Hanoi Figures Q4 2023
Positive Signs of Improvement in the Second Half of the Year: The Worst is Likely Behind Us
January 22, 2024 10 Minute Read
Office: In 2023, Hanoi experienced a significant increase in office supply, leading to increased vacancy rates. While rental rates for Grade A remained stable, Grade B saw a decrease in asking rents due to a new supply.
Retail: In 2023, Hanoi's retail market saw the opening of various new projects, with Lotte Mall West Lake Hanoi standing out as the largest shopping mall in Vietnam in the last four years. The retail market experienced solid rental growth, driven by the expansion of luxury brands and reduced vacancy rates.
Residential: In 2023, Hanoi and HCMC witnessed decade’s low new supply due to impacts from macro headwinds, recording nearly 13,000 units and slightly over 8,700 units, respectively. Condominium prices in Hanoi are on the upward trend, up by nearly 15% y-o-y while HCMC witnessed flattening price trend. Towards 2024, factors including stabilizing interest rates and upcoming amendments to policy and legal framework will elevate buyers’ sentiments and foster market recovery.
Industrial: Despite economic challenges in 2023, Vietnam's industrial sector performed well across asset types and regions, largely driven by robust demand. Emerging high-tech industries like electric vehicles and semiconductors, along with traditional sectors, has gained significant interest.