REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM News December/CBRE Updat… · 12 CBRE | REAL ESTATE...
Transcript of REAL ESTATE DEVELOPMENT IN CENTRAL VIETNAM News December/CBRE Updat… · 12 CBRE | REAL ESTATE...
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
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CONTENT
1. Da Nang Economic Overview
2. Vacation Property Market
3. Hotel Market
4. Investment
5. Market Outlook
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If a site is good, a bird will come
DA NANG ECONOMY
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Da Nang leads PCI 2015 while Khanh Hoa’s PCI ranked 27th
PROVINCIAL COMPETITIVENESS INDEX
Source: VCCI
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Da Nang has withdrawn some projects due to slow progress and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
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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
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Expanding Airport for more flights
INFRASTRUCTURE
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TOURISM FACILITATION Full of Summer events in coastal cities
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Big Improvement
TOURIST ARRIVALS TO DANANG
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VACATION PROPERTY MARKET
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BUSY CONSTRUCTION ACTIVITIES IN DA NANG
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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
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DA NANG CONDO-TEL MARKET
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Lower prices due to pressure from new launches
DA NANG CONDO-TEL MARKET
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Expected Completion
DA NANG CONDO-TEL MARKET
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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)
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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.
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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
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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.
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Buyers’ Profile
VACATION PROPERTY
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HOTEL MARKET
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Da Nang: 3-5 Star Hotels Double in the Next 3 years
HOTEL MARKET
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Da Nang: A variety of choices for travellers
HOTEL MARKET
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Expansion of International brands
HOTEL MARKET
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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
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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)
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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
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INVESTMENT
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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
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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
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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
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Asset Pricing and Market Transparency remain challenges
CBRE INVESTOR INTENTION SURVEY 2016
Source: CBRE Asia Pacific Investor Intentions Survey 2016.
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MARKET OUTLOOK
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NEW FACE OF DA NANG IN THE NEXT FIVE YEARS
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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
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© 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: [email protected]
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