Market Report | Q3 2020
The interest rates and legally – entangled projects are big roadblocks, pulling the cost of borrowing from real estate investment enterprises, as thus affecting the prices. How was prospect of real estate market in the third quarter of 2020?
Residential: In Ho Chi Minh City, there were approximately 73,950 housing units that were purchased in Q3/2020. In the breakdown, there were nearly 46,770 apartments and 27,200 low-rise villas, townhouses and shophouses. Hanoi’s real estate market has launched 7,990 apartments in nine months of 2020.
Office: Third quarter’s average office rental rate in grade A and B rose by 4.5% and 11.5% respectively compared to the second quarter. As the second quarter did not record any new supply in both grades, third quarter’s occupancy rates were almost at their peaks with vacant rates were at 2% and 5% for each grade respectively.
Condotel & Villa Resort: In 2020, the villa resort market is turning more vigorous than last year, partly thanks to the recent issuance of guidance on land usage right and ownership certification for condotel from Ministry of Natural Resources and Environment.
M&A activities: The challenges brought by Covid-19 to the businesses resulted in a drop in the number of M&A deals which took place in Vietnam in the first eight months of 2020. Remarkably the majority of the deals was under cyclical consumer products sector with 51 transactions, followed by industrial services with 45 transactions
Learn more by clicking our Vietnam Market reports | Q3 2020
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