ring road 3.5 across Me Linh
and Dong Anh Districts
Me Linh, Dong Anh
10.5 km.
N/A
Ring road red boundary line
approved.
1/500 planning approved.
Ring Road 4
Vinh Phuc, Ha Noi (Dan
Phuong, Hoai Duc, Ha
Dong, Thanh Oai,
Thuong Tin, Soc Son),
Hung Yen, Bac Ninh,
Bac Giang
Six-lane, 120m wide type A 98 km
highway. Total 1,230 ha.
US$3.2 billion
Site clearance basically complete,
most construction and installation
packages are speeding up.
Hoai Duc, Ha Dong
17.7 km.
US$2.3 billion
Defining red line boundary, 1/500
plan.
330km.
US$4.1 billion
Detailed plan approved by Prime
Minister. Construction work within
2021-2025
55
56
Ring Road 4
(Hoai Duc to Ha Dong)
57
Ring Road 5 – Ha Noi region
Ha Noi, Hoa Binh, Ha
Nam, Thai Binh, Hai
Duong, Bac Giang, Thai
Nguyen, Vinh Phuc
58
Urban Railway Giap Bat – Gia
Lam (Line No. 1)
Hoang Mai, Gia Lam
15.36 km.
US$1.9 billion
Site clearance. No construction
bidding package as yet.
59
Urban Railway Cat Linh – Ha
Dong (Line No. 2A)
Ba Dinh, Ha Dong
13 km line, 12 stations, two intersections
at Cat Linh and National University
stations
US$550 million
Completion date still unknown, 99%
completed.
60
Urban Railway Nam Thang
Long – Tran Hung Dao (Line
No. 2)
Bac Tu Liem, Hai Ba
Trung
11 km through ten stations
US$1.6 billion
Completion delayed until 2027.
61
Urban railway Tran Hung DaoThuong Dinh (Line No. 2)
Hai Ba Trung, Dong Da,
Thanh Xuan
5.9km, underground
US$1.7 billion
Construction about to start.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
36
No.
Project
District
Description
Capacity/ Remarks
12.5 km railway via Nhon intersection –
National Highway 32 – Cau Dien – Mai
Dich – Cau Giay – Kim Ma – Cat Linh –
Quoc Tu Giam – Ha Noi Station. 8.5 km
above and 4 km underground
US$1.9 billion
Status Q1/2020
The project will complete 8.5km of
the elevated section from Nhon - Cau
Giay on 4/2021. Trains are expected
to arrive July 2020 and test in March
2020.
62
Urban railway Nhon - Ha Noi
Station (Line No. 3)
Bac Tu Liem, Nam Tu
Liem, Cau Giay, Ba Dinh,
Dong Da, Hoan Kiem
63
Urban Railway Hanoi station
to Hoang Mai ( Line no.3)
Hoan Kiem, Hai Ba
Trung, Hoang Mai
Approximately 8km, with 7 stops
US$1.2 billion
64
Urban railway Me Linh-Sai
Dong-Lien Ha (Line No. 4)
Me Linh, Long Bien,
Dong Anh
54km
N/A
Hanoi People's Committee approved
pre-feasibility investigation.
Expected implementation:
2021 - 2025
65
Urban railway Van Cao-Hoa
Lac (Line No. 5)
Ba Dinh, Dong Da, Cau
Giay, Nam Tu Liem,
Hoai Duc, Quoc Oai,
Thach That
38.4km
US$2.9 billion
The Hanoi People's Committee
assigns the Hanoi urban railway
management board to carry out the
procedures for elaborating and
submitting for approval the prefeasibility study report of Hanoi urban
railway project "route No. 5 Van Cao Ngoc Khanh - Lang - Hoa Lac ".
66
Urban railway Noi Bai - West
Ngoc Hoi new urban area
(Line No. 6)
Dong Anh, Thanh Tri
43km. Connecting urban railway 4 in Co
Nhue and urban railway in Duong Noi.
N/A
Site clearance.
67
Urban railway Line No. 7
Me Linh, Bac Tu Liem,
Hoai Duc, Ha Dong
Along with Ring road 3.5 in Me Linh and
Dong Anh ward
N/A
Planned.
68
Urban railway Line No. 8
Hoai Duc, Cau Giay,
Hoang Mai, Gia Lam
Son Dong-Mai Dich-Ring road 3-Linh
Nam-Duong Xa (37km long, 25 stations,
2 depots)
N/A
Prime Minister approved in 2030
Transportation Planning, expected to
start after 2020.
69
Underground station C6, C7
(urban railway No. 2 section of
Nam Thang Long-Tran Hung
Dao)
US$1.5 million
Ministry of Planning & Investment to
complete a draft Project
Implementation Report to the
National Assembly at end 2019.
Tay Ho
1.47 ha, Thuy Khue ward
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
37
No.
Project
District
70
S9 underground station
belongs to the pilot urban
railway line in Hanoi
71
Underground stations C5, C7,
C8 belong to Hanoi urban
railway
Ba Dinh
72
Pilot urban railway line in
Hanoi City section Nhon Hanoi Station - line 3 (Thu Le
section in Ba Dinh district
from Voi Phuc fork - Nguyen
Van Ngoc street)
73
Bridge over Nhue river
Ba Dinh
Description
1.5 ha. Ngoc Khanh Ward
Capacity/ Remarks
Status Q1/2020
N/A
Progress speeding up.
2ha. Lieu Giai and Quan Thanh wards
N/A
Ministry of Planning & Investment to
complete a draft Project
Implementation Report to the
National Assembly at end 2019.
Ba Dinh
2.1ha, Ngoc Khanh ward
N/A
Progress speeding up to ensure
completion in April 2021.
Nam Tu Liem
Road renovation connecting Thang Long
Boulevard to Road 70.
N/A
Planning.
US$124 million
Deputy Prime Minister approved
investment policy of Vinh Tuy 2 Bridge
construction project.
74
Vinh Tuy bridge phase 2
Hai Ba Trung, Long Bien
Vinh Tuy bridge connects Tran Quang
Khai, Nguyen Khoai, Minh Khai roads in
Hai Ba Trung district and Long Bien road,
Thach Ban ward in Long Bien district.
3,504 m long.
75
Duong 2 bridge
Long Bien
Road 4.2km x 48m
US$260 million
Hanoi proposed Government to plan
Cau Duong 2 construction.
US$738 million
Planning.
US$304 million
under BT contract
Yet to construct.
76
Tu Lien bridge
Dong Anh, Tay Ho
Start point is from Nghi Tam street and
planned Huu Hong dam Road. End point
is at intersection of Ring Road 3, Ha NoiThai Nguyen Highway
77
Tran Hung Dao bridge
Long Bien, Hoan Kiem,
Hai Ba Trung
N/A
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
38
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
78
Giang Bien bridge
Long Bien, Gia Lam
5,698m. Start point is Vincom Village
routes. End point at Ring Road 3, Ha NoiThai Nguyen Highway intersection.
US$263 million
Planned.
79
Route from Highway 21B Ngo Xa bridge up to Ta Day
dike
Ung Hoa
2.1 km; Ung Hoa district, Hanoi.
N/A
Hanoi People's Committee approved
red line 1/500 scale.
US$212 million
Progress speeding up.
Implementation and pre-feasibility
study finalized, submitted for
approval in Q2 2020 in accordance
with regulations.
80
Me So Bridge
Thuong Tin, Hung Yen
13.8km, 17m wide (phase 1), starting at
the intersection of Highway 1A and Ring
road 4, ending at the intersection of Ha
Noi-Hai Phong Highway and Ring road 4
81
Thuong Cat bridge
Bac Tu Liem, Dong Anh
4.5km, Dong Anh and Bac Tu Liem
districts.
US$694 million
Planning
82
Hong Ha bridge
Me Linh, Dan Phuong
N/A
US$213 million
Planning
83
Ecological park in Tu Liem
district
Tu Liem
Total 26,000 m², in Km No.7, Thang Long
boulevard, Tay Mo, Tu Liem district, Ha
Noi.
US$1.8 million
Approved
84
Thi Cam Park
Nam Tu Liem
Xuan Phuong and Xuan Canh Ward, Nam
Tu Liem District
N/A
Approved detailed MP 1/500.
85
Hanoi Software Technology
Park
Dong Anh
43.45 ha ha tech park near Vo Nguyen
Giap street, on Nhat Tan-Noi Bai road
US$521 million
Site clearance complete.
86
Kim Quy Park
Dong Anh
Over 100 ha. Vinh Ngoc Village, Dong
Anh district
US$200 million
Investor paid 1.000 billion VND for
Dong Anh to clear the site. Planning
adjustments approved.
87
Phung Khoang Equable Lake
Park
Thanh Xuan
11.9ha
N/A
Ongoing, timeline delayed.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
39
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
88
Ha Dong green sporting Park
Ha Dong
Approx. 11.9ha
N/A
Not yet called for investment.
89
Hello Kitty Park
Tay Ho
On the area no. 200 Yen Phu street, Yen
Phu and Quang An ward, Tay Ho district
N/A
Not yet under construction.
90
Nam Trung Yen Equable Lake
Park
Cau Giay
On the 12ha area located nearby Nam
Trung Yen resettlement area
US$69 million
Not yet under construction.
N/A
Planning.
91
Me Tri Equable Lake Park
Nam Tu Liem
Located on the 25-ha area in Me Tri
Commune, Phu Do Ward, Nam Tu Liem
District
92
Vinh Hung Eco-Park
Hoang Mai
Approx. 15 ha, located in Vinh Hung
ward, Hoang Mai district
N/A
1/500 plan approved.
93
Biology Hi-tech Park
Bac Tu Liem
203.66ha, Tay Tuu, Linh Mac, Minh Khai,
and Thuy Phuong Ward, Bac Tu Liem
District, Hanoi.
US$1 billion
Hanoi People's Committee approved
project design adjustment.
94
"Open park" green and service
area
Ha Dong
5,943 m². Lot 10-1, S4 urban area, Van
Phuc ward, Ha Dong District
US$5.7 billion
Call for investment.
95
Green area, combining sports
ground and public service
facilities of business nature
Tay Ho
5,943m2
US$247,000
Hanoi Department of Planning and
Investment recently announced call
for investment.
96
Ecological park nest 29 Quang
Ba
Tay Ho
1.3ha, Quang An ward, Tay Ho
N/A
Planning.
97
Vinh Hung ecological park
Hoang Mai
15.09ha. Vinh Hung ward.
N/A
Planning.
98
Air conditioner Lake Park in
Southwestern Hanoi (phase 2)
N/A
Not yet implemented due to capita
general
planning
adjustments;
residents have not agreed to relocate
5,000 graves in the project site.
Cau Giay
0.98 ha. Trung Hoa ward.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
40
No.
Project
99
Complex of sports park and
Ho Sen Mixed service
District
Description
Capacity/ Remarks
Status Q1/2020
Long Bien
3.1ha. Gia Thuy ward
N/A
Construction not following the plan:
negative public response.
100
Park, Lake CV1 and plot D24
(new urban area Cau Giay)Yen Hoa ward, Tu Liem
Cau Giay, My Dinh
42.9 ha includes park, lake and 330,000
m² trade promotion centre. Other
remaining office, mixed land use and
parking.
US$41 million
Plans being adjusted.
101
Astronomy Theme Park - Bach
Hop Equable Lake
Ha Dong
12.1 ha. Zone A, CX5, Duong Noi NUA.
US$8.7 million
Speeding up progress
102
Parking lot.
Kim Chung NUA
Hoai Ðuc
3,200 m² in P6 land lot in Kim Chung new
urban area, Kim Chung commune, Dong
Anh district, Ha Noi.
N/A
Ha Tay Provincial People's Committee
approved detailed construction plan
1/500.
103
Underground Parking lot at
295 Le Duan
Hai Ba Trung
295 Le Duan, in Thong Nhat Park area.
N/A
Planning
104
Static parking lot
Tay Ho
The area is 0.2ha, Phu Thuong ward, Tay
Ho.
N/A
Planning
105
Song Hang parking lot
Hoang Mai
1.1ha, C5-P1, Thanh Tri ward
N/A
City Government approved.
106
Vinh Quang parking lot
Hoang Mai
0.56 ha, Hoang Liet ward
N/A
Planning.
107
Dai Kim parking lot
Hoang Mai
1.6ha, Dai Klim ward
N/A
Planning.
108
Public parking in Dam Chuoi
Lake
Thanh Xuan
0.26ha, Khuong Dinh ward
N/A
Planning.
109
Nam Phuong parking lot
Nam Tu Liem
0.4ha, Xuan Phuong ward.
N/A
Planning.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
41
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
110
Underground car park of the
Government Office
Ba Dinh
0.428ha. Ngoc Ha Ward
N/A
Planning.
111
Underground parking lot for
Quan Ngua sport
Ba Dinh
1.8ha, Lieu Giai ward
US$117 million
Planning.
112
Flyover Chua Boc – Pham
Ngoc Thach
Dong Da
277m, two-lane, 9m wide road. Dong Da
District.
US$7.4 million
Planning.
113
Flyover Mai Dich – Nam
Thang Long (belongs to ring
road No. 3)
Bac Tu Liem
5 km 4-lanes. Bac Tu Liem District.
US$213 million
Ministry of Transport adjusted the new
schedule for 12/2020 over 08/2020
114
Connection flyover Linh Dam
lake
Hoang Mai
660m. Flyover Ling Dam lake connecting
with Giai Phong street.
N/A
Expected complete toward end 2020,
10/10 occasion.
115
Flyover Hoang Quoc Viet
Street to Nguyen Van Huyen
Street
Cau Giay
From Hoang Quoc Viet to Nguyen Van
Huyen
US$22 million
Under construction.
116
National Exhibition Centre
Dong Anh
200 ha, located in Xuan Canh, Mai Lam &
Dong Hoi commune, Dong Anh district
US$651 million
Significant changes to design.
117
Bach Mai Hospital Rebuilding
Scheme
Dong Da
13.81ha; Phuong Mai Ward, Dong Da
District, Hanoi
N/A
Hanoi People's Committee approved
red line at 1/500 scale.
118
Drainage System in Co Nhue,
My Dinh, Me Tri, Ba Xa
Bac Tu Liem, Nam Tu
Liem
Co Nhue, My Dinh, Me Tri, Ba Xa, area of
51km2, 4 components including 4
pumping stations, 9 reservoirs, new
canals and renovation of existing canals
US$347 million
Construction preparation.
119
Tich River-Day River Water
Transfer Station
Ha Dong
Mai Linh, Ha Dong district
US$38 million
Construction on schedule
120
Third runway international
airport
Soc Son
Noi Bai Airport
US$1.7 billion
Considering between site clearance
and rearrangement of current land
and Northern Military land.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
42
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
121
1A airline upgrade
Soc Son
Noi Bai Airport
US$28 million
Ministry of Transport proposed the
Government assign ACV to operate
until 2025, then evaluate to convert
this function to Vietnam Aviation
Department.
122
Stations in Thuong Tin, Hoai
Duc, Dan Phuong, Dong Anh
Dong Anh
Four: one each in Thuong Tin, Hoai Duc,
Dan Phuong and Dong Anh districts.
N/A
Planning
123
Intercity bus station in Gia
Lam district
Gia Lam
Co Bi commune, Gia Lam district, Hanoi
N/A
Ha Noi Municipal People's Committee
approved detailed construction plan
(April 2017)
124
Underground train station C5
Ba Dinh
Urban railway No. 2, Nam Thang Long Tran Hung Dao section (Km4 + 778,321
to Km5 + 870,670)
N/A
Announce
and
handover
adjustment documents.
125
Dong Anh Bus Station
Dong Anh
Uy No Commune, Dong Anh District,
Hanoi. Approx. 7.42 ha
N/A
1/500 plan approved.
126
Pass tunnel (Chuong Duong
Do – Tran Nguyen Han)
Hoan Kiem
N/A
US$4.3 million
Planning.
127
Tunnels in the LeVan Luong
and Ring Road 3 intersections
Cau Giay
N/A
US$24 million
Ongoing.
128
Tunnel from Ring Road 2.5
and Giai Phong road
Hoang Mai
Ring Road 2.5 to Giai Phong (former
National Highway 1A) in Hoang Mai
district
US$29 million
Hanoi People's Committee approved
project feasibility study.
129
Buoi Ward stadium
Tay Ho
0.18ha. The pond area of AnThai church,
Buoi ward
N/A
Planning.
130
Yen So station
Hoang Mai
3.4ha, Yen so ward
N/A
Construction delayed.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
site
43
No.
Project
District
Description
Capacity/ Remarks
Status Q1/2020
131
Me Tri sports and cultural
center
Nam Tu Liem
1.48ha, Me Tri ward.
N/A
Planning.
132
French Vietnamese sports
center
Nam Tu Liem
2.3 ha, Phuong Canh ward.
N/A
Planning.
133
Sports area for handicapped
people - Center for senior
athletes in Hanoi
Nam Tu Liem
2.98ha, Cau Dien ward.
N/A
Planning.
134
Hanoi Information Technology
Park
Long Bien
9.43ha, Phuc Dong ward.
N/A
Planning.
135
Vietnam Contemporary Art
Training and Development
House
Ba Dinh
1.56ha, Lieu Giai ward
N/A
Planning.
136
Soc Son Entertainment
Complex - Horse racing track
Soc Son
100ha
US$420 million
Accelerating site clearance and land
hand over to investors.
US$15 million
Ground clearance.
137
Expand Huynh Thuc Khang
road
Dong Da
Length: 1.3km; width: 28.3m-30m. The
road starts at the junction of Nguyen Chi
Thanh and Huynh Thuc Khang and
finishes at the junction of Voi Phuc - Kim
Ma
138
Expand Luong Dinh Cua road
Dong Da
Expand Luong Dinh Cua road to Lane
102 Truong Chinh
US$3.7 million
Approved since 2004 but not finished.
139
Renovate Linh Quang Lake
Dong Da
To tackle water pollution. Build
infrastructure around the lake
US$5.7 million
Site clearance.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC & Hanoi
Nam Long Corporation
44
Disclaimer
The property market research contained is verified to the best of Savills Vietnam’s abilities.
Savills quarterly report reflects an overview of the current property market and is indicative
research only. Savills Vietnam does not guarantee the accuracy of research and forecasts
contained herein.
Savills Vietnam does not accept any responsibility for losses arising from reliance on the
research and forecasting. Savills recommends that the reader obtain a detailed market study of
the specific sector of interest should a deeper understanding of the market be required.
Reproduction of this report, in any manner whatsoever, in whole or in part, without written prior
consent from Savills Vietnam is prohibited. Approval should be obtained from Savills Vietnam
before any reference to this report can be made in any statement, published document, or
circular.
Where information is given without reference to another party, it shall be taken that this
information has been obtained or gathered through Savills best efforts and to Savills best
knowledge. Processed data references there from shall be taken as Savills opinion and shall not
be freely quoted without acknowledgement.
Quarterly Market Report Q1/2020 - Common Appendix for HCMC
Nam Long Corporation
45
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
Contents
Executive Summary ..................................................................................................... 1
1.
SUPPLY .................................................................................................................. 2
1.1.
OVERALL ........................................................................................................................................................2
1.2.
BY LOCATION ..............................................................................................................................................4
1.3.
BY TYPE...........................................................................................................................................................7
2.
PERFORMANCE .................................................................................................. 10
2.1.
OVERALL ..................................................................................................................................................... 10
2.2.
BY LOCATION ........................................................................................................................................... 12
2.3.
BY TYPE........................................................................................................................................................ 15
3.
DEMAND ANALYSIS .......................................................................................... 21
4.
SWOT .................................................................................................................. 26
RESEARCH PARAMETERS ......................................................................................... 27
Appendix 1: Terms Definition .................................................................................. 28
Appendix 2: Existing Stock....................................................................................... 30
Appendix 3: Future Supply ....................................................................................... 35
Disclaimer................................................................................................................... 37
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
Figures
Figure 1. 1: Total stock by quarter................................................................................................................................... 3
Figure 1. 2: Locations share................................................................................................................................................ 4
Figure 1. 3: Location share by type ................................................................................................................................. 5
Figure 1. 4: Total districts stock, Q4/2019 .................................................................................................................... 6
Figure 1. 5: Retail density, Q4/2019 ................................................................................................................................ 6
Figure 1. 6: Stock by type.................................................................................................................................................... 7
Figure 1. 7: Share by type, Q1/2020 ............................................................................................................................... 8
Figure 1. 8: Supermarket share by brand, Q4/2019 ................................................................................................. 9
Figure 2. 1: Quarterly performance ............................................................................................................................... 11
Figure 2. 2: CBD quarterly performance ..................................................................................................................... 12
Figure 2. 3: Secondary quarterly performance ......................................................................................................... 13
Figure 2. 4: Suburban quarterly performance .......................................................................................................... 14
Figure 2. 5: Shopping center quarterly performanc ............................................................................................... 15
Figure 2. 6: Shopping centre quarterly performance ............................................................................................ 16
Figure 2. 7: Kiosk performance, Q1/2020 ................................................................................................................... 16
Figure 2. 8: Department store quartly performance .............................................................................................. 17
Figure 2. 9: Department store quarterly performance .......................................................................................... 18
Figure 2. 10: Department store performance by project, Q4/2019 ................................................................. 18
Figure 2. 11: Retail podium yearly performance ..................................................................................................... 19
Figure 2. 12: Retail podium performance, Q4/2019............................................................................................... 20
Figure 3. 1: Concessions granted ................................................................................................................................... 23
Figure 3. 2: The COVID-19 effect ................................................................................................................................... 23
Figure 4. 1: Future supply to 2022 ................................................................................................................................ 24
Figure 4. 2: Districts future supply ................................................................................................................................. 25
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
Executive Summary
Continuous non CBD supply
Over 9,800m2 launched in Binh Chanh and district 7 to increase non-CBD supply 1% quarter
on quarter (QoQ) and 9% year on year (YoY).
Retail was over 1.47 million m2, up 1% QoQ and 7% YoY, of which non-CBD areas had 91%,
up 2ppts YoY, following five quarters of continuous supply increases.
Retail crunch
Footfall had been decreasing since early February as covid awareness and public concern
increased. Following the shutdown and temporary closure of retail centers, performance fell
steeply.
Average occupancy decreased -1ppt QoQ to 95%, and asking rents by -2% QoQ to
US$49/m2/mth after some short-term lease expiries and late cancellations, with an
expectation that vacancies will increase.
Landlords and occupiers respond
Non-CBD landlords have offered up to -30% lower rents. Fully occupied CBD shopping centre
landlords were reluctant to adjust short-term rents but increasing pressure is anticipated. Local
landlords have responded much faster with tenant support than foreign.
Under pressure of decreased footfall and revenue loss, most tenants requested rent
abatements. Retailers considering entry have been renegotiating, or deferring new leases, and
those with leases agreed pre-shutdown have sought rent-free extensions.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
1
1.
SUPPLY
Our analysis covers the five main retail segments: Shopping Centre; Department Store; Retail
Podium; Supermarkets >300 m2 and Wholesale.
1.1.
OVERALL
In Q1/2020, there were three new entries from one shopping center and two supermarkets in
non-CBD areas. Together they provided over 9,800 m2 net leasable area (NLA), and increased
total supply 1% QoQ and 7% YoY to over 1.47 million m2.
Saigon Mia Center is a four-level Podium within a mixed-use complex developed by Hung
▪
Thinh Corporation. There is a new 2,100 m2 Finelife supermarket and the Shopping Centre
of over 7,200 m2 has F&B including Starbucks, The Coffee House, Pizza Hut and Education
tenants
Another Finelife supermarket by Saigon Co-op entered. Finelife Riviera with 500 m2 NLA
▪
is located within residential development Riviera Point in district 7.
Table 1. 1: Supply change, Q1/2020
#
Project
District
Type
Supply
(m2 NLA)
1
Saigon Mia Center
Binh Chanh
Shopping centre
7,239
2
Finelife Saigon Mia
Binh Chanh
Supermarket
2,124
3
Finelife Riveria Point
Dist. 7
Supermarket
500
Total new project supply
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
9,862
2
Figure 1. 1: Total stock by quarter
1,500
1,200
m2
1,376
1,409
1,419
Q1/2019
Q2/2019
Q3/2019
1,461
1,471
Q4/2019
Q1/2020
900
600
300
0
Nguồn: Nghiên cứu & Tư vấn Savills
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
3
1.2.
BY LOCATION
Retail is further divided into three main areas: the CBD, Secondary and Suburban.
Table 1. 2: HCMC Retail
Area
Districts
CBD
1 and 3
Secondary
2, 4, 5, 7, 10, Phu Nhuan and Binh Thanh
Suburban
6, 8, 9, 11, 12, Go Vap, Tan Binh, Tan Phu, Thu Duc, Binh Chanh, Binh Tan, Hoc Mon,
Cu Chi, Can Gio and Nha Be
With vacant land limited in the CBD and rapid urbanization in non-CBD areas, new supply is
decentralising. The Suburban area had a 50% share, up 4 ppts YoY and reducing the Secondary
area share to 41% and the CBD to nine percent.
Figure 1. 2: Location share
100
80
%
CBD
Secondary
Suburban
46
49
50
50
50
43
42
41
42
41
11
9
9
9
9
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
60
40
20
0
Source: Savills Research & Consultancy
Shopping Center was the dominant supplier in all three areas. High population densities in the
Secondary and Suburban areas capture higher supply than the CBD.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
4
Figure 1. 3: Location share by type
Department Store
Supermarket
100%
80%
Shopping Centre
Wholesale Market
6%
Retail Podium
2%
10%
7%
18%
25%
7%
4%
60%
30%
4%
4%
40%
58%
65%
60%
20%
0%
CBD
Secondary area
Suburban area
Source: Savills Research & Consultancy
The CBD
The CBD is ideal for retail with previously high local and overseas footfall, most high-end
entrants plan their first outlet in this area as part of longer term branding strategies. The
majority are part of a larger scale mixed-use development. Due to a limited land bank, supply
growth in the CBD is slow and long term projects tend to refurbish, or rebuild sites to expand.
In Q1/2020, stock was over 128,000m2, stable QoQ but down -13% YoY. The YoY decrease was
after Saigon Square 3 withdrew in Q2/2019 and C&C Mart in Q3/2019. Parkson Saigon Tourist
Plaza remains closed and under renovation. Supply increases in non-CBD areas have helped
decrease CBD share from 11% in Q1/2019 to 9% in Q1/2020.
Secondary Area
District 7 supply was approximately 609,000m2 relatively stable QoQ and up 3% YoY after the
entry of smaller scale Finelife in Riveria Point. The district has a 41% share.
Districts 2 and 7 have high concentrations of Retail; district 2 has a 13% share and District 7
was third with an 11% share.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
5
Suburban Area
The Suburban area had the only supply increase of 1% QoQ and 7% YoY when Saigon Mia
entered around 9,400m2 to increase Binh Chanh supply by 115 percent. The Suburban with
over 734,000m2 and a 50% share, maintains the highest supply of the three areas. Suburban
Retail mainly serves local residents, and the CBD focus is Tourism and Business. Surburban
Shopping Center tenants are fast Fashion, FMCG, Entertainment and F&B.
Figure 1. 4: Total districts stock, Q4/2019
Total supply
m2
200,000
No. of projects
projects
20
CBD
Others
Cu Chi
Dist. 12
Dist. 6
Dist. 11
Dist. 9
Binh Tan
Tan Binh
Go Vap
Binh Thanh
Secondary
Thu Duc
0
Tan Phu
0
Dist. 4
4
Phu Nhuan
40,000
Dist. 5
8
Dist. 10
80,000
Dist. 7
12
Dist. 2
120,000
Dist. 3
16
Dist. 1
160,000
Suburban
Source: Savills Research & Consultancy
Others including Districts 8, Binh Chanh, Nha Be, Hoc Mon, Can Gio
Figure 1. 5: Retail density, Q4/2019
1.2
Retail Density
m2/person
Population density
people/km2
1.0
50,000
40,000
0.8
30,000
0.6
20,000
0.4
CBD
Secondary
Cu Chi
Dist. 12
Nha Be
Binh Tan
Dist. 9
Go Vap
Dist. 6
Tan Binh
Dist. 11
Thu Duc
Tan Phu
Dist. 4
Phu Nhuan
Binh Thanh
Dist. 5
Dist. 7
Dist. 10
0
Dist. 2
0.0
Dist. 3
10,000
Dist. 1
0.2
Suburban
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
6
1.3.
BY TYPE
Shopping Centres and Supermarkets had supply increases. The structure was unchanged QoQ
with Shopping Centers having a 62% share, Supermarkets 24% and the rest 14%.
Footfall had been easing since early February as covid awareness and public concern
increased. Apart from Supermakets and Wholesale outlets providing daily essentials, other
Retail had to endure temporary closures after social distancing took effect.
Figure 1. 6: Stock by type
1,500,000
m2
1,200,000
900,000
600,000
300,000
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Wholesale Market
51,000
51,000
51,000
51,000
51,000
Retail Podium
57,312
64,072
70,075
81,533
81,533
Department Store
111,300
83,000
83,000
83,000
83,000
Supermarket
343,330
327,220
323,220
343,941
346,564
Shopping Centre
812,750
883,916
891,716
901,973
909,212
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
7
Figure 1. 7: Share by type, Q1/2020
Department store
6%
Retail podium
5%
Supermarket
24%
Wholesale market
3%
Shopping centre
62%
Source: Savills Research & Consultancy
Shopping Centre
Segment supply, with an average 3% QOQ growth, has increased for five quarters. In Q1/2020,
total supply was over 909,000m2, up 1% QoQ and 12% YoY after the new project entered in
Binh Chanh.
CBD Shopping Centers in mixed-use developments, accounted for 92% of total supply and
have a lower average scale than the non-CBD. Average scale in the CBD was nearly 10,600m2,
much smaller than the non-CBD with over 23,800m2.
Kiosk style shopping centres are not appropriate for international brands. Combining
traditional market and modern retail convenience their focus is on domestic handicrafts,
accessories and casual fashion. Projects are mostly located in the CBD, and provide leasable
areas of 2-8 m2. This sub-segment stock stayed stable QoQ at 25,300 m2, but eased -9% YoY
after Saigon Square 3 closed.
Supermarket
Supermarket supply increased 1% QoQ and 12% YoY after two Finelife supermarkets entered
in Binh Chanh and district 7. Their steady opening highlights their growing potential in modern
Retail. A gradual shift from wet market to supermarket has been increasing with greater
hygiene awareness, wider product categories and improved services.
Domestic brands continued to lead with a 73% share; the CoopMart chain dominated supply
with a 53% share, followed by Vinmart with fifteen percent.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
8
Figure 1. 8: Supermarket share by brand, Q4/2019
Others
13%
AEON
8%
Co.op mart
53%
Big C
11%
Vinmart
15%
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
9
2.
PERFORMANCE
Average ground floor rent is used as benchmark, weighted by Retail NLA of a minimum 10 m2,
including service charges but excluding VAT. Savills focuses on Shopping centres, Department
Stores and Retail Podiums. Supermarkets and Wholesale centres tend to be owner-operated
and have limited leasable space.
With many projects having multiple Retail types, such as Giga Mall, AEON Malls, Vivo City,
Crescent Mall, Vincom Mega Mall, and Saigon Centre, we analyse component by component
performance. Kiosk-based Shopping Centres are not considered in average Shopping Centre
rent calculations.
2.1.
OVERALL
No new leases were recorded in Q1/2020 and average occupancy decreased -1ppt QoQ to
95%, following short-term lease expiries and late cancellations in the non-CBD. Pre-lockdown,
non-CBD Retail centers saw occupancy decreases, especially in Podiums with their higher
proportions of F&B and Entertainment. In the short term, vacancies will increase.
Average asking rents decreased -2% QoQ yo US$49/m2/mth, reflecting lower non-CBD tenant
offers. Some offered up to -30% lower rents than Q4/2019. Many fully occupied CBD Shopping
Centre landlords were reluctant to adjust rents immediately but increasing pressure is
anticipated.
Local landlords have been quicker to support tenants than foreign. In February, Vincom Retail
announced existing rents would be subsidized relative to the affect of Covid-19. Hung Thinh
offering case by case reductions of -20 to -40% followed. A recent pre-shutdown Savills
Landlord survey found between -10% to -30% monthly rent reductions were being offered
and in a few cases, up to -50 percent.
With students at home since Tet, Educational providers, Gaming and F&B occupiers with
significant drops in revenue have also been seeking lower rents.
New retailers considering entry have been renegotiating rents and some have deferred
finalizing new leases; those with pre-shutdown leases have sought rent-free extensions.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
10
Figure 2. 1: Quarterly performance
60
US$/m2/mth
%
50
100
80
40
60
30
40
20
20
10
0
Avg. Occupancy
Avg. Rent
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
96
96
96
96
95
48.9
48.7
49.4
50.1
49.0
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
11
2.2.
BY LOCATION
The CBD
A lack of new stock, limited vacancies and high demand have supported CBD performance. In
Q1/2020, there was 0.3% vacant space and average rents remained high at US$123/m2/mth.
The prime location saw average occupancy increase 3ppts YoY and average rent up 11% YoY
and represents the highest growth of all three areas.
Figure 2. 2: CBD quarterly performance
US$/m2/mth
140
%
120
100
80
100
80
60
60
40
40
20
20
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Avg. Occupancy
97
99
100
100
100
Avg. Rent
110
115
123
123
123
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
12
Secondary Area
Secondary area occupancy and rent decreased.
▪
Average rent was US$43/m2/mth, decreasing -3% QoQ but stable YoY. The decrease was
mainly due to district 7 average rents dropping -10% QoQ. Crescent Mall decreased -20%
QoQ and Lotte Mart Nguyen Huu Tho by -10% QoQ. Crescent Mall decreased rents to
attract tenants but Lotte Mart Nguyen Huu Tho -10% discounts resulted from corporate
COVID-19 support policies.
▪
Average occupancy was 93%, slightly decreasing -1ppt QoQ and -2ppts YoY. District 5 was
the main driver after tenant contracts expired with occupancy down -4ppts QoQ.
Figure 2. 3: Secondary quarterly performance
US$/m2/mth
50
%
100
40
80
30
60
20
40
10
20
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Avg. Occupancy
95
94
95
94
93
Avg. Rent
43
43
43
45
43
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
13
Suburban Area
The Suburban area had stable occupancy but decreased rents. In Q1/2020, the average rent
was US$38/m2/mth, down -1% QoQ after decreases in Go Vap, Thu Duc and district 11, and
lower than average area rent in the new Binh Chanh project.
▪
Lotte’s policy saw knock-on decreases: Go Vap district was down -4% QoQ, and district 11
by -8% QoQ.
▪
Saigon Mia Centre offered US$30/m2/mth pre-leasing however, under social distancing
the operator offered -20% discounts to US$25/m2/mth, -34% below the area average.
Figure 2. 4: Suburban quarterly performance
US$/m2/mth
50
%
100
40
80
30
60
20
40
10
20
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Avg. Occupancy
96
97
96
96
96
Avg. Rent
36
39
39
39
38
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
14
2.3.
BY TYPE
Shopping Centre
The segment had stable 96% occupancy but average rent decreased -2% YoY after -3% QoQ
performance moved non-CBD average rents down to US$41/m2/mth.
▪
Non-CBD Lotte Shopping Centers and Crescent Mall lowered rents -10% to -20% QoQ.
▪
Hung Thinh was one of the first local developers to offer rent discounts to Saigon Mia
Center tenants affected by COVID-19, but also to improve occupancy. However, rents were
still 25% higher than Central Mall Pham Hung.
Figure 2. 5: Shopping center quarterly performance
US$/m2/mth
60
%
50
100
80
40
60
30
40
20
20
10
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Avg. Occupancy
96
96
97
96
96
Avg. Rent
46
47
48
49
48
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
15
Figure 2. 6: Shopping centre quarterly performance
Occ. CBD
Occ. Non-CBD
Rent. CBD
Rent. Non-CBD
US$/m2/mth
140
%
120
100
80
100
60
80
60
40
40
20
20
0
0
Q1/2019
Q2/2019
Q3/2019
Source: Savills Research & Consultancy
Q4/2019
Q1/2020
With small leasable areas and high traffic, kiosk-based Shopping Centres appeal to local
retailers. These projects are considered a good investment channel with flexible leases up to
15 years. By Q1/2020, kiosk-based Shopping Centre rents were unchanged but occupancy
decreased -1 ppt to 97 percent.
Figure 2. 7: Kiosk performance, Q1/2020
1,800
US$/kiosk/mth
Occupancy
Lower Rent
%
Upper Rent
1,500
100
80
1,200
60
900
40
600
20
300
0
0
Saigon Square 1
Lucky Plaza
Taka Plaza 1
CBD
Central Market
An Dong Plaza
Non-CBD
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
16
Department Store
Department Stores were stable QoQ but saw improved YoY performance. Average rent was
US$75/m2/mth, up 10% YoY and occupancy at 99%, was up 7ppts YoY. Apart from the 96%
occupied Parkson Hung Vuong, all Department Stores were fully occupied.
With less amenities, limited product mix and higher prices, Department Stores are under fierce
competition from Shopping Centres and are steadily losing appeal, under a growing
preference for one-stop Retail. Two underperforming projects in Q1/2019, Parkson CT Plaza
and Parkson Saigon Tourist Plaza have since closed and reopened as Shopping Centers.
Figure 2. 8: Department store quartly performance
US$/m2/mth
80
%
100
70
80
60
50
60
40
40
30
20
20
10
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Avg. Occupancy
92
99
99
99
99
Avg. Rent
72
74
74
75
75
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
17
Figure 2. 9: Department store quarterly performance
Occ. CBD
120
Occ. Non-CBD
Rent. CBD
Rent. Non-CBD
%
US$/m2/mth
100
100
80
80
60
60
40
40
20
20
0
0
Q1/2019
Q2/2019
Q3/2019
Source: Savills Research & Consultancy
Q4/2019
Q1/2020
Figure 2. 10: Department store performance by project, Q4/2019
180
Average rent
US$/m2/mth
Occupancy
%
150
100
80
120
60
90
40
60
CBD
Aeon Mall Binh Tan DS
Aeon Mall Celadon DS
Parkson Hung Vuong Plaza
0
Nowzone
0
Takashimaya (Saigon Centre)
20
Diamond Plaza
30
Non-CBD
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
18
Retail Podium
Retail podiums had softer performance significantly affected by COVID-19 as core tenants are
F&B, Personal Service and Education.
▪
Average rent was US$34/m2/mth, decreasing -4% QoQ and -19% YoY. Two projects
making sharp rent QoQ decreases to attract new tenants included RomeA by -19% and
The Oxygen by -15%; occupancy was down -3ppts QoQ in each.
▪
Average occupancy was 87%, slightly down -1ppt QoQ and -4ppts YoY.
Figure 2. 11: Retail podium yearly performance
US$/m2/mth
50
%
100
40
80
30
60
20
40
10
20
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Avg. Occupancy
91
86
86
88
87
Avg. Rent
42
38
37
35
34
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
19
Source: Savills Research & Consultancy
CBD
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
Occupancy
The Art Beethoven
STCenter
Saigon Airport Plaza
The Manor 2
Moonlight Plaza
The Oxygen
The Manor 1
Average rent
Saigon Pearl
Remax Plaza
Sunrise City South
Thao Dien Pearl
US$/m2/mth
TTC Plaza
Republic Plaza
Opera View
RomeA
New World Hotel
Caravelle Hotel
180
Rex Arcade
Sheraton Saigon
Figure 2. 12: Retail podium performance, Q4/2019
%
150
120
60
30
0
100
80
60
90
40
20
0
Non-CBD
20
3.
DEMAND ANALYSIS
Retail sales
The temporary lull in demand has severely affected quarterly macro indicators. In Q1/2020,
sales of Goods and Services in HCMC of approximately US$14 billion were down -1.7% YoY.
Against 12% growth in January and 2% in February, March dropped -11% YoY. Retail sales of
around US$8.7 billion were up 8% YoY and accounted for 64% of total Goods and Services
sales.
Accommodation and F&B revenues were down -31% YoY. While covid social distancing has
resulted in declining consumer confidence, the pandemic further hit businesses already
affected by the zero-tolerance drink driving ban made Law in January 2020 by Decree No.
100/2019/ ND-CP.
Street Retail hardest hit
Shopping Center leases tend to be more legally binding and with occupiers wishing to retain
space, occupancy has remained high. For prime street Retail landlords however, the Covid-19
effect was almost immediate.
With most being small to medium enterprises, street Retail tenants are far more quickly
affected by sudden revenue losses than larger scale retailers. Well-known brand outlets with
shopping center and prime street retail presence are closing street outlets first.
Since early February many street retailers have decided not to renew leases. Those wanting to
retain prime locations after the pandemic has eased are under temporary closure, or
requesting rent reductions over the shutdown. A recent Savills Research survey found some
restaurant revenues had dropped -50% MoM in February and -80% in March. Whole-lease
requirements and high rents were further reasons for closures.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
21
E-commerce and home delivery booming
The social effects of the pandemic have amplified e-commerce. A Google Temasek Report
anticipated 43% YoY local segment growth from 2018 to US$15 billion in 2025. This was
supported by 66% of Vietnamese being regular internet users, 72% having smart phones but
most significantly, with 35% of the population by Millennials. Between 22 and 37 years old and
at ease with social - digital technologies this is a highly influential and valuable demographic;
on and offline. Some effects of Covid-19 and technology accelerating lifestyle change may
prove longer term.
As e-commerce has increased, so have delivery services; and especially in F&B, with innovative
owners ramping up delivery options. Supermarkets such as Co.opmart and Vinmart have also
expanded home delivery services.
Savills Global Market Sentiment Survey
Savills Global Research departments surveyed on 15th April 2020 included: Australia, Canada,
China, Czech Republic, Germany, Greece, Hong Kong SAR, Hungry, India, Indonesia, Ireland,
Italy, Japan, Malaysia, Middle East (region), The Netherlands, New Zealand, Norway, Poland,
Portugal, Romania, Singapore, South Korea, Spain, Switzerland, Taiwan (China), Thailand, UK,
US and Vietnam.
Outtakes
Global rents remain unchanged in 60% of sectors. A major reason for this is the extensive use
of concessions to support occupiers. Retail tenants have been the greatest beneficiaries, with
80% of countries reporting retailers receiving some form of rent relief. Deferred service
charges and changes in payment structure and over 40% of countries reported Retail landlords
applying these case-by-case.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
22
Figure 3. 1: Concessions granted
Early lease breaks
Deffered service charges
Change in payment
structure
Rent relief
0%
20%
40%
60%
80%
100%
Share of countries reporting concessions
Source: Savills Research
Covid-19 and Real Estate
There was a positive shift compared to the previous 31st March Savills survey. In April countries
seeing a severe impact were 19%, lower than the March 29%, and 74% described a moderate
to negative impact, higher than the previous 67 percent. Asia Pacific sentiment is more positive
than in EMEA and USA: regions now bearing the brunt of the epidemic.
Figure 3. 2: The COVID-19 effect
1
No negative impact
Moderate negative impact
Minor negative impact
Sereve negative impact
Share of respondents by
region
0.8
0.6
0.4
0.2
0
Asia Pacific
EMEA & North America
Source: Savills Research
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
23
OUTLOOK
SUPPLY
Up to end 2022, approximately 507,000 m2 NLA from 32 projects is expected to enter:
▪
Secondary will remain leading supplier with a 42% share, 37% in the Suburban and 21%
in the CBD.
▪
The majority, or 23 of 32 future projects, will be in Mixed-Use Development Podiums.
▪
Approximately 27% of upcoming stock are completing and expected to enter on time;
15% is under construction, and the remaining either in-planning or on-hold. However,
COVID is affecting the pipeline with global supply chains disrupted and construction
projects closed in response to social distancing. Other than those in completion, all future
projects may be delayed.
In the next nine months, about 68,500m2 from eights projects will enter, and the non-CBD will
accounting for 77% of new supply will potentially result in lower average rents. With
consumers facing lost incomes and increased uncertainty, developers are considering delaying
new launches.
Figure 4. 1: Future supply to 2022
250,000
projects
m2
200,000
20
15
150,000
10
100,000
5
50,000
0
Supply
No. of projects
9M/2020E
2021E
2022E
68,495
244,561
193,908
8
15
9
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
24
Figure 4. 2: Districts future supply
120,000
9M/2020E
m2
2021E
2022E
100,000
80,000
60,000
40,000
20,000
CBD
Secondary
Thu Duc
Binh Chanh
Tan Binh
Go Vap
Dist. 6
Dist. 9
Nha Be
Dist. 8
Binh Thanh
Phu Nhuan
Dist. 7
Dist. 10
Dist. 2
Dist. 5
Dist. 1
0
Suburban
Source: Savills Research & Consultancy
Demand
Expectations of early containment, alongside improved financial governance, government
support mechanisms and unprecedented global stimulus programs have raised expectations
of a speedy recovery in Vietnam. According to the ADB forecast in early April, Vietnam will
have the highest GDP growth in Asia of 4.8% in 2020 and potentially recover GDP of 6.8% in
2021.
On a positive note, lower rental costs may invigorate the industry. Retailers will have to
develop integrated off- and online strategies to stay relevant. ‘Social’ sectors most affected by
the outbreak such as F&B, gyms and cinemas will recover quicker than others when the virus
dies down, and local consumers will quickly embrace more normal lives after months of
isolation. Sectors with a stronger online presence such as Fashion may struggle after shifts in
consumer behavior from classic to online Retail.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
25
4.
SWOT
The SWOT analysis considers strengths, weaknesses, opportunities and threats to the market
segment and is a brief overview of factors apparent from our research. The details of the report
cover many other aspects and the SWOT analysis should not be read in isolation.
▪
Modern malls are becoming social hubs and leisure destinations with
a better shopping experience.
Strengths
▪
Increasing entrance of international retailers.
▪
Strong CBD performance regardless of COVID impact.
▪
Stable strong performance strengthen landlord powers
▪
Local landlords had more active in rent reduction policy to support
retailers than international ones.
Weaknesses
▪
Limited CBD stock but high demand.
▪
Softer Retail Podium performance under COVID-19.
▪
Low purchasing power for luxury items.
▪
Positive Asia macro indicators forecast.
▪
Increasing urbanization in non-CBD areas supporting Retail
development.
Opportunities
▪
High population growth rate implies significant potential.
▪
Free Trade Agreements leading to Retail development.
▪
HCMC is attractive to international brands.
▪
Lockdown policies having major impacts.
▪
Consumer behaviour change with e-commerce and delivery services,
directly competing against physical retail.
Threats
▪
COVID is slowing the development pipeline.
▪
Large new supply in non-CBD causing low-performing projects to
renovate or close.
▪
New International entries pressure on domestic retailers
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
26
RESEARCH PARAMETERS
Data collection: Methods included observation, personal interview, telephone survey,
internet survey, mail survey and Savills inter-department group discussions.
Analysis methods: Direct comparison, descriptive analysis, in-depth analysis, trend analysis,
event-history analysis.
Scope of study: Twenty-four districts including districts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, Binh
Thanh, Phu Nhuan, Tan Binh, Tan Phu, Go Vap, Binh Tan, Cu Chi, Hoc Mon, Can Gio, Nha Be,
Binh Chanh and Thu Duc.
Research limitation: Savills quarterly report reflects an overview of the current property
market and is indicative research only. Savills recommends that the reader obtain a detailed
market study of the specific sector of interest should a deeper understanding of the market
be required.
Note: exchange rate used is 23,050 VND/US$1.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
27
Appendix 1: Terms Definition
Terms
Definition
Average gross
Average ground floor rent as benchmark, weighted by leasable area of shops (10
rent
m2 or more) and includes service charge (gross) but excludes VAT.
A well-known commercial retail business, such as a national chain store strategically
Anchor tenant
placed in a shopping centre to generate regular footfall to then support/benefit all
stores in the shopping centre. Due to its positive influence on traffic flow, anchor
tenants generally pay lower rental rates than ancillary tenants.
Chain stores
Multiple retail units under a common brand name that engage in centralized
purchasing. Consistent look and feel location by location.
A large retail establishment with an extensive variety and range of goods, organized
Department
store
into separate departments by use or types. All departments are housed under the
same roof, and all goods purchased from all categories and brands are paid at
common counters to facilitate buying, customer service, merchandising and control.
The number of counters depends on size of the department store.
A building or set of buildings with a variety of retail units, with interconnecting
walkways enabling easy navigation. Outlets generally leased by different
Shopping
tenants/brands. Tenancy mix is a key consideration in conceptualizing a shopping
centre
centre. It consists of which tenants can lease the location and how to mix these
tenants. It will result in who the target customers are, the flows of shoppers, and
the success of operations. In a shopping centre, each shop has its own counter.
A building podium used for retail purpose. Smaller scale than shopping centre and
Retail podium
not operated as a department store. Catchment is mainly the development’s
internal occupants and those of close proximity buildings.
A large retail store selling day to day groceries, household and personal non-food
Supermarket
goods. Supermarkets generally have the scale to maintain competitive pricing.
Customers self-shop and pay at checkouts. Scale is up to 5,000 m2 and having
limited leasable area, excess floor area is used as a food court or promotion areas.
Wholesale
The sale of goods from a large or warehoused type facility, generally in large
quantities/bulk costed to retailers for resale.
A small stand-alone retail structure. This can be either a computer or display screen
Kiosk
used to disseminate information to customers or may be a free-standing, fullservice retail location. Kiosks are often found in malls and other high-traffic
locations.
Franchise
A business established or operated under authorization to sell or distribute a
company's goods or services in a particular area, under the franchised brand name.
Gross floor
The area included within the surrounding exterior walls of a building, exclusive of
area (GFA)
vent shafts, elevator shafts, stairwells, second story atriums and lobbies.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
28
Terms
Definition
Gross floor area
Vent shafts, elevator shafts, stairwells, second story atriums and lobbies
Usable area after deducting stairs, walls, mechanical areas, corridors, vents,
balconies, etc.
Circulation (stairs, walls, mechanical areas, corridors, vents, balconies, etc)
Net Leasable
Area (NLA)
Leasable Area
Leasable Area
Leasable Area
Vent shafts, elevator shafts, stairwells, second story atriums and lobbies
CBD
A common abbreviation for a central business district and is defined by districts 1
and 3.
Non-CBD
Includes secondary and suburban areas.
Secondary
2, 4, 5, 7, 10, Phu Nhuan and Binh Thanh
Suburban
6, 8, 9, 11, 12, Go Vap, Tan Binh, Tan Phu, Thu Duc, Binh Chanh, Binh Tan, Hoc Mon,
Cu Chi, Can Gio, and Nha Be
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
29
Appendix 2: Existing Stock
#
Project
Location
Total
leasable
area (m2)
Average
gross rent
(US$/m2)
Occupancy
(%)
1
Saigon Pearl
Binh Thanh
5,000
31
100
2
The Manor 1
Binh Thanh
2,000
31
81
3
The Manor 2
Binh Thanh
2,500
24
97
4
TTC Plaza
Binh Thanh
5,258
34
49
5
Caravelle Hotel
Dist. 1
150
115
100
6
New World Hotel
Dist. 1
1,010
100
100
7
Opera View
Dist. 1
895
48
100
8
Rex Arcade
Dist. 1
2,000
140
100
9
Sheraton Saigon
Dist. 1
750
160
100
10
The Emporium
Dist. 11
6,881
25
85
11
Thao Dien Pearl
Dist. 2
16,000
33
98
12
The Oxygen
Dist. 2
6,200
22
95
13
RomeA
Dist. 3
4,062
62
97
14
Remax Plaza
Dist. 6
2,865
32
52
15
Sunrise City South
Dist. 7
3,500
32
100
16
The Art Beethoven
Dist. 9
5,682
10
63
17
Republic Plaza
Tan Binh
3,113
37
39
18
Saigon Airport Plaza
Tan Binh
6,200
22
94
19
Moonlight Plaza
Thu Duc
4,577
23
98
20
STCenter
Thu Duc
2,890
16
95
81,533
34
87
Retail podium total and average
(*)
Aeon Mall Binh Tan DS
Binh Tan
13,000
36
100
1
Diamond Plaza
Dist. 1
8,000
170
100
2
Nowzone
Dist. 1
9,000
58
100
(*)
Takashimaya (Saigon Centre)
Dist. 1
15,000
126
100
3
Parkson Hung Vuong Plaza
Dist. 5
24,000
60
96
(*)
Aeon Mall Celadon DS
Tan Phu
14,000
39
100
83,000
75
99
Department store total and average
1
Centre Mall Pham Hung
Binh Chanh
5,764
20
100
2
Saigon Mia Center
Binh Chanh
7,239
25
87
3
Aeon Mall Binh Tan SC
Binh Tan
35,000
55
99
4
Pearl Plaza
Binh Thanh
17,000
42
92
5
Vincom Center Landmark 81
Binh Thanh
29,090
56
100
6
Vincom Plaza Saigon Res
Binh Thanh
6,500
28
100
7
Centre Mall Cu Chi
Cu Chi
5,700
21
99
8
Bitexco Financial Tower
Dist. 1
8,000
137
99
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
30
#
Project
Location
Total
leasable
area (m2)
Average
gross rent
(US$/m2)
Occupancy
(%)
9
Saigon Centre
Dist. 1
22,700
142
100
10
Vincom Center Le Thanh Ton
Dist. 1
36,350
120
100
11
Van Hanh Mall
Dist. 10
48,500
45
100
12
Vincom Plaza 3/2
Dist. 10
30,000
40
65
13
Lotte Mart Phu Tho
Dist. 11
24,500
29
98
14
Cantavil Premier
Dist. 2
23,248
40
98
15
Estella Place
Dist. 2
24,004
42
99
16
Faifo Lane
Dist. 2
15,000
27
80
17
Vincom Mega Mall Thao Dien
Dist. 2
43,000
45
92
18
TNL Plaza
Dist. 4
8,256
42
89
19
The Garden Mall
Dist. 5
13,000
41
85
20
Platinum Plaza
Dist. 6
13,200
34
60
21
Big C City Land
Dist. 7
10,000
26
90
22
Crescent Mall
Dist. 7
52,310
46
98
23
Lotte Mart Nguyen Huu Tho
Dist. 7
24,000
42
100
24
Vincom+ Nam Long
Dist. 7
2,947
26
95
25
Vivo City
Dist. 7
33,000
53
99
26
Vincom Plaza Le Van Viet
Dist. 9
25,800
39
97
(*)
Emart SC
Go Vap
5,900
30
97
27
Lotte mart Go Vap
Go Vap
20,558
32
100
28
Vincom Plaza Phan Van Tri
Go Vap
16,000
44
99
29
Vincom Plaza Quang Trung
Go Vap
14,500
31
97
30
Menas Mall
Tan Binh
13,300
30
76
31
Pico Plaza
Tan Binh
10,300
28
100
32
Vincom+ Sky Center
Tan Binh
4,200
26
96
33
Aeon Mall Celadon SC
Tan Phu
98,410
56
100
34
Pandora City
Tan Phu
38,000
36
95
35
Giga Mall
Thu Duc
70,136
30
100
36
Joy Citipoint
Thu Duc
5,500
20
100
37
Vincom Plaza Thu Duc
Thu Duc
23,000
33
100
38
Central Market
Dist. 1
3,500
Kiosk type
39
Lucky Plaza
Dist. 1
1,000
Kiosk type
40
Saigon Square 1
Dist. 1
1,800
Kiosk type
41
Taka Plaza 1
Dist. 1
1,000
Kiosk type
42
An Dong Plaza
Dist. 5
18,000
Kiosk type
909,212
48
2,000
Self-owned
Shopping Centres total and average
1
Co-op mart Vinh Loc B
Binh Chanh
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
96
31
#
Project
Location
Total
leasable
area (m2)
Average
gross rent
(US$/m2)
2
Vinmart Trung Son
Binh Chanh
400
Self-owned
(*)
Finelife Saigon Mia
Binh Chanh
2,124
Self-owned
(*)
Aeon Mall Binh Tan Supermarket
Binh Tan
7,000
Self-owned
3
Big C An Lac
Binh Tan
6,000
Self-owned
4
Co-op mart Binh Tan
Binh Tan
8,000
Self-owned
5
Co-op mart Binh Tan 2
Binh Tan
4,320
Self-owned
6
Binh An (Mien Dong)
Binh Thanh
2,000
Self-owned
7
Co-op mart Chu Van An
Binh Thanh
3,000
Self-owned
(*)
Co-op mart Van Thanh
Binh Thanh
3,000
Self-owned
(*)
Vinmart Landmark 81
Binh Thanh
4,940
Self-owned
8
Co-op mart Can Gio
Can Gio
550
Self-owned
9
Co-op mart Cu Chi
Cu Chi
4,000
Self-owned
(*)
Satramart Cu Chi
Cu Chi
2,400
Self-owned
10
Co-op mart Cong Quynh
Dist. 1
3,300
Self-owned
11
Russian Supermarket
Dist. 1
2,600
Self-owned
12
Big C Mien Dong
Dist. 10
2,500
Self-owned
13
Co-op mart Hoa Hao
Dist. 10
4,000
Self-owned
14
Co-op mart Ly Thuong Kiet
Dist. 10
12,000
Self-owned
15
Co-op mart SCA Cao Thang
Dist. 10
1,600
Self-owned
16
Co-op Xtra VHM
Dist. 10
6,500
Self-owned
17
Finelife Ha Do
Dist. 10
660
Self-owned
18
Satramart Saigon
Dist. 10
5,000
Self-owned
19
Co-op mart Phu Tho
Dist. 11
5,500
Self-owned
20
Vinmart Lanh Binh Thang
Dist. 11
5,000
Self-owned
21
Co-op mart Hiep Thanh
Dist. 12
1,550
Self-owned
22
Co-op mart Nguyen Anh Thu
Dist. 12
4,000
Self-owned
23
Co-op mart Phan Van Hon
Dist. 12
5,000
Self-owned
24
Co-op mart To Ky
Dist. 12
2,000
Self-owned
25
Aeon Citimart Tropic Garden
Dist. 2
1,500
Self-owned
26
An Phu Supermarket
Dist. 2
2,000
Self-owned
(*)
Annam Gourmet Estella
Dist. 2
2,000
Self-owned
(*)
Big C An Phu
Dist. 2
2,866
Self-owned
(*)
Big C Thao Dien Pearl
Dist. 2
2,000
Self-owned
27
Co-op mart Dong Van Cong
Dist. 2
4,000
Self-owned
28
Vincom+ Nguyen Duy Trinh
Dist. 2
4,000
Self-owned
29
Vinmart Binh Trung
Dist. 2
1,200
Self-owned
30
Vinmart Diamond
Dist. 2
400
Self-owned
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
Occupancy
(%)
32
#
Project
Location
Total
leasable
area (m2)
Average
gross rent
(US$/m2)
31
Vinmart New City
Dist. 2
1,043
Self-owned
32
Vinmart Sala
Dist. 2
375
Self-owned
33
Aeon Citimart Cao Thang
Dist. 3
1,000
Self-owned
34
Co-op mart Nguyen Dinh Chieu
Dist. 3
4,500
Self-owned
35
Co-op mart Nhieu Loc
Dist. 3
1,600
Self-owned
(*)
Jmart
Dist. 4
1,068
Self-owned
36
Co-op mart Hung Vuong
Dist. 5
978
Self-owned
37
Co-op mart Hau Giang
Dist. 6
2,000
Self-owned
38
Co-op mart Phu Lam
Dist. 6
3,000
Self-owned
39
Aeon Citimart Garden Plaza
Dist. 7
2,000
Self-owned
40
Aeon Citimart Wholesale Centre
Dist. 7
2,100
Self-owned
41
Annam Gourmet Phu My Hung
Dist. 7
352
Self-owned
42
Co-op mart Huynh Tan Phat
Dist. 7
5,000
Self-owned
(*)
Co-op mart SCA Crescent Mall
Dist. 7
4,207
Self-owned
43
Co-op Xtra
Dist. 7
8,000
Self-owned
44
Vinmart Belleza
Dist. 7
479
Self-owned
45
Vinmart Hung Gia
Dist. 7
650
Self-owned
(*)
Vinmart Nam Long
Dist. 7
1,796
Self-owned
46
Vinmart Tan Thuan
Dist. 7
6,300
Self-owned
47
Finelife Riveria Point
Dist. 7
500
Self-owned
48
Co-op mart Tuy Ly Vuong
Dist. 8
1,800
Self-owned
49
Co-op mart Hanoi Highway
Dist. 9
8,000
Self-owned
50
Thanh Nghia Supermarket
Dist. 9
7,300
Self-owned
51
Aeon Citimart Go Vap
Go Vap
4,600
Self-owned
52
Big C Go Vap
Go Vap
1,800
Self-owned
53
Co-op mart Foodcosa
Go Vap
5,000
Self-owned
54
Co-op mart Phan Van Tri
Go Vap
4,500
Self-owned
55
Co-op mart SCA Pham Van Chieu
Go Vap
3,000
Self-owned
56
Emart
Go Vap
6,000
Self-owned
57
Co-op mart Do Van Day
Hoc Mon
2,500
Self-owned
58
Co-op mart Hoc Mon
Hoc Mon
1,800
Self-owned
59
Aeon Citimart New SG
Nha Be
2,000
Self-owned
60
Co-op mart Nguyen Binh
Nha Be
5,000
Self-owned
61
Co-op mart Nguyen Kiem
Phu Nhuan
4,500
Self-owned
62
Co-op mart Rach Mieu
Phu Nhuan
6,000
Self-owned
63
Aeon Citimart Etown
Tan Binh
2,200
Self-owned
64
Aeon Citimart Phuc Yen
Tan Binh
2,500
Self-owned
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
Occupancy
(%)
33
#
Project
Location
Total
leasable
area (m2)
Average
gross rent
(US$/m2)
65
Co-op mart SCA Au Co
Tan Binh
1,600
Self-owned
66
Co-op mart SCA Hoang Van Thu
Tan Binh
2,000
Self-owned
67
Lotte mart Tan Binh
Tan Binh
8,500
Self-owned
68
Minimart Shinhanco
Tan Binh
1,000
Self-owned
69
Vinmart Bau Cat
Tan Binh
2,300
Self-owned
70
Vinmart Cong Hoa
Tan Binh
19,000
Self-owned
(*)
Vinmart Sky Center
Tan Binh
1,736
Self-owned
(*)
Aeon Mall Celadon Supermarket
Tan Phu
3,602
Self-owned
71
Big C Auco
Tan Phu
8,170
Self-owned
72
Big C Phu Thanh
Tan Phu
9,000
Self-owned
(*)
Big C Truong Chinh
Tan Phu
7,000
Self-owned
73
Co-op mart Hoa Binh
Tan Phu
2,500
Self-owned
74
Co-op mart Binh Trieu
Thu Duc
6,500
Self-owned
(*)
Co-op mart Moonlight Plaza
Thu Duc
2,000
Self-owned
75
Co-op mart Tam Binh
Thu Duc
2,000
Self-owned
(*)
Co-op Xtra Pham Van Dong
Thu Duc
6,500
Self-owned
76
Co-op Xtra plus
Thu Duc
15,000
Self-owned
77
TDH Mart
Thu Duc
1,000
Self-owned
78
Vinmart Thu Duc
Thu Duc
800
Self-owned
Supermarket total and average
Occupancy
(%)
346,564
1
Mega Market An Phu
Dist. 2
36,000
Self-owned
2
Mega Market Binh Phu
Dist. 6
9,000
Self-owned
3
Mega Market Hiep Phu
Dist. 12
6,000
Self-owned
Wholesale Market total and average
Total Retail area and average.
51,000
1,471,309
49
95
(*): Sub-component of a project and not counted in the total number of projects in HCMC.
The average GF gross rent included Service Charge (SC) but excluding VAT.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
34
Appendix 3: Future Supply
No.
Project's name
1
Sunwah Pearl
2
District
Estimated
completion time
Estimated NLA (m²)
Status
Binh Thanh
2020
7,157
Completing
Parkson Saigon Tourist Plaza
Dist. 1
2020
16,000
Completing
3
Socar Mall
Dist. 2
2020
25,538
Completing
4
Vincom Megamall Thao Dien - Expansion
Dist. 2
2020
3,000
Completing
5
Long Son Building
Dist. 7
2020
5,400
Completing
6
Saigon Coop - Eratown
Dist. 7
2020
1,840
Project on hold
7
City Gate Tower
Dist. 8
2020
2,571
Completing
8
Tara Residence
Dist. 8
2020
6,989
Completing
9
Richmond City
Binh Thanh
2021
7,666
Completing
10
Union Square
Dist. 1
2021
31,680
Completing
11
The Mall
Dist. 10
2021
45,000
Project on hold
12
Golden Plaza
Dist. 5
2021
11,250
Completing
13
Outsight D-Mall
Dist. 6
2021
18,750
Under construction
14
Eratown Center
Dist. 7
2021
11,000
Project on hold
15
Sunshine City Saigon - Block S1
Dist. 7
2021
1,500
Under construction
16
Urban Hill retail
Dist. 7
2021
3,760
Completing
17
Central Premium Plaza
Dist. 8
2021
16,227
Completing
18
Elite Mall
Dist. 8
2021
38,000
Under construction
19
Saigon Metro Mall
Dist. 8
2021
4,000
Under construction
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
35
No.
Project's name
District
Estimated
completion time
Estimated NLA (m²)
Status
20
Sense City District 9
Dist. 9
2021
29,404
Project on hold
21
Emart 2
Go Vap
2021
18,000
Project on hold
22
Cong Hoa Garden
Tan Binh
2021
5,612
Project on hold
23
Lavita Charm
Thu Duc
2021
2,713
Under construction
24
Alpha Mall
Dist. 1
2022
23,240
Project on hold
25
Ben Thanh Underground Retail Centre
Dist. 1
2022
13,575
Proposed/ Planning
26
SJC Tower
Dist. 1
2022
20,000
Project on hold
27
Rome by Diamond Lotus
Dist. 2
2022
13,066
Under construction
28
Dragon Mall
Dist. 5
2022
52,500
Project on hold
29
Kenton Node
Nha Be
2022
33,000
Project on hold
30
Park Vista
Nha Be
2022
8,000
Project on hold
31
T-One Mall
Phu Nhuan
2022
25,028
Project on hold
32
Saigon Superbowl
Tan Binh
2022
5,500
Project on hold
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
36
Disclaimer
The property market research contained is verified to the best of Savills Vietnam’s abilities.
Savills quarterly report reflects an overview of the current property market and is indicative
research only. Savills Vietnam does not guarantee the accuracy of research and forecasts
contained herein. Savills Vietnam does not accept any responsibility for losses arising from
reliance on the research and forecasting. Savills recommends that the reader obtain a detailed
market study of the specific sector of interest should a deeper understanding of the market
be required.
Reproduction of this report, in any manner whatsoever, in whole or in part, without written
prior consent from Savills Vietnam is prohibited. Approval should be obtained from Savills
Vietnam before any reference to this report can be made in any statement, published
document, or circular.
Where information is given without reference to another party, it shall be taken that this
information has been obtained or gathered through Savills best efforts and to Savills best
knowledge. Processed data references there from shall be taken as Savills opinion and shall
not be freely quoted without acknowledgement.
HCMC Quarterly Market Report Q1/2020 – Retail Sector
Nam Long Corporation
37
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
Contents
Executive Summary ...................................................................................................... 1
1.
SUPPLY ................................................................................................................... 2
1.1.
OVERALL ........................................................................................................................................................ 2
1.2.
PRIMARY ........................................................................................................................................................ 3
1.3.
SECONDARY SUPPLY ................................................................................................................................ 8
2.
PERFORMANCE ..................................................................................................... 9
2.1.
OVERALL ........................................................................................................................................................ 9
2.2.
PRIMARY MARKET ...................................................................................................................................11
2.3.
SECONDARY MARKET ............................................................................................................................15
3.
DEMAND ANALYSIS ........................................................................................... 16
4.
OUTLOOK............................................................................................................. 18
4.1.
SUPPLY .........................................................................................................................................................18
4.2.
DEMAND .....................................................................................................................................................20
5.
SWOT ................................................................................................................... 22
Research Parameters .................................................................................................. 23
Term Definitions......................................................................................................... 24
Appendix 1: Primary Projects, Q1/2020 .................................................................. 26
Appendix 2: Average Secondary Asking Prices – Constant Basket ....................... 31
Appendix 3: Future projects ...................................................................................... 37
Disclaimer.................................................................................................................... 42
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
Tables
Table 1.1: Summary.................................................................................................................................................................2
Table 1.2: New launches, Q1/2020 ...................................................................................................................................4
Figures
Figure 1.1: Newly launched units ......................................................................................................................................3
Figure 1.2: Primary district stock .......................................................................................................................................5
Figure 1.3: Primary stock by grade ...................................................................................................................................6
Figure 1.4: Districts primary stock by Grade .................................................................................................................7
Figure 1.5: Districts secondary stock ................................................................................................................................8
Figure 2.1: Yearly sales ...........................................................................................................................................................9
Figure 2. 2: Quarterly sales ................................................................................................................................................ 10
Figure 2. 3: New project sales .......................................................................................................................................... 10
Figure 2.3: Districts performance ................................................................................................................................... 12
Figure 2.4: Grades performance ..................................................................................................................................... 13
Figure 2.5: Districts grade performance ...................................................................................................................... 14
Figure 2.6: Average secondary prices ........................................................................................................................... 15
Figure 3. 1: Q1 performance 2016-2020 ..................................................................................................................... 16
Figure 4. 1: Future supply from Q2/2020 to 2022 ................................................................................................... 19
Figure 4. 2: Future supply by location from Q2/2020 to 2022 ........................................................................... 19
Figure 4. 3: Buy-to-let handover till 2022 ................................................................................................................... 20
Figure 4. 4: Accumulated upcoming instalments till 2022 ................................................................................... 21
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
Executive Summary
Five year low
The total primary stock was 8,770 units that decreased -23% quarter-on-quarter (QoQ) and 35% year-on-year (YoY) due to limited new launches.
Three new entries and the next launches from ten active projects had new supply over 3,600
units, down -51% QoQ and -42% YoY. All three entries started taking bookings before Tet and
officially launched before social distancing was announced.
Sales slow
Over 4,700 aprtments sold, down -24% QoQ and -32% YoY, the lowest in five years with Tet,
and mostly social distancing dulling perfomance. The majority of sales were in January and
February, that kept absorption over 50%. The three new entries achieved over 79% absorption.
Secondary pressure
The secondary market may start to feel pressure from outstanding debt. Personal incomes
affected by COVID-19 has seen pressure intensify on speculators. A Savills study of 40 Grade A
and B projects found outstanding contract payments will peak in Q1/2021.
Outlook
Social distancing is affecting developer sales strategies, but the biggest influence will be on
buyer behaviour. High-end buyers are increasingly likely to favour smaller, less dense and more
private developments, with good amenities.
Most developers have postponed launches or ramped up online sales efforts. Anticipated stock
through 2022 is over 147,800 units; Grade C with 60% of new supply will continue to dominate.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
1
1.
SUPPLY
1.1.
OVERALL
Primary and secondary projects provided over 279,000 units.
▪
Primary supply dropped -23% QoQ and -35% YoY to 8,770 units.
▪
Secondary supply was over 275,000 units at the end of Q1/2020.
Table 1.1: Summary
Project
Projects
Units
Primary Supply (1)
Active
Remaining units at end Q1/2020 (2)
8,770
67
Sold units at end Q1/2020 (3)
4,032
36,732
Fully sold (4)
505
238,245
Total Supply = (2)+(3)+(4)
572
279,009
Supply from Q2/2020-2022
109
147,842
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
2
1.2.
PRIMARY
New Supply
In Q1/2020, three new projects and fresh launches from ten active projects supplied over 3,600
units, decreasing -51% QoQ and -42% YoY.
Figure 1.1: Launches
45,000
Grade A
units
Grade B
Grade C
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2016
2017
2018
2019
Q1/2020
Source: Savills Research & Consultancy
The three new entries this quarter included:
▪
One Grade B project entered, the D’lusso by Dien Phuc Thanh in district 2. D’lusso has three
towers, supplying 811 units. The two towers launched so far provided 461 units with an
average selling price of US$2,360/m2. Product mix is 1- to 3- bedroom, penthouse and dual
key units, two- bedrooms accounted for 67%.
▪
Two Grade C projects were The West Gate in Binh Chanh and Citigrand in district 2.
o
West Gate by An Gia Investment has frontage to Nguyen Van Linh boulevard, Binh
Chanh. Four 20-level towers supply over 2,000 units from 2- to 3- bedrooms. The first
two launched towers released 682 units at an average price of US$1,560/m2. Amenities
include a park, pool, spa, gym, BBQ and playground, with public facilities such as
schools and a hospital within 1km.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
3
o
Kien A Citigrand in district 2, launched 250 units with an average selling price of
US$1,800/m2. Located in Cat Lai Urban area, two towers supply 666 two-bedroom units
from 50-52 m2 NSA. Expected basic finish handover is in Q1/2023.
Ttwo projects increased their average selling price, before social distancing took effect in March:
▪
One Verandah by Mapletree launched an additional 166 units at an average US$3,245/m2,
up 9% over the previous launch. By the end of Q1/2020, the project had released 59% of
stock and scheduled the next launch for Q3/2020. Good construction status and handover
on time in Q3/2020 helped the higher price.
▪
Developed by Khoi Thanh, Paris Hoang Kim launched an additional 66 units. By the end of
Q1/2020, approximately 62% of the project was released. Due to limited stock, the primary
price was 6% higher than the previous launch.
Table 1.2: New launches, Q1/2020
#
New
Project
Developer
1
D'Lusso
Dien Phuc Thanh
2
West Gate
An Gia
3
Citigrand
Kien A Group
District
Grade
Dist. 2
B
461
Binh Chanh
C
682
Dist. 2
C
250
Total new supply
Next
phase
Units
1,393
1
One Verandah
Mapletree
Dist. 2
B
166
2
Laimian City
HDTC
Dist. 2
B
70
3
Paris Hoang Kim
Khoi Thanh
Dist. 2
B
66
4
Sunshine City Sai Gon
Sunshine Group
Dist. 7
B
699
5
Eco Green Saigon
Xuan Mai Corp
Dist. 7
B
266
6
Akari City
Nam Long
Binh Tan
C
98
7
CTL Tower Tham Luong
Chung Trang Linh
Dist. 12
C
92
8
Metro Star
Dist. 9
C
660
9
Ricca
Tan Phu Construction
Dist. 9
C
37
10
Goldora Plaza
TEMATCO
Nha Be
C
61
CT Group & Soilbuild
Singapore
Total next phases supply
2,215
Total newly launched supply
3,608
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
4
Primary Supply
By Location
In Q1/2020, districts 2, 7 and Binh Chanh representing over 5,160 units, dominated primary
stock and together accounted for a 59% share. Districts 2 and 7 have over 76% Grade A and B
primary stock, whereas Binh Chanh only offered Grade C apartments.
▪ District 7 primary supply was highest at 2,300 units, accounting for 26% of primary supply
but decreased -23% QoQ and -7% YoY. Notable developers include TCC Land and Sunshine
Group; both have good residential development backgrounds.
▪ Binh Chanh had the second highest primary supply and a 17% share. A good location at the
western gate of HCMC and proximity to key roads connecting to southwest provinces appeal
to developers. In Q1/2020, district primary stock was over 1,450 units, down -1% QoQ but
increasing 698% YoY. New stock from the West Gate development accounted for 47% of
district primary supply.
▪ District 2 primary supply was 1,400 units, up 20% QoQ and 13% YoY. This was the only
district with stock growth and 70% of primary stock was from the two new project entries.
Figure 1.2: Primary district stock
2,500
%
units
60
50
2,000
40
1,500
30
1,000
20
500
10
0
0
D.7
Binh
Chanh
D.2
D.9
Binh
Tan
D.12
D.1
Primary stock
2,310
1,452
1,400
860
660
490
426
332
840
Market share
26
17
16
10
8
6
5
4
10
Nha Be Others
Source: Savills Research & Consultancy
Others including Districts 3, 4, 6, 8, Binh Thanh, Tan Binh, Tan Phu and Thu Duc
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
5
By Grade
Limited new launches resulted in decreases in primary stock across all Grades.
Figure 1.3: Primary stock by grade
6,000
units
%
60
5,000
50
4,000
40
3,000
30
2,000
20
1,000
10
0
Grade A
Grade B
Grade C
Primary stock
530
3,449
4,791
Market share
6
39
55
0
Source: Savills Research & Consultancy
Grade A
Grade A projects are mainly concentrated in districts 1, 2, and seven and districts 1 and 2
together account for 95% of primary supply.
With no new stock, supply decreased -43% QoQ and -54% YoY to 530 units, equivalent to a 6%
share.
Grade B
Grade primary supply decreased -14% QoQ and -23% YoY to over 3,400 units, accounting for
39%. Districts 2 and 7 were the main contributors with a total 1,160 units. The majority of Grade
B projects are in districts 2 and 7 where there is good CBD proximity, infrastructure
improvement and decent urban planning.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
6
Grade C
Grade supply of almost 4,800 units decreased -25% QoQ and -40% YoY but continued to lead
with a 55% share. Binh Chanh with over 1,450 units was the top supplier. Nearly 62% was from
projects in districts 9, Binh Chanh and Binh Tan due to land bank availability and high user
demand.
Figure 1.4: Primary stock by Grade
2,500
Grade A
units
Grade B
Grade C
2,000
1,500
1,000
500
0
D.7
Binh
Chanh
D.2
D.9
Binh
Tan
D.12
D.1 Nha Be D.6
D.4
D.8
Tan Others
Phu
Source: Savills Research & Consultancy
Others including Districts 3, 10, Binh Thanh, Tan Binh and Thu Duc
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
7
1.3.
SECONDARY SUPPLY
By the end of Q1/2020, there were nearly 275,000 secondary units, fully sold projects
represented 87% of secondary supply. Main suppliers were district 7 with a 17% share, and
district 2 with fifteen percent.
The ‘Others’, districts 1, 3, 5, 6, 10, 11, 12, Tan Binh, Go Vap, Phu Nhuan and Hoc Mon provided
under 3% of stock each and supplied over 37,400 units, or a 14% share.
Figure 1.5: Secondary stock by district
50,000
units
Secondary stock
Market share
%
30
25
40,000
20
30,000
15
20,000
10
10,000
5
0
0
Dist. 7 Dist. 2 Dist. 9 Dist. 8 Binh
Thanh
Tan Nha Be Binh
Phu
Tan
Thu Binh Dist. 4 Others
Duc Chanh
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
8
2.
PERFORMANCE
2.1.
OVERALL
From 2015-2018 HCMC Apartment sales were up 30% pa on average. In 2019, performance
decreased-25% YoY but absorption remained high at 88 percent
Figure 2.1: Yearly sales
Grade C sales
50,000
Grade B sales
Grade A sales
Absorption rate
%
units
100
40,000
80
30,000
60
20,000
40
10,000
20
0
0
2015
2016
2017
2018
2019
Q1/2020
Source: Savills Research & Consultancy
There were over 4,700 sales in the quarter, decreasing -41% QoQ and -52% YoY after limited
launches and a low target market for the remaining larger sized units. Tet in January and social
distancing in March, also negatively affected QoQ sales.
Although sales dropped -19% QoQ and -41% YoY, Grade C remained the highest performer,
accounting for 60% of sales. High selling prices and limited supply saw Grade A sales decrease
-82% QoQ and -86% YoY.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
9
Figure 2. 2: Quarterly sales
18,000
units
Grade C
Grade B
Grade A
Absorption rate
%
15,000
100
80
12,000
60
9,000
40
6,000
20
3,000
0
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Source: Savills Research & Consultancy
New Project Sales
Newly launched projects achieved 1,200 sales, Grade C accounted for 65 percent. All three new
entries had pre-launch sales success, before social distancing took effect, keeping average
absorption high at 87% and increasing 13ppts QoQ and 21ppts YoY. Perfomance overall was
the weakest in five consecutive quarters.
Figure 2. 3: New project sales
14,000
units
Grade C
Grade B
Grade A
Absorption rate
12,000
%
100
80
10,000
60
8,000
6,000
40
4,000
20
2,000
0
0
Q1/2019
Q2/2019
Q3/2019
Q4/2019
Q1/2020
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
10
2.2.
PRIMARY MARKET
By Location
District 2 led performance with over 1,170 sales, up 50% QoQ and 103% YoY. Two new
developments accounted for 57% of district sales.
▪ In its launch quarter, D’lusso had 421 sales, equivalent to 91% absorption. Performance was
attributed to effective marketing and five leading Real Estate agencies providing sales
support. Although handovered with quality levels similar to Palm Garden, the selling price
was -9% lower at US$2,360/m2.
▪ Citigrand by Kien A had impressive quarterly performance with 250 sales to be fully sold.
The selling price over US$2,000/m2 was high compared to existing Grade C developments
in district 2. Amenities include a park, infinity pool, water square and playgrounds. Buy-tolet investors will benefit from high rental demand with the project located in Cat Lai Urban
Area near Cat Lai 2 Industrial Zone 2.
District 7 had over 1,050 sales, dropping -36% QoQ and -9% YoY. Lacking new entries, sales
came from additional launches in existing projects. Eco Green Saigon and Sunshine City Saigon
together contributed 74% of district sales. Eco Green Saigon’s legal status and a 3.5ha park
attracted home-buyers while Sunshine Diamond River 1-bedroom 45 m2 units appealed more
to investors.
Binh Chanh had over 1,000 sales, surging 45% QoQ and representing a 21% share. The new
entry (West Gate) launched two towers and achieved over 530 sales at an average US$1,450/m2,
the highest price in the district and a 53% share. Frontage to Nguyen Van Linh Boulevard and
located within the future Binh Chanh Administrative Central area were key features.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
11
Figure 2.4: District performance
2,500
units
US$/m2
8,000
7,000
2,000
6,000
5,000
1,500
4,000
1,000
3,000
2,000
500
1,000
0
Dist. 7
Binh
Dist. 2 Dist. 9
Chanh
Binh
Tan
Dist.
12
Dist. 1
Nha
Be
Primary stock
2,310
1,452
1,400
860
660
490
426
332
238
190
Sold units
1,052
1,010
1,171
825
225
334
16
38
19
-
Average price 2,484
1,449
2,758
1,683
1,454
1,370
7,162
1,348
1,768
-
Tan
Phu
Tan
Binh
178
93
63
56
15
43
-
1
-
-
4
1,654
-
2,496
-
-
1,105
Dist. 6 Dist. 4 Dist. 8
Binh
Dist. 3
Thanh
Thu
Duc
0
7
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
12
By Grade
Limited supply and performance flattened by social distancing resulted in Grade A having the
lowest sales for the quarter.
Figure 2.5: Performance by Grade
6,000
units
US$/ m2
8,000
6,000
4,000
4,000
2,000
2,000
0
Grade A
Grade B
Grade C
Primary stock
530
3,449
4,791
Sold units
72
1,838
2,828
5,963
2,653
1,578
Average price
0
Source: Savills Research & Consultancy
Grade A
Grade A had 72 sales, decreasing -82% QoQ and -86% YoY due to social distancing and projects
with slow-moving larger sized units remaining. The Empire City-Narra Residence in district 2
had 78% of Grade sales and The Grand Manhattan in district 1 had the remaining twenty two
percent.
▪ After a successful first launch quarter The Empire City – Narra Residence had 56 sales to
become fully sold at an average price of US$5,600/m2.
▪ The Grand Manhattan by Novaland made 16 sales this quarter. Although offering car
voucher discounts during social distancing, the high selling price of US$7,160/m2 and
increasingly cautious buyers slowed performance.
Grade absorption fell sharply -29ppts QoQ to 14%, with average selling prices over
US$5,900/m2.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
13
Grade B
Grade B sales of over 1,800 units decreased -20% QoQ and -23% YoY. The majority were from
next phases of active projects in district 7: Sunshine City Saigon and Eco Green Saigon together
accounted for 42% of Grade B sales. New district 2 entry, D’lusso, accounted for 23% of sales.
Absorption was 53%, easing -4ppts QoQ. Average selling price was over US$2,650, up 3% QoQ
and 15% YoY. Price escalation in three projects: Paris Hoang Kim by 10% QoQ, One Verandah,
9% QoQ and Sunshine Diamond River by 2% QoQ resulted in increased Grade selling prices.
Grade C
Grade C had over 2,800 sales, down -19% QoQ and -31% YoY with newly-launched projects
making 28% of total Grade sales; absorption was 59%, up 4 ppts QoQ.
The average selling price in Grade C was US$1,580/m2, up 9% QoQ and 22% YoY. Increases
were attributed to new entry Citigrand with a 29% higher selling price than the Grade average.
Two projects also increasing selling prices this quarter included, La Partenza up 5% QoQ and
Metro Star by 4% QoQ.
Figure 2.6: Performance by district and grade
Grade A
units
Grade B
Grade C
1,200
900
600
300
0
Dist. 2 Dist. 7
Binh Dist. 9 Dist. 12 Binh
Chanh
Tan
Dist. 8 Nha Be Dist. 6 Dist. 1
Thu
Duc
Tan
Binh
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
14
SECONDARY MARKET
Our analysis of secondary market price movement utlises 105 samples from typical 100% sold
projects from the early 2000’s to year-end 2015.
Secondary prices have previously been steadily increasing for five quarters, however Covid has
resulted in secondary prices decreasing QoQ in 13 of the 20 districts.
District 1 had the highest secondary asking prices of over US$2,000/m2. Other districts with
greater concentrations of Grade B projects include districts 2, 3, 5, 7, 11, Binh Thanh and Phu
Nhuan, where asking prices were from US$1,400/m2 to US$1,700/m2.
The remaining districts were mostly Grade C with lower asking prices of US$700/m2 to
US$1,200/m2.
Figure 2.7: Average secondary prices
3,000
US$/m2
Secondary price
%
QoQ change
20
15
2,500
10
2,000
5
1,500
0
-5
1,000
-10
500
-15
Nha Be
Binh Chanh
Tan Phu
Binh Tan
Dist. 8
Dist. 12
Go Vap
Thu Duc
Tan Binh
Dist. 9
Dist. 6
Dist. 2
Dist. 7
Phu Nhuan
Dist. 11
Dist. 5
Dist. 4
Dist. 3
-20
Binh Thanh
0
Dist. 1
2.3.
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
15
3.
DEMAND ANALYSIS
Bearish Approach
Greater caution has also affected primary supply and performance. Primary stock decreased 42% YoY with launches limited to 3 new entries, and sales were down -32% YoY to 4,700 units.
Figure 3. 1: Q1 performance 2016-2020
45,000
Primary Supply
units
Total Sales
Absorption Rate
%
100
40,000
80
35,000
30,000
60
25,000
20,000
40
15,000
10,000
20
5,000
0
0
Q1/2016
Q1/2017
Source: Savills Research & Consultancy
Q1/2018
Q1/2019
Q1/2020
Yield Decline
Social distancing and flight restrictions put a brake on HCMC rental demand.
By end Q1/2020, the average city rental yield was 5.4%, down -0.6ppts YoY. All yields are
expected to continue easing in the mid-term. Grade A by -4% and Grade B by -5.2%, both had
the steepest drops of -0.7ppts YoY.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
16
New Sales Approach
The Vietnam Association of Realtors (VAR) confirms the pandemic has inflicted multple
problems. Social distancing policies forcing changes on buying behaviors has made it very
difficult for Real Estate businesses to reach customers. Trading floors were unable to sell but
continued to bear operational overheads and by the end of March, 50% nationwide were closed.
Online trading platforms may help overcome social distancing constraints. Sunshine Group
launched their app before social distancing and Vingroup recently launched their own online
trading floor. Key players adopting new approaches and improving project information
transparency indicate sales strategies are under innovative review.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
17
4.
OUTLOOK
4.1.
SUPPLY
From Q2/2020 to 2022, future stock will be over 148,000 units from 71 new projects and 37 next
phases of active projects.
▪ Constant infrastructure improvements and increased connectivity are key drivers for eastern
districts, and major developers are confident of strong residential demand in districts 2 and
9. District 9 will continue to lead with over 44,000 new units, whilst District 2 will enter 35,700
units.
▪ Future CBD supply is approximately 5,400 units, or 4% of total future stock. High land prices
and smaller potential project scale has limited new supply.
In 9M/2020, approximately 38,600 units are expected to launch and 60% will be Grade C. With
affordable demand increasing, more developers will shift attention to this segment.
Although social distancing and Covid-19 increased pressure on new launches, Government
stimulus with emergency interest rate cuts and willingness of mortgate lenders will help
mitigate the effects of pandemic on existing and future developments.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
18
Figure 4. 1: Future supply to 2022
70,000
projects
units
60,000
60
50
50,000
40
40,000
30
30,000
20
20,000
10
10,000
0
9M/2020
2021F
2022F
38,596
62,587
46,590
48
47
13
Planned units
Identified projects
0
Source: Savills Research & Consultancy
Figure 4. 2: Supply by location to 2022
units
%
50,000
50
40,000
40
30,000
30
20,000
20
10,000
10
0
0
Binh
Chanh
Binh
Tan
Dist. 1
Thu
Duc
Dist.
12
Dist.
10
Future supply 44,289 35,757 17,775 7,537
5,717
5,406
5,277
4,006
3,507
3,449
2,659
4
4
4
3
2
2
2
Dist. 9 Dist. 2 Dist. 7
Market share
30
24
12
5
Nha Be Dist. 8 Dist. 3 Others
2,409 14,756
2
10
Source: Savills Research & Consultancy
Others including Districts 4, 5, 6 and Binh Thanh, Go Vap, Tan Binh and Tan Phu
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
19
4.2.
DEMAND
Grades A and B Yield Prospects
Rental demand, buyers affected by tightened border controls, and increased caution will all
increase pressure on yields.
From 2021 onwards, there are signs for improvement in Grade A and B yields. Both have low
buy-to-let stock levels and business traveller levels are expected to recover following successful
containment of COVID-19.
Figure 4. 3: Buy-to-let handover to 2022
10,000
Buy-to-let handover (*)
units
Average Rental Yield
8%
8,000
6%
6,000
4%
4,000
2%
2,000
0
0%
2018
2019
2020
2021
2022
Source: Savills Research & Consultancy
(*) estimated by total Grade A&B handover
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
20
Secondary Price Pressure
The secondary market may see increased pressure from outstanding and increasing debt. A
Savills study of 40 Grade A and B projects showed outstanding purchase contract payments*
will increase and peak in Q1/2021. The impact on personal incomes has resulted in increasing
pressure on speculators, in turn pressuring secondary prices.
However our studies of specific high end developments showed virtually all payment schedules
have been adhered to with, so far, no defaults or extension requests. For cash rich investors
however, lower prices and illiquidity present potentially lucrative long-term opportunities.
Figure 4. 4: Accumulated upcoming instalments
400
Total instalment value
million US$
350
300
250
200
150
100
50
0
Q1
Q2
Q3
2020F
Q4
Q1
Q2
Q3
Q4
2021F
Q1
Q2
Q3
Q4
2022F
Source: Savils Research & Consultancy
*Total instalments value within one quarter from 40 Grade A&B projects.
All selected projects have standard payment schemes.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
21
5.
SWOT
Our SWOT analysis explores strengths, weaknesses, opportunities and threats to the segment
and is a brief overview of factors apparent from our research. The details of the report cover
many other aspects and the SWOT analysis should not be read in isolation.
Strengths
Weaknesses
Opportunities
▪
Diversified product and improving development standards.
▪
Flexible payment terms, discounts and promotion programs.
▪
Legal documents and prioritised transparency raising buyer confidence
▪
Limited affordable primary supply below US$900/m2.
▪
Slow construction progress due to capital shortage.
▪
Buy-to-let demand dropped and buyer behaviour is changing.
▪
High population growth and decreasing household sizes.
▪
Infrastructure projects focused on speeding up completion.
▪
Policy reform may further stabilise Real-Estate.
▪
State inspection to increase transparency.
▪
New apps increase project transparency and legal status.
▪
High residential demand to boost recovery when pandemic controlled.
▪
Government stimulus programs, lowered interest rates and the
willingness of mortgage lenders will mitigate pandemic effects,
Threats
▪
State credit tightening may negatively affect developers.
▪
Slow construction approvals in many projects causing delays.
▪
Uncertain
public
infrastructure
construction
status
discourages
homebuyers and affects future projects connectivity.
▪
Launches under deposit agreements to be restricted.
▪
Cost of debt.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
22
Research Parameters
Data collection: methods include observation, personal interview, telephone survey, internet
survey, mail survey and Savills inter-department group discussions.
Analysis methods: direct comparison, descriptive analysis, in-depth analysis, trend analysis,
event-history analysis.
Scope of Study: twenty-four districts including districts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, Binh
Thanh, Phu Nhuan, Tan Binh, Tan Phu, Go Vap, Binh Tan, Cu Chi, Hoc Mon, Can Gio, Nha Be,
Binh Chanh and Thu Duc.
Research limitation: our quarterly report reflects an overview of the current property market
and is indicative research only. We recommend the reader obtain a detailed market study of
the specific sector of interest should a deeper understanding be required.
Note: exchange rate used is 23,050 VND/US$1.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
23
Term Definitions
Active projects: those that launched their sales phase before or in the studied quarter but have
not yet sold (100%) in the primary market.
Primary stock: refers to apartments available for sale from the active projects in the studied
quarter. Buyers can buy apartments directly from developers.
Secondary stock: refers to apartments sold from the active projects in the studied quarter and
the total number of apartments from the projects that have sold 100 percent.
Apartment Grading: Savills Vietnam has reviewed Circular 31/2016/TT-BXD (issued by the
Ministry of Construction, dated 30 December 2016). Based on Circular 31, apartment buildings
are classified into three grades: Grade A (high-end), Grade B (medium end) and Grade C (lowend) that based on 20 criteria. Savills’s grading system has based on this circular guideline to
establish qualitative and quantitative criteria to classify apartment projects in HCMC. However,
according to Savills expert opinion, many of the guidelines set forth in this circular cannot be
practically implemented. Therefore, Savills has established a set of 13 criteria that will be more
practical in application as well as more accurate in the results of the analysis. Please note that
the apartment grading-related analysis is for reference purposes only.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
24
Appendix 1: Primary Projects
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
25
Appendix 1: Primary Projects, Q1/2020
#
Projects
District
Avg. selling pricce
(US$/m2, excluding VAT)
Expected
Completion
Time
Total launched
units end of
Q1/2020
Inside wall
Central wall
% sold end of
Q1/2020
1
Alpha City - Alpha Hill (*)
Dist. 1
2021
537
-
-
75
2
Centennial (*)
Dist. 1
2021
198
-
-
54
3
The Grand Manhattan
Dist. 1
2021
839
7,162
6,507
92
4
The Marq
Dist. 1
2022
367
7,946
7,132
80
5
The Vertex Private Residence (*)
Dist. 1
2022
37
-
-
30
6
Vincom Dong Khoi (*)
Dist. 1
2014
96
-
-
85
7
Albany
Dist. 2
2019
22
5,325
5,036
50
8
Empire City-Narra Residence
Dist. 2
2022
278
5,620
5,214
100
9
Waterina suites
Dist. 2
2019
100
3,135
2,938
89
10
C.T plaza Nguyen Dinh Chieu
Dist. 3
2014
232
6,212
5,935
96
11
Serenity
Dist. 3
2019
45
6,320
5,796
89
12
Happy Valley Premier
Dist. 7
2019
55
3,086
2,868
80
2,806
5,963
5,501
95
Total and average of Grade A
1
152 DBP
Binh Thanh
2020
234
2,541
2,421
100
2
Sun Wah Pearl
Binh Thanh
2020
1,404
2,867
2,659
96
3
D'Lusso
Dist. 2
2023
461
2,360
2,221
91
4
Laimian City
Dist. 2
2020
221
2,626
2,449
67
5
New City Thu Thiem
Dist. 2
2018
1,229
2,518
2,319
98
6
One Verandah (phase 2)
Dist. 2
2020
429
3,657
3,245
97
7
Palm Garden
Dist. 2
2021
617
2,606
2,349
100
8
Paris Hoang Kim
Dist. 2
2022
256
3,352
3,117
92
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
26
#
Projects
District
Avg. selling pricce
(US$/m2, excluding VAT)
Expected
Completion
Time
Total launched
units end of
Q1/2020
Inside wall
Central wall
% sold end of
Q1/2020
9
Rome by Diamond Lotus
Dist. 2
2022
567
3,854
3,498
96
10
The Palace Residence
Dist. 2
2022
1,666
2,823
2,567
100
11
Charmington Iris
Dist. 4
2022
1,438
2,223
2,026
87
12
D-Homme
Dist. 6
2023
325
2,830
2,497
35
13
Ascent Lakeside
Dist. 7
2020
128
1,916
1,774
100
14
Docklands
Dist. 7
2014
356
1,384
1,340
99
15
Eco Green Saigon
Dist. 7
2021
2,556
2,249
2,098
98
16
Mid Town - The Peak
Dist. 7
2021
981
3,446
3,208
87
17
Panomax River Villa
Dist. 7
2021
83
2,147
1,976
77
18
Richlane Residence
Dist. 7
2017
243
2,727
2,486
78
19
Riviera Point - The Infiniti
Dist. 7
2021
841
2,556
2,224
89
20
Sunshine City Sai Gon
Dist. 7
2021
1,554
2,568
2,312
70
21
Sunshine Diamond River
Dist. 7
2022
756
2,596
2,241
100
22
Kenton Node
Nha Be
2020
431
1,944
1,833
67
23
La Cosmo Residences
Tan Binh
2021
364
2,496
2,298
98
17,140
2,653
2,424
98
Total and average of Grade B
1
Lovera Vista
Binh Chanh
2021
1,100
1,289
1,204
89
2
Saigon Intela
Binh Chanh
2019
1,068
952
837
99
3
Terramia
Binh Chanh
2021
440
1,501
1,318
65
4
West Gate
Binh Chanh
2023
682
1,566
1,451
79
5
Akari City
Binh Tan
2022
1,862
1,454
1,361
97
6
Green Town
Binh Tan
2020
620
959
887
96
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
27
#
Projects
District
Avg. selling pricce
(US$/m2, excluding VAT)
Expected
Completion
Time
Total launched
units end of
Q1/2020
Inside wall
Central wall
% sold end of
Q1/2020
7
Victoria Queen
Binh Tan
2021
510
1,184
1,084
30
8
CTL Tower Tham Luong - Phase 1
Dist. 12
2021
299
1,129
1,069
98
9
Pi city
Dist. 12
2022
897
1,454
1,338
83
10
Citigrand
Dist. 2
2023
250
2,034
1,802
100
11
De Capella
Dist. 2
2017
354
2,090
1,922
100
12
Grandora Tower
Dist. 2
2019
99
1,232
1,139
91
13
Homy Land 3
Dist. 2
2019
744
1,220
1,130
98
14
Saigon Asiana
Dist. 6
2021
270
2,052
1,872
97
15
Viva Riverside
Dist. 6
2018
567
1,603
1,488
100
16
Cosmo City
Dist. 7
2021
402
1,507
1,452
89
17
Green Star Sky Garden
Dist. 7
2021
819
1,690
1,565
89
18
Q7 Boulevard
Dist. 7
2021
756
1,977
1,799
98
19
The Elysium
Dist. 7
2021
567
1,248
1,190
51
20
Avila 2
Dist. 8
2021
247
869
815
81
21
Central Premium
Dist. 8
2020
432
1,875
1,758
96
22
Dream Home Riverside
Dist. 8
2022
2,074
1,106
1,014
97
23
High Intela
Dist. 8
2019
540
1,173
1,104
98
24
Sunshine Avenue
Dist. 8
2021
639
1,145
1,051
100
25
Metro Star-Phase 2
Dist. 9
2021
1,060
1,788
1,616
98
26
Ricca
Dist. 9
2021
549
1,319
1,249
97
27
Goldora Plaza
Nha Be
2019
187
1,298
1,198
73
28
La Partenza
Nha Be
2021
575
1,410
1,282
100
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
28
#
Projects
Avg. selling pricce
(US$/m2, excluding VAT)
Expected
Completion
Time
Total launched
units end of
Q1/2020
Inside wall
Central wall
Nha Be
2021
680
1,051
970
85
District
% sold end of
Q1/2020
29
Park Vista
30
Cong Hoa Garden
Tan Binh
2021
519
1,598
1,495
90
31
Tecco Dam Sen
Tan Phu
2021
612
1,272
1,192
85
32
Fresca Riverside
Thu Duc
2020
398
1,105
1,021
99
20,818
1,578
1,448
98
Total and average of Grade C
(*) Pending projects and had no primary price at studied quarter.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
29
Appendix 2:
Average Secondary Asking Prices in 100% Sold Projects
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
30
Appendix 2: Average Secondary Asking Prices – Constant Basket
District
No. of units
Secondary price
(US$/m2 , Excluding VAT)
A View 13C Apartment Building
Binh Chanh
192
668
2
Conic - Dinh Khiem
Binh Chanh
160
874
3
Conic Dong Nam A
Binh Chanh
242
877
4
Conic Garden
Binh Chanh
231
813
5
Him Lam
Binh Chanh
360
1,091
6
Hoang Thap Plaza
Binh Chanh
144
1,082
7
Green Hills ( Green Park)
Binh Tan
330
1,039
8
Nguyen Quyen Plaza
Binh Tan
156
545
9
Nhat Lan Building
Binh Tan
200
923
10
Vision 1
Binh Tan
620
1,099
11
21 Century Apartment Building
Binh Thanh
336
1,265
12
B1-Truong Sa
Binh Thanh
362
1,776
13
Cantavil Hoan Cau
Binh Thanh
203
2,055
14
Cuu Long Apartments
Binh Thanh
248
1,308
15
Dat Phuong Nam
Binh Thanh
300
1,196
16
My Phuoc
Binh Thanh
544
1,305
17
Saigon Pearl
Binh Thanh
2,112
1,946
18
Saigonres Plaza
Binh Thanh
749
1,801
19
Thanh Da View
Binh Thanh
132
1,542
20
The Manor - phase 1
Binh Thanh
426
1,550
21
BMC Apartments
Dist. 1
137
1,707
22
Central Garden
Dist. 1
380
1,694
#
Projects
1
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
31
District
No. of units
Secondary price
(US$/m2 , Excluding VAT)
D1 Mension
Dist. 1
102
5,003
24
Horizon Tower
Dist. 1
277
2,238
25
Indochina Park Tower
Dist. 1
100
1,658
26
International Plaza
Dist. 1
91
2,126
27
Sailing Tower
Dist. 1
68
6,476
28
The Lancaster
Dist. 1
90
6,881
29
Bigemco Building
Dist. 11
108
1,346
30
Khai Hoan Apartment
Dist. 11
104
1,391
31
Phu Tho - Thuan Viet
Dist. 11
195
1,881
32
The EverRich
Dist. 11
300
1,704
33
Thai An 3, 4
Dist. 12
348
1,036
34
Thai An Building
Dist. 12
192
1,121
35
An Hoa Building
Dist. 2
188
1,476
36
An Khang Building
Dist. 2
304
1,459
37
An Phu Building
Dist. 2
72
1,473
38
Binh Minh Buidling
Dist. 2
154
1,058
39
Cantavil An Phu - phase 1
Dist. 2
390
1,840
40
Fideco Riverview
Dist. 2
78
1,731
41
Hoang Anh River View
Dist. 2
580
1,277
42
Homyland 2
Dist. 2
420
1,367
43
Petro Land
Dist. 2
380
988
44
Resco An Thinh
Dist. 2
122
1,215
45
River Garden
Dist. 2
210
1,674
#
Projects
23
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
32
District
No. of units
Secondary price
(US$/m2 , Excluding VAT)
Green Building
Dist. 3
51
1,360
47
Savimex Apartments (Nguyen Phuc Nguyen)
Dist. 3
68
1,698
48
Screc Tower A
Dist. 3
144
1,812
49
Constrexim Square
Dist. 4
288
1,275
50
Grand Riverside
Dist. 4
240
2,278
51
Khahomex Building
Dist. 4
330
1,578
52
Khanh Hoi 3
Dist. 4
125
1,662
53
Khanh Hoi II
Dist. 4
260
1,591
54
Orient
Dist. 4
180
1,594
55
Van Do Building
Dist. 4
286
1,781
56
Hung Vuong Plaza
Dist. 5
276
1,898
57
Lakai Apartments
Dist. 5
74
1,350
58
Phuc Thinh Tower
Dist. 5
360
1,425
59
Sao Mai Building
Dist. 5
77
1,387
60
Tan Da Court
Dist. 5
246
1,907
61
Binh Phu 1 Building
Dist. 6
152
1,054
62
Kien Thanh - Cotec
Dist. 6
198
1,245
63
Tan Thinh Loi
Dist. 6
221
1,168
64
Western Capital
Dist. 6
1,233
1,254
65
An Hoa 3-4
Dist. 7
165
868
66
An Hoa 5-6-7
Dist. 7
180
1,295
67
Canh Vien II
Dist. 7
116
1,534
68
Garden Court 1
Dist. 7
103
1,739
#
Projects
46
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
33
District
No. of units
Secondary price
(US$/m2 , Excluding VAT)
Garden Court 2
Dist. 7
90
1,675
70
Green View
Dist. 7
153
1,465
71
Minh Thanh Apartments
Dist. 7
112
843
72
My Duc
Dist. 7
84
1,508
73
My Phat
Dist. 7
72
1,720
74
Nam Khang
Dist. 7
33
1,254
75
Ngoc Lan Apartment
Dist. 7
275
1,150
76
Park View
Dist. 7
142
1,294
77
Phu My
Dist. 7
482
1,262
78
Sky Garden II
Dist. 7
710
1,243
79
Sky Garden III
Dist. 7
1,715
1,649
80
The Panorama, Phase 3
Dist. 7
140
1,838
81
V-star Apartments
Dist. 7
224
1,052
82
Him Lam Nam Khanh
Dist. 8
368
1,097
83
My Thuan Apartments
Dist. 8
208
1,026
84
Ngoc Phuong Nam
Dist. 8
192
1,113
85
Peridot Building
Dist. 8
99
993
86
Phu Loi Apartments
Dist. 8
190
918
87
9 View
Dist. 9
690
1,174
88
E-Home Dong Sai Gon 1
Dist. 9
312
1,208
89
An Loc 1 Apartments
Go Vap
200
1,010
90
The Splendor
Go Vap
206
1,208
91
Hoang Anh-New Saigon
Nha Be
1,010
781
#
Projects
69
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
34
#
Projects
District
No. of units
Secondary price
(US$/m2 , Excluding VAT)
92
Phu Hoang Anh
Nha Be
1,172
806
93
Phu My Thuan Apartments
Nha Be
582
526
94
Botanic Towers
Phu Nhuan
268
1,593
95
Phu Nhuan Apartments
Phu Nhuan
126
1,659
96
Satra
Phu Nhuan
125
1,735
97
Bau Cat 2 Apartments - Block M
Tan Binh
260
1,380
98
Phuc Yen Plaza
Tan Binh
360
1,060
99
Ruby Garden
Tan Binh
298
1,146
100
Fortuna Kim Hong
Tan Phu
208
1,024
101
Khang Phu Building
Tan Phu
246
1,066
102
Ruby Land (Tan Hong Ngoc)
Tan Phu
280
843
103
My Long
Thu Duc
202
1,260
104
Riverside Garden
Thu Duc
252
1,135
105
Sun View Building
Thu Duc
448
1,099
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
35
Appendix 3: Future supply, 9M/2020-2022
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
36
Appendix 3: Future projects
#
Type
Name
Location
Expected launch
Units
Status
1
Lovera Vista
Binh Chanh
2020
195
Under construction
2
Mizuki Park
Binh Chanh
2021-2022*
3,273
Under construction
3
West Gate
Binh Chanh
2020-2021*
1,345
Vacant land
4
Akari City
Binh Tan
2021-2022*
3,367
Under construction
5
Victoria Queen
Binh Tan
2021
290
Under construction
6
Alpha City - Alpha Hill
Dist. 1
2021
537
Under construction
7
The Grand Manhattan
Dist. 1
2020
154
Under construction
8
The Marq
Dist. 1
2020
148
Under construction
9
CTL Tower Tham Luong - Phase 1
Dist. 12
2020
69
Under construction
10
Pi City
Dist. 12
2020
1,680
Vacant land
Citigrand
Dist. 2
2021
416
Under construction
D'Lusso
Dist. 2
2020
350
Under construction
13
Empire City-MU10
Dist. 2
2021
281
Under construction
14
Empire City-MU1-2-3
Dist. 2
2022
961
Under construction
15
Empire City-MU5
Dist. 2
2022
268
Under construction
16
Empire City-MU6
Dist. 2
2022
271
Under construction
17
Empire City-MU9
Dist. 2
2020
312
Under construction
18
Gem Riverside (Phase 2)
Dist. 2
2020
1,011
Under construction
19
Laimian City
Dist. 2
2020-2023*
12,871
Under construction
20
One Verandah (phase 2)
Dist. 2
2020
150
Under construction
21
Paris Hoang Kim
Dist. 2
2020
156
Under construction
22
Rome by Diamond Lotus
Dist. 2
2020
81
Under construction
11
12
Existing project
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
37
#
Type
Name
Location
Expected launch
Units
Status
23
The Metropole Thu Thiem - Opera Residences
Dist. 2
2020
406
Vacant land
24
De La Sol (Phase 2)
Dist. 4
2020
193
Under construction
25
D-Homme
Dist. 6
2020
160
Under construction
26
Cosmo City
Dist. 7
2020
363
Completed
27
Green Star Sky Garden
Dist. 7
2020
84
Under construction
28
Lavida Plus
Dist. 7
2021
725
Under construction
29
Panomax River Villa
Dist. 7
2020
125
Project on hold
30
Sunshine City Sai Gon
Dist. 7
2020
710
Under construction
31
Sunshine Diamond River
Dist. 7
2020-2022*
6,844
Under construction
32
The Elysium
Dist. 7
2020
945
Vacant land
33
Vinhomes Grand Park
Dist. 9
2020-2022*
34,993
Under construction
34
Goldora Plaza
Nha Be
2020
83
Under construction
35
La Partenza
Nha Be
2020
643
Under construction
36
Cong Hoa Garden
Tan Binh
2021
333
Under construction
37
La Cosmo Residences
Tan Binh
2020
156
Under construction
#
1
Charmington Golf & Life
Binh Chanh
2022
124
Vacant land
2
MB Green Field
Binh Chanh
2021
1,700
Project on hold
3
Senturia Nam Sai Gon
Binh Chanh
2020-2021*
400
Under construction
Binh Tan
2021-2022*
2,060
Under construction
Cape Pearl
Binh Thanh
2021
1,006
Vacant land
6
Alpha 5,8
Dist. 1
2021-2023*
3,200
Under construction
7
Lancaster Legacy
Dist. 1
2021
419
Vacant land
8
Nexus
Dist. 1
2021
400
Project on hold
4
5
Future project
Aio City Binh Tan
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
38
#
Type
Name
Location
Expected launch
Units
Status
9
Sai Gon M&C
Dist. 1
2021
133
Project on hold
10
Sai Gon Melinh Tower
Dist. 1
2021
276
Project on hold
11
Springlight City
Dist. 1
2021
919
Vacant land
12
The Spirit of Saigon
Dist. 1
2022
420
Under construction
13
Diamond Lotus Smart Green World
Dist. 10
2022-2023*
3,000
Proposed/ planning
14
Sunshine Continental
Dist. 10
2020
507
Proposed/ planning
15
Green Mark
Dist. 12
2021
688
Vacant land
16
Phuc Yen Prosper pho Tay
Dist. 12
2020
1,500
Under construction
17
An Phu New City
Dist. 2
2020
1,229
Vacant land
18
Binh An Pearl
Dist. 2
2021
500
Vacant land
19
DEFINE
Dist. 2
2021
88
Vacant land
20
Eco Smart City Thu Thiem
Dist. 2
2021-2024*
12,500
Vacant land
21
King Crown Thao Dien
Dist. 2
2021
35
Vacant land
22
La Premier
Dist. 2
2020
750
Under construction
23
Masteri Parkland
Dist. 2
2020-2021*
350
Proposed/ planning
24
Mozac Thao Dien
Dist. 2
2020
270
Vacant land
25
Rach Chiec Residential Multi-complex
Dist. 2
2021
600
Vacant land
26
Regency Park
Dist. 2
2022
527
Project on hold
27
Riverfront Residence
Dist. 2
2021
570
Under construction
28
Saigon Broadway
Dist. 2
2022-2023*
3,200
Vacant land
29
Saigon Sport City
Dist. 2
2020-2022*
1,500
Under construction
30
Sala - 2 blocks next to Sarina Condominium
Dist. 2
2022
1,000
Vacant land
31
Sunshine Venicia Thu Thiem
Dist. 2
2021
1,200
Vacant land
32
The River Thu Thiem
Dist. 2
2020
525
Under construction
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
39
#
Type
Name
Location
Expected launch
Units
Status
33
Thu Thiem Lake View 3
Dist. 2
2020
50
Under construction
34
Water Bay
Dist. 2
2022-2024*
3,300
Vacant land
35
Grand Central
Dist. 3
2021
231
Proposed/ planning
36
The Century
Dist. 3
2021
2,178
Vacant land
37
299 Ton That Thuyet
Dist. 4
2021
450
Project on hold
38
Ascent Cityview
Dist. 4
2021
340
Project on hold
39
Sunshine Horizon
Dist. 4
2020
800
Vacant land
40
Charmington Dragonic
Dist. 5
2021
417
Proposed/ planning
41
Dragon Riverside City
Dist. 5
2021-2022*
400
Project on hold
42
Ventosa Luxury
Dist. 5
2020
340
Under construction
43
ADC Residences - Block H
Dist. 7
2021
1,170
Project on hold
44
Ascent Garden Home
Dist. 7
2020
478
Under construction
45
Blue Star
Dist. 7
2021
1,600
Vacant land
46
Eco Green Saigon - M1
Dist. 7
2021
252
Under construction
47
Lux Riverview
Dist. 7
2020
769
Vacant land
48
Lux Star
Dist. 7
2022
690
Vacant land
49
Saigon Peninsula
Dist. 7
2021-2022*
1,000
Vacant land
50
The Antonia
Dist. 7
2020
366
Under construction
51
The Hazenla
Dist. 7
2021
1,020
Vacant land
52
Ha Do Green Lane
Dist. 8
2021
759
Project on hold
53
Harbor City
Dist. 8
2021
1,000
Vacant land
54
Venus
Dist. 8
2020
900
Vacant land
55
9X Ciao
Dist. 9
2021
3,027
Vacant land
56
Hausviva
Dist. 9
2020
1,800
Proposed/ planning
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
40
#
Type
Name
Location
Expected launch
Units
Status
57
Opal City
Dist. 9
2021
2,250
Project on hold
58
Palm Marina
Dist. 9
2020
800
Vacant land
59
Tecco Vina Garden
Dist. 9
2021
893
Vacant land
60
The Palm City
Dist. 9
2022
526
Proposed/ planning
61
Muong Thanh apartment
Go vap
2020
1,800
Project on hold
62
Celesta Rise Nam Sai Gon
Nha Be
2020-2021*
2,400
Vacant land
63
Exim Pearl Tower
Nha Be
2021
323
Project on hold
64
Palacio Garden
Tan Binh
2021
1,265
Project on hold
65
Florita Garden
Tan Phu
2021
1,200
Vacant land
66
Gem Premium
Thu Duc
2021
2,630
Vacant land
67
Gem Riverview
Thu Duc
2022
1,143
Project on hold
68
Opal Sky View
Thu Duc
2020
126
Vacant land
69
Opal Tower
Thu Duc
2021
260
Vacant land
70
Phuc Yen Prosper pho Dong
Thu Duc
2020
462
Vacant land
71
Zen Riverside
Thu Duc
2021
656
Project on hold
(*) The project has several launches in the next five years.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
41
Disclaimer
The property market research contained is verified to the best of Savills Vietnam’s abilities. Savills
quarterly report reflects an overview of the current property market and is indicative research only.
Savills Vietnam does not guarantee the accuracy of research and forecasts contained herein.
Savills Vietnam does not accept any responsibility for losses arising from reliance on the research and
forecasting. Savills recommends that the reader obtain a detailed market study of the specific sector
of interest should a deeper understanding of the market be required.
Reproduction of this report, in any manner whatsoever, in whole or in part, without written prior
consent from Savills Vietnam is prohibited. Approval should be obtained from Savills Vietnam before
any reference to this report can be made in any statement, published document, or circular.
Where information is given without reference to another party, it shall be taken that this information
has been obtained or gathered through Savills best efforts and to Savills best knowledge. Processed
data references there from shall be taken as Savills opinion and shall not be freely quoted without
acknowledgement.
HCMC Quarterly Market Report Q1/2020 – Apartment Sector
Nam Long Corporation
42
QMR Q1/2020 - VLTH
Contents
Executive Summary ...................................................................................................... 1
1.
SUPPLY ................................................................................................................... 2
1.1.
PRIMARY ........................................................................................................................................................ 2
1.2.
SECONDARY SUPPLY ..............................................................................................................................13
2.
PERFORMANCE ................................................................................................... 15
2.1.
PRIMARY ......................................................................................................................................................15
2.2.
SECONDARY ...............................................................................................................................................21
3.
DEMAND .............................................................................................................. 23
3.1.
PRESSURE ....................................................................................................................................................23
3.2.
BUYER PREFERENCES .............................................................................................................................25
4.
OUTLOOK............................................................................................................. 26
4.1.
SUPPLY .........................................................................................................................................................26
4.2.
DEMAND OUTLOOK ...............................................................................................................................27
5.
SWOT ................................................................................................................... 30
Research Parameters .................................................................................................. 31
Term Definitions......................................................................................................... 32
Appendix 1: Primary Projects ................................................................................... 33
Appendix 2: Secondary Projects ............................................................................... 39
Appendix 3: Future Projects ...................................................................................... 42
Disclaimer.................................................................................................................... 44
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
Tables
Table 1.1: Villa/townhouse launches................................................................................................................................3
Table 1. 2: Land Plot launches, ...........................................................................................................................................9
Table 4. 1: Key agencies with mobile apps ................................................................................................................. 29
Table 4. 2: Popular Real Estate e-commerce websites .......................................................................................... 29
Figures
Figure 1. 1: Yearly primary supply .....................................................................................................................................2
Figure 1. 2: Villa & Townhouse districts primary stock ............................................................................................5
Figure 1. 3: Share by type, Q1/2020 .................................................................................................................................6
Figure 1. 3: Villa/Townhouse LA by location, Q1/2020 ............................................................................................7
Figure 1. 4: Villa/Townhouse GFA by location, Q1/2020 .........................................................................................7
Figure 1. 5: Secondary stock, Q1/2020 ........................................................................................................................ 13
Figure 1. 6 : Land plot stock ............................................................................................................................................. 14
Figure 2. 1: Yearly Performance ...................................................................................................................................... 15
Figure 2. 3: Districts performance, Q1/2020 .............................................................................................................. 16
Figure 2. 4: Primary transactions .................................................................................................................................... 18
Figure 2. 5: Primary dwelling price range, Q1/2020 ............................................................................................... 19
Figure 2. 6: Primary Villa Townhouse land prices, Q1/2020 ................................................................................ 19
Figure 2. 7: District land plot sales, Q1/2020 ............................................................................................................. 20
Figure 2. 8. Secondary price movement, Q1/2020 .................................................................................................. 21
Figure 2. 9: Land plot secondary price movement, Q1/2020.............................................................................. 22
Figure 3. 1: Quarterly Performance – Villa/Townhouse......................................................................................... 23
Figure 3. 2: Quarterly Performance – Land plot ....................................................................................................... 24
Figure 4. 1: Future supply to 2025 ................................................................................................................................. 26
Figure 4. 2: HCMC Population ......................................................................................................................................... 27
Figure 4. 3: Vietnam household size ............................................................................................................................. 27
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
Executive Summary
Limited primary supply
Primary supply was over 1,200 dwellings, increasing 46% QoQ but easing -6% YoY. Two largescale entries contributed 40% of primary stock. Districts 2, 9 and Nha Be had over 70% of
primary stock, mainly in compounds by high profile developers. Four of the five planned first
quarter launches were underway before social distancing came into effect.
New projects performing
There were 500 villa/townhouse sales in the quarter despite increasing economic uncertainty.
New launches by GS E&C and Khang Dien contributed 65% of total sales
A lack of large-scale projects resulted in Land Plots recording their lowest sales and absorption
in five years. Buyers generally perceive large-scale having greater liquidity and being less risky.
Competitive landscape
City buyers are increasingly drawn to more affordable products in Binh Duong and Dong Nai
provinces. Satellite city competitive advantages and appeal will continue to increase as further
infrastructure improvements and upgrades are made.
Outlook
Until year 2023 over 19,000 dwellings/plots are expected to enter. Eastern districts will
dominate with 50 percent. Villa and Townhouses will represent 88% of future supply.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
1
1.
1.1.
SUPPLY
PRIMARY
VILLA/TOWNHOUSE
In 2016, new launches from 40 projects saw primary supply reach 5,480 dwellings. Townhouses
with 57% of primary supply, remained the preferred segment.
Figure 1. 1: Yearly primary supply
Villa
6,000
Townhouse
Shophouse
Dwellings
5,000
4,000
3,000
2,000
1,000
0
2016
2017
Source: Savills Research & Consultancy
2018
2019
Q1/2020
Shophouse was only separated since Q1/2019.
Beforehand, it was recorded within townhouse segment
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
2
In Q1/2020, four new projects and the next phase of an existing project supplied almost 660
dwellings pushing primary stock to over 1,200 dwellings. New stock increased 74% QoQ and
9% YoY after four out of five first quarter project launches occurred before social distancing.
Total new supply represented 55% of primary stock. New large-scale launches resulted in
districts Nha Be and district 9 each having over 30% of new supply, leading the market.
Table 1.1: Villa/townhouse launches
Status
New
Next
Launch
Project
District
Developer
Type
Bao Minh
Residence
District 12
Dai Phat
TH
Dong Tang
Long – An Loc
District 9
HUD
VL-TH
D Village
Thu Duc
DHA
TH
Zeitgeist – River
County 1
Nha Be
GS E&C
Verosa Park
District 9
Khang Dien
Supply
Launched
Q1/2020
57
56
143
73
84
50
VL-TH-SH
359
221
VL-TH
310
258
Total new supply
658
VL: Villa. TH: Townhouse. SH: Shophouse. Source: Savills Research & Consultancy
Four project launches supplied 400 dwellings to the primary market. All newly launched
projects were in suburban areas and supplying mainly Townhouses.
▪
Developed by Dai Phat, Bao Minh Residence on To Ngoc Van street, Thanh Xuan ward,
district 12, supplied 57 townhouses on land areas (LA) from 50m2 to 117m2 with one
ground level, a mezzanine and three upper levels and in Q1/2020, 56 townhouses were
launched. Handover with finished exterior and basic interior completion is expected in
Q2/2020. Launch prices were an average US$3,795/m2.
▪
Dong Tang Long – An Loc on Phu Huu Street, district 9, is in Dong Tang Long urban area.
This quarter HUD launched 52 townhouses and 21 villas at US$2,000/m2average LA. The
site is 2.1ha with 53 townhouses and 90 villas from 100-168 m2, equivalent to 265-312 m2
GFA. Handover is expected in Q4/2020. Customers were attracted by its excellent location
in Truong Thanh ward with convenient access to the CBD, district 2 and surrounding areas
via Nguyen Duy Trinh, La Xuan Oai, Lien Phuong and ring road 3. The project has
established facilities including schools, kindergarten, a mall, playground, pool, hospital
and a park.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
3
▪
Launched by DHA, D Village is in Hiep Binh Phuoc ward, Thu Duc district, near Van Phuc
City. Covering 0.6 ha, the project provides 84 townhouses with one ground, a mezzanine
and two upper levels. LAs are from 51-91 m2, equivalent to 119-278 m2 GFA. In Q1/2020,
50 townhouses were launched at average land price of US$5,000/m2 with handover
scheduled for Q4/2020. Good public facilities such as a park, lake, shopping centre, school,
restaurants and a marina are nearby. The well-connected location off national road No 1
enables easy access to the CBD and Binh Thanh district via Xo Viet Nghe Tinh street.
▪
Zeitgeist – River County 1 an integrated Apartment, Villa, Townhouse and Shophouse
project by Korean developer GS E&C, launched 221 villas, townhouses, shophouses of
their first phase. Villa LAs were from 119-300m2; Townhouse were 119m2 and Shophouse
126m2. Handover is expected in Q4/2021 with exterior finished and basic interior
completion. The average land area price at launch was over US$3,200/m2 for Villa and
Townhouse and Shophouse US$4,000/m2. A wide range of facilities include a park, BBQ,
sports area, playground, spa, restaurants and a shopping centre. The 349.4 ha site is off
Nguyen Huu Tho street, Phuoc Kieng ward in Nha Be district.
▪
Khang Dien successfully launched the Verosa Park next phase providing 255 townhouses
and 3 villas. Townhouse LA is 75-177m2 and Villas 484-528m2. The average land price of
almost US$3,800/m2 for Villa and approximately US$4,500/m2 for Townhouse were more
affordable than the previous launch. Handover is expected in Q3/2020 with exterior
finished and basic interior completion. The project is well-connected by nearby
infrastructure including the Long Thanh – Dau Day road and ring road 2.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
4
By Location
In Q1/2020, Districts 9, 2 and Nha Be had a combined 71% share.
▪
District 9 was largest supplier with a 34% share, mostly from Verosa Park, C.T.C Residences
and Saigon Riverside Village. Townhouses are approximately 80% of district primary stock
and the most popular products. Area connectivity and reputable developers including
Khang Dien, Novaland and Anpha Holdings appealed to buyers
▪
District 2 provided 227 primary dwellings and a 19% share makes it 2nd largest supplier.
All projects were by local developers and stock is mainly from An Phu New City. Villas
represent 60% of primary stock in the district.
▪
Nha Be, with over 220 dwellings in the Zeitgeist – River County 1 project had an 18% share.
Figure 1. 2: Villa & Townhouse districts primary stock
500
Dwellings
400
300
200
100
0
dist. 9
dist. 2
Nha Be
Thu Duc
dist. 12
Go Vap
dist. 7
Others
Shophouse
0
0
29
57
0
17
0
2
Villa
88
136
157
0
0
11
25
-
Townhouse
326
91
35
80
110
15
0
26
Source: Savills Research & Consultancy
Others include Binh Tan, Binh Chanh and District 8
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
5
By Type
Figure 1. 3: Share by type, Q1/2020
Shophouse,
9%
Villa, 35%
Townhouse,
57%
Source: Savills Research & Consultancy
Townhouses
Townhouses with over 680 dwellings were up 86% QoQ and down -21%YoY and represent a
57% share. Units ranged from 75-170 m2 LA, equivalent to 110-390 m2 GFA. For five years,
Townhouse has been preferred by developers by appealing to a very wide section of the
buying public.
Villa
Primary supply was 420 villas, up 35% QoQ and 62% YoY, and represented a 35% share.
From 100 to over 1,000 m2 land, and between 120-300m2 were the most popular. Primary
stock is mainly in districts 2, 7, 9, Go Vap and Nha Be. Zeitgeist – River County 1 and Saroma
were the two largest active Villa projects in the quarter and together account for over 60% of
primary stock.
Shophouses
Primary supply over 100 shophouses accounted for a 9% share. Primary stock is in districts
Nha Be, Thu Duc, Binh Chanh and Go Vap with Shophouses were mainly offered in sizeable
suburban district projects. Zeitgeist – River County 1 was the only project with new supply in
the quarter and to widen their Commercial and Residential demand, Shophouses had larger
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
6
375m2 GFA than the (258m2) Townhouses, and dwelling prices from US$507,000 to
US$533,000.
Figure 1. 4: Villa/Townhouse LA by location, Q1/2020
Highest
m²
500
Lowest
400
300
200
100
0
dist. 2
dist. 9
Go Vap
dist. 7
Thu Duc dist. 12
Source: Savills Research & Consultancy
Binh
Chanh
dist. 8 Binh Tan
Figure 1. 5: Villa/Townhouse GFA by location, Q1/2020
1,400
m²
Highest
Lowest
1,200
1,000
800
600
400
200
0
dist. 2 Thu Duc dist. 7
Go Vap
Binh
Chanh
dist. 9
dist. 12
dist. 8 Binh Tan
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
7
LAND PLOT
From 2016 to 2018, primary Land Plot supply increased 14% pa and peaked in 2018 at nearly
7,100 primary units, mostly in Cu Chi district. However, primary supply was down -29% in 2019
following a long investigation process and tightened administrative procedures of the
government.
Figure 1. 5: Yearly primary land plots
8,000
Plots
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2016
2017
2018
2019
Q1/2020
Source: Savills Research & Consultancy
In Q1/2020, primary stock was over 1,370 plots, decreasing -1% QoQ and -31% YoY. The
decrease was mainly due to a sudden lack of large-scale project launches after timelines were
delayed following social distancing.
New projects supplied nearly 580 plots representing 42% of primary stock and sizes from 80130m2 were suitable for Townhouse development. Only one new project launched over 200
plots while others released less than 120 each.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
8
Table 1. 2: Land Plot launches,
District
Developer
Type
Tan Tao Central Park Phase 1
Binh Chanh
Dat Nam Group
LP
600
22
An Lac City
Binh Chanh
Gold Star Land
LP
47
47
An Ha Garden
Binh Chanh
Hung Phat Land
LP
229
229
Binh Chanh New Center
- Phase 1
Binh Chanh
Nam Phong Land
LP
88
17
Sista Binh Tan
Binh Tan
Sista Land
LP
36
36
Sista Binh Tan 2
Binh Tan
Sista Land
LP
28
28
Bonito Residences
Cu Chi
LM Investment
LP
47
41
KDC Phat Tai
Cu Chi
Bao Thinh Land
LP
33
33
C.T.C Residences
dist. 9
Van Phat Hung
LP
113
113
Long Savanna - Phase 1
Nha Be
Nguyen Long Real
LP
48
12
Total new supply
Supply
New
quarterly
supply
Project
578
LP: Land plot Source: Savills Research & Consultancy
In Q1/2020, ten new suburban district projects entered. Four supplying 315 dwellings made
Binh Chanh district the leading supplier.
▪
Tan Tao Central Park on Vo Van Tan street by Dat Nam Group launched as first phase 22
of a total 600 Land Plots with LA from 74-248 m2. The average selling price was
approximately US$1,600/m2. A wide range of facilities included a school, kindergarten,
sports area and park.
▪
An Lac City by Gold Star Land launched 47 plots of 84-116 m2 with a primary selling price
over US$1,700/m2. Despite being small scale, the project location off national road No. 1A
enables swift access to all city areas and is also well supported by established public
facilities including a hospital, malls and schools within 4km.
▪
An Ha Garden by Hung Phat Land released 229 plots of 72-111 m2 with a selling price of
almost US$860/ m2. Under-construction with hand over expected to in Q4/2020, the
project 1 ha site is on Tran Van Giau street, and has easy access to districts Binh Tan and
Tan Phu.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
9
▪
Binh Chanh New Center Phase 1, by Nam Phong Land launched seventeen of eighty-eight
85-140 m2 plots at an average selling price of approximately US$1,960/m2. The 2.8 ha site
full internal facilities include a mall, hospital, school, playground, sports area and BBQ.
Binh Tan had two smaller scale projects.
▪
After the successful Sista Binh Chanh, Sista Land launched 36 Sista Binh Tan plot and 28
Sista Binh Tan 2 plots with LA from 50-77 m2. Both projects are in high density residential
areas with good supporting public facilities such as a shopping centre, schools, a hospital
and banks. Sista Binh Tan at US$3,720/m2 had a more advantageous location and a higher
average selling price than Sista Binh Tan 2 (US$2,460/m2).
This quarter, Cu Chi district launched two new projects, and both are expected to hand over
in Q4/2020. Since 2018, the more affordable prices in the area compared to other districts has
attracted customers alongside improving infrastructure projects such as the HCMC-Moc Bai
Highway, ring roads 3, 4, Metro Line No. 2 and the An Duong intersection tunnel.
▪
Developed by LM Investment, Bonito Residences launched 47 plots from 104-139 m2 with
average selling prices over US$510/m2. Located near An Nhon Tay, this project in central
An Nhon Tay ward has many public facilities within 800m, including a hospital and school.
▪
KDC Phat Tai, by Bao Thinh Land launched 33 units with average selling prices around
US$820/m2. Located in Vo Van Bich street, well-developed surrounding facilities include
schools, a hospital, market, health station..
Districts 9 and Nha Be each had one new project launch.
▪
C.T.C Residences by Van Phat Hung, opened 113 plots from 99-231 m2 at an US$1,450/m2
average selling price. In Long Truong ward, district 9, the 2.3 ha complex facilities include
a park and sports area and nearby public facilities comprise a school, market, golf and a
supermarket.
▪
Nguyen Long Real project Long Savanna first phase launched 33 plots from 80-179 m2
with an average selling price of US$1,760/m2. Off Nguyen Van Tao street, Nha Be district,
well-developed surrounding facilities include a shopping centre, hospital, park,
universities and a supermarket.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
10
By Location
Top 3 supply districts this quarter were Binh Chanh, Cu Chi and district 9 with a combined 87%
primary market share. All have large available land banks, reasonable prices and good
connectivity with surrounding provinces via national roads 1A and 50; Vo Van Kiet street,
HCMC-Moc Bai highway, and ring road 3.
▪
With 8 active projects and over 440 plots, Binh Chanh district led with a 32% primary
market share. Notable project An Ha Garden, represented 52% of primary stock.
▪
Cu Chi district’s 21 smaller scale projects provided 420 plots.
▪
Five active projects with approximately 280 plots ranked district 9 third. Supplying over
100 plots each, C.T.C Residences and Saigon Riverside Village were the two largest.
Figure 1. 6: Land Plot stock, Q1/2020
500
project
Plots
25
400
20
300
15
200
10
100
5
0
Binh
Cu Chi dist. 9
Chanh
Binh
Tan
Nha
Be
dist. 2
Tan
Phu
Hoc
Mon
Thu
Duc
dist.
12
Primary plots
443
420
279
64
48
39
30
28
17
3
Active project
8
21
5
2
2
2
1
1
1
1
0
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
11
Active projects plots ranged from 50-1,497 m2; popular Townhouse plots were from 80-170m²
and Villas mostly between 130m2 and 250m2. All other projects were expected to hand over
in 2020, except Tan Tao Central Park and Saigon Riverside Village.
Figure 1. 4: Location plot areas, Q1/2020
1,600
Highest
m²
Lowest
1,400
1,200
1,000
800
600
400
200
0
dist. 9
Cu Chi
Tan Phu
Binh
Chanh
Hoc Mon Nha Be
Thu Duc
dist. 2
dist. 12
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
12
1.2.
SECONDARY SUPPLY
Villa/Townhouse
In Q1/2020, there were 18,090 dwellings in the secondary market, Townhouses dominated
with a 63% share and Villas represented 35%. District 7 with over 5,400 dwellings continued
to have the largest secondary stock, accounting for a 30% market share, followed by Binh
Thanh and district 2 with over 14 percent each.
Figure 1. 6: Secondary stock, Q1/2020
6,000
Dwellings
5,000
4,000
3,000
2,000
1,000
0
dist. 7
Shophouses
Villas
Binh
Binh dist.
dist. 2 dist. 9
Thanh
Chanh 12
99
-
-
1,567
898
Townhouses 3,739 1,718
dist.
10
Nha
Be
45
-
40
Binh
dist. 8
Tan
-
33
Thu
Duc
Go
Vap
dist. 1
-
10
64
45
-
1,916
199
217
135
734
140
28
7
28
212
17
620
1,130
914
1,018
278
638
435
406
435
50
115
Source: Savils Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
13
Land Plots
There were nearly 86,900 plots in the secondary market, up 1% QoQ and 4% YoY. Districts in
the west, 7, Nha Be and Binh Chanh, represented 43% while eastern districts 2 and 9
contributed 40% of total secondary supply.
Figure 1. 7 : Land plot stock
dist. 9
21%
Binh Chanh
20%
dist. 2
19%
Others
15%
dist. 7
11%
Source: Savills Research & Consultancy
Nha Be
12%
Others include District 8, Cu Chi, Thu Duc.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
14
2.
PERFORMANCE
2.1.
PRIMARY
VILLA/TOWNHOUSE
The 2017 peak of nearly 4,200 sales was due to improving infrastructure, reputable developers
and affordable products, especially in the Eastern districts. However, limited city supply led to a
32% pa decrease from 2017 to 2019. Absorption remaining around 80% implies high demand.
Figure 2. 1: Yearly Performance
5,000
Townhouse
sales
Villa
Shophouse
Absoption
%
100
4,000
80
3,000
60
2,000
40
1,000
20
0
2016
2017
2018
Source: Savills Research & Consultancy
2019
Q1/2020
Shophouse individually analyzed since 2019
previously assessed with Townhouse.
Q1/2020 absorption was 47%, up 13 ppts QoQ and 2 ppts YoY. Total sales of 565 were up 102%
QoQ but eased -3% YoY. Over 64% of sales were in large-scale projects including Verosa Park
and Zeitgeist – River County 1. Townhouses accounted for 54% of sales, Villas 32%; and
Shophouse despite limited stock, a 14% share.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
15
By District
Nha Be was lead performer followed by districts 9 and 2, and together represented 84% of
quarterly sales.
Large supply and high demand had Townhouse lead the primary market with a 54% share,
followed by Villa with thirty two percent. Shophouse sales were positive in large-scale active
projects in districts Nha Be, Thu Duc and Go Vap.
Figure 2. 2: Districts performance, Q1/2020
240
Sales
200
160
120
80
40
-
Nha Be
dist. 9
dist. 2
Thu Duc
dist. 12
Go Vap
Shophouse
29
-
-
45
-
5
Villa
157
21
5
-
-
-
Townhouse
35
160
70
20
17
-
Source: Savills Research & Consultancy
Nha Be district led with over 220 sales from Zeitgeist – River County 1 and accounted for 39%
of performance. All launched were fully sold thanks to developer reputation, well-planned
development and strategic location.
▪
GS E&C is a Construction Company and Developer and one of the largest companies in
Korea. Well-known in Vietnam for construction projects such as Tan Son Nhat-Binh Loi-Vanh
Dai, Nghi Son Oil Refinery Plant, Vinh Thinh bridge and Metro Line 1. Xi Riverview Palace in
Thao Dien, district 2 was a notably successful project. Zeitgeist – River County 1 is the first
phase of a Compound Pproject providing Apartments, Townhouses, Shophouses and Villas.
Zeitgeist is expected to become an integrated township similar in size and with proximity to
Phu My Hung . Strategic location to the south of Sai Gon and well-connected with Phu My
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
16
Hung and the CBD. Internal facilities include schools, kindergartens, a mall, supermarket,
sports area, riverside park and club.
▪
Villas and Townhouse average selling price was over US$3,200/m2 and Shophouses around
US$4,000/m2. Although unit price was over US$380,000, all launched units were fully sold
thanks to effective pre-launch marketing by five lead agents, diversified products,
outstanding facilities and a high-profile developer.
District 9 achieved the second highest sales in the quarter with 181 dwellings, representing a
32% market share. Nearly 80% of district sales occurred in Verosa Park.
▪
Verosa Park is a compound development, supplied 310 dwellings at high average prices of
US$498,000 for Townhouse and US$1,921,000 for Villa. Over 60% absorption was supported
by having reputable developer Khang Dien, a good location and limited competitive supply.
Well-planned internal facilities include a park, pool, gym, playground, lake, BBQ and sports
area.
District 2 had 75 sales and over 93% came from An Phu New City.
▪
An Phu New City by Nha Phu Nhuan has eight Apartment towers, and 134 townhouses with
average prices of US$7,300/m2, equivalent to US$1,120,000/dwelling, and achieved 78%
sold status in Q1/2020. A key success factor of this complex development project on Nguyen
Hoang street is a prime An Phu ward location with convenient access to district 1 via Thu
Thiem tunnel and Ha Noi highway.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
17
Primary Selling Price
The upward trend for dwellings over US$300,000 continues. In Q1/2020, Villa and Townhouses
priced below US$300,000 with only 10% of sales indicated a shortage of affordable product,
however, absorption was at forty seven percent.
Figure 2. 3: Primary transactions
100
Absorption %
%
100
80
80
60
60
40
40
20
20
0
2016
2017
2018
2019
Q1/2020
> US$300,000/ dwelling
32
26
50
61
90
=< US$300,000/ dwelling
68
74
50
39
10
Absorption rate
66
86
81
78
47
0
Source: Savills Research & Consultancy
District 2 had the highest primary prices at over US$4.7 million/dwelling from high-end Villa
projects such as Lancaster Eden and Holm Residences. Large-scale projects in Go Vap and district
7 followed with dwelling prices from US$0.6 million to US$1.3million.
More reasonably priced Townhouses from US$150,000 to US$250,000/dwelling targeted endusers in suburban districts including 8, 12, Binh Chanh and Binh Tan.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
18
Figure 2. 4: Primary dwelling price range, Q1/2020
6,000
Highest
thousand US$/ dwelling
Lowest
5,000
4,000
3,000
2,000
1,000
0
dist. 2
dist. 9
dist. 7
Go Vap
Thu Duc
Nha Be
dist. 8
Binh Tan
Source: Savills Research & Consultancy
Binh
Chanh
Figure 2. 5: Primary Villa Townhouse land prices, Q1/2020
12,000
Highest
US$/m² land area
Lowest
10,000
8,000
6,000
4,000
2,000
0
Go Vap
dist. 7
dist. 2
Thu Duc Binh Tan
dist. 9
dist. 8
Nha Be
dist. 12
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
19
LAND PLOTS
In Q1/2020, the Land Plot segment achieved over 460 sales, declining -23% QoQ and -66% YoY.
Quarterly absorption was 33%, dropping -10ppts QoQ and -35ppts YoY. Binh Chanh district
dominated with over 210 sales, equivalent to 46% share, followed by districts 9 and Cu Chi. New
projects performed well with approximately 380 plots sold, 66% absorption and 83% of sales.
An Ha Garden had the largest launch with 229 plots at an average selling price of
▪
US$860/m2 and achieved over 140 sales and 62% absorption in Binh Chanh district. Easy
access to Industrial Parks (IPs), local schools and hospitals.
District 9 ranked second with 90 sales, 90% of which were in C.T.C Residences and with
▪
reasonable prices around US$1,450/m2, achieved 72% absorption and accounted for a 20%
share.
Figure 2. 6: District land plot sales, Q1/2020
250
Sales
sales
% share
50%
200
40%
150
30%
100
20%
50
10%
0
0%
Binh Chanh
dist. 9
Cu Chi
Binh Tan
Tan Phu
Nha Be
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
20
2.2.
SECONDARY
VILLA/TOWNHOUSE
Twenty-six fully sold projects in eight districts were analysed to review secondary market price
movements. In Q1/2020, secondary prices remained unchanged QoQ from Tet and COVID-19
effects. Districts 1, Binh Chanh, and Nha Be had positive QoQ growth while districts 7, Go Vap
and Binh Thanh all declined.
All study districts had secondary YoY price increases, apart from Binh Thanh. With limited stock
and high demand, district 2 had the highest YoY secondary price growth, followed by districts
12 and 9.
Figure 2. 7. Secondary price movement, Q1/2020
QoQ growth
YoY growth
20%
10%
0%
-10%
District 2
District 12
District 9
District
7(Incl. PMH)
Nha Be
Go Vap
Binh Chanh Binh Thanh
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
21
LAND PLOTS
Savills regularly analyses secondary prices in 41 projects across eleven districts for QoQ and YoY
price movement. Despite stable QoQ growth, yearly secondary land plot price growth was up
and down. A favoured investment channel which also attracts a high degree of speculation, land
prices were mainly affected by COVID-19 effects on the economy. Seven of eleven districts had
YoY increased prices from 1% to 19%, but districts 2, 8, Nha Be, Binh Tan all suffered decreases.
Figure 2. 8: Land plot secondary price movement, Q1/2020
QoQ growth
YoY Growth
20%
15%
10%
5%
0%
-5%
Binh Thanh Binh Chanh
Hoc Mon
District 7
(Excl. PMH)
Thu Duc
Tan Phu
District 9
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
22
3. DEMAND
3.1.
PRESSURE
Coronavirus continues to affect Property, GDP growth, and Employment that is at its lowest in
ten years, has led to increasing uncertainty and a temporary drop in demand.
YoY there was lower first quarter land plot demand, but Villa Townhouse sales remained stable.
Speculators are the major segment buyers and the collapsing world economy influencing greater
caution saw absorption drop -35% YoY.
Figure 3. 1: Villa/Townhouse quarterly performance
1,000
sales
Townhouse
Villa
Shophouse
Absoption
%
70
60
800
50
600
40
30
400
20
200
10
0
Q1/2016
Q1/2017
Source: Savills Research & Consultancy
Q1/2018
Q1/2019
Q1/2020
Shophouse individually analyzed since 2019
previously assessed with Townhouse.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
23
Figure 3. 2: Land plot quarterly performance
2,000
Sales
sales
Absoption
%
80
70
1,600
60
50
1,200
40
800
30
20
400
10
0
Q1/2016
Q1/2017
Q1/2018
Q1/2019
Q1/2020
Source: Savills Research & Consultancy
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
24
3.2. BUYER PREFERENCES
New Villa/Townhouse limited large-scale projects by reputable developers achieving good
absorption included Zeitgeist - River County 1 and Verosa Park. Compound projects have more
product choice, guaranteed construction quality, high-standard living spaces and a wide range
of internal facilities.
Land plots reasonably priced 80-200m2 were popular with investors and end-users. C.T.C
Residence and Bonito Residences with 80-140m2 more popular than 140-200m2 plots and over
70% absorption in Q1/2020.
Relaxed payment terms play an important role in improving project performance and grabbing
customers attention. Van Phuc City, by Van Phuc Group recently adjusted their payment policies.
Buyers now only need a 25% deposit over the previous 30% to secure a sales contract, with the
remainder paid when receiving the house. Buyers may be supported with a low interest loans
up to 70% of the product value. And customers who pay according to schedule will receive back
5% cash equivalent of the total amount, regardless of how many payments. Hung Thinh Group,
owner of Saigon Riverside Village, has provided VND 100 billion to support this initiative which
ends late May 2020.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
25
4.
4.1.
OUTLOOK
SUPPLY
From 9M/2020-2023, future supply will comprise approximately 19,240 dwellings and plots. Nha
Be will be the largest supplier with a 25% share until at least 2023.
Nha Be and District 2 will have a combined 48% share for the next three years with the balance
across districts 9, Binh Chanh and Can Gio.
Although local developers will continue to be the major players more projects by foreign
developers will enter the segment after successful next phases in Korean developer GS E&C
Zeitgeist project and Parkland Green from leading Singapore developer, Keppel Land.
Figure 4. 1: Future supply to 2025
Others
12%
Cu Chi
6%
Nha Be
25%
Can Gio
7%
Binh Chanh
8%
dist. 9
18%
dist. 2
23%
Source: Savills Research & Consultancy Others include District 7, 8, 12, Binh Tan, Go Vap, Tan Phu.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
26
4.2.
DEMAND OUTLOOK
Short term impact
Real estate performance is under temporary demand pressure due to economic deceleration,
decreased GDP, social distancing and increasing employment concerns. Demand supported by
2.2% pa population growth and the steady downward trend in household sizes will support
landed property performance. Recently lowered lending rates to boost the economy following
State Bank of Vietnam Decision No. 418 will also see saving interest rates decrease. With long
term stable price growth, landed properties look likely to remain a favored investment option.
Figure 4. 2: HCMC Population
10,000
%
thousand people
3
8,000
2
6,000
4,000
1
2,000
0
Total population
Growth rate
2015
2016
2017
2018
2019
8,248
8,442
8,643
8,832
8,993
2.2
2.4
2.4
2.2
1.8
0
Source: Statistic Year Book of Vietnam
Figure 4. 3: Vietnam household size
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
27
6
People
5
4
3
1979
1989
1999
2009
2019
Source: GSO
Competitive Landscape
Limited new supply and high-priced inventory were issues for HCMC property with Satellite cities
easily accessible and more reasonably priced, large land banks and improving infrastructure.
Binh Duong and Dong Nai districts are gaining increased end-user and especially investor
interest. Infrastructure connecting HCMC with Binh Duong and Dong Nai provinces has been
improved after the completion of ring roads and bridges connecting Dong Nai and the Ben Luc
Long Thanh highway. Ten thousands units from these two provinces will soon be back under
speculative demand from HCMC citizens.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
28
Technology Driven
Numerous mobile apps have been launched by brokers to boost sales and improve trading
experiences. Features include ‘booking online’; property search, request, deposits, personal
messaging, file and photo sharing. Any unit information, such as availability, reservations,
deposits etc., and with project details such as progress, pics, prices, promotions, etc.
Table 4. 1: Key agencies with mobile apps
No.
Agency
Released time
Mobile app
Developer
1
Dat Xanh
2020
DXRes
Dat Xanh
2
Cenland
2019
Cenhomes
Cenland
3
Danh Khoi Real
2017
DKRA
TWIN Software Solutions
4
Hai Phat Land
2019
Hai Phat Land
V-techhomes
5
Rever
2019
Rever
Rever
The aim is to increase sales for brokerage firms by reducing as many potential friction points as
possible on the path to purchase for any potential buyers. Most Real Estate company websites
still simply list property, which seems remiss for such a potentially valuable commission asset.
Technology is prevalent, improving and relatively simple to deploy into potential target groups
and social networks. Adapting to customer lifestyle and behaviors and providing clear, concise
and engaging personalized content, through a colorful, clear and intuitive UX; with instant
mortgage referral, a construction cost ‘estimater’, Feng Shui advice; whatever your target is
interested, or needs to know regarding property. By developing the buildup from interest to
contract signing into a clear, informative, satisfying and more complete experience for the buyer,
barriers are removed and buying triggers easier to activate.
Table 4. 2: Popular Real Estate websites
No.
Website
Owner
Nationality
Total visits
Total visits
in Q4/2019
in Q1/2020
(*)
(*)
(millions)
(millions)
Foreign
3.3
5.0
1
batdongsan.com.vn
PropertyGuru
2
alonhadat.com.vn
Tran Gia
Local
1.4
2.0
3
sosanhnha.com
Ky Nguyen So
Local
0.8
1.1
4
cafeland.vn
Cafeland
Local
0.6
0.9
5
homedy.com
Homedy
Local
0.3
0.4
6
rever.vn
Rever
Local
0.2
0.3
7
cenhomes.vn
Cenland
Local
0.1
0.1
8
nhadat.net
Dat Xanh
Local
0.07
0.1
(*) Statistics of SimilarWeb.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
29
5. SWOT
The SWOT analysis will consider strengths, weaknesses, opportunities and threats to this market
segment and is a brief overview of factors apparent from our research. The details of the report
cover many other aspects and the SWOT analysis should not be read in isolation.
Strengths
▪
Landed property remains prefered by investors
▪
Solid homebuyer demand.
▪
Segment liquidity and profitability.
▪
Diversified products meet Commercial and Residential purpose.
▪
Limited new supply due to tightening administrative procedures and
investigations.
Weaknesses
▪
Declining demand after social distancing.
▪
Halted construction and site clearance, delay project timelines.
▪
Limited projects by foreign developers
▪
High prices compared to surrounding provinces.
▪
Infrastructure upgrades improving connection between HCMC, suburban
districts and surrounding provinces.
Opportunities
▪
Boom in improved Real Estate websites and mobile apps increasing
online sales potential.
Threats
▪
Economic uncertainty from COVID-19.
▪
Delayed infrastructure in some areas.
▪
Pressure from tightened project licensing policies.
▪
Difficulties accessing Real Estate capital after tightened lending policies.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
30
Research Parameters
Data Collection: Methods of data collection include observation, personal interview, telephone
survey, internet survey, mail survey, and Savills inter-department group discussions.
Analysis Methods: Direct comparison, descriptive analysis, in-depth analysis, trend analysis,
event-history analysis.
Scope of Study: 24 District in Ho Chi Minh City, including 19 urban District: 1, 2, 3, 4, 5, 6, 7, 8,
9, 10, 11, 12, Binh Thanh, Phu Nhuan, Tan Binh, Tan Phu, Go Vap, Binh Tan, and Thu Duc; and 5
rural District: Cu Chi, Hoc Mon, Binh Chanh, Nha Be, and Can Gio.
Note: The exchange rate used is VND 23,050/US$.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
31
Term Definitions
Primary supply: Refers to Villas and Townhouses available for sale from active projects in the
studied quarter. Buyers may purchase either dwelling directly from developers.
Secondary supply: Refers to Villas and Townhouses sold from active projects before the
studied quarter and the total number of Villas and Townhouses from fully sold projects.
Villa & townhouse: Refers to bare shell or finished Villas and Townhouses for sale, not
including Land Plots.
Research Limitations: Savills’s quarterly report reflects an overview of the current property
market and is indicative research only. Savills recommends the reader obtain a detailed market
study of the specific sector of interest should a deeper understanding of the market be required.
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse
Nam Long Corporation
32
Appendix 1: Primary Projects
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse Sector
33
Appendix 1.1: Primary Villa/Townhouse Projects
No.
Project
District
1
Lux Home Garden
Binh Tan
57
67%
5,849
2
An Phu New City
2
94
78%
7,318
3
Holm Residences
2
28
100%
6,614
4
Lancaster Eden (Villa E6)
2
14
64%
8,988
5
Pho Dong Village - N zone
2
46
70%
3,087
6
Saroma
2
177
44%
4,756
7
Sol Villas
2
110
89%
3,359
8
Evergreen
7
35
29%
10,228
9
Harbor Garden
8
26
100%
2,749
10
Phuoc Binh Home
8
64
100%
5,069
11
MD Land Ben Binh Dong
8
40
85%
4,968
12
Dong Tang Long - An Loc
9
73
36%
2,326
13
Long Truong Riverside
9
56
73%
2,078
14
Palm Marina
9
178
98%
2,718
15
Senturia phase 1
9
82
51%
1,924
16
Simcity 2
9
256
96%
2,925
17
Valencia Riverside
9
168
99%
2,326
18
Verosa Park
9
288
60%
4,476
19
Bao Minh Residence
12
56
11%
3,795
20
Bao Ngoc Garden
12
37
46%
2,811
21
Pier IX
12
152
97%
2,758
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse Sector
Nam Long Corporation
Launched
Sold by Q1/2020
Avg. price (US$/m2 LA) (excl. VAT)
34
No.
Project
District
22
Pi Home
12
61
79%
2,354
23
Song Minh Residence
12
58
91%
3,911
24
Cityland Park Hills - B zone
Go Vap
154
85%
4,908
25
Zeitgeist - River County 1
Nha Be
221
100%
3,213
26
D Village
Thu Duc
50
24%
5,017
27
Van Phuc City - Royal
Thu Duc
67
82%
6,839
28
Van Phuc Riverside - Dong Nam 1
Thu Duc
498
96%
5,317
3,146
80%
Total
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse Sector
Nam Long Corporation
Launched
Sold by Q1/2020
Avg. price (US$/m2 LA) (excl. VAT)
35
Appendix 1.2: Primary Land Plot Projects
No.
Project
District
1
An Ha Garden
Binh Chanh
229
62%
856
2
An Lac City
Binh Chanh
47
68%
1,719
3
An Lac Riverside
Binh Chanh
137
61%
1,361
4
Binh Chanh New Center - Phase 1
Binh Chanh
17
65%
1,960
5
Sista Binh Chanh 1
Binh Chanh
52
69%
1,352
6
Tan Kien Residence
Binh Chanh
38
89%
1,350
7
Tan Quy Tay
Binh Chanh
69
48%
637
8
Tan Tao Central Park - Phase 1
Binh Chanh
22
36%
1,598
9
Sista Binh Tan
Binh Tan
36
94%
3,724
10
Sista Binh Tan 2
Binh Tan
28
89%
2,461
11
Bonito Residences
Cu Chi
41
78%
514
12
Eco Town 3
Cu Chi
29
100%
266
13
Dai Phuc An Riverside
Cu Chi
22
36%
632
14
Golden City Tan Quy
Cu Chi
239
81%
756
15
Hai Dang Center 2
Cu Chi
28
100%
416
16
Hai Dang Center 4
Cu Chi
40
68%
800
17
KDC Phat Tai
Cu Chi
33
27%
823
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse Sector
Nam Long Corporation
Plots
Sold
Avg. land price US$/m2 (ex. VAT)
36
No.
Project
District
18
KDC Kim Cuong
Cu Chi
40
15%
687
19
KDC Thinh Vuong
Cu Chi
75
68%
715
20
Kim Phong 3
Cu Chi
61
92%
841
21
Loc Phat Garden
Cu Chi
69
100%
674
22
Metro City
Cu Chi
140
65%
584
23
River Town
Cu Chi
115
99%
689
24
Saigon Star City 2
Cu Chi
174
95%
588
25
Shintoshi Mizu
Cu Chi
61
92%
396
26
Shintoshi Kaze (S-home next phase)
Cu Chi
93
97%
466
27
Tan Quy Town
Cu Chi
66
94%
506
28
Tan Phu Trung
Cu Chi
96
96%
669
29
Tan Thanh Dong
Cu Chi
68
44%
674
30
The residence 2 phase 2
Cu Chi
47
45%
670
31
The Residence 3
Cu Chi
67
52%
791
32
Galaxy Binh An
dist. 2
36
39%
4,497
33
Thanh Cong Land 3
dist. 2
73
77%
1,933
34
Central House
dist. 9
75
75%
1,617
35
C.T.C Residences
dist. 9
113
72%
1,455
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse Sector
Nam Long Corporation
Plots
Sold
Avg. land price US$/m2 (ex. VAT)
37
No.
Project
District
36
Golden Mall
dist. 9
230
99%
2,647
37
Phuoc Long B
dist. 9
300
86%
1,301
38
Saigon Riverside Village
dist. 9
168
44%
1,116
39
Thien An Thinh Riverside
dist. 12
106
97%
2,012
40
Phuc Yen RA
Hoc Mon
85
67%
963
41
Long Savanna - Phase 1
Nha Be
12
42%
1,764
42
Saigon EcoPark
Nha Be
80
55%
2,163
43
Hoa Binh Luxury
Tan Phu
76
75%
3,844
44
Truong Phat 8
Thu Duc
38
55%
2,385
3,671
75%
Total
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse Sector
Nam Long Corporation
Plots
Sold
Avg. land price US$/m2 (ex. VAT)
38
Appendix 2: Secondary Projects
HCMC Quarterly Market Report Q1/2020 - Villa & Townhouse Sector
Nam Long Corporation
39
Appendix 2: Secondary Villa & Townhouse Projects: constant basket
Project
District
Type
Units
Secondary asking price
Land secondary
(US$/ dwelling)
asking price (US$/m²)
Hung Thai 1
Dist.7
Townhouse
142
1,049,168
5,357
My Gia 1 -2
Dist.7
Villa
106
1,611,714
6,136
My Giang 1 -2
Dist.7
Villa
139
1,195,228
7,874
My Hoang
Dist.7
Villa
47
1,485,900
5,730
My Hung
Dist.7
Villa/Townhouse
67
1,030,369
6,074
My Kim 1 -2
Dist.7
Villa
88
2,017,354
6,963
My Quang
Dist.7
Villa
60
1,000,000
5,484
Nam Phu
Dist.7
Villa
99
1,431,670
4,239
Phu Gia
Dist.7
Villa
99
2,383,948
5,215
847
1,464,115
5,974
126
2,100,506
11,768
126
2,100,506
11,768
Sub - total district 7
Sai Gon Pearl Villas
Binh Thanh
Villa
Sub - total Binh Thanh district
Citi Bella
Dist.2
Townhouse
105
324,657
3,565
Palm Residence
Dist.2
Villa/Townhouse
135
566,161
4,991
Ventura
Dist.2
Townhouse
92
328,633
2,446
Villa Riviera
Dist.2
Villa
101
2,198,120
6,532
433
854,393
4,384
21
337,758
1,473
Sub - total district 2
Dong Tang Long
Dist.9
Villa
HCMC Quarterly Market Report Q1/2020 – Villa/Townhouse Sector
Nam Long Corporation
40
Project
District
Type
Units
Secondary asking price
Land secondary
(US$/ dwelling)
asking price (US$/m²)
Mega Residence
Dist.9
Townhouse
160
284,888
3,136
Mega Ruby
Dist.9
Townhouse
235
268,257
2,782
Mega Sapphire
Dist.9
Townhouse
57
475,054
5,220
Thao Nguyen Saigon Villas
Dist.9
Villa/Townhouse
115
861,171
2,452
The Garland
Dist.9
Villa
53
443,962
1,927
641
413,975
2,915
Sub - total district 9
13C-Greenlife RA
Binh Chanh
Townhouse
38
205,351
2,416
Conic Bang Lang Townhouse
Binh Chanh
Townhouse
74
381,056
2,546
112
321,441
2,502
Sub - total Binh Chanh district
Kim Long Villas
Nha Be
Villa
43
766,813
4,380
Ngan Long Villas
Nha Be
Villa
60
582,602
2,860
103
765,776
3,494
Sub - total Nha Be district
Cityland Center Hills
Go Vap
Townhouse
414
700,217
7,002
Cityland Garden Hills
Go Vap
Villa/Townhouse
335
945,047
6,890
749
809,720
6,952
Sub - total Go Vap district
HCMC Quarterly Market Report Q1/2020 – Villa/Townhouse Sector
Nam Long Corporation
41
Appendix 3: Future Projects
Next/New launch
Next
launch
New
District
Developer
Expected type
Expected launch time
Expected supply
Anh Kiet Res
Binh Tan
Anh Kiet Group
Villa/Townhouse
2020
120
Lux Home Garden
Binh Tan
Dia Oc Tin Thanh
Villa/Townhouse
2020
48
An Lac Riverside
Binh Chanh
An Lac Tan
Land Plot
2019
537
Senturia Nam Saigon
Binh Chanh
Tien Phuoc
Villa/Townhouse
2020
333
Tan Tao Central Park - Phase 1
Binh Chanh
Dat Nam Group
Land Plot
2020
578
Tan Thanh Dong
Cu Chi
Nam A
Villa/Townhouse
2020
3
Evergreen
dist. 7
TNR Co.
Villa/Townhouse
2020
85
Harbor Garden
dist. 8
Groland
Villa/Townhouse
2020
100
Dong Tang Long - An Loc
dist. 9
HUD
Land Plot
2019
91
Golden Mall
dist. 9
Van Thinh Vuong
Villa/Townhouse
2020
18
Verosa Park
dist. 9
Khang Dien
Villa/Townhouse
2019
25
Simcity
dist. 9
Anpha Holdings
Villa/Townhouse
2020
455
Bao Minh Residence
dist. 12
Dai Phat
Land Plot
2020
1
Cityland Park Hills - B zone
Go Vap
City Land Ltd.
Villa/Townhouse
2020
21
Nha Be Riverside
Nha Be
Danh Khoi
Land Plot
2020
91
Saigon EcoPark
Nha Be
Dai Phu Vinh Real
Land Plot
2020
64
Zeitgeist - River County 1
Nha Be
GS E&C
Villa/Townhouse
2020
138
D Village
Thu Duc
DHA
Land Plot
2019
34
Van Phuc City - Royal
Thu Duc
Dai Phuc Group
Villa/Townhouse
2019
104
VinCity
dist. 9
Vingroup
Villa/Townhouse
2021-2022*
1,500
Golf View Residence
dist. 9
Novaland
Villa/Townhouse
2022-2024*
3,000
CapitaLand Project in D2
dist. 2
CapitaLand
Villa/Townhouse
2022
100
Clarita
dist. 2
Khang Dien
Villa/Townhouse
2021
159
KDC Cat Lai
dist. 2
An Phu Tay
Land Plot
2021
102
Laimian City
dist. 2
HDTC
Villa/Townhouse
2021-2022*
2,293
Novaland project I Thanh My Loi
dist. 2
Novaland
Villa/Townhouse
2022-2023*
1,278
Sai Gon Binh An
dist. 2
Alpha King
Villa/Townhouse
2021
HCMC Quarterly Market Report Q1/2020 – Villa/Townhouse Sector
Nam Long Corporation
325
42
Next/New launch
District
Developer
Expected type
Expected launch time
Expected supply
Senturia An Phu
dist. 2
Tien Phuoc
Villa/Townhouse
2020
500
Saigon Peninsula
dist. 7
Van Thinh Phat
Villa/Townhouse
2022
608
Habor City
dist. 8
Novaland
Villa/Townhouse
2020
1,325
Armena
dist. 9
Khang Dien
Villa/Townhouse
2022
150
Long Phuoc Dien Residence
dist. 9
Khang Dien
Villa/Townhouse
2021
95
Parkland Green
dist. 9
Keppeland
Villa/Townhouse
2021
122
Rosita Khang Dien
dist. 9
Khang Dien
Villa/Townhouse
2021
118
Villa Long Truong
dist. 9
Khang Dien
Villa/Townhouse
2021
60
Bonville Land
Binh Chanh
Van Thinh Phat
Villa/Townhouse
2021
114
Binh Chanh New Center - Phase 2
Binh Chanh
Nam Phong Land
Land Plot
2020
68
Corona City
Binh Chanh
Khang Dien
Villa/Townhouse
2022
218
Green Village Khang Dien
Binh Chanh
Khang Dien
Villa/Townhouse
2023-2025*
MB Land Green Field
Binh Chanh
MB Land
Land Plot
2021
126
Phong Phu Residence
Binh Chanh
Dai Phuc Land
Villa/Townhouse
2020
63
Sista Binh Chanh 2
Binh Chanh
Sistaland
Land Plot
2020
39
An Lac RA
Binh Tan
Khang Dien
Land Plot
2022
39
Sista Binh Tan 3
Binh Tan
Sistaland
Land Plot
2020
31
Tan Tao RA
Binh Tan
BCCI
Villa/Townhouse
2023
1,000
Vinhomes Long Beach Can Gio
Can Gio
Vingroup
Villa/Townhouse
2023
500
Vincity Cu Chi
Cu Chi
Vingroup
Villa/Townhouse
2022-2023*
Dragon Parc 3
Nha Be
Phu Long
Villa/Townhouse
2020
75
Gia Long Riverside
Nha Be
Thien An Real
Land Plot
2020
238
Phuoc Loc Residence
Nha Be
Dai Phuc Land
Villa/Townhouse
2020
229
Centerhome Riverside
Thu Duc
Centerhome
Villa/Townhouse
2020
51
Kha Van Can Project
Thu Duc
Ha Do
Villa/Townhouse
2020
100
3,383
1,500
(*) Projects are expected to be launched in numerous phases.
HCMC Quarterly Market Report Q1/2020 – Villa/Townhouse Sector
Nam Long Corporation
43
Disclaimer
The property market research contained is verified to the best of Savills Vietnam’s ability. Savills
quarterly report reflects an overview of the current property market and is indicative research only.
Savills Vietnam does not guarantee the accuracy of research and forecasts contained herein.
Savills Vietnam does not accept any responsibility for losses arising from reliance on the research and
forecasting. Savills recommends that the reader obtain a detailed market study of the specific sector
of interest should a deeper understanding of the market be required.
Reproduction of this report, in any manner whatsoever, in whole or in part, without written prior
consent from Savills Vietnam is prohibited. Approval should be obtained from Savills Vietnam before
any reference to this report can be made in any statement, published document, or circular.
Where information is given without reference to another party, it shall be taken that this information
has been obtained or gathered through Savills best efforts and to Savills best knowledge. Processed
data references there from shall be taken as Savills opinion and shall not be freely quoted without
acknowledgement.
HCMC Quarterly Market Report Q1/2020 – Villa/Townhouse Sector
Nam Long Corporation
44