The office for lease market in Ho Chi Minh City, Vietnam was stable after receiving the new supply with the office lease ratio reaching 97%, rent up 1% and over up 3% year on year. Grade B offices accounted for 96% of the total consumption in Q4 2017. This segment is forecast to continue growing this year approximating 7%.
 
Real estate continued taking the lead in newly established enterprises with over 31,000 businesses. The sector was ranked second in foreign direct investment attraction with the total registered capital of US$1.5 billion.

Vietnam is one of the economies with the fastest growth rate in Southeast Asia. Ho Chi Minh City, Vietnam is in the sight of most of the big investors in the region and may be likely to become the most popular real estate investment destination in Southeast Asia, with capital being poured in from many places, especially from Japan, Singapore, Korea and other investors.

Ho Chi Minh City is one of the main motivation of Vietnam economic growth. So far, the housing real estate market still has been the biggest attraction for the foreign investors here. However, the positive recovery after a long period of freezing may lead to a risk of excessive supply, especially with the apartment segment, as sales slowed down due to very big new products supply. Meanwhile, landing segment continues to demonstrate its strength with the number of transactions and prices go up, partly because of limited supply.

Some investors said that the office rental fee in Ho Chi Minh City, Vietnam is now higher than it is in Bangkok, reflecting the shortage of supply in the market with the main cause of difficulties in obtaining land for development projects.

Song Chau Group.