Thanks to the promulgation of the new Housing Law and the Real Estate Business Law and the successful conclusion of TPP, Vietnam’s commercial real estate market received a high level of FDI inflows of US $1,429 million, accounting for 60.5% of total FDI since January 2015. However, sales in the residential market to potential foreign owners were still stalling as they are awaiting more guidance and progress in implementation.
The HCMC condominium sector is still in an upward trend throughout Q3 2015, especially in high-end projects, although the recent Dong devaluation decreased its average primary price by 4.0% q-o-q in USD terms. The number of newly launched units in Q3 tripled in HCMC and doubled in Hanoi y-o-y, with an increase of 88% and 154% in sold units respectively.
In the office sector, Grade A vacancy rate dropped 0.29% while Grade B increased by 0.5% as tenants moved out to upgrade their office. Industrial RBFs was able to increase their rent in Q3 2015 due to shortage of small warehouses and factories in prime location.
Vingroup led the retail sector with its expansion both in shop houses and shopping centres. The market welcomed multiple first-time in Vietnam retails entrants, mostly luxury/mid-range fashion and F&B brands. Gymnasium retailers also reported an increasing demand from local young urban professionals who wish for a healthier lifestyle. In addition, the new urban retail concept incorporating both indoors and outdoors designs has prevailed on the youngsters of Hanoi and will probably come to HCMC.
Source: http://www.cbrevietnam.com
Key words: Vietnam, Undergoing, Stable Growth
