VIETNAM REAL ESTATE INDUSTRY

In Q2/2018, leasable area saw a sharp increase in supply to 1.065 million m², up by 4.81% comparing to the first quarter. Total retail supply in HCMC was unchanged from the previous quarter as no new retail project was put into operation.

Hanoi office market is recovering after reaching its bottom with average occupancy decreasing to 70% -80% as in previous years. In HCMC, in Q2 / 2018, the Grade A office market continues to have no record that the new project will be put into operation to maintain a supply of 261.5 thousand m². Meanwhile, Grade B office space increased by xxx m² to xxx.xx thousand m².

After two new projects in 2017, the first half of 2018 had no new supply. It was expected that in the second half of 2018, the market would receive another new Grade B service building. Like in Hanoi, in Q2 / 2018, the apartment market for rent in Ho Chi Minh City had no project which has been put into operation. Supply remained stable with x,xxx units.

In Q2/2018, no new hotels were put into operation in Hanoi. In the first 6 months, supply has remained stable with 10,000 rooms, up 8% over the same period in 2017. Meanwhile, hotel supply in Ho Chi Minh City in Q2 / 2018 saw a slight decrease of 2% compared to Q1, reached xx,xxx units due to 3 closed projects.

M&A real estate market in the first 6 months of 2018 is still very active, a series of successful transactions took place in the first half of this year. Vietnam is being seen as an attractive market compared to other ASEAN countries, as the economy and the real estate market are improving. As a result, many foreign investors will continue to seek opportunities to co-invest in lucrative properties in Vietnam’s major cities.

 

 

Executive summary
1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
2. World Real Estate Market
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 SWOT analysis
3.5 Housing development planning
3.6 Driving forces
4. Enterprise analysis

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: CPI fluctuations by month, 2015 – 6/2018
Figure 2: GDP growth by quarter, 2015 – Q2/2018
Figure 3: Consumer Confidence Index, 2014 – Q1/2018
Figure 4: CPI in 6M/2018 by commodity group
Figure 5: Average lending interest rate applied to USD, 2011 – 3/2018
Figure 6: FDI, 2014 – Q2/2018e
Figure 7: House price movement in the US, , 5/2012 – 6/2018
Figure 8: Home/income price indices in some countries, 2017
Figure 9: Total supply by category, Q2/2018
Figure 10: Supply structure by region, Q2/2018
Figure 11: Vacancy rates and rental prices, Q2/2018
Figure 12: Rental supply of commercial center, 2010-6M/2018
Figure 13: Rental price and vacancy rates of commercial center, 2010-6M/2018
Figure 14: Total supply, Q2/2018
Figure 15: Retail supply structure by region, Q2/2018
Figure 16: Vacancy rate and rental prices, Q2/2018
Figure 17: Supply of commercial center for lease, 2009-6M/2018
Figure 18: Rental price and vacancy rate of commercial centers, 2010-6M/2018
Figure 19: New supply and vacancy rate of grade A offices, 2010-6M/2018
Figure 20: Total supply by region,Q2/2018
Figure 21: Office rental price, Q1/2015-Q2/2018
Figure 22: Average rental price by area, Q2/2018
Figure 23: Office supply and vacancy rate, Q1/2016-Q2/2018
Figure 24: Total supply and rental price by category, Q2/2018
Figure 25: Office rental price, Q1/2015-Q2/2018
Figure 26: Total Supply by Region, Q2/2018
Figure 27: Rental price by area, Q2/2018
Figure 28: Total supply and vacancy rate of Northern Industrial Zone, Q2/2018
Figure 29: Average rental price for the Northern Industrial Zone, Q2/2018
Figure 30: Total supply and vacancy rate, Q2/2018
Figure 31: Rental price by area, Q2/2018
Figure 32: Vacancy rate, 2011- 6M/2018
Figure 33: Rental price for factories available, 2011 – 6Ms/2018
Figure 34: Rental price for land by area, 2011 – 6Ms/2018
Figure 35: Total Supply by Category, 2005- 6Ms/2018
Figure 36: Apartment rental price by category, Q1/2013- Q2/2018
Figure 37: Apartment rental price and rental capacity, Q1/2015- Q2/2018
Figure 38: Total supply of apartments for rent, Q1/2015- Q2/2018
Figure 39: Apartment rental prices by class, Q4/2016- Q2/2018
Figure 40: Hotel total supply, Q1/2016 – Q2/2018
Figure 41: Rental price and capacity, Q1/2016- Q2/2018
Figure 42: Hotel total supply, Q1/2015 – Q2/2018
Figure 43: Rental price and capacity, Q2/2018
Figure 44: Average rental price and capacity, Q1/2016- Q2/2018
Figure 45: Housing supply in Hanoi, 2008- 6Ms/2018
Figure 46: Price fluctuation of apartment for sale, Q1/2008 – Q2/2018
Figure 47: New supply and number of apartments sold, 2010- 6Ms/2018
Figure 48: Offer price for apartment in Ho Chi Minh City, Q1/2015 – Q2/2018
Figure 49: High-end apartment segment’s price, 2010- 6M/2018
Figure 50: Structure of buying houses by purpose in HCM, 2016
Figure 51: Total villa/townhouse supply, Q1/2015- Q2/2018
Figure 52: Price fluctuation of villas and townhouses, Q1/2014- Q2/2018
Figure 53: Total villa/townhouse supply, Q1/2014- Q2/2018
Figure 54: Invest capital in types of transportation,2010-2015
Figure 55: Proportion of logistics cost in Vietnam’s GDP in 2016, compared to other countries
Figure 56: LPI Index ranks of ASEAN countries, 2010-2018
Figure 57: LPI Index rank of Vietnam, 2007- 2018
Figure 58: Level of urbanization, 2010 – 2017
Figure 59: Disposable income and household expenditures, 2008 – 2017f
Figure 60: Outstanding credit of Real estate, 2012-2017
Figure 61: Structure of real estate credit balance, 2017
Figure 62: Number of tourists, 2011-6Ms/2018
Figure 63: Net revenue growth, 2016 – 2017
Figure 64: Gross profit growth, 2017
Figure 65: Liquidity ratio, 2017
Figure 66: Receivable turnover, 2016 – 2017
Figure 67: Solvency. 2017
Figure 68: Asset turnover ratio, 2017
Figure 69: Fixed asset turnover, 2017
Figure 70: Enterprise management expenses/ Net revenue, 2016 – 2017
Figure 71: Interest Expense/Net revenue, 2016 – 2017
Figure 72: Sale expenses/ Net revenue, 2016 – 2017
Figure 73: Profit ratio , 2017
Figure 74: Retail market share in Vietnam, 2016
Figure 75: Distribution of supermarkets in Vietnam, by region, 2017

List of tables
Table 1: Typical projects are scheduled for 2018-2020
Table 2: Typical projects are expected to be completed in 2018-2020
Table 3: Typical projects under construction, 2018
Table 4: Typical projects under construction
Table 5: Typical projects in the period 2018-2020
Table 6: Typical projects in the period 2018-2025
Table 7: Typical Serviced Apartments in Hanoi, 2018
Table 8: Typical projects under construction, 2018
Table 9: Typical projects are open for sale
Table 10: Typical projects are open for sale
Table 11: Lending rates of commercial banks, Q2/2018
Table 12: Typical projects are expected to to complete
Table 13: Typical projects are expected to complete
Table 14: Largest urban areas of Vietnam Estimated 2017
Table 15: Major shopping centers of AEON in Vietnam
Table 16: Top real estate enterprises with highest revenue 2017