VIETNAM REAL ESTATE INDUSTRY

In the United States, house prices rose sharply in late June, marking the 65th consecutive month of gains, due to supply shortages in the market. In Europe, the real estate market has been quiet for years, as Greek debt has been accompanied by a slow recovery of the regional economy, but there are still some bright spots like Ireland and Germany.

In Asia, the Middle East region has received many negative reviews as oil prices have been falling continuously for the past two years. Qatar’s real estate market is booming thanks to improved population and economic growth, In addition to this is the 2022 World Cup effect.

Vietnam is one of the most attractive destinations for retailers in Southeast Asia due to the booming economy. The two major cities which are Hanoi and Ho Chi Minh City are the two most concentrated areas of transnational retail companies penetrating due to the retail rents in this area are significantly higher than other areas. The retail industry is growing rapidly and leading to the speedy increase in demand for retail space expansion.
With an export-oriented economy, with exports accounting for a significant portion of 80% of nominal GDP, Vietnam is attracting a large and growing number of foreign investment. In Q1/2018, Phase 3 of Noi Bai Industrial Park was completed with an area of 16 ha for lease, bringing the total industrial output in Hanoi to reach x,xxx ha, up 1.2% compared to the last quarter and 1.4% over the same period last year. In Q1/2018, the Ho Chi Minh City industrial zone market was unchanged from Q4/2017 when there’s no new supply source came into the market this quarter.

The rate of GDP growth over the years along with policies to attract investment and tourists in recent years, is motivation for the development of the accommodation market in Vietnam. In terms of sales in Hanoi, x,xxx apartments were sold in Q1/2018, up 5% over the same period last year. Ho Chi Minh City apartment market has been very active in Q1/2018 despite the long holiday Tet. The number of new apartments sold increased sharply over the same period last year. Total supply of villas, townhouses in Hanoi was at xx, xxx units, up 1.7% compared to last quarter and up 13.9% over the same period last year. In HCMC, in Q1/2018, four new projects provided over xxx units. Primary supply was approximately x,xxx units, down 28% and 40% compared to last quarter and last year, respectively.

Vietnam is considered as an attractive market compared to other ASEAN countries thanks to the improvement in the economic and real estate market. Therefore, many foreign investors will continue to find the opportunities to invest in profitable assets in major cities of Vietnam.

 

 

Abbreviation
Executive summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Impact of trade agreements
2. World Real Estate Market
2.1 Real estate market in some countries in the world
2.2 Real estate market in some countries in the region
3. Vietnam Real Estate Market
3.1 Industry concepts and characteristics
3.2 The period of volatility of Vietnam Real Estate Market
3.3 Movement of the real estate market
3.3.1 Real estate for rent
3.3.2 Real estate for sale
3.4 Risks and challenges
3.4.1 Risks
3.4.2 Challenges
3.4.3 SWOT
3.5 Housing development planning
3.6 Driving forces
3.7 M&A trend
4. Enterprise analysis
5. Appendix 
 Financial statements

Vingroup
No-Va Real Estate Investment Corporation
FLC Group
Khang Dien Housing Investment & Trading JSC
Nam Long Investment JSC
Dat Xanh Real Estate Service & Construction JSC
Kinh Bac City Development Share Holding Corporation
Quoc Cuong Gia Lai Joint Stock Company
Phat Dat Real Estate Development JSC
Binh Duong Construction and Development JSC

List of figures
Figure 1: GDP growth by quarter, 2015 – Q1/2018
Figure 2: CPI fluctuations, 2015 – 3/2018
Figure 3: Consumer Confidence Index, 2014 – Q4/2017
Figure 4: FDI, 2014 – Q1/2018
Figure 5: Average lending interest rate applied to USD, 2011 – 3/2018
Figure 6: House price movement in the US, , 5/2012 – 3/2018
Figure 7: Home/income price indices in some countries, 2017
Figure 8: Total supply by category, Q1/2018
Figure 9: Supply structure by region, Q1/2018
Figure 10: Vacancy rates and rental prices, Q1/2018
Figure 11: Rental supply of commercial center, 2010-Q1/2018
Figure 12: Rental rates and vacancy rates of commercial center, 2010-Q1/2018
Figure 13: Total supply, Q1/2018
Figure 14: Retail supply structure by region, Q1/2018
Figure 15: Vacancy rate and rental prices, Q1/2018
Figure 16: Supply of commercial center for lease, 2009-Q1/2018
Figure 17: Rental price and vacancy rate of commercial centers, 2009-Q1/2018
Figure 18: New supply and vacancy rate of grade A offices, 2010-Q1/2018
Figure 19: Total supply by region, Q1/2018
Figure 20: Office rental price, Q1/2015-Q1/2018
Figure 21: Average rental price by area, Q1/2018
Figure 22: Office supply and vacancy rate, Q1/2016-Q1/2018
Figure 23: Total supply and rental price by category, Q1/2018
Figure 24: Office rental price, Q1/2015-Q1/2018
Figure 25: Total Supply by Region, Q1/2018
Figure 26: Rental price by area, Q1/2018
Figure 27: Total supply and vacancy rate of Northern Industrial Zone, Q1/2018
Figure 28: Average rental price for the Northern Industrial Zone, Q1/2018
Figure 29: Total supply and vacancy rate, Q1/2018
Figure 30: Rental price by area, Q1/2018
Figure 31: Vacancy rate, 2011- Q1/2018
Figure 32: Rental price for factories available, 2011 – Q1/2018
Figure 33: Rental price for land by area, 2011 – Q1/2018
Figure 34: Total Supply by Category, 2005- Q1/2018
Figure 35: Apartment rental price by category, Q1/2012- Q1/2018
Figure 36: Apartment rental price and rental capacity, Q1/2015- Q1/2018
Figure 37: Total supply of apartments for rent, Q1/2015- Q1/2018
Figure 38: Apartment rental prices by class, Q4/2016- Q1/2018
Figure 39: Hotel total supply, Q1/2016 – Q1/2018
Figure 40: Rental price and capacity, Q1/2016- Q1/2018
Figure 41: Hotel total supply, Q1/2015 – Q1/2018
Figure 42: Rental price and capacity, Q1/2018
Figure 43: Average rental price and capacity, Q1/2016- Q1/2018
Figure 44: Housing supply in Hanoi, 2008- Q1/2018
Figure 45: Price fluctuation of apartment for sale, Q1/2008 – Q1/2018
Figure 46: New supply and number of apartments sold, 2010- Q1/2018
Figure 47: Offer price for apartment in Ho Chi Minh City, Q1/2015 – Q1/2018
Figure 48: High-end apartment segment’s price, 2010- Q1/2018
Figure 49: Structure of buying houses by purpose in HCM, 2016
Figure 50: Total villa/townhouse supply, Q1/2015- Q1/2018
Figure 51: Price fluctuation of villas and townhouses, Q1/2014- Q1/2018
Figure 52: Total villa/townhouse supply, Q1/2014- Q1/2018
Figure 53: House price on income in Vietnam, 2011 – 2017
Figure 54: Stock value of real estate, 3/2013-3/2018
Figure 55: Proportion of logistics cost in Vietnam’s GDP in 2016,
compared to other countries
Figure 56: Investment capital on transportation types, 2010 – 2015
Figure 57: LPI Index ranks of ASEAN countries, 2007- 2016
Figure 58: Vietnam LPI Index, 2007- 2016
Figure 59: LPI Index rank of Vietnam, 2007- 2016
Figure 60: Level of urbanization, 2010 – 2017
Figure 61: Disposable income and household expenditures, 2008 – 2017f
Figure 62: Outstanding credit of Real estate, 2012-2017
Figure 63: Structure of real estate credit balance, 2017
Figure 64: Structure of population by stratification (expenditure), 2013 – 2020f
Figure 65: Number of tourists, 2011-Q1/2018
Figure 66: Net revenue growth, 2016 – 2017
Figure 67: Gross profit growth, 2017
Figure 68: Liquidity ratio, 2017
Figure 69: Receivable turnover, 2016 – 2017
Figure 70: Solvency. 2017
Figure 71: Asset turnover ratio, 2017
Figure 72: Fixed asset turnover, 2017
Figure 73: Enterprise management expenses/ Net revenue, 2016 – 2017
Figure 74: Interest Expense, 2016 – 2017
Figure 75: Sale expenses/ Net revenue, 2016 – 2017
Figure 76: ROA & ROE, 2017
Figure 77: Distribution of supermarkets in Vietnam, by region, 2017
Figure 78: Retail market share in Vietnam, 2016
List of tables
Table 1: CPI in Q1/2018  by commodity group
Table 2: Typical projects are scheduled for 2018-2020
Table 3: Typical projects are expected to be completed in 2018-2020
Table 4: Typical projects under construction, 2018
Table 5: Typical projects are building, 2018
Table 6: Typical projects in the period 2018-2020
Table 7: Typical projects in HCM City in the period 2018-2025
Table 8: Typical Serviced Apartments in Hanoi, 2018
Table 9: Typical projects are expected to be completed in 2018
Table 10: Typical projects are expected to be completed in the next time
Table 11: Typical projects are sheduled to be completed in the next time
Table 12: Lending rates of commercial banks, Q1/2018
Table 13: Typical projects are expected to be completed in the next time
Table 14: Typical projects are expected to be completed in the next time
Table 15: 20 cities with the highest average income per capita in 2017 in the world
Table 16: Largest urban areas of Vietnam Estimated 2017
Table 17: Major shopping centers of AEON in Vietnam
Table 18: Top real estate enterprises with highest revenue 2017