Market Report | Q1 2022

The majority of developers released their products with a series of promotions for customers to stimulate purchasing power during the transition between the old and new year. Most investors in Ho Chi Minh City were profiting after the 2022 Lunar New Year because the real estate market in some areas, particularly neighboring provinces such as Dong Nai, Long An, and Binh Duong, was showing signs of recovery.

Apartment: In some cities/provinces, the average asking price increased by 8-12 % Y-o-Y. Typically, Ho Chi Minh City increased by 8% Y-o-Y, Ha Noi increased by 15.7 % Y-o-Y, Da Nang increased by 15.4 % Y-o-Y, and neighboring provinces like Dong Nai and Binh Duong increased by 3-7 % Y-o-Y. On the other hand, the majority of the projects would go on sale in early April, with massive supply set to hit the market in Q2/2022.

Office: Except for Ha Noi, the average rental price in three cities slightly fell, by about 2-4 % Y-o-Y. The average rental price in Ho Chi Minh City fell by about 2-3 % Y-o-Y, Ha Noi fell by more than 10% Y-o-Y and Da Nang fell by more than 3% Y-o-Y.

Retail: Following the implementation of Covid 19, retail performance improved. Furthermore, many projects have been constructed after the delay period and are expected to be released to the market as soon as possible. In Ho Chi Minh City, the average asking price increased by 3-5 % Y-o-Y, while in Ha Noi, it decreased by 0.5 % Y-o-Y

Hotel: With the re-opening of tourism activities on March 15, 2022, and the launch of international flights to welcome international tourists in Q1/2022, the occupancy rate increased by approximately 20-30% Q-o-Q, and the average rental price of hotels increased by 9-10% Q-o-Q.

Industrial: The hot situation in industrial real estate has attracted many investors to the Vietnamese market. Northern Industrial Parks had received more attention from investors in recent years than the Central and Southern Regions. As a result, northern transportation infrastructure was being promoted, and investors had been shifting from China to Vietnam. When compared to the same period last year, the leasing price of land in the North’s industrial zone increased significantly, by about 7% – 15%. Land prices in the Southern Region have increased by 5% – 10%. And, the Central Region increased slightly, ranging from 3% to 7% Y-o-Y.