Property

Property Market Market Bulletin – South Region

Bulletin
March 2019
South Region
1Q 2019

HO CHI MINH| ECONOMIC UPDATE

HCMC 1Q19 Y-O-Y The economy is expected to growth higher
GRDP growth 7.6% 0.0% According to HCMC Statistics Office, the city’s real
Services growth 7.7% -0.3%
GDP growth reached 7.64% in 1Q19. This figure is
Industry - Construction growth 7.4% 0.2%
predicted to increase in the 2H19 due to the ease of
Agriculture-Forestry-Fishery Growth 5.2% -0.6%
US-China tension and the upward trend of foreign
CPI 3.7% 1.5%
investment.
Index of Industrial Production (IIP) 6.2% 0.2%
Export (billions USD) 9 5.7%
Import (billions USD) 10.8 1.3%
Real Estate - attractive investment channels
Foreign investment capital (millions USD) 350.5 24.7%
During the first quarter of 2019, 785 foreign direct
Total retail sales (billions USD) 8.2 13.5%
investment (FDI) projects were licensed in Viet Nam
FDI into Vietnam in 1Q2019
with the total registered capital of US$3.821 billion, up
11.7%
27% in the number of projects and 80.1% of capital
13%
against the same period last year; in which, real estate
ranks second to Manufacturing sector.
75%

Processing Manufacturing (US$ 2.88 billions)

Real Estate (US$ 497.7 millions)
Other sectors (US$ 447.2 millions)
Source: GSO

SOUTH REGION PROPERTY MARKET OVERVIEW

Residential

Apartment Inventory (*)

100%
80%
60%
40%
20%
0%
High-end Mid-end No new mid-end supply to Apartment Primary
Sold units Outstanding stock Market.
Due to the limited supply since 4Q18, it saw a high rate
Source: Vietvalues Consulting and Research Department
of occupancy in all existing apartment segments. The
new supply of 94 units to High-end market with the
(*) Luxury: >3500 US$/sqm High-end: 1500 – 3500 US$/sqm
Affordable: <800 US$/sqm Mid-end: 800-1500 US$/sqm average asking price at US$ 2,200 /sqm while no new
mid-end supply is recorded in 1Q19.
 Property Market Bulletin – South Region
March 2019

Future Supply of Non-CBD Future Supply of Non-CBD

Villa/Townhouses Land Plots Unequal distribution of Villa/Townhouse and Land
2% 5% 14% Plots Market.
South region is expected to release about 1,370
24%
villa/townhouse dwellings and 536 land plots in 2019
49%
and 2020. Most of villa/ townhouse projects are located
79% 27% in Nha Be and District 7, while land plots mainly
emerge in Binh Chanh.

South East North West South East West

Source: Vietvalues Consulting and Research Department

Office Potential development in Office Market.

Office Performance by Segment With the hand-over of M-building in 2019, 9,000 sqm is
Sqm US$/sqm/month contributed to Grade B office segment in South region.
150,000 40
It is estimated that the total net letting area of all three
100,000
20 grades is roughly 212,000 sqm with 94% of average
50,000 take-up rate.
- 0
Grade A Grade B Grade C
Net Letting Area Average asking rents
Source: Vietvalues Consulting and Research Department

Industrial Park
Number Total Rental price
INDUSTRIAL Occupancy The fast reduction in IP vacant land.
Location of area (USD/sqm/lease
PARK rate (%)
projects (ha) term) Following to Hepza in the early of 2019, the vacant land
Binh Chanh - - - -
ready for rent in Tan Thuan EZ is only 13 ha, and in
Current District 7 1 300 96% 270
Hiep Phuoc 2 is 195.35 ha.
Nha Be 2 908 80% 140
The occupancy rate in 1Q19 increases roughly 23.3%
Binh Chanh 1 148.4 - -
compared to 4Q18 in South region.
Future District 7 - - - -
Nha Be 1 393 - -

Source: Vietvalues Consulting and Research Department

Vietvalues Appraisal and For Details, Please Contact: Our Services:

Consultant Ltd Company LE QUOC HUNG - Market Research
HCMC Office: Managing Director - Investment Consultancy
Address : Suite 1202, Citilight Tower, Mob: +84 906 787 134 - (028) 3820.6616 - Real Estate Valuation
45 Vo Thi Sau, D1, HCMc Email: quochung@vietvalues.com.vn - M&A Agency
Tel : +84 (8) 3820.6616 – 3820.8818 - Company Valuation
Fax : +84 (8) 3820 5515
- Equipment Valuation
DUONG HUYNH ANH
Research Analyst
Mob: +84 901 39 91 95 - (028) 3820.6616
Email: anhduong@vietvalues.com.vn

We would like to express our special thanks to Quang Nguyen for the supports in completing this report.
The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made, the accuracy of the whole or any part can not be
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