Real estate business revenue in the second quarter in Ho Chi Minh City increased by 6.1%

At the end of the second quarter of 2024, Mr. David Jackson, General Director of Avison Young Vietnam, assessed that the real estate market had many positive changes. The real estate market in our country recorded 1 billion USD in disbursed capital from foreign investors, double the same period last year. Real estate business revenue in Ho Chi Minh City increased by 6.1% over the same period.

Real estate business revenue in Ho Chi Minh City increased by 6.1% over the same period

In the second quarter, Ho Chi Minh City welcomed 36,798 square meters of new Grade A office space for lease. Major leasing transactions in the second quarter occurred mainly in new Grade A projects, demonstrating high demand for modern, high-end, sustainable office space. In the central area, both Grade A and B buildings maintained stable rental prices, reflecting competition between old and new projects and between new projects to attract tenants to accelerate occupancy.

For the industrial real estate market in Ho Chi Minh City, there has been no new supply for many years, the rental price has reached an average of 230 USD/m2/term and the average occupancy rate in industrial parks has reached 90%.

The city is overcoming the shortage of land by speeding up the removal of legal obstacles for projects in Thu Duc, Cu Chi and Binh Chanh. Along with that, efforts are being made to renew the industrial land fund, targeting high-tech industries to increase investment capital and production value per square meter of land.

Mr. David Jackson, General Director of Avison Young Vietnam

Mr. Vu Minh Chi, Senior Manager, Industrial Services at Avison Young Vietnam, commented that the industrial real estate segment is witnessing competition between the secondary market and the primary market, specifically between Tay Ninh, Binh Phuoc, Ba Ria - Vung Tau and Binh Duong, Dong Nai, Long An.

"The competitive advantage of secondary markets is that the industrial land area for lease is still large with low occupancy rates and affordable rental prices. The second is the trend of developing industrial parks that meet energy efficiency and environmental standards to attract FDI capital flows in high-tech industries. The draft of the Vietnam Investment Support Fund shows efforts to improve investment incentive policies, increase competition and attractiveness, and promote development momentum for the Vietnamese industrial real estate market in the long term," the expert analyzed.

For the apartment market in Ho Chi Minh City, selling prices increased depending on the segment and area. Primary prices in the whole market increased by 5% and increased faster in the high-end segment, reaching 7%. Real estate prices in Thu Duc City, where many high-end projects are concentrated, are 10% higher than the average price in Ho Chi Minh City.

New supply in Ho Chi Minh City is expected to increase towards the end of the year, with projects announcing the next phase of sales. In addition, new supply is forecast to become more active in neighboring provinces such as Long An and Binh Duong.

In the second quarter, retail rents in Ho Chi Minh City’s non-CBD area decreased by 4% compared to the previous quarter, ranging from USD 20-117/m2/month. Although rents fluctuated depending on location, occupancy rates in Ho Chi Minh City’s non-CBD area remained relatively stable with a slight increase of 1%. The supply of retail real estate in Vietnam is expected to be more abundant and diverse from the end of 2024 onwards.

Along with that, experts from Avison Young Vietnam predict that the supply of affordable housing and social housing will find it difficult to increase rapidly in the next few quarters due to land funds as well as increasing construction investment costs.

“New housing supply is growing again with many stimulus efforts. Office and industrial real estate continue to be bright spots thanks to solid foundations and high rental demand. All expectations are looking forward to August 1, when the revised real estate laws come into effect. This can be considered a major step forward for the Vietnamese legal system in the past decade, opening a new development cycle of the real estate market. Real estate investment activities through cooperation and M&A deals are expected to flourish from the end of 2024 onwards,” Mr. David Jackson emphasized.

Source: https://www.congluan.vn/doanh-thu-kinh-doanh-bat-dong-san-quy-2-tai-tp-hcm-tang-61-post303095.html