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1 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016 REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM Thursday, 24 th November 2016 Presented by: Ms. Dung Duong Director, CBRE (Vietnam) DA NANG
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REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM News December/CBRE Updat… · 12 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016 Booming condo-tel market with good absorption

Sep 29, 2020

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  • 1 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    REAL ESTATE DEVELOPMENT

    IN CENTRAL VIETNAM

    Thursday, 24th November 2016

    Presented by: Ms. Dung Duong

    Director, CBRE (Vietnam)

    DA NANG

  • 2 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    CONTENT

    1. Da Nang Economic Overview

    2. Vacation Property Market

    3. Hotel Market

    4. Investment

    5. Market Outlook

  • 3 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    If a site is good, a bird will come

    DA NANG ECONOMY

  • 4 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Da Nang leads PCI 2015 while Khanh Hoa’s PCI ranked 27th

    PROVINCIAL COMPETITIVENESS INDEX

    Source: VCCI

  • 5 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Da Nang has withdrawn some projects due to slow progress and

    rejected those which threaten the environment

    FOREIGN DIRECT INVESTMENT

    Note: FDI data up to 8M 2016

    -20

    0

    20

    40

    60

    80

    100

    -100

    0

    100

    200

    300

    400

    500

    600

    2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016

    No

    . o

    f P

    roje

    cts

    FD

    I (U

    SD

    Mill

    ion

    )

    Newly-regislered and increased FDI capital No of new and increased FDI projects

    Source: Da Nang’s Department of Statistics

    Foreign Direct Investment in Da Nang

  • 6 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    INFRASTRUCTURE

    2015

    Da Nang Railway

    Station to be

    demolished and

    replaced by a new

    one by 2019

    Da Nang International Airport: accelerated construction and will be ready for APEC 2017

    2016 2020

    Da Nang-

    Quang Ngai

    Highway planned

    opening to traffic

    in 2016

    Da Nang Port (P2)

    to be launched

    in 2018

    Da Nang - Hoi An

    Monorail

    Bus Rapid Transit

    route connecting

    Da Nang - Hoi An

  • 7 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Expanding Airport for more flights

    INFRASTRUCTURE

  • 8 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    TOURISM FACILITATION Full of Summer events in coastal cities

  • 9 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Big Improvement

    TOURIST ARRIVALS TO DANANG

  • 10 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    VACATION PROPERTY MARKET

  • 11 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    BUSY CONSTRUCTION ACTIVITIES IN DA NANG

  • 12 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Booming condo-tel market with good absorption

    DA NANG CONDO-TEL MARKET

    Da Nang Nha Trang

    Source: CBRE Vietnam. Source: CBRE Vietnam.

    0

    2,000

    4,000

    6,000

    8,000

    2013 2014 2015 9M2016

    Supply Sold units

    0

    2,000

    4,000

    6,000

    8,000

    2013 2014 2015 9M2016

    Supply Sold units

    ~ 5,000 units launched in 9M2016

    ~ 2,800 units sold in 9M2016

    ~ 2,900 units launched in 9M2016

    ~ 3,200 units sold in 9M2016

    Condo-tel, Accumulated Supply and Sold Unit Condo-tel, Accumulated Supply and Sold Unit

  • 13 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    DA NANG CONDO-TEL MARKET

  • 14 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Lower prices due to pressure from new launches

    DA NANG CONDO-TEL MARKET

  • 15 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Expected Completion

    DA NANG CONDO-TEL MARKET

  • 16 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Limited New Supply

    DA NANG SECOND HOME VILLA MARKET

    0

    200

    400

    600

    800

    2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    2015 2016

    Luxury High-end Mid-end

    Da Nang Second Home Villa, Accumulated Supply (Number of villas)

  • 17 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Villa sale shows moderate improvement

    SECOND HOME VILLA MARKET

    103 units

    2014

    481 units

    2015

    Nha Trang

    9M 2016

    396 units

    2014 Source: CBRE Vietnam.

    Phu Quoc

    2014 2015 9M 2016

    0 units

    850 units

    140 units

    Source: CBRE Vietnam.

    7 units

    180 units

    2015 9M 2016

    Da Nang

    52 units

    Source: CBRE Vietnam.

  • 18 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Da Nang Price discovery

    SECOND HOME VILLA MARKET

    *Asking prices are quoted in USD, exclusive of VAT and maintenance fee.

    Source: CBRE Vietnam, Q3 2016.

    Premier Village Average price:$2,800/m2 Unit size (GFA): 335-510 m2 Total unit: 118

    Nam An Residence

    Average price: $1,338/m2 Unit size (GFA):245 - 335m2 Total unit: 18 (1st launch)

    Ocean Estate Average price: $1,673/m2 Unit size (GBA): 570-740 m2 Total unit: 33

    Hyatt Regency Average price: $4,931/m2 Unit size (GFA): 307 m2 Total unit: 27

    Vinpearl Premium Average price: $4,851/m2 Unit size (GFA): 348 – 526 m2 Total unit: 39

    Furama Pool Villas Average price: $1,867/m2 Unit size (GFA): 322 – 386 m2 Total unit: 134

    Vinpearl Da Nang 2 Average price: $2,860/m2 Unit size (GFA): 180 - 330 m2 Total unit: 122 units

    Ocean Villas Average price: $1,453/m2 Unit size (GFA): 271 – 373 m2 Total unit: 110

    Mercure Son Tra Average price: $2,146 m2 Unit size (GFA): 374 - 543 m2 Total unit: 22

    Olalani Condotel & Resort Average price: $5,600/m2 Unit size (GFA): 340– 470 m2 Total unit: 3 The Song

    Average price: N/A Unit size (GFA): N/A Total unit: 48

  • 19 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    90% of Condo-tel projects; Premier Village Danang Resort;

    Vinpearl Resort & Villas

    3-10 years Guaranteed yield at

    8% - 12% per year (VND)

    PHU QUOC – Rental Pool Villas

    Guaranteed Yield Program remains a main S&M strategy

    VACATION PROPERTY

    Phu Quoc Emerald Bay, Phu Quoc Premier Village,

    Vinpearl Paradise Villas

    Guaranteed yield 9% - 10% per year

    Or 85% of revenue after tax in 10 years

    DA NANG – Condo-tel/ Villas

    NHA TRANG – Condo-tel/ Villas

    90% of projects applied guaranteed yield with

    8% - 10% per year in 3 - 10 years

    Source: Retrieved from the internet, September 2016.

  • 20 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Buyers’ Profile

    VACATION PROPERTY

  • 21 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    HOTEL MARKET

  • 22 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Da Nang: 3-5 Star Hotels Double in the Next 3 years

    HOTEL MARKET

  • 23 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Da Nang: A variety of choices for travellers

    HOTEL MARKET

  • 24 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Expansion of International brands

    HOTEL MARKET

  • 25 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    HOTEL MARKET Occupancy rate

    Source: CBRE Vietnam.

    0%

    20%

    40%

    60%

    80%

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    2014 2015 20165 star - Beachfront 5 star - City Hotel

    4 star - Beachfront 4 star - City Hotel

    20%

    40%

    60%

    80%

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    2014 2015 2016

    5 star - Beachfront 5 star - City Hotel 4 star - Beachfront 4 star - City Hotel

    Da Nang, 3-5 Star Hotels, Occupancy Rate

  • 26 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    HOTEL MARKET Average Daily Rate (ADR)

    $0

    $50

    $100

    $150

    $200

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

    2014 2015 2016

    5 star - Beachfront 5 star - City Hotel 4 star - Beachfront 4 star - City Hotel

    Da Nang, 3-5 Star Hotels, ADR (US$/room/night)

  • 27 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Chinalization – A New Trend

    HOTEL MARKET

    Lead the top guest arrivals to Da Nang & Nha Trang

    Prefer Coastal cities, specifically

    Nha Trang & Da Nang

    Low spending $70/day/guest

    Direct flight from 12 cities in China

  • 28 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    INVESTMENT

  • 29 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Latest development site transaction

    INVESTMENT

    DA PHUOC INTERNATIONAL NEWTOWN project changes to THE SUNRISE BAY

    ● Investor: Novaland Group

    ● Seller: Daewon Cantavil Co., Ltd

    ● Value: N/A

    ● Scale: 180 ha

  • 30 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    MAJOR INVESTMENT DEALS IN DA NANG

    ● Investor: Success Dragon

    ● Seller: My Ngoc Nguyen

    ● Value: US$31.4 mil.

    ● Scale: 206 hotel rooms

    ● Date: Q1 2016

    One Opera Danang

    ● Investor: TBS

    ● Seller: Indochina Land

    ● Value: US$25.5 mil.

    ● Scale: 18 holes golf

    course + 66 villas

    ● Date: Q2 2014

    Montgomerie Links

    Source: CBRE, DealStreetAsia, RCA Q1 2016

    Hyatt Regency

    ● Investor: Gaw Capital

    Partners

    ● Seller: Indochina Land

    ● Value: N/A

    ● Scale: 193 hotel rooms + 180

    condo. units + 27 villas

    ● Date: Q2 2015

    ● Investor: BRG

    ● Seller: VinaCapital

    ● Value: N/A

    ● Scale: 18 holes golf.

    ● Date: Q2 2016

    Danang Golf Club The Nam Hai

    ● Investor: N/A

    ● Seller: Crescent Point

    ● Value: US$60 - 65 mil.

    ● Scale: 100 hotel rooms + rental

    pool business

    ● Date: Q1 2016

    HAGL Complex

    ● Investor: Quoc Cuong Gia Lai

    ● Seller: HAGL

    ● Value: US$18.6 mil.

    ● Scale: 2.6 ha.

    ● Date: Q2 2016

    Jan 2015 Mar 2016

    Golden Square Marina

    ● Investor: Quoc Cuong Gia Lai

    ● Seller: VinaCapital

    ● Value: N/A

    ● Scale: 17.6 ha

    ● Investor: Anphanam

    ● Seller: Dong A Land

    ● Value: N/A

    ● Scale: 1.1 ha

    ● Date: Q1 2016

    Indochina Riverside

    ● Investor: Kajima

    ● Seller: Indochina Land

    ● Value: US$15 - 20 mil.

    ● Scale: 0.4 ha

  • 31 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Hotels saw a surge in interest

    CBRE INVESTOR INTENTION SURVEY 2016

    Source: CBRE Asia Pacific Investor Intentions Survey 2014, 2015 and 2016

    Preferred sector for investment

  • 32 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    Asset Pricing and Market Transparency remain challenges

    CBRE INVESTOR INTENTION SURVEY 2016

    Source: CBRE Asia Pacific Investor Intentions Survey 2016.

  • 33 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    MARKET OUTLOOK

  • 34 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    NEW FACE OF DA NANG IN THE NEXT FIVE YEARS

  • 35 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    DEMAND ABSOPRTION RATE PRICE/RENT SUPPLY

    Beach-

    front In City

    Beach-

    front In City

    Beach-

    front In City

    Beach-

    front In City

    CONDO-TEL

    SECOND-HOME

    VILLAS

    HOTEL/RESORT

    2017 OUTLOOK

  • 36 CBRE | REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM | Q4 2016

    © 2016 CBRE Co., Ltd. All materials presented in this report, unless specifically indicated otherwise, is under copyright and proprietary to CBRE. Information contained herein, including projections, has been obtained from materials and sources believed to be reliable at the date of publication. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. Readers are responsible for independently assessing the relevance, accuracy, completeness and currency of the information of this publication. This report is presented for information purposes only, exclusively for CBRE clients and professionals, and is not to be used or considered as an offer or the solicitation of an offer to sell or buy or subscribe for securities or other financial instruments. All rights to the material are reserved and none of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without prior express written permission of CBRE. Any unauthorised publication or redistribution of CBRE research reports is prohibited. CBRE will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information in this publication.

    For more information regarding this presentation please contact: CBRE Vietnam Co., Ltd. – Research & Consulting T +84 8 3824 6125

    F +84 8 3823 8418

    Email: research.vietnam@cbre.com

    THANK YOU