Business Immo, the real estate website
Property Times

Ho Chi Minh City : Office market showed some improvement - Q4 2013

Published on

A research produced by

Ho Chi Minh City : Office market showed some improvement - Q4 2013

Economic growth in Vietnam reached 5.42% for 2013 after the 6.04% improvement in Q4 (year-on-year). Foreign direct investments (FDI) increased during the year, but the property sector was not on the list of major FDIs. The trade balance also continued to improve with an USD863m surplus for 2013. Lending, borrowing and inflation rates were stable and low compared to recent years.

New supply of office stock was limited in Q4 as some expected completions were delayed to early 2014. Office demand recorded some improvement within the quarter with net absorption equivalent to the total of the first three quarters of the year. Both rent and occupancy rates for Grade A office space registered some increases. Although the high level of pipeline supply will create new challenges, future demand is expected to improve in the coming quarters.

While there was no new ground breaking for retail developments, the opening of Parkson Cantavil Premier Shopping Centre in District 2 and Aeon Mall in Tan Phu District has drawn the attention of consumers to the non-Central Business District (CBD) locations. The closure of some retail shops and the new supply has affected both occupancy and rental rates. In addition, the growth in retail sales of consumer goods and services also fell in 2013 compared to 2012.

The residential market saw more improvements in Q4 with low interest rates and stable inflation. Small units and the affordable housing segment performed better than the larger units or high-end segment. Projects close to completion or hand-over stages provided higher confidence to consumers and resulted in higher transaction volume.

Source :DTZ (Groupe UGL)

This research is available only to BI or BIE subscribers

Please log in, or contact us to find out how to subscribe