Market Report | Q2 2023

TMS Consultancy provides Vietnam’s economic and the benchmark for property market research across apartment, office, retail and hotel sectors in Ho Chi Minh City , Hanoi and Da Nang.

Apartment: A soft quarter all round, with limited supply and subdued sentiment in Ho Chi Minh City. Muted conditions will remain until the deposit rate lowers, and more supply enters. The government is dynamically working both sides of monetary and fiscal policy.

Office: In Ho Chi Minh City, grade A offices out performed regional peers. Future supply is diverse and will test the occupier pool. And Hanoi was more modest rent preferred, with 40 USD/sqm/month and tenants are being prudent when making decisions for the medium term.

Retail: Growth slowed given softer sentiment in Ho Chi Minh City. However, the overall health of the domestic economy remains intact, that will drive future development. In Hanoi, shopping centres and retail podiums in residential projects were in hot demand. However, shophouses continued to struggle after the pandemic.

Hotel: Whilst improving Vietnam’s international arrivals trail regional peers. With the gradual return of Asian visitors, coupled with significant domestic demand, full recovery is expected from 2024.