In a recent survey conducted by property consultancy CBRE, Vietnam has clinched the position of the second most appealing emerging property market in the Asia Pacific, trailing behind only India. The survey, carried out in the last two months of 2023, engaged investors across the region to gather insights into their investment plans for 2024, with Thailand securing the third spot.
The survey highlights that industrial and office spaces are the most attractive property segments for investors. The surge in trade activities within Vietnam has driven the demand for supply chain management and logistics, making industrial real estate particularly appealing to investors.
Foreign investors are also keenly eyeing housing land, actively seeking properties offered at discounted prices or facing legal and financial challenges. According to Nguyen Pham Anh Duy, the director of investment consultancy at CBRE Vietnam, foreign investors have a long-term perspective on the potential of the Vietnamese economy. Many of them are considering selling their assets to new investors after holding them for an extended period.
The survey underlines the investors’ pursuit of double-digit profit growth from discounted properties in the Asia Pacific region. However, a supply shortage poses a challenge, with few projects capable of generating robust cash flows being publicly sold, as mentioned by the firm.
Real Estate Highlights: HCMS and Hanoi Q4 2023
In the aftermath of Vietnam securing the 2nd most appealing emerging property market position in the Asia Pacific, as revealed by a recent CBRE survey, the subsequent Q4 2023 Market Report sheds light on the major cities’ real estate landscapes.
Ho Chi Minh City's burgeoning economic scene is evident in various sectors. The surge in office space supply, including the completion of almost 170,000 sqm NLA, underscores the city’s allure for businesses. The retail sector’s solid performance, driven by high-end brand expansion, contributes to Vietnam’s overall economic appeal.
Meanwhile, the condominium market’s dynamic trends and the industrial sector’s resilience in H2 2023 further solidify Vietnam’s standing as a robust investment destination.
Shifting focus to Hanoi, the report unveils intriguing developments. The office space sector experiences a surge in supply, accompanied by nuanced dynamics in vacancy rates and rental fluctuations. The retail market, marked by projects like Lotte Mall West Lake Hanoi, positions the city as a vibrant retail hub.
Despite challenges in the residential sector, the surge in condominium prices hints at resilience. The industrial sector’s commendable resilience, especially in emerging high-tech industries, underscores Hanoi’s dynamic role in Vietnam’s economic landscape, capturing emerging opportunities.
These interconnected dynamics collectively reinforce Vietnam’s multifaceted appeal as a key player in the Asia-Pacific market.