Investors from Taiwan (China) are particularly keen on Viet Nam’s industrial, office and retail real estate, motivated by the country’s progress in improving the legal framework and substantial investment in key infrastructure.
Despite improvement in 2022, occupancy and room rates in HCM City have yet recover to pre-pandemic levels, according to real estate service provider Savills Viet Nam.
Domestic tourism rebounded well in the first ten months of the year, with 91.8 million domestic arrivals, exceeding 85 million in 2019, according to Savills Viet Nam.
The resumption of international flights and the borders reopening in March will not only benefit Viet Nam’s hospitality sector but also drive demand for serviced apartments, according to Savills Viet Nam.
With limited vacancies and high rents in the central business district in HCM City, non-CBD supply will continue to deliver affordable office space and keep a ceiling on rents, according to Savills Viet Nam.
Industrial property continues to be a hot segment for Viet Nam’s real estate market with mounting enquiries as manufacturers seek to mitigate risk and diversify supply chains.
Viet Nam will see strong growth in industrial property next year due to higher demand for industrial parks as business expand production or relocate out of China.
In the second quarter of this year, five new and the next phases of seven existing projects provided about 6,200 apartments, up 28 per cent quarter on quarter (QoQ) but down 6 per cent YoY.