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Market Research Report

Commercial Real Estate Market in Vietnam - Growth, Trends, and Forecast (2020 - 2025)

Published by Mordor Intelligence LLP Product code 925429
Published Content info 120 Pages
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Commercial Real Estate Market in Vietnam - Growth, Trends, and Forecast (2020 - 2025)
Published: February 1, 2020 Content info: 120 Pages
Description

In spite of the signs of cyclical moderation in growth, Vietnam's outlook remains positive. Vietnam's economy is seeing strong growth, with laws that made foreigners invest in its development further. As a result, there´s been a surge of high-end real estate developments in the country. The improvement in infrastructure supporting the tourism industry, which has always been one of the prioritized investment areas by Vietnam, has catapulted the rise of many tourist cities in recent years. Local demand in Vietnam is also rising as Vietnamese entrepreneurs are looking for investments where they can put in there money.

The long-term outlook for the commercial property sector is positive as a result of continuing strong economic conditions in the country, supported by rising consumer spending and a strong tourism industry.

In commercial real estate, the hospitality sector in Vietnam is experiencing high growth. By the end of Q3 2019, it is estimated that there were 442 four- and five-star hotels under operation in Vietnam, providing 91,236 keys to the market.

In the office segment, the banking/insurance, manufacturing, and IT sectors are expected to drive demand, with co-working spaces showing particularly notable growth.

In the retail segment, many new retail brands are setting up stores or looking to set up stores in Vietnam, introducing new concepts to the local market which will attract visitors and liked to develop in commercial sector activities.

Key Market Trends

Growth in Visitors Arrival to Vietnam

Continuing the momentum from 2018, Vietnam welcomed nearly 13 million foreign visitors in the first nine months of 2019, an increase of 10.8% y-o-y. The majority of international visitors to Vietnam come from Northeast Asia, especially China, South Korea, and Japan. These visitors look for investment in commercial real estate properties in Vietnam because of its cheap cost and affordability for them, which in turn results in demand for hotels and accommodation.

Increased interest from both local and international investors amidst ongoing tensions in global trade combined with tighter credit and regulatory interventions at the domestic level are expected in 2019.

In 2018, the real estate market attracted over USD 6 billion of foreign investment capital, including the following prominent deals:

USD 4.2 billion investment by a joint venture between Sumitomo and local investor BRG into the Hanoi smart city project.

USD1.3 billion investment by the Singapore investment fund GIC Private Limited into the luxury developer Vinhomes Joint Stock Company.

Tourism to Increase Hotel Real Estate Segment in Vietnam

Vietnam is improving its infrastructure supporting activities to facilitate the tourism industry which has led to the rise of many tourist cities in recent years. The growing tourism industry of Vietnam and the thriving economy have drawn interest in the country's hotel and resort market from investors throughout the region.

There is a rise in corporate hotel demand mainly driven by industrial renaissance. In Vietnam, foreign investors are looking for investment opportunities with higher returns in functional hotel assets, while most domestic investors wanted to develop hotels and resorts from available land banks.

There will be a new wave of supplies with branded properties coming online such as Movenpick Cam Ranh or Melia Ho Tram, which could bring these locations onto the international tourism map.

The three biggest economic and tourism hubs, HCM City, Hanoi and Danang, see the tourist growth during the year and they also expected that the construction of more hotel rooms to serve the demand of people.

Competitive Landscape

The Commercial Real Estate in Vietnam has a medium level of market share concentration. International investors are also attracted to the Vietnamese market and are looking to invest in almost all segments from office to retail and high-end hotels. Developers are active in creating new hospitality products for sales, most notable of which are coastal shophouse/shop villa in Phu Quoc and Ha Long. In hospitality real estate there is a need for developers in Vietnam to diversify its market by paying attention to the non-traditional market and bringing in professionals to manage their property. There is rising demand is for quality office and retail stock in centralized places, with the Hanoi CBD in focus. The strength of the manufacturing and tourism sector will keep demand buoyant for retail, office and industrial units.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • Report customization as per the client's requirements
  • 3 months of analyst support
Table of Contents
Product Code: 52971

Table of Contents

1 Introduction

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Insights

  • 4.1 Current Economic Scenario and Consumer Sentiment
  • 4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
  • 4.3 Government Initatives, Regulatory Aspects for Commercial Real Estate Sector
  • 4.4 Insights on Existing and Upcoming Projects
  • 4.5 Insights on interest rate regime for general economy, and real estate lending
  • 4.6 Insights on rental yields in commercial real estate segment
  • 4.7 Insights on capital market penetration and REIT presence in commercial real estate
  • 4.8 Insights on public-private partnerships in commercial real estate
  • 4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)
  • 4.10 Market Dynamics
    • 4.10.1 Drivers
    • 4.10.2 Restraints
    • 4.10.3 Opportunities
    • 4.10.4 Challenges

5 Market Segmentation

  • 5.1 By Type
    • 5.1.1 Offices
    • 5.1.2 Retail
    • 5.1.3 Industrial
    • 5.1.4 Logistics
    • 5.1.5 Multi-Family
    • 5.1.6 Hospitality
  • 5.2 By Key Cities
    • 5.2.1 Ho Chi Minh City
    • 5.2.2 Hanoi
    • 5.2.3 Quang Ninh
    • 5.2.4 Da Nang

6 Competitve Landscape

  • 6.1 Market Concentration
  • 6.2 Company Profiles
    • 6.2.1 Vingroup
    • 6.2.2 Dat Xanh Group
    • 6.2.3 FLC Group
    • 6.2.4 Toong
    • 6.2.5 Nam Long Investment Corporation
    • 6.2.6 Sun Group
    • 6.2.7 Colliers International Vietnam
    • 6.2.8 Savills Vietnam
    • 6.2.9 CBRE Vietnam
    • 6.2.10 JLL Vietnam
    • 6.2.11 Vietnam House
    • 6.2.12 Full House Vietnam
    • 6.2.13 Luxstay
    • 6.2.14 Mytour
    • 6.2.15 Vntrip
    • 6.2.16 Ivivu and
    • 6.2.17 Vietnambooking
    • 6.2.18 Others (Vincom JSC, Bitexco, Lilama Land, Phat Dat Real Estate)

7 Future of the Market and Analyst Recommendations

8 Disclaimer

9 About Us

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