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CBRE Vietnam MarketView Q3 2020
 

REAL ESTATE MARKET


SHOWS GREEN SHOOTS OF RECOVERY
Vietnam GDP
2.12% y-o-y
HCMC GRDP
0.77% y-o-y
Hanoi GRDP
3.72% y-o-y
VN-Index
-9% y-o-y

 

*Arrows indicate change from the same period of the previous year.
Office: Office market continued to go through a stagnation period in terms of performance due to COVID-19, which strongly affected many enterprises. The market witnessed negative net absorption in the first 9 months of 2020 in both Hanoi and HCMC, as tenants’ contractions continued to be recorded by CBRE.
Retail: As most tenants in Hanoi and HCMC still experienced challenges due to low footfall, some landlords offered financial supports while others have been reluctant to offer such programs, rather leaving the units vacant. However, the market outlook is still positive, as foreign brands started to come back studying Vietnam’s retail market after two quarters of inactivity due to the pandemic.
Landed property: Despite limited new supply, sales performance was still positive with the number of sold units recorded at a much higher level than that of new launch volume in Q3 2020. Selling prices in both Hanoi and HCMC for ready-built villa and townhouse were still on an upward trend despite the prolonged impact of COVID-19, albeit with decreasing escalation rate.
Condominium: In Q3 2020, all new launch projects in HCMC were located in the area planned to be “The Eastern City” or “Thu Duc City” (Districts 2, 9 and Thu Duc), while those launched in Hanoi scattered outside Ring Road No. 3. Price across segments in HCMC remained stable from the previous quarter and higher than the same period last year by 3%-5%. Meanwhile in Hanoi, average selling price was down by 4% y-o-y due to higher share of new launch from the affordable segment.
Industrial: The average occupancy rates of industrial parks in key northern and southern industrial cities/provinces were about 79.0% and 84.5% respectively. In particular, operating industrial parks in Bac Ninh, Binh Duong, Dong Nai and Long An achieved an average occupancy rate of over 80%, while those in Hanoi, HCMC and Hai Duong reached an occupancy level of over 90%.

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