In Ho Chi Minh City and Hanoi many old apartment and office buildings are becoming more attractive than ever because they are used as shops.
Vietnam needs to renew its real estate market to attract more foreign investors and increase the quality of foreign direct investment (FDI) in the sector, according to experts.
Vietnam is one of the most attractive destinations for the industrial sector in Southeast Asia and JLL expects that the trend will continue in the second half of 2019 and interest from foreign investors in Vietnam will remain strong.
Saigon office rents are rising across all categories despite new supply as demand remains high.
The office market in Hanoi was expected to face a shortage of supply with competition between offices for lease and co-working spaces likely to rise in the future, but was performing well at present, according to experts.
Several new development trends are emerging in the real estate market, which is expected to remain strong in 2019 since the economy continues to grow robustly and there is a lot of investment flowing into infrastructure.
The property market awaits technical standards for the development of small apartments, which may become a trend to deal with the housing crisis caused by the country’s rapid urbanisation.
Experts believe that following a stable year, the real estate market will continue to develop well, with no bubbles, in 2019.
Apartment rental yields in Ho Chi Minh City have declined slightly due to excessive supply, property consultancies said.
Growth in the domestic office market has continued this year and is set to remain at record levels well into the future after more than 7% growth in grade A rents last year, according to Savills Vietnam.
France’s Le Temps newspaper on July 19 ran an article describing Vietnam as a new factory of the world.
Retail companies are racing to expand but are challenged by high rental costs in major cities.
Even though retail premises in the central business district (CBD) of Ho Chi Minh City are becoming more scarce and the rents are increasing, premises far from the center are still unpopular with new retailers.
Despite having fallen to the fourth position in terms of foreign direct investment in the first eight months of 2017, the real estate sector remains the second-biggest recipient of this type of investment to date.
The supply of condotels has been soaring in the last few years and investors have been advised to think carefully before pouring money into the market segment.
Vietnam came as the fourth top market in Asia Pacific in terms of hotel investment volumes in the first half of 2016, with more activities expected during the rest of year, according to a new report.
Domestic and foreign investors alike have been keenly monitoring opportunities for M&As in Vietnam's real estate market.
Thousands of apartment units will be put onto the market in Hanoi and Ho Chi Minh City in the near future, leading to fears of an oversupply in real estate.
International experts believe Vietnam and Cambodia are highly desired destination points for real estate investors. There are still many attractive opportunities in emerging markets, despite the economic slowdown worldwide.
