How the Vietnam Real Estate Market is Positioned?
Vietnam real estate market is currently in its growth stage. The period during 2013-2016 was marked by a steady stream of supply, owing to increasing GDP and FDI into Vietnam. As the demand started slowing down, the government took made a major regulatory change named the “Housing Law”, which allowed for Foreign nationals to be able to own, rent and lease property if they had a stamped entry passport and were not individuals entitled to preferential treatment or diplomatic immunity. This allowed for the gap between supply and demand to lower.
From 2017 and onwards, the total number of international players in each respective sub market increased. Newer segments such as condotels, housing societies, and co-working spaces, smart and green buildings emerged. As the per capita GDP rose, the spending power of the people also rose. This resulted in rising rental rates and property prices rising and the market becoming more competitive. Young couples, IT & Finance Companies, high comfort tourism, manufacturers looking for cheap land, became the upcoming target markets for various real estate sub sectors.
How is Vietnam’s Retail Real Estate MARKET Positioned?
According to the global consumer confidence survey, Vietnam’s consumer confidence index totaled to ~ points in 2018, Vietnam placed fourth in the list of the most optimistic countries in the world with respect to consumer spending. Retail sales of goods totaled ~ units in 2018. Vietnam has a large number of its population the age between 15 and 64 years, approximately ~% of its population. This highlights the variability and scope of the demographic which will engage in retail purchasing in Vietnam, with the food & beverage and fashion sectors gaining special focus.
Vietnam’s retail real estate market has been growing at a CAGR of ~% which indicates the market still has room to grow. Occupancy rates generally remained high, mostly due to the influx of global brands, especially in the Fashion and Food and Beverage sector, but other sectors like electronics and home centre products, is also expected to grow.
Key Trends in the Retail Real Estate Sector in Vietnam
Demand for Healthier food Options rises: Demand for Organic and healthier food, with higher production quality are on the rise despite higher prices. Customers are willing to spend, which reveals an opportunity to local retailers and foreign brands. Responding to this trend most supermarkets have dedicated areas for these products and major players such as Saigon Union of Trading Cooperatives and Vingroup, have even launched products under their own private label brands.
Online Retailing and Food Delivery taking dominance:- An estimated online retail sale in Vietnam in 2018 was USD ~ Billion. The boom of online spending has taken the market and realtors and retailers have taken to accept technology into their building and processes. Not only online retailing but online food and grocery delivery is also an upcoming segment in Vietnam. This is shown by proprietary databases; Vietnam’s food delivery market is valued at USD ~ million. Retailers are also creating their own mobile applications.
Current Retail Demand and Supply
Vietnam’s Retail Real Estate Market’s growth in supply was fluctuating, as 2015 witnessed increased FDI investments leading to an increased supply, in the continuing years, the supply pipeline slowed down due to limited availability of the land bank.
Vietnam’s Retail Real Estate Market’s growth in demand witnessed a fluctuating growth rate. 2015 witnessed a major hike due to the Real Estate Law Amendments made during the year. Subsequent years witnessed a fall in growth rate as the annual rental rates increased with the supply and demand gap decreasing.
Key Segments Covered:-
Vietnam Office Real Estate Market
By Type:
Grade A Office
Grade B Office
Grade C Office
By Geography:
Vietnam
Ho Chi Minh
Hanoi
Vietnam Retail Real Estate Market:-
By Location:
CBD (Central Business District)
Non CBD (non central business district)
By Type:
Retail Podium
Department Store
Shopping Center
By Geography:-
Vietnam
Ho Chi Minh
Hanoi
Vietnam Residential Real Estate Market:-
By Type:
Apartments
Condominiums
Villas and Townhouses
By Geography:
Vietnam
Ho Chi Minh
Hanoi
Vietnam Hotel Real Estate Market:-
By Type:
3 Star Hotels
4 Star Hotels
5 Star Hotels
Others (Less than 3 Star Hotels)
By Geography:
Vietnam
Ho Chi Minh
Hanoi
Key Target Audience:-
Real Estate Developers
Independent Investors
Real Estate Consulting Companies
Third Party Real Estate Companies
Independent Architects
Government Associations
Government Agencies
Time Period Captured in the Report:-
Historical Period – 2013 – 2018
Forecast Period – 2019F – 2025F
Case Studies Covered:-
Vietcom Bank
Deutsches Haus
Diamond Plaza
Vincom Centre
Rever.vn
Emerge
Ohana.vn
For more information on the research report, refer to below link:-
Related Reports:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
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