HO CHI MINH PROPERTY MARKET REPORT Q2 2019
Overview The Vietnamese economy sees positive signals although the world economy is under unfavorable conditions. Due to the ascending US-China tension, the large foreign capital from Chinese investors flows into Vietnam. Although Vietnam is predicted to be benefitted from US-China trade war, it is the fact that the largest foreign capital comes from China while the capital from other countries such as Japan, Korea and Singapore has downward trend. The U.S. is refraining from labeling Vietnam a currency manipulator; however, Vietnamese currency is still on the US watch list and this may constrain the economic growth of Vietnam. The real estate market in Ho Chi Minh city has optimistic signals in recovery when the authorities start to make decisions on the delayed projects and fix their internal problem. The Ho Chi Minh apartment market mainly welcomes new release of the high-end segment while the others are making no noise. The villas/ townhouse and land plots market in this quarter are relatively quiet and the projects are generally concentrated on the East region. In terms of commercial property, the remaining vacant leasable area of office and retail is not much and the new projects tend to move to the CBD fringe and Non-CBD region. There is no significant change in the industrial sector between first and second Quarter of 2019. This is because industrial parks are waiting for new price regime approval; therefore, the leasing activities temporarily postpone.