News

In line with the geographical diversification real estate supply emerging locations such as Ha Dong, Gia Lam, Hoai Duc and Long Bien were observed. The market has witnessed strong demand from both local and foreign investors for projects at locations close to industrial parks "The East".

Due to the impact of the delay in licensing process of new projects and the decreasing clean land bank in Ho Chi Minh City, developers concentrate on product with high value. Decreasing inventory together with limited new supply are leading to active secondary market.

According to Global Consumer Confidence Survey by Nielsen, Vietnam’s Consumer Confidence Index reached 122 points, ranked fourth in the list of the most optimistic countries in the world. This challenge is likely to continue in the coming year with limited new supply in central business district.

Leveraging opportunities from stable domestic demand and increasing foreign interest, especially in HCMC and Hanoi is rising due to high pace of urbanisation. Additionally, the steady growth of population average 2% per annum each city as seen over the past five years will drive constant housing demand.

Vietnam’s two largest metropolitan areas expect to welcome a wave of new supply, of mostly Grade B offices, in 2019. The expected supply growth in 2019 of 13% and 11% in HCMC and Hanoi, respectively, will shake the office market for the first time after a quiet period.

Vietnam’s economy continued to perform well in 2018, with GDP growth estimated at 7.08% y-o-y. New supply in both HCMC and Hanoi is concentrated in the non-CBD areas. Flexible workspace is expected to have further expansion in 2019

The US’s economy keep growing although problems have arisen from the trade war against china. The Belt and Road Initiative (BRI) of China can be a way out for them although Chinese trades in the planned region will be hampered by US’s companies movements into these countries.

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.

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.

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.

The supply of retail space in the CBD area continues to be limited because there was not much progress made on the construction of most future supply and the launch dates of some were delayed until next year.

In Q2 2018 the HCMC market welcomed an additional 6,109 condominium units, a decrease of 36% y-o-y. However new launch supply for 1H 2018 still increased 5% compared to 1H 2017. Mid-end segment witnessed the biggest decrease in new launch in Q2, down 62% q-o-q and 52% y-o-y.