Market news


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

 

I. VIETNAM ECONOMY 2017

  • In Q4 2017, Vietnam’s economy grew 7.65% y-o-y. For the whole year 2017, the economy achieved an impressive growth rate of 6.81% compared to 2016 –the highest rate observed since 2008.

  • For 2017, Vietnam received US$21.3 billion from newly licensed projects along with US$8.4 billion in terms of increased capital and US$6.2 billion from share purchase, totaling US$35.9 billion, an increase of 44.4% compared to last year. Japan, Korea and Singapore are top countries with largest share of FDI inflows into Vietnam this year. FDI into real estate accounted for 8.5% of total FDI, ranking third after manufacturing, electricity production and distribution.

  • Export turnover of goods in 2017 grew by 21.1% y-o-y, and Vietnam attained a trade surplus of US$2.7 billion amid a synchronised recovery of the global economy. VN Index reached a 10-year high by the end of 2017, inflation was at 3.53%, while GDP per capita reached US$2,385 (an increase of 7.7% y-o-y). However, some concerns were raised regarding productivity of the labor force, especially in comparion with neighboring countries.

II. OFFICE MARKET

"Office market welcomed seven new buildings in Hanoi and five new

buildings in HCMC in 2017. Rents in Hanoi increased for the first time

in the last five years in both Grade A and Grade B, while HCMC rents

continued to have slight increase.  Looking forward to 2018, banking/

insurance, manufacturing and IT, especially co-working space is

expected to be a potential source of demand."

III. CONDOMINIUM MARKET

"2017 ended with a busy quarter in both Hanoi and HCMC, with 9,500

units launched in Hanoi and 8,559 units launched in HCMC in Q4.

Total new launch in 2017 for Hanoi and HCMC was estimated at 35,000

and 31,106 units respectively. Market sentiment continued to be positive

for both cities, with 23,000 and 32,905 units sold in Hanoi and HCMC

respectively. In 2018, the market is expected to focus more on the

mid-end segment, with nearly 53% of 2018 new launch units in this

segment."

 

IV. RETAIL MARKET

"The retail market had a busy year with two new projects in Hanoi and

seven new projects in HCMC, leading to both entries of foreign retailers

and expansion of current players. Within the next three years, retail

market will be more competitive as a large amount of supply from

community retail podium will be launched. Ecommerce, which had

recently got much attention from investors and consumers, is expected

to develop quickly in Vietnam."

 

Song Chau (SCBI) Office.

Tags:

Related news

HCMC real estate market Q3 2018 | Quarterly report highlights

HCMC real estate market Q3 2018 | Quarterly report highlights

Vietnam's economy retains the growth momentum, real estate market prices in HCMC were stable q-o-q across all segments "Except Office Leasing Grade A". A slight decrease in selling price in USD term was due to the VND devaluation recently. Supply in villas and townhouses are expected to remain scarce to end 2018
Hanoi real estate market Q3 2018 | Quarterly report highlights

Hanoi real estate market Q3 2018 | Quarterly report highlights

In the last quarter of 2018, the market will continue the upbeat trends with new projects in the CBD and the West. Besides, new large-scale projects will be launched in Q4 2018, the sold units and office leasing are expected to increase accordingly thanks to strong demand from both end-users and investors, local buyers and foreign buyers.
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.