Healthy foreign direct investment & robust economy continue propelling the market.
Figures released from Savills reveal how Vietnam’s property market is continuing in an upwards direction. According to the real estate firm this is applicable across all sectors. However the office market is the one that stands out the most. Here landlords are reaping the rewards of the country being primed for business opportunities by enjoying high rental yields. This story has remained consistent for sometime and does not seem to have been influenced with a hike in supply. An increase of eight percent year-on-year.
Occupancy rates in Ho Chi Minh City stand at 95 percent. This has resulted in rents for grade A office space increasing by eight percent. Ensuring that the southern city is the most lucrative market. However Hanoi is also making progress and edging closer towards Ho Chi Minh City. Rents in Hanoi have increased too. For the third quarter of 2017 by two percent for Grade A office space and nine percent for Grade B. At the same time occupancy rates stand at a respectable 93 percent.
Savills predict for this pattern to continue. Predicting that occupancy rates to remain high and for rents to increase by 8.4 percent every year in the next three years.
These figures help to cement Vietnam as a good investment destination. Savills cite a number of transactions that illustrate this. For example Tri Duc Real Estate acquiring a site in Ho Chi Minh City’s District 5 from VinaLand Limited for USD 41.2 million. Further up the coast a local developer purchased a 182 hectare My Gia Project in Nha Trang from VinaLand for USD 11 million. Proving that the appetite for this Asian Tiger is not expected to slowdown anytime soon.
