HCM real estate in the 4th quarter of 2017 continues to maintain stable performance

Along with that, credit growth was high, reaching 18-19% compared to the same period in 2016. Foreign direct investment increased sharply by 44% while disbursement increased by 11% compared to 2016. Japan was the largest investor, accounting for 36% of total new FDI capital.

The real estate market also grew positively in the fourth quarter of 2017, according to Savills' HCMC market report at the conference on January 9:

Market Report Event Quarter 4/2017 Savills Vietnam

Real estate market is bustling

Regarding the first excitement, we must mention the office segment. A class C project in District 1 with 2,400 m2market entry price. Supply reached more than 1.7 million m2, almost stable quarter-on-quarter but up 6% year-on-year. Average rents increased 7% year-on-year. This was due to limited supply in the CBD and the entry of Grade A and B projects during the year. Average occupancy remained high at 96%. By 2020, supply is expected to have an additional 585,000m2.

Next is the townhouse market, with five new projects and another project opening its next phase, adding more than 1,100 units to the market. Primary supply reached nearly 2,000 units, up 2% quarter-on-quarter but down -32% year-on-year. Townhouses accounted for 93% of new supply. Total transactions increased 25% quarter-on-quarter and year-on-year. Absorption rate reached 67%, up 12 percentage points quarter-on-quarter and 34 percentage points year-on-year. Binh Chanh district led the market for the first time, accounting for 48% of units sold. Ten new land projects provided 2,000 units to the primary market. Primary supply was approximately 3,000 units. Absorption rate reached 65%. In the next two years, new supply will be approximately 13,000 units/lots.

Similarly, hotel supply was also quite positive, increasing 8% year-on-year to over 16,500 rooms. One project was upgraded to 4-star this quarter. Occupancy increased to a 5-year high of 76%. During the peak season for international tourists, all categories performed well with occupancy increasing by 12 percentage points quarter-on-quarter. As mentioned, the factor supporting the hotel market development must include the strong increase in international arrivals to Ho Chi Minh City, with 6.3 million international visitors to the city in 2017, up 23% year-on-year. Korea, Japan and China are the key markets.

News: BK - HU

The Thanh