QMR Brief – HCMC

GDP exceeded the 2017 target and at 6.8% achieved the highest growth in five years. GDP per capita was US$2,385
and increased 10% year on year (YoY).
Credit growth is estimated to reach 18% to 19 percent. Estimated outstanding consumer borrowing increased 65%
YoY. Loans for home buying and house repairs had a 53% share and increased 77% YoY.
Inbound tourism continues to grow with 12.9 million international visitors for 2017, up 29 percent. Accommodation andF&B revenues were approximately US$22 million, up 12% YoY.
Total registered FDI growth was 44% and disbursement grew 11% over 2016. Japan, with an over 36% share led new
FDI registered capital.

QMR Brief – HCMCRETAIL: Non-CBD Supply
Total stock was approximately 1.2 million m2 with 24,200 m2 added

FIGURE 1
Average rent

from three new supermarkets and one shopping centre opening.

Occupancy

1.5

100

1.2

80

0.9

60

0.6

40

0.3

20

Average gross rent was down -3% quarter-on-quarter (QoQ).
decreased in the face of surplus supply to safeguard occupancy
rates.
Many retailers offered flexible promotions to boost year-end sales.

%Average occupancy had a slight -1ppt decrease. Non-CBD rents

Mil VND/m2/mthThree closures withdrew 11,100 m2.

Larger projects focused on increasing footfall through consumercentric events and new appeals such as ice skating and a mini00.0
Department store Shopping centre

theme park.

Retail podium

Source: Savills Research & Consultancy

OFFICE: Strong
One 2,400 m2 Grade C project in District 1 entered. Stock was more

FIGURE 2

than 1.7 million m2, fairly stable QoQ, but up 6% YoY.

1.2

Average rent

Occupancy

100YoY. The increase was attributed to limited CBD vacancies and new
Grade A and B projects launched over the year.

By 2020 new supply is expected of up to 464,500 m2.

0.9

75

0.6

50

0.3

25

0.0%

Average occupancy was high at 96 percent.

Mil VND/m2/mth

Performance remained positive. Average gross rents increased 7%0Grade A

Grade B

Grade C

Source: Savills Research & Consultancy

SERVICED APARTMENT: Improved
Three projects withdrawn and two new projects saw stockFIGURE 3

decreased overall by -2% QoQ. Total stock was more than 4,800

Average rent

0.8Occupancy

100

There was an average occupancy increase of 2ppts QoQ and rents
generate new business, many projects expanded their short-termoffers.
The over 800 new units planned to launch in 2018 are expected toaffect segment performance. The CBD accounts for 70% of new

0.6

750.4

500.2

250.00
Grade Asupply.
Source: Savills Research & Consultancy

Grade B

Grade C%

remained stable. Only Grade C had occupancy increases. To

Mil VND/m2/mthunits, up 7% YoY.

QMR Brief – HCMC

HOTEL: Recovery
Stock was up 8% YoY to over 16,500 rooms. One project wasFIGURE 4

high season for international arrivals, all segments saw significant

The average room rate (ARR) was stable YoY.
According to HCMC Tourism Department, HCMC welcomed 6.3

100260%improvements with occupancy rates increased up to 12 ppts QoQ.

Occupancy

80

Mil VND/room/night

Average occupancy peaked at 76%, the highest for 5 years. As theARR3upgraded to 4-star this quarter.

40120million international visitors this year, up 23% YoY. Korea, Japanand China were the leading source markets.

005-star

4-star

3-star

Source: Savills Research & Consultancy

APARTMENT: Grade C Sales Up
Thirteen new projects and the next phases of 6 active projects

FIGURE 5

launched, providing approximately 8,500 units, a decrease of -20%
100QoQ. There were more than 32,000 units available across all
grades, decreasing -8% QoQ and -27% YoY.

Grade C had good performance, up 55% QoQ while Grade A40604020decreased -46 percent. Absorption at 46% was up 14ppts QoQ and2023ppts YoY.

0From 2018 to 2019, supply is expected to be more than 68,000 units

0Grade A

Grade B

Grade C

from 65 projects. District 2 is expected to provide the largest sharewith 46 percent.

Source: Savills Research & Consultancy

VILLA & TOWNHOUSE: Vibrant
Five new projects and one new phase supplied over 1,100

FIGURE 6Townhouses

dwellings. Primary stock was approximately 2,000 dwellings, up 2%

QoQ and 34 ppts YoY. Binh Chanh for the first time led the market
with a 48% share.

Dwellings

Sales were up 25% QoQ and YoY. Absorption was 67%, up 12 ppts

Villas800

QoQ but down -32% YoY. Ninety three percent of new supply aretownhouses.

600
400
200
0Ten new land plot projects added 2,000 plots to the primary market.
Primary stock was approximately 3,000 plots. The segment
achieved 63% absorption. In the next two years, new supply will beapproximately 13,000 dwellings/plots.

60%

New project sales accounted for nearly 30% of city transactions.

Absorption rate80

Mil VND/m2

Sales were over 15,100 units, increasing 32% QoQ and 44% YoY.

Average price*Others: D.8, D.10, Binh Thanh, Phu Nhuan, D.1, Cu Chi, Go Vap
Source: Savills Research & Consultancy

QMR Brief – HA NOIRETAIL: Occupancy Increasing
FIGURE 1

Total stock was approximately 1.3 million m², up 1.2% quarter-onquarter (QoQ) and 6.0% year on year (YoY). Nearly 19,000 m² wasAvg. GF gross rent

Average ground floor rents decreased -2.0% QoQ. Occupancy
maintained its upward trend with 2.6 ppts QoQ growth. The
most improved QoQ and YoY occupancy rates.

1001.0800.860%

shopping centre segment and the Secondary area both saw theMil VND/m²/mth

added from three new retail podiums.

Occupancy

1.20.6
400.4

Thirteen new projects are scheduled to launch in 2018, cumulatively

0.2

providing 229,000 m². The West area is seeing robust development

0.0200Department
storeof real estate projects and infrastructure.

Shopping centre Retail podium

Source: Savills Research & Consultancy

OFFICE: Improved Performance
FIGURE 2Total stock was over 1.6 million m², up 1.6% QoQ but down -1.9%

Avg. gross rent

YoY after two new Grade B projects came online.

Occupancy

0.8100the most improved performance, particularly in non-CBD areas.
In 2017, newly registered businesses grew 11% YoY to 25,160. The
new year will see fifteen new projects supplying nearly 299,000 m²,

800.6

60
0.4%

occupancy increased 1.1 ppts QoQ and 6.2 ppts YoY. Grade A had

Mill VND/m²/mth

Average rents increased 1.4% QoQ and 2.6% YoY and average

400.220

mostly in the West. Increasing competition is expected from co0.0

working space and officetel projects.

0Grade A.

Grade B

Grade C

Source: Savills Research & Consultancy

SERVICED APARTMENT: Abundant New Supply
Fifty one mostly Grade A and B projects, launching 4,695 units saw

FIGURE 3
Average rent

stock up 14% QoQ and 17% YoY. From 2018, approximately 1,450

Occupancy
100

0.8units will come online from twelve projects, with four more inYoY. Average room rates (ARR) were VND540,000/m2/mth(US$23.7/m2/mth), down -4.5% QoQ and -4.6% YoY. New entries
helped take-up achieve 400 units.
In 2017, registered FDI to Ha Noi was US$3.6 billion. Japan wasthe major source to Viet Nam in 2017 with US$9.11 billion.

80

0.6

600.4%

Average occupancy was 89%, down -0.6 ppts QoQ but up 1.7 ppts

Mil VND/m2/mth

development.

400.2

200.00
Grade A

Grade B

Source: Savills Research & Consultancy

Grade CQMR Brief – HA NOIHOTEL: International Arrivals Record
FIGURE 4

One new hotel providing 151 rooms was officially graded 4-star.

ARR

Stock was up to approximately 10,000 rooms, up 2% QoQ and 9%Occupancy
1004.0overall 4 ppts YoY. ARR increased 3% QoQ and 17% YoY. RevPAR
was up 12% QoQ and 24% YoY.
In 2017, Ha Noi had a new high of 4.95 million international visitors,

80

3.060%The peak season saw average occupancy increase 6 ppts QoQ andMil VND/room/night

YoY.

2.040
1.020a 23% YoY increase and approximately 40% of national arrivals.
0.0With 42 Ha Noi projects coming online from 2018, pressure is set to05-starincrease across all Grades.

4-star3-starSource: Savills Research & Consultancy

APARTMENT: Grade A Beats Expectations
In Q4/2017, nineteen new and nineteen active projects added 7,010

FIGURE 5units seeing stock up 14% QoQ but down 32% YoY. Primary supply

Average pricewas 25,260 units, up 6% QoQ and 17% YoY.
Absorption was 27%, up 3 ppts QoQ but down 4 ppts YoY. The
average asking price was US$1,240/m2, stable QoQ but down -12%

unchanged YoY, but primary supply increased 14% YoY. Grade A4060353025402030152010

had the best performance, tripling sales YoY.
10In 2018, approximately 26,300 units will come online. Grade B is500
Grade A

expected to continue leading supply.

Grade B

Grade C

Source: Savills Research & Consultancy

VILLA & TOWNHOUSE: Townhouses Doing Well
Total stock was 40,419 dwellings, increasing 3.3% QoQ and 15.3%

FIGURE 6Villa

YoY. Ha Dong District continues to lead with a 24% market share,Townhouse

12,000Ten new projects and three new phases supplied over 1,290dwellings. Primary stock was approximately 3,924 dwellings, up 4%

Dwellingsfollowed by Hoai Duc.
8,000
4,000

QoQ and 52% YoY.

From Q1/2018, new supply will be approximately 2,500 dwellings
from 12 new projects. Key players are Vimedimex, Vingroup andBitexco.

Zone 1
Source: Savills Research & Consultancy

Zone 2Others

Me LinhHoai Duc

Ha Dong

OthersTay HoCau Giay

Tu Liemtotal sales.

Long Bien

5.4 ppts QoQ and 6.1 ppts YoY. Townhouses accounted for 57%

0Hoang Mai

Sales were up 23% QoQ and 83% YoY. Absorption was 36%, up%In 2017, 63 new projects entered. New launches remained7050
Mil VND/m2

YoY.

Absorption

QMR Brief – HCMCQMR Brief – HCMCQMR Brief – HCMCQMR Brief – HCMC