Market Report | Q1 2021

The Covid – 19 epidemic had a significant impact not only on the economy as a whole, but also on the real estate market. However, the real estate market’s expectation will have positive changes in 2021 because Vietnam has injected vaccine and controlled the Covid – 19 pandemic so well, transport infrastructure was deployed quickly and the capital flows were higher.

Apartment: The selling price increases by about 3% – 7% and the absorption capacity of the Ho Chi Minh City market was as high as that of Hanoi.

Office: Office prices continued to increase (fluctuate in the range of – / + 5%) in the CBD area of major cities in Hanoi and Ho Chi Minh City because the large land fund for construction is not much and land prices are increasing higher. However, the market absorption rate will also fluctuate around 90% for grade A and grade B in the CBD. Moreover, in non-CBD area, the absorption rate will increase to over 80% because there are many businesses that need large acreage and need green space to create a better working environment.

Retail: Gradually recovering, the market will have better potential after the reopening of international routes, new-branded investors will come to Vietnam market. In particular, this market will be active in centrally-run cities such as Hanoi, Ho Chi Minh City and Da Nang.

Hotel: With the improving situation of the epidemic, as well as the soon-to-open international flights to welcome foreign tourists to Vietnam. This will help the occupancy rate of hotels in this year to be higher and the occupancy rate is expected to increase about 10% – 15% compared to that of last year. Especially, tourists will focus on resorting in the coastal cities like: Binh Thuan, Phu Quoc, Da Nang, Nha Trang, and Vung Tau. Furthermore, there are many expats who mainly work in Ho Chi Minh and Ha Noi also come here for their vacation.