Market Report | Q3 2022

Vietnam had a robust performance in the third quarter, further demonstrating its resilience. However, could headwinds like the risk of commodity price shocks, supply chain disruptions, or higher inflation threaten recovery prospects?

Apartment
Average asking prices in Ho Chi Minh City, Hanoi, and Da Nang all grew dramatically, by more than 10% Y-o-Y and 2-5% Q-o-Q. Particularly, Ho Chi Minh City increased by about 10.8% Y-o-Y, Hanoi increased by about 9% Y-o-Y and Da Nang increased by nearly 15% Y-o-Y. Besides, neighboring provinces such as Binh Duong and Dong Nai increased by are projected to be for sale by the end of 2022, and many investors are looking to develop into the type of social housing apartments.

Office
Most rental rate of office in Ho Chi Minh City, Hanoi and Da Nang increased by more than 10% Y-o-Y and about 2-5% Q-o-Q.

Retail
The retail situation in major markets such as Ho Chi Minh City and Hanoi is gradually catching up with the growth rate of the same period in the years before the epidemic. Some foreign enterprises tend to choose the Vietnamese retail market such as Central Retail Thailand Group with plans to pour more investment capital up to VND 65,000 billion in the period of 2022-2026.

Hotel

Currently, the tourism industry is gradually adapting and growing after the demand suddenly
dropped sharply in the period 2020-2021 due to the epidemic. Room rents increased by nearly 10%Y-o-Y and 2-3%Q-o-Q, the occupancy rate reached more than 70% in major provinces such as Ho Chi Minh City, Hanoi, and Da Nang.

Industrial
The industrial real estate segment still grew strongly in Q3/2022. Average leasing land price continue to rise nationwide, up more than 20% Y-o-Y and about 8-12% Q-o-Q. In addition, the occupancy rate remained stable with an average of about 70% thanks to huge rental demand from the automotive, logistics and electronics industries. Moreover, China’s “zero-COVID” policy has promoted the movement of foreign businesses into Vietnam.