Regional GDP share

Vietnam has a small share but large potential

Percentage Share of GDP in Asia Pacific, 2010

Australia

Japan China

Vietnam

Thailand Hong Kong India

Phillippines Malaysia

Taiwan Singapore
Indonesia

Korea

GDP CAGR
GDP in Asia is set for strong growth, Vietnam 3rd strongest CAGR
18% 16% 14%
12%

5 Years CAGR of Nominal GDP in Asia Pacific, 2010 2015F

Country

Private Consumption as % of GDP 71.0

U.S.

Korea
Vietnam Hong Kong Taiwan Japan Singapore China

68.0
66.0 61.5 60.8 58.1 40.9 35.6

10% 8% 6% 4% 2% 0%
India China Vietnam Phillippines Indonesia Thailand Malaysia Korea Singapore Taiwan Hong Kong United States Australia Euro Area Japan

Source: Focus Economics, Savills Research & Consultancy

Real Economy Gini Coefficient

Gini Index, 2007-2011
Rank* 108 104 97 96 91 86 71 70 Gini Coefficiant (%) Philippines Hong Kong Thailand Singapore China United States Malaysia Vietnam 2007 46.10 43.40 43.20 42.50 44.70 40.80 49.20 37.00 2008 44.50 43.40 42.00 42.50 46.90 40.80 49.20 34.40 2009 44.50 43.40 42.00 42.50 46.90 40.80 49.20 34.40 2010 44.00 43.40 42.50 42.50 41.50 40.80 37.90 37.80 2011 44.00 43.40 42.50 42.50 41.50 40.80 37.90 37.80

67
58 51 37 30 3

Indonesia
United Kingdom Australia Taiwan Korea Japan

34.30
36.00 35.20 32.60 31.60 24.90

34.30
36.00 35.20 32.60 31.60 24.90

34.30
36.00 35.20 32.60 31.60 24.90

39.40
36.00 35.20 32.60 31.60 24.90

37.60
36.00 35.20 32.60 31.60 24.90

*Rank out of 151 nations according to the United Nations development Index
Source: Human Development Index, UNDP

The Gini Index measures the extent to which the distribution of income among individuals or households within an economy deviates from a perfectly equal distribution.
Hong Kong and Singapore show a wide gap between the wealthy and the poor. Japan, Taiwan and Korea show the most even distribution of income.

Real Economy Private Consumption

Private consumption growth, 2005-2012F
Hong Kong 14% Singapore Japan Korea Taiwan Australia 14% China Malaysia Indonesia Vietnam Philippines Thailand

12%

12%

10%

10%

8%

8%

6%

6%

4%

4%

2%

2%

0%

0%

-2% 2005 2006 2007 2008 2009 2010 2011F 2012F

-2% 2005 2006 2007 2008 2009 2010 2011F 2012F

With the exception of China and Indonesia, private consumption growth declined among Asian countries during the recession of 2008/09. Following the difficulties of 2009, almost all Asian economies rebounded significantly in 2010.

Telecommunications & Savings

Internet & Mobile Phone Penetration 2009
Internet Penetration (LHS) % of Pop 90 80 70 60 50 40 30 20 10 0 Facebook Penetration (LHS) Mobile Phone Subscribers (RHS) Per 100 Pop 200 180 160 140 120 100 80 60 40 20 1350 90 1200 80 1050 70 900 60 750 50 600 450 300 150 0 40 30 20 10 0 Millions

Population & Savings 2009

Population (LHS) Gross Savings 2009 (RHS) % of GDP 100

Source: Internet World Stats & International Telecommunications Union

Source: World Bank national accounts data, and OECD National Accounts data files. Note: No Taiwan Data

With larger percentages of the Asia-Pac population using the internet awareness of international trends, brands and access to online stores will increase.
Compared to the US & UK large numbers of Asia-Pac economies save more of their earnings. This offers opportunities to promote spending and domestic consumption within those markets.

Urbanization
Urbanisation is increasing in Southeast Asia
100%

Urbanisation Ratio, 2010 2020E

2010 2015 F 2020 F

90% 80% 70%

60%

50% 40% 30%

20%

10% 0%
China Hong Kong Taiwan Japan Korea Singapore Malaysia PhilippinesIndonesia Thailand Vietnam India Australia United Kingdom United States

Source: United Nations

Demographic Trends Are Not Always Favorable

Demographic Window in Asia Pacific, 1960 - 2050
1960 China Hong Kong Japan Korea Singapore Malaysia Philippines Indonesia 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Thailand
Vietnam India Australia New Zealand

Source: United Nations

Retail Sales Value

Fast fashion, mid-range and luxury brands number of stores by city, 2011

Fast Fashion - Zara is committed very heavily to the markets within which it has a presence. Meanwhile H&M has focused heavily on China, Hong Kong and Japan. Lacoste has a very large presence across the surveyed cities although this mainly due to smaller retail areas within department stores (concessions). Lacoste goods are available in Taiwan through a franchise. Luxury Retail With regard to Gucci and Louis Vuitton, Hong Kong, Tokyo and Seoul have a larger number of stores compared with other cities in the region.

Retail density

Population of 6 Million

Population of 6.9 Million

Population of 7.4 Million

Klang Valley Kuala Lumpur, Malaysia

Bangkok, Thailand

Ho Chi Minh City, Vietnam

Location Sq m/person

From 2011 onwards: nearly 824,000 sqm of new supply planned to enter the market

HCMC
Bangkok Jakarta Kuala Lumpur

0.09
0.78 0.38 0.64

Prime Retail Benchmark

Savills benchmark data based on top 5 prime retail malls in each city, 2008- 1H 2011
Hong Kong US$ sq m gross 1000 900 800 700 600 500 400 300 200 100 0 1000 900 800 700 600 500 400 300 200 100 0 Singapore Taipei Tokyo Seoul Sydney Beijing US$ sq m gross Shanghai Kuala Lumpur Jakarta Hanoi Ho Chi Minh

1H 2008

2H

1H 2009

2H

1H 2010

2H

1H 2011

2H

1H 2008

2H

1H 2009

2H

1H 2010

2H

1H 2011

2H

Source: Savills Research & Consultancy

Source: Savills Research & Consultancy

Rents for prime retail space in Hong Kong outstrip all other surveyed locations. They are now the most expensive in the world second only to New Yorks 5th Avenue. Shanghai commands the highest rents amongst the emerging economies.

11

Note: figures inclusive of management fees and government taxes

Cap Rates Around Asia Pacific

Office Cities 1Q/2010 Beijing Shanghai Hong Kong Taipei Tokyo Seoul Singapore Kuala Lumpur Hanoi Ho Chi Minh City Sydney 5.96% 6.60% 3.10% 3.30% 4.70% 5.90% 5.25% 10.05% 12.00% 12.00% 7.25% 1Q/2011 5.66% 5.50% 3.36% 2.80% 4.80% 5.70% 3.88% 10.11% 12.00% 12.00% 7.00%
12

Retail 1Q/2010 NA 7.00% 3.76% 3.90% 5.30% 7.00% 5.25% 10.89% 10.00% 10.00% 6.50% 1Q/2011 NA 6.50% 3.54% 3.10% 5.20% 6.50% 4.75% 11.61% 10.00% 10.00% 6.50%

HCMC Snapshot

13

Retail supply
- 1 new retail centre with 5,000 sq m - Total supply: 630,000 sq m (stable q-o-q) - 8 retail podiums, 7 department stores, 18 shopping centres, 57 supermarkets, 3 wholesale markets

Wholesale centre 8%
CBD 23%

Retail podium 2%
Department store 17%

Suburban area 36%

Supermarket 33%

Secondary area 41%

Shopping centre 40%

Future supply
Others, 28%

- 73,000 sq m to come in 2H/2011

- 720,000 sq m to come in 2012- 2015

District 7, 38%

District 1, 12%

Retail space

No.of projects

500,000
450,000 400,000 350,000 300,000 250,000 200,000

sq m

No.of projects

20
18 16 14 12 10 8

District 2, 22%

150,000
100,000 50,000 Retail space No.of projects

6
4 2 -

2012E
145,267 10

2013E
357,846 13

2014E
124,428 2

2015E
89,500 3

Potential
453,684 19

15

Retail performance
Department stores had the best performance. Avg. occupancy: 85% (-5% q-o-q)

Avg. rent rate: US$65/sq m (-5% q-o-q)

Only secondary areas had an increase in rent.

% q-o-q change

10 5

% q-o-q change

2
0

-2
-4

Retail podium Department store

Shopping centre

0 -5 -10 -15 CBD Secondary area Suburban area

-6
-8 Occupancy Rent rate

Occupancy

Rent rate

16

Rental / volume guide

US$18 to US$45

Tan Binh US$20 to US$180

District 5
HCMC Peoples Committee

US$20 to US$200

District 7 US$18 to US$50

17

Phu My Hung Corp.

The Crescent retail 90% leased

Location: Phu My Hung New City Centre, Ho Chi Minh City

Retail Area: 45,000 sq. m net

The Mall retail 70 % leased

GF & Upper levels mostly leased 2nd level some challenges

Savills won Asia Pacific Property Awards 2011