More guidance and implementation of the new Housing laws in Vietnam relating to foreign buyers is holding back the number of individual property buyers and investors being seen in the country.
Research from CBRE Vietnam said that for commercial activity, thanks to the announcement of the new laws and the successful conclusion of the Trans-Pacific Partnership, Vietnam’s commercial real estate market received a high level of Foreign Direct Investment inflows of US $1.42 billion in Q3, accounting for 60.5 percent of total FDI since January 2015.
The real estate agency said the Ho Chi Minh City condominium sector was still on an upward trend throughout Q3, especially in high-end projects, although the recent currency devaluation decreased average primary price by 4 percent quarter-on-quarter in US$ terms.
Read more: 154% rise in Hanoi property transactions.
The number of newly launched units in Q3 tripled in the city and also doubled in Hanoi year-on-year with an increase of 88 percent and 154 percent in sold units respectively.
In the office sector the Grade ‘A’ vacancy rate dropped 0.29 percent while Grade ‘B’ increased by 0.5 percent as tenants moved to upgrade their office. Industrial RBFs were able to increase their rents during Q3 due to a shortage of small warehouses and factories in prime locations.
Vingroup led the retail sector with its expansion both in shop houses and shopping centres. The market welcomed multiple first-time retails entrants, mostly luxury/mid-range fashion and food & beverage brands.
Gymnasium retailers also reported increasing demand from local young urban professionals who wish for a healthier lifestyle. In addition the new urban retail concept, incorporating both indoors and outdoors design, has prevailed on the youngsters of Hanoi and will probably come south to HCMC.