Market news


The tenant looking out form Ho Chi Minh City "overload centre"

"In the first eleven months of 2017, the number of real estate businesses were newly established 4,500; up 60% y-o-y and capital, employ up 18,6% of the workforce, 155,300 new construction company, up 9% y-o-y and 28% in capital. End of nine months of 2017, real estate companies posted 40% increase in revenue, up 6% increase in profit. In fact, the market prices rose by 5-10% in the segment of offices rent, apartments, sales apartment, retail, etc."

"In 2018, Ho Chi Minh City, Vietnam will openning real estate retail market; this will be the premise for foreign invest retail into Vietnam market, and this is will have a strong impact on the development of the real estate market due to its high liquidity and high profitability, which is also the premise for the next ten years of real estate development."

Since 2015, office market in Ho Chi Minh City welcomed the expected number of supply with net area is quite impressive across all segments office rental.

"In 2017, Ho Chi Minh City welcomed four office building Grade A and Grade B joined to the market, three office building which recorded 70% occupancy rate at the time opening. Notably, office Grade A rental rates back-up rebounded in the past two years, achieved US$ 38.9/sqm/month, with strong net absorption increased demand coupled with higher quality from new completed buildings. Besides, office price Grade B is increasing at an annual rate, achieve US$ 22.3/sqm/month. In particular, the new office buildings Grade A joined to the market have pushed rentals higher US$ 10/sqm/month than with the buildings the same grade built before 2010."

"Office rental" has doubled as companies continue to expand. According to record of Real Estate Association Ho Chí Minh City, Vietnam, the tenants in Ho Chi Minh City has doubled over the same period (y-o-y) to 500 - 600 sqm. In addition, emerging market such as e-commerce are spurring office demand to new heights in Vietnam. Fields of co-working, logistics and manufacturing strong net absorption increased demand large ratio in Ho Chi Minh City market.

According to the statistical report, office building "Grade A" and "Grade B" occupancy rate in Ho Chi Minh City higher than 94% and "Grade C" always filled at over 97%. "Office space" demand in Ho Chi Minh City need more supply including both old and new buildings. The shortage of supply in short term make the market push rentals higher and continue to drive capital inflows into the office market in Ho Chi Minh City.

With the narrow land fund in Ho Chi Minh City present, daily traffic jam; office rentals and other service are rising will be make burden for business, that is the reason why "the tenant looking out form Ho Chi Minh City centre. Thu Thiem county town will be one of new centers in the future."

 
Song Chau (SCBI) Office.
Tags:

Related news

Vacation property sector still record good absorption rates

Vacation property sector still record good absorption rates

Many key developers are still very optimistic about the future of vacation property sector. According to Mr. Le Minh Dung, Vice Managing Director of BIM Group, Vietnam recently was ranked among top 10 fastest-growing tourist destinations by United Nations World Tourism Organization.
Vietnam's GDP growth rate and marketview Q2 2018

Vietnam's GDP growth rate and marketview Q2 2018

The Vietnam economy continued to achieve an impressive growth in the second quarter of 2018. Vietnam’s GDP increased by 6.79% y-o-y in Q2 2018 and 7.08% y-o-y in the first half of the year, and it is the highest growth observed in the last eight years.
Hanoi receive new large retail supply commercial space for lease

Hanoi receive new large retail supply commercial space for lease

Only 7% of total retail supply in Hanoi is located in CBD. 2018 is expected to be an active year in Hanoi retail coming from eight under-development projects. This is the largest number of new projects ever planned for a single year. Hence, new supply causing pressure on the vacancy rate, the landlords should save larger space for anchor tenants as well as increasing the number of anchor tenants. More importantly, high-impact tenants whose products generate intense word-of-mouth marketing online should receive preferential terms.
Some developers HCMC's retail sector will be forced to lower rental expectations

Some developers HCMC's retail sector will be forced to lower rental expectations

Vietnam’s retail market has jumped to 6th place, higher than some developed markets in the region such as Singapore, Hong Kong, and Indonesia and showing high potential for further growth. Vietnam market achieved high scores in terms of market saturation with good scope for growth. Saturation in both Hanoi and Ho Chi Minh City is far behind the levels seen in some other SEA cities
Hanoi's office rental recovery with new supply and occupancy rate 2018-2020

Hanoi's office rental recovery with new supply and occupancy rate 2018-2020

Commercial leasing activities will continue to be active, with rental growth and occupancy levels expected to witness sustained improvements across all property types. Meanwhile, occupiers from the traditional sectors of manufacturing, financial and tech industries retained their position representing nearly 50% of total enquiries. Sustainable demand from traditional sectors combined with the rise of new sectors of Logistics, Education, and Co-Working are expected to be key drivers which will boost net absorption.
HCMC office for lease enjoys further with rental growth and demand for office space over the next three years

HCMC office for lease enjoys further with rental growth and demand for office space over the next three years

The office sector in Ho Chi Minh City first quarter 2018 on a positive note. Rents improved in both cities even on the back of new supply added to the market. The improvement in performance was observed across Grade A and Grade B buildings, because of stable predicted growth in the economy and the city’s ever improving infrastructure in the form of metro lines. Projected Rental growth in 2018–2020 is a result of continuing appetite for quality supply
Vietnam’s economic growth rate to "impulse real estate market 2018"

Vietnam’s economic growth rate to "impulse real estate market 2018"

"As the economy had a stellar performance in 2017, Vietnam’s real estate investment scene continues to attract more and more interest from foreign investors and developers across all sectors. Vietnam’s real estate market is entering 2018 with a positive sentiment, despite some skepticisms about oversupply in the upscale residential sector, especially on secondary and rental markets."