Ho Chi Minh City's real estate market continued to maintain stable performance in Q4 2017.

Alongside this, credit growth reached a high level, at 18-19% compared to the same period in 2016. Foreign direct investment (FDI) increased sharply by 44%, while disbursement increased by 11% compared to 2016. Japan was the largest investor, accounting for 36% of total new FDI.

The real estate market also experienced positive growth in the fourth quarter of 2017, according to Savills' Ho Chi Minh City market report presented at a seminar on January 9th:

Savills Vietnam Q4/2017 Market Report Event

The real estate market is booming.

Regarding the vibrancy of the market, the first to be mentioned is the office segment. A Class C project in District 1 with 2,400 m².2Market import price. Supply reached over 1.7 million m².2Rental rates remained relatively stable quarter-on-quarter but increased 6% year-on-year. Average rental rates rose 7% year-on-year, driven by limited supply in the central business district and the entry of Grade A and B projects into the market this year. Average occupancy remained high at 96%. By 2020, an additional 585,000 m² of supply is projected.2.

Next, the townhouse market saw five new projects and another project launching its next phase, adding over 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 the new supply. Total transactions increased by 25% both quarter-on-quarter and year-on-year. The 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 plot projects provided 2,000 plots to the primary market. Primary supply was approximately 3,000 plots. The absorption rate reached 65%. Over the next two years, new supply is projected to reach approximately 13,000 units/plots.

Similarly, hotel supply was quite positive, increasing by 8% year-on-year to over 16,500 rooms. One project was upgraded to 4 stars this quarter. Occupancy rates increased to their highest level in the past 5 years, at 76%. During the peak season for international tourists, all categories performed well, with occupancy rates increasing by 12 percentage points quarter-on-quarter. As mentioned, a key factor supporting the hotel market's growth was the strong increase in international visitors to Ho Chi Minh City, with 6.3 million international visitors in 2017, a 23% increase year-on-year. South Korea, Japan, and China were the main markets.

News: BK - HU

The Thanh