GDP growth achieved 7.4% in Q1/2018, the highest in Q1 for the last 10 years. The main driver was the industry and construction sector, followed by services. Inflation was well-controlled with CPI increasing by 2.8% year on year (YoY).
GDP growth achieved 7.4% in Q1/2018, the highest in Q1 for the last 10 years. The main driver was the industry and construction sector, followed by services. Inflation was well-controlled with CPI increasing by 2.8% year on year (YoY).
Strong export value of US$54billion resulted in a trade surplus of US$1.3 billion. The EU is the largest export market, followed by the USA.
International visitors continued to trend up with 4.2 million arrivals, up 31% YoY.
Total registered FDI was US$5.7billion, with Korea as the largest contributor. Disbursed FDI reached US$3.8billion, up 7% YoY.
1. RETAIL: Increased Rent But Decreased Occupancy
Total stock was approximately 1.3 million m², stable quarter-on-quarter (QoQ) and up 4.2% year on year (YoY). Over the past four years, stock has grown at an average 12.2% pa.
Average ground floor rents increased 0.4% QoQ while occupancy decreased -1.2 ppts QoQ, mainly attributed to the changes in shopping centre segment. The CBD registered a softer performance whereas the East area had improved performance.
To 2020, eighteen new projects are scheduled to launch, cumulatively providing 410,000 m². The majority of future supply are components in residential complexes in the West.
2. OFFICE: CBD Grade A Continued To Improve
Total stock was over 1.6 million m², up 1.6% QoQ and 2% YoY after two new Grade B projects in the Secondary area came online.
Overall market performance was relatively stable with average rent increase of 0.6% QoQ and occupancy decrease of -0.5 ppts QoQ. Grade B registered the most improved occupancy while Grade A saw the most improved rents, particularly in non-CBD areas.
Ha Noi welcomed 5,010 newly-established businesses in Q1/2018 and targets a 12% growth in 2018. The remaining three quarters of 2018 will see the entry of thirteen new projects supplying over 235,000 m², mostly in the West.
3. SERVICED APARTMENT: Highest Prices In The West
Total stock from 50 projects went up 1% QoQ and 19% YoY due to an increase in Grade A stock and a pending Grade C project. From 2018 onwards, 1,400 units from 17 projects will become available.
Average occupancy was down -0.9 ppts QoQ and -3.4 ppts YoY. Average room rates (ARR) increased 0.6% QoQ but decreased –5.6% YoY. The West had the highest rent US$32.4/m²/mth while Secondary projects were 90% occupied.
In Q1/2018, implemented FDI to Viet Nam was US$3.88 billion, up 7.2% YoY.
4. HOTEL: 5-Star Performs The Best
One new hotel providing 50 rooms was officially graded 3-star. Stock was approximately 10,000 rooms, up 1% QoQ and 9% YoY.
Average occupancy slightly decreased -1 ppts QoQ but up 4 ppts YoY. ARR was down -3% QoQ and -7% YoY. Average revenue of five-star hotels was US$111/room/night, double that of four-star and triple that of three-star.
According to the Ha Noi Statistics Office, in the first two months of 2018 there were approximately one million international visitors to Ha Noi, a 31% YoY increase.
With 44 projects coming online from 2018, pressure is set to increase across all grades.
5. APARTMENT: Decreased New Launches
Eleven new projects and next phases of fourteen active projects launched 5,530 units, down -21% QoQ and -40% YoY. The primary supply was more than 24,000 units, stable YoY. Tu Liem and Hoang Mai districts continued leading the market.
Sales were down -15% QoQ and -11% YoY. Absorption rate declined -3 ppts both QoQ and YoY to 24 percent. Grade B drove demand with a 61% share.
Average asking price was US$1,250/m², stable QoQ but down -8% YoY.
In 2018, more than 20,000 units will come online from 38 projects, most of which are Grade B.
6. VILLA & TOWNHOUSE: Performance Temporarily Decreased
Total stock was 41,099 dwellings, increasing 1.7% QoQ and 13.9% YoY. Ha Dong continues to lead with a 24.3% market share, followed by Hoai Duc.
Three new projects and six new phases supplied nearly 670 dwellings. Primary stock was approximately 3,190 dwellings, down -18.7% QoQ but up 13% YoY.
Sales were down -43% QoQ and -30% YoY. Absorption was 25%, down -10.6 ppts QoQ but up 4.7 ppts YoY.
From Q2/2018 to 2019, new supply will be approximately 11,500 dwellings from 23 new projects, mostly located in Dong Anh, Gia Lam, Dan Phuong, and Tu Liem districts.