New shopping malls are anticipated to enter the market, mainly on the city’s outskirt. Meanwhile, retailers and mall developers are reinventing themselves to provide a variety of entertainment and lifestyle activities.
The supporting industry boosted the development of Vietnam's industrial real estate market last year, along with creating new emerging hubs and pushing second tier cities forwards, according to CBRE Vietnam Co, Ltd.
Apartment prices surged in Saigon last year as new supply plunged to its lowest in four years largely due to limited supply caused by ongoing restrictions to approval procedures.
Prime office rent across Ho Chi Minh City in Q4 2019 experienced a decade peak amid rising demand and limited supply while new launch drives up the total supply of Hanoi Grade B segment to 1.8 million square meters.
Country-wide, Grade A office is gradually leaving the stage to Grade B and flexible workspace. Nonetheless, the premium segment still retains its high occupancy and rent considering stable demand from foreigners
Domestic growing demand for leisure investments has brought fierce competition to foreign investors, who are seeking opportunities in Vietnam operating hotel assets, making the country one of the hottest markets in APAC.
New supply is expected to prosper in the last three months as the two biggest cities of Vietnam are set to welcome a great number of units launched from large-scale township developments to attract buyers at year-end.
Average monthly rents for retail space in Saigon's central business district kept on rising in the third quarter of 2019 as Vietnam was still considered attractive to international retailers and developers, CBRE stated.
More than 700 Vietnamese and South Korean firms took part in a business forum during the official visit of Prime Minister Nguyen Xuan Phuc to the Republic of Korea, which was expected to trigger a new wave of investment.
The market will be brighter from 2019 onwards with future pipeline developed in non-CBD and new large-scale townships, according to Savills Vietnam.
The fast-rising number of foreign visitors coupled with various international events are driving oversees investment, especially from reputable global brands, to the Vietnamese hotel market.
Co-working is no longer a model attracting only start-ups or SMEs as established corporations are switching to this model due to the flexibility offered, according to a Savills report.
Southern’s future housing supply will peak in 2020-2021 with over 131,000 units. Meanwhile, from 2020 onward, foreign developers including Sumitomo, CapitaLand and Mitsubishi Corporation will enter Hanoi’s market.
“On the back of strong FDI flows, the serviced apartment sector continues to perform well.” – Le Thi Quynh Le, Associate Director, Residential Sales at Savills Vietnam.
F&B heats up, entertainment emerges, new international brands enter, occupancy rate stays high, and domestic competition continues to grow, according to a Savills’ quarterly report.