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Savills World Research

Ho Chi Minh City, Viet Nam

Savills Property Price Index


(SPPI)

Better construction progress, and


flexible
and
prolonged
payment
schemes from developers continued to
be the major contributors to the price
improvement and good sales in
Q2/2016. The QoQ index is expected
to follow an upward trend next quarter.

Meanwhile, the non-CBD continued


the upward trend in occupancy by 1
ppt QoQ and 5 ppts YoY, resulting in
the index rising 2 points QoQ and 9
points YoY.
In Q2/2016, total office take-up was
approximately 14,200 m2, decreasing
-46% QoQ and -44% YoY. This is the
result of most projects reaching full
occupancy.

Absorption rate (%)

Lending rate (%)

40

100

35

95

30

90

25
20

85

15

80

10

75

70
2010

2012

2014

Q1

Q4

2015

Q2

Q1

Q2

Q3

Q2

Q3

Q4

Q4

2013

Q1

Q1

Q2

Q3

Q3

Q2

2011

Q4

Q3

Q4

Q1

Q4

Q1

Q2

Q2

0
2009

2016

Note: Base Index in Q1 2009 = 100


Source: Savills Research & Consultancy

FIGURE 2

Office QoQ Index

Whole market

CBD

Non-CBD

110

90

70

With growing demand, Grade A and B


office rent is expected to increase in
coming years. Savills forecast an
approximate rise of 4% pa over the
next three years.

50
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2009

2010

2011

2012

2013

2014

2015

2016

Note: Base Index in Q1 2009 = 100


Source: Savills Research & Consultancy

Savills Research team


Please contact us for further information
Savills plc.
Savills is a leading global real estate service provider listed on the London Stock Exchange. The company established in 1855 , and
has a rich heritage with unrivalled growth. It is a company that leads rather than follows, and now has over 600 offices and associates
throughout the Americas, Europe, Asia Pacific, Africa and the Middle East.

Troy Griffiths
Deputy Managing Director
+84 8 3823 9205 ext. 178
TGriffiths@savills.com.vn

50
45

105

Q3

Although Grade A sales increased


74%, absorption was down -5 ppts due
to abundant new supply. Grade B was
the market driver with 49% of total
sales, followed by Grade C with 47
percent.

Grade A and B projects in the CBD


continued to perform well this quarter,
leading to a yearly increase in both
occupancy by 3 ppts and rent by 4
percent. As a result, the CBD index
rose 1 point QoQ and 6 points YoY.

QoQ Index
110

Q3

There were approximately 6,900 sales,


up 10% QoQ and 34% YoY. The
overall absorption rate was stable QoQ
at 17% but decreasing -2 ppts YoY.

Residential QoQ Index

Q4

The office index was 85.3, up 2 points


QoQ and 7 points YoY. The
improvements were a result of
increased occupancy by 1 ppt QoQ
and 4 ppts YoY, and rent by 1% QoQ
and 5% YoY. The average occupancy
peaked again at 97 percent.

Q1

In Q2/2016, the residential index


increased 1 point quarter-on-quarter
(QoQ) and 3 points year-on-year (YoY)
to 92.7. The apartment price index has
increased steadily since Q3/2015.

FIGURE 1

Q1

Office Index

Q2

Residential Index

July 2016

This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be
used as a basis for any contract, prospectus, agreement or other document without prior consent. Whilst every effort has been made to
ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is
strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills. Savills
Vietnam Co, Limited.

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