Figures are mostly heading in an upwards direction in Ho Chi Minh City.
It is vital to keep on top on how the market is performing. It gives us an indicator of the current state of play and what we should expect going forward. So far this year Vietnam’s GDP has grown by 5.7 percent. This is a marginal rise if compared to the same period of 2016. At the same time FDI is once again a big player growing annually by 55 percent. Japan continues to be the biggest contributor investing USD 4.6 billion.
Tourist numbers are on the up by thirty percent from the previous year. Nearly three-quarters of which are from the Asian region. Developers are responding by increasing the supply of hotel rooms. This could be a catalyst for the decrease in average rooms prices but the supply is needed considering that occupancy rates have increased over the year.
Property market
Turning to property, Savills recent data has revealed that the serviced apartment sector in Ho Chi Minh City is seeing movement. Supply has increased and occupancy too for the year overall. This is despite a slight decline if the last quarter is compared to the previous. Rents have remained consistent for the same period but for the year as a whole they have increased by two percent.
For the apartment segment there appears to be no slowdown in supply. 14 new projects will be added to Ho Chi Minh City’s existing portfolio from now until 2020. For the second quarter of this year there were four new projects in addition to the next phase of seven active projects increasing units numbers by 4,700 units.
The big news for Ho Chi Minh City is that the highest amount of transactions have been recorded since 2011. This has helped the growth in sales by 33 percent quarter-on-quarter and 67 percent year-on-year. There is no doubt that there is confidence in the apartment market with figures like these.
However a slightly different story is emerging for the villa and townhouse market. A limited supply has decreased transaction numbers. Townhouses are however leading the pack accounting for 85 percent of all sales suggesting the thirst for this type of property.
