Market Report | Q4 2020

The real estate market in 2020 has experienced a turbent year due to the complicated developments of the Covid – 19 pandemics. Under the impact of Covid – 19, economic growth decreased, affecting the purchasing power of the market, as well as capital inflows into real estate have slowed down, supply and transactions of apartment, offices, retail and others were plunged.

Apartment: The supply of apartments in Ho Chi Minh City has reached nearly 20,000 units in 2020, only equal to 75% of the supply in 2019. Furthermore, the average asking price of District 2 was about 4,000 USD/sqm. The apartment market in Hanoi city has positive signs with an increased absorption rate. Buyers want to buy to have a real living so the average asking price does not change much.

Office: Generally, the office market in HCMC in 2020 is fairly positive, despite the influence of the Covid-19 epidemic. There was no new supply expected to enter the grade A market. However, there were 4 new grade B projects: Opal Tower, Saigon First House, the 67 Tower và UOA Tower. The office rental price for grades A, B, and C in Q4/2020 decreased by about 5% compared to that in 2019.

Retail: Retail market performance in 2020, the rental rates significantly decreased by about 10% in both areas: of CBD and non-CBD compared to 2019. Also, the occupancy rate also decreased by over 10% YoY, due to the general situation of the epidemic.