Ho Chi Minh City Figures Q1 2023

The market is bracing itself against unprecedented headwinds

Office: One new Grade B office was launched in Tan Phu District. Rent adjusted slightly, with Grade A landlords becoming more cautious with rental policies. Contraction and early termination transactions are returning, with deals under negotiation being put off due to budget cuts or business plan changes. This leads to a negative net absorption of the whole market, which happened for the first time since the end of the pandemic.

Retail: The market started seeing more openings and expansions. The average asking rent in the CBD area was unchanged, while the rent in the non-CBD area slightly increased, driven by the rental increase in some large shopping malls.

Condominium: New supply was improved thanks to the launch of the current phase of Vinhomes Grand Park township. However, since most projects held their sales events at the end of the quarter, the new projects' absorption rate was low, with price growth only recorded in the high-end segment.

Industrial land: Vietnam industrial real estate market sustained the positive performance across regions with the average land price in Tier-1 markets increased by 9% y-o-y in the South and 7% in the North. As of Q1 2023, the accumulated industrial land supply in Tier – 2 markets in Vietnam's Northern and Southern regions reached more than 20,300 ha, of which the South covered more than 57%.