Retail Supply In HCMC Increased Sharply

In the third quarter, Ho Chi Minh City has about 1,160,000 square meters of retail space, up 10% over the second quarter and 22% over the same period in 2015.

On October 11, Savills Vietnam Co., Ltd. has released the report on real estate market in Q3 / 2016 in Ho Chi Minh City. Accordingly, in the third quarter, Ho Chi Minh City has about 1,160,000 square meters of leased space, up 10% over the second quarter and 22% over the same period in 2015. Of the 1,160,000 square meters of leased space, 131,500 sqm of new supply and about 26,500 sqm from the projects stopped.

Rental prices increased by 4% compared to Q2, mainly due to a good performance of Saigon Center and Aeon Mall Binh Tan. The occupancy rate is about 93%. “New supply in the center of Ho Chi Minh City is well absorbed despite high prices, reflecting real demand for new luxury projects. However, Union Square’s hiatus also reflects intense competition, “the report said.

Project Aeon Mall Binh Tan has put into operation

Total office supply in the third quarter also reached 1,580,000 sqm. The market continues to perform well due to the lack of new supply. Rental occupancy was 98%. Rent increased 1% compared to Q2 and increased 5% over the same period in 2015.

There are 11 new projects and the next phase of an existing project is open for sale, offering 4,600 apartments, down 47% compared to the second quarter. The total primary stock reached more than 40,300 apartments.

Supply decreased but the number of transactions reached 7,500 units, up 7% compared with Q2. Grade A apartments have the highest absorption rate of 34%. Transaction volume of Grade C increased by 15% compared to the second quarter. Meanwhile, the number of Grade B flats decreased 12 compared to the second quarter, after six consecutive quarters.

There are 5 villas and townhouses offering approximately 1,100 units in the third quarter. The primary stock is about 3,800 units, up 19% from the second quarter and 128% from the same period last year. Districts 2 and 9 continued to perform well this quarter, accounting for 51% of total transactions.

According to Savills, real estate market in the coming time will continue to grow thanks to the market transparency policy from the Ministry of Construction, other investment channels are less attractive than real estate.

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