Real- Estate Standard Report Q2/2019
VIETNAM REAL ESTATE MARKET
After a long time of bubble development with a virtual price and then falling into a recession, house prices have gradually returned to the real value. In the first 3 months of the year, the retail market in Hanoi was gloomy, no new projects were launched, the situation did not change much compared to Q4/2018. While the HCM.City market continued to increase the retail supply, the rental rates as well as the occupancy rates were improved.
The office supply in 2 major markets - Hanoi as well as TP. Ho Chi Minh City all received significant additions in Q1/2018. The demand for offices across the country is forecast to continue to grow thanks to the high economic growth prospects and the abundant investment flows both domestic and abroad.
With an export-oriented economy, with exports accounting for a significant proportion of 80% of GDP, Vietnam is attracting a large and growing amount of foreign investment. With the increasing demand for land and industrial plants, this segment will continue to be an attractive investment channel.
In the first 3 months of 2019, while the apartment market for sale in Hanoi was vibrant due to the plentiful new supply to the market, Ho Chi Minh City also experienced a decrease in supply as well as sales due to the limited land fund. However, the price offered by HCM. City increased strongly in Q1/2019 due to some projects in the high-end segment marketed.
According to the latest announcement of the Ministry of Construction, the inventory number as of the end of April 2019 is estimated at 20,000 billion dong, continuing the downward trend thanks to the stable market development, good sales in many segment.
In 2018, the real estate market witnessed a large number of M&A deals whose scale was up to over $ 1 billion. Vietnam is forecasted to be a potential medium and long-term investment market for at least the next 5 years.
After a long time of bubble development with a virtual price and then falling into a recession, house prices have gradually returned to the real value. In the first 3 months of the year, the retail market in Hanoi was gloomy, no new projects were launched, the situation did not change much compared to Q4/2018. While the HCM.City market continued to increase the retail supply, the rental rates as well as the occupancy rates were improved.
The office supply in 2 major markets - Hanoi as well as TP. Ho Chi Minh City all received significant additions in Q1/2018. The demand for offices across the country is forecast to continue to grow thanks to the high economic growth prospects and the abundant investment flows both domestic and abroad.
With an export-oriented economy, with exports accounting for a significant proportion of 80% of GDP, Vietnam is attracting a large and growing amount of foreign investment. With the increasing demand for land and industrial plants, this segment will continue to be an attractive investment channel.
In the first 3 months of 2019, while the apartment market for sale in Hanoi was vibrant due to the plentiful new supply to the market, Ho Chi Minh City also experienced a decrease in supply as well as sales due to the limited land fund. However, the price offered by HCM. City increased strongly in Q1/2019 due to some projects in the high-end segment marketed.
According to the latest announcement of the Ministry of Construction, the inventory number as of the end of April 2019 is estimated at 20,000 billion dong, continuing the downward trend thanks to the stable market development, good sales in many segment.
In 2018, the real estate market witnessed a large number of M&A deals whose scale was up to over $ 1 billion. Vietnam is forecasted to be a potential medium and long-term investment market for at least the next 5 years.
ABBREVIATIONS
EXECUTIVE SUMMARY
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
2. WORLD REAL ESTATE MARKET
3. VIETNAM REAL ESTATE MARKET
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.3.1 Real estate for rent
3.3.2 Real estate for sale
3.4 SWOT analysis
3.5 Housing development planning
3.6 Driving forces
4. ENTERPRISE ANALYSIS
EXECUTIVE SUMMARY
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
2. WORLD REAL ESTATE MARKET
3. VIETNAM REAL ESTATE MARKET
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.3.1 Real estate for rent
3.3.2 Real estate for sale
3.4 SWOT analysis
3.5 Housing development planning
3.6 Driving forces
4. ENTERPRISE ANALYSIS
LIST OF TABLES
Table 1: Typical projects are scheduled for 2019-2020
Table 2: Typical projects are expected to be completed in 2019-2020
Table 3: Typical projects under construction, 2019
Table 4: Big office deals (>1,000m²) in Hanoi, 2018
Table 5: Typical projects under construction
Table 6: Big office deals in HCMC, 2018
Table 7: Typical projects in the period 2018-2020
Table 8: Typical projects in the period 2018-2025
Table 9: Typical Serviced Apartments in Hanoi, 2019
Table 10: Typical projects under construction, 2019
Table 11: Typical projects are projected to complete
Table 12: Typical projects are open for sale
Table 13: Lending rates of commercial banks, Q4/2018
Table 14: Typical projects are expected to complete
Table 15: Typical projects are expected to complete
Table 16: Largest urban areas of Vietnam
Table 17: Major shopping centers of AEON in Vietnam
Table 18: Top Real Estate enterprises with highest revenue, 2018
Table 1: Typical projects are scheduled for 2019-2020
Table 2: Typical projects are expected to be completed in 2019-2020
Table 3: Typical projects under construction, 2019
Table 4: Big office deals (>1,000m²) in Hanoi, 2018
Table 5: Typical projects under construction
Table 6: Big office deals in HCMC, 2018
Table 7: Typical projects in the period 2018-2020
Table 8: Typical projects in the period 2018-2025
Table 9: Typical Serviced Apartments in Hanoi, 2019
Table 10: Typical projects under construction, 2019
Table 11: Typical projects are projected to complete
Table 12: Typical projects are open for sale
Table 13: Lending rates of commercial banks, Q4/2018
Table 14: Typical projects are expected to complete
Table 15: Typical projects are expected to complete
Table 16: Largest urban areas of Vietnam
Table 17: Major shopping centers of AEON in Vietnam
Table 18: Top Real Estate enterprises with highest revenue, 2018
LIST OF FIGURES
Figure 1: CPI fluctuations by month, 1/2015 – 3/2019
Figure 2: GDP growth by quarter, 2016 –2019
Figure 3: Consumer Confidence Index, Q1/2014 –Q4/2018
Figure 4: CPI by commodity group, Q1/2019
Figure 5: Average lending interest rate applied to USD, 2012 – 3T/2018
Figure 6: FDI, 2016 –2019
Figure 7: House price movement in the US, , 5/2012 – 2/2019
Figure 8: Total investment capital in global real estate market, 2008-2017
Figure 9: Number of enterprises in Vietnam real estate business, 2010-2017
Figure 10: Number of labors in Vietnam real estate business, 2010-2017
Figure 11: Vietnam real estate business’s revenue, 2010-2017
Figure 12: Vietnam real estate business’s before-tax profit, 2010-2017
Figure 13: Total supply by category, Q1/2019
Figure 14: Supply structure by region, Q1/2019
Figure 15: Vacancy rates and rental prices, Q1/2019
Figure 16: Rental supply of commercial center, 2010-Q1/2019
Figure 17: Rental price and vacancy rates of commercial center, 2010-Q1/2019
Figure 18: Total supply, Q1/2019
Figure 19: Retail supply structure by region, Q1/2019
Figure 20: Vacancy rate and rental prices, Q4/2018
Figure 21: Supply of commercial center for lease 2013-Q1/2019
Figure 22: Rental price and vacancy rate of commercial centers, 2009-2018
Figure 23: Structure of retail area for rent by purpose, 2015
Figure 24: Structure of retail area for rent by purpose, 2018
Figure 25: New supply and vacancy rate of grade A offices, 2014-Q1/2019
Figure 26: Total supply by region,Q1/2019
Figure 27: Office rental price, Q1/2016-Q1/2019
Figure 28: Average rental price by area, Q1/2019
Figure 29: Structure of office for rent by industry, 2018
Figure 30: Office supply and vacancy rate, Q1/2017-Q1/2019
Figure 31: Total supply and rental price by category, Q1/2019
Figure 32: Office rental price, Q1/2016-Q1/2019
Figure 33: Structure of office for rent by industry, 2018
Figure 34: Structure of co-working space for rent by enterprise, 2018
Figure 35: Total Supply by Region, Q1/2019
Figure 36: Rental price by area, Q1/2019
Figure 37: Total supply and vacancy rate of Northern Industrial Zone, Q1/2019
Figure 38: Average rental price for the Northern Industrial Zone, Q1/2019
Figure 39: Total supply and vacancy rate, Q1/2019
Figure 40: Rental price by area,Q1/2019
Figure 41: Vacancy rate, 2011- 2018
Figure 42: Rental price for factories available, 2011 – 2018
Figure 43: Rental price for land by area, 2011 – 2018
Figure 44: Total Supply by Category, 2005- 2018
Figure 45: Apartment rental price by category, Q1/2013- Q4/2018
Figure 46: Apartment rental price and rental capacity, Q1/2017- Q4/2018
Figure 47: Total supply of apartments for rent, Q1/2015- Q4/2018
Figure 48: Apartment rental prices by class, Q4/2016- Q4/2018
Figure 49: Hotel total supply, Q1/2017 – Q1/2019
Figure 50: Rental price and capacity, Q1/2017- Q1/2019
Figure 51: Hotel total supply, Q1/2017 – Q1/2019
Figure 52: Rental price and capacity, Q1/2019
Figure 53: Average rental price and capacity, Q1/2017- Q1/2019
Figure 54: Housing supply in Hanoi, 2010- Q1/2019
Figure 55: Price fluctuation of apartment for sale, Q1/2011 – Q1/2019
Figure 56: New supply and number of apartments sold, 2014- Q1/2019
Figure 57: Offer price for apartment in Ho Chi Minh City, Q1/2015 – Q1/2019
Figure 58: High-end apartment segment's price, 2013- Q1/2019
Figure 59: Structure of buying houses by purpose in HCM, 2016
Figure 60: Total villa/townhouse supply, Q1/2017- Q1/2019
Figure 61: Price fluctuation of villas and townhouses,Q1/2015- Q1/2019
Figure 62: Total villa/townhouse supply, Q1/2016- Q1/2019
Figure 63: Invest capital in types of transportation,2010-2015
Figure 64: Proportion of logistics cost in Vietnam’s GDP in 2016, compared to other countries
Figure 65: LPI Index ranks of ASEAN countries, 2010-2018
Figure 66: LPI Index rank of Vietnam, 2007- 2018
Figure 67: Level of urbanization, 2010 - 2017
Figure 68: Disposable income and household expenditures, 2008 – 2017f
Figure 69: Outstanding credit of Real estate, 12/2012-12/2018
Figure 70: Structure of real estate credit balance, 2018
Figure 71: Structure of population by stratification (expenditure), 2013 – 2020f
Figure 72: Number of tourists, 2014-Q1/2019
Figure 73: Vietnam’s revenue in real estate business, 2010-2022f
Figure 74: Net revenue growth, 2017 - 2018
Figure 75: Gross profit growth, 2018
Figure 76: Liquidity ratio, 2018
Figure 77: Receivable turnover, 2017 - 2018
Figure 78: Solvency. 2018
Figure 79: Asset turnover ratio, 2018
Figure 80: Fixed asset turnover, 2018
Figure 81: Enterprise management expenses/Net revenue, 2017 - 2018
Figure 82: Interest Expense/Net revenue, 2017 - 2018
Figure 83: Sale expenses/Net revenue, 2017 - 2018
Figure 84: Profit ratio , 2018
Figure 85: Retail market share in Vietnam, 2016
Figure 86: Distribution of supermarkets in Vietnam, by region, 2017
Figure 1: CPI fluctuations by month, 1/2015 – 3/2019
Figure 2: GDP growth by quarter, 2016 –2019
Figure 3: Consumer Confidence Index, Q1/2014 –Q4/2018
Figure 4: CPI by commodity group, Q1/2019
Figure 5: Average lending interest rate applied to USD, 2012 – 3T/2018
Figure 6: FDI, 2016 –2019
Figure 7: House price movement in the US, , 5/2012 – 2/2019
Figure 8: Total investment capital in global real estate market, 2008-2017
Figure 9: Number of enterprises in Vietnam real estate business, 2010-2017
Figure 10: Number of labors in Vietnam real estate business, 2010-2017
Figure 11: Vietnam real estate business’s revenue, 2010-2017
Figure 12: Vietnam real estate business’s before-tax profit, 2010-2017
Figure 13: Total supply by category, Q1/2019
Figure 14: Supply structure by region, Q1/2019
Figure 15: Vacancy rates and rental prices, Q1/2019
Figure 16: Rental supply of commercial center, 2010-Q1/2019
Figure 17: Rental price and vacancy rates of commercial center, 2010-Q1/2019
Figure 18: Total supply, Q1/2019
Figure 19: Retail supply structure by region, Q1/2019
Figure 20: Vacancy rate and rental prices, Q4/2018
Figure 21: Supply of commercial center for lease 2013-Q1/2019
Figure 22: Rental price and vacancy rate of commercial centers, 2009-2018
Figure 23: Structure of retail area for rent by purpose, 2015
Figure 24: Structure of retail area for rent by purpose, 2018
Figure 25: New supply and vacancy rate of grade A offices, 2014-Q1/2019
Figure 26: Total supply by region,Q1/2019
Figure 27: Office rental price, Q1/2016-Q1/2019
Figure 28: Average rental price by area, Q1/2019
Figure 29: Structure of office for rent by industry, 2018
Figure 30: Office supply and vacancy rate, Q1/2017-Q1/2019
Figure 31: Total supply and rental price by category, Q1/2019
Figure 32: Office rental price, Q1/2016-Q1/2019
Figure 33: Structure of office for rent by industry, 2018
Figure 34: Structure of co-working space for rent by enterprise, 2018
Figure 35: Total Supply by Region, Q1/2019
Figure 36: Rental price by area, Q1/2019
Figure 37: Total supply and vacancy rate of Northern Industrial Zone, Q1/2019
Figure 38: Average rental price for the Northern Industrial Zone, Q1/2019
Figure 39: Total supply and vacancy rate, Q1/2019
Figure 40: Rental price by area,Q1/2019
Figure 41: Vacancy rate, 2011- 2018
Figure 42: Rental price for factories available, 2011 – 2018
Figure 43: Rental price for land by area, 2011 – 2018
Figure 44: Total Supply by Category, 2005- 2018
Figure 45: Apartment rental price by category, Q1/2013- Q4/2018
Figure 46: Apartment rental price and rental capacity, Q1/2017- Q4/2018
Figure 47: Total supply of apartments for rent, Q1/2015- Q4/2018
Figure 48: Apartment rental prices by class, Q4/2016- Q4/2018
Figure 49: Hotel total supply, Q1/2017 – Q1/2019
Figure 50: Rental price and capacity, Q1/2017- Q1/2019
Figure 51: Hotel total supply, Q1/2017 – Q1/2019
Figure 52: Rental price and capacity, Q1/2019
Figure 53: Average rental price and capacity, Q1/2017- Q1/2019
Figure 54: Housing supply in Hanoi, 2010- Q1/2019
Figure 55: Price fluctuation of apartment for sale, Q1/2011 – Q1/2019
Figure 56: New supply and number of apartments sold, 2014- Q1/2019
Figure 57: Offer price for apartment in Ho Chi Minh City, Q1/2015 – Q1/2019
Figure 58: High-end apartment segment's price, 2013- Q1/2019
Figure 59: Structure of buying houses by purpose in HCM, 2016
Figure 60: Total villa/townhouse supply, Q1/2017- Q1/2019
Figure 61: Price fluctuation of villas and townhouses,Q1/2015- Q1/2019
Figure 62: Total villa/townhouse supply, Q1/2016- Q1/2019
Figure 63: Invest capital in types of transportation,2010-2015
Figure 64: Proportion of logistics cost in Vietnam’s GDP in 2016, compared to other countries
Figure 65: LPI Index ranks of ASEAN countries, 2010-2018
Figure 66: LPI Index rank of Vietnam, 2007- 2018
Figure 67: Level of urbanization, 2010 - 2017
Figure 68: Disposable income and household expenditures, 2008 – 2017f
Figure 69: Outstanding credit of Real estate, 12/2012-12/2018
Figure 70: Structure of real estate credit balance, 2018
Figure 71: Structure of population by stratification (expenditure), 2013 – 2020f
Figure 72: Number of tourists, 2014-Q1/2019
Figure 73: Vietnam’s revenue in real estate business, 2010-2022f
Figure 74: Net revenue growth, 2017 - 2018
Figure 75: Gross profit growth, 2018
Figure 76: Liquidity ratio, 2018
Figure 77: Receivable turnover, 2017 - 2018
Figure 78: Solvency. 2018
Figure 79: Asset turnover ratio, 2018
Figure 80: Fixed asset turnover, 2018
Figure 81: Enterprise management expenses/Net revenue, 2017 - 2018
Figure 82: Interest Expense/Net revenue, 2017 - 2018
Figure 83: Sale expenses/Net revenue, 2017 - 2018
Figure 84: Profit ratio , 2018
Figure 85: Retail market share in Vietnam, 2016
Figure 86: Distribution of supermarkets in Vietnam, by region, 2017
