How is
Vietnam’s Office Real Estate Market Positioned?
Vietnam’s office market is a thriving real estate market, with
both domestic and foreign brands offering office spaces in categories like
Grade A, Grade B and Grace C. Boasting an average occupancy rate of ~%,
Vietnams shows strong potential in terms of demand and increasing Rental Rates
reflect that Landlords are also benefitting in the market. Vietnam’s GDP in
2018 amounted to USD ~ billion and GDP per capita amounted to USD ~, in 2018,
indicating greater ability to own and rent Luxury and Grade A office
properties. These factors point towards the scope and profitability of the
office market in Vietnam.
Vietnam’s
office real estate market has been growing at a CAGR of ~%
which indicates the market still has room to grow. Rental rates witnessed some
fluctuation but started increasing again by 2018. As market trends like the
emergence of Co-Working and rising number of business migrating from China to
Vietnam continue, the Office real estate market in Vietnam is expected to grow
strongly.
Key Trends
in the Office Real Estate Sector in Vietnam
Decentralization
among Tenants: Decentralization is a trend noticeable among
the major cities of Vietnam, namely, HCMC and Hanoi. In both cities, tenants
are moving from the older CBD (Central Business Districts) to newer business
areas - Midtown and the West in Hanoi, where has the largest future supply.
Another reason for this shift is the availability of larger and more affordable
spaces in the Non-CBD Area.
Co-Working Spaces Gaining Traction:- Co-working spaces are gaining traction since traditional office
spaces are limited. Co-working space providers have rented ~ SQM in some of
HCMC’s newest office buildings. The demand for co-working space keeps
increasing since grade A office supply continues to be limited, and businesses
struggle to find large space.
Current
Office Demand and Supply
Market supply in Vietnam took a major slowdown in 2015, due to
shortage of supply in Hanoi, 2015 onwards. That slowdown can be attributed to
projects not getting approvals for construction. Even still market supply has
been steadily increasing due to HCMC’s contribution to the supply.
Vietnam’s Office real estate’s demand witnessed a steady increase
due to the increasing number of business starting operations in Vietnam,
however growth rates witnessed steady decline due to rising rental rates,
across the country’s business centric states.
How is
Vietnam’s Residnetial Real Estate MARKET Positioned?
Vietnam’s Residential Real Estate market has been under the eye of
investors since 2015, when the Real Estate Housing law was enacted. Ever since
foreign investors have been flocking to Vietnam, be it Chinese or Korean
investors, looking to invest in Residential Real Estate in hope of stronger
returns over the years. Vietnam’s Residential market has been growing at the
rate of ~ % from 2013-2018 when the market showcased signs of recovery. With
rising population and increased investments within the market, Vietnam
Residential Market is expected to become a hotspot among the Asia-Pacific
countries.
Vietnam’s residential real estate market is divided into three
further categories namely: Apartments, Residential and Villas & Townhouses.
Each of these categories have showcased strong CAGRs over 2013-2018, among
which Villas showcased the highest growth, followed by Apartments and
Townhouses. Proptech and the flexible millennial lifestyle are some trends that
will affect the market in the coming future.
Key Segments
Covered:-
Vietnam Office Real
Estate Market
By Type:
Grade A Office
Grade B Office
Grade C Office
By
Geography:
Vietnam
Ho Chi Minh
Hanoi
Vietnam Retail Real Estate Market:-
By
Location:
CBD (Central
Business District)
Non CBD (non
central business district)
By
Type:
Retail Podium
Department Store
Shopping Center
By
Geography:-
Vietnam
Ho Chi Minh
Hanoi
Vietnam
Residential Real Estate Market:-
By Type:
Apartments
Condominiums
Villas and Townhouses
By Geography:
Vietnam
Ho Chi Minh
Hanoi
Vietnam
Hotel Real Estate Market:-
By Type:
3 Star Hotels
4 Star Hotels
5 Star Hotels
Others (Less than 3 Star Hotels)
By Geography:
Vietnam
Ho Chi Minh
Hanoi
Key Target
Audience:-
Real Estate Developers
Independent Investors
Real Estate Consulting Companies
Third Party Real Estate Companies
Independent Architects
Government Associations
Government Agencies
Time Period Captured in the Report:-
Historical Period – 2013 -
2018
Forecast Period – 2019F –
2025F
Case Studies Covered:-
Vietcom Bank
Deutsches Haus
Diamond Plaza
Vincom Centre
Rever.vn
Emerge
Ohana.vn
For More
Information on the research report, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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