Ho Chi Minh City Figures Q3 2023

A mild improvement in new residential supply, though 2023 is to be at a decade-low

October 27, 2023 10 Minute Read

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Office: The HCMC office market has shown signs of vibrancy in the 3rd quarter of 2023 with the introduction of two new office buildings in Thu Thiem New Urban Area (NUA), District 2, which are The Mett and The Hallmark with a total net leasable area of 85,000sqm. While rent stabilized, net absorption of both grades reached almost 24,000 sqm, the very first positive since the beginning of this year.

Retail: Vietnam's retail market has become more vibrant, with new projects opening nationwide. Lotte Mall West Lake in Hanoi recently opened with a net leasable area of nearly 72,000 sqm (excluding the basement and aquarium area). At the same time, Hung Vuong Plaza reopened in HCMC with a new look. These malls have been almost entirely occupied with diverse product categories.

Condominium: Most new supply in Q3 2023 continued to come from the high-end segment. Absorption rate was improved compared to the first 6M 2023 thanks to more diverse sales policies whereas selling prices in both primary and secondary market slightly increased.

Industrial land: The industrial land recorded an impressively high net absorption, and it is expected that the whole year 2023 reach 90% - 100% of 2022.. In the first 9 months of 2023, tenants from China, Japan, the US and the European Union are investors actively looking for industrial land, warehouses and factories in the Vietnamese market. With Vietnam continuing to strengthen cooperation with comprehensive strategic partners such as the US, South Korea and China in recent times, tenants from these countries are expected to continue to lead the demand for Vietnam's industrial real estate market in the future.