Commercial Real Estate Market in Vietnam - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Report on Commercial Real Estate Market in Vietnam Covers Office Real Estate Sector Analysis, Retail Real Estate Property Trends, Modes of Investment, Real Estate Sector Competitive Landscape and Future Outlook

Market Snapshot

Commercial Real Estate Market Overview
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 14.89 %
Commercial Real Estate Market Key Players

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Market Overview

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.

 

Scope of the Report

The report provides key Insights into the Vietnam Commercial Real Estate market. It includes technological developments, trends, initiatives taken by the government in this sector. The report sheds a light on the trends in the market like factors driving the market, restraints to the market growth and opportunities going forward. Additionally, the competitive landscape of the commercial real estate market is depicted through the profiles of key players active.

 

By Type
Offices
Retail
Industrial
Logistics
Multi-Family
Hospitality
By Key Cities
Ho Chi Minh City
Hanoi
Quang Ninh
Da Nang

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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.

Commercial Real Estate Market Key Trends

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.

Commercial Real Estate Market Growth by Region

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.

Table of Contents

  1. 1. Introduction

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. Research Methodology

  3. 3. Executive Summary

  4. 4. Market Insights

    1. 4.1 Current Economic Scenario and Consumer Sentiment

    2. 4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights

    3. 4.3 Government Initatives, Regulatory Aspects for Commercial Real Estate Sector

    4. 4.4 Insights on Existing and Upcoming Projects

    5. 4.5 Insights on interest rate regime for general economy, and real estate lending

    6. 4.6 Insights on rental yields in commercial real estate segment

    7. 4.7 Insights on capital market penetration and REIT presence in commercial real estate

    8. 4.8 Insights on public-private partnerships in commercial real estate

    9. 4.9 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)

    10. 4.10 Market Dynamics

      1. 4.10.1 Drivers

      2. 4.10.2 Restraints

      3. 4.10.3 Opportunities

      4. 4.10.4 Challenges

  5. 5. Market Segmentation

    1. 5.1 By Type

      1. 5.1.1 Offices

      2. 5.1.2 Retail

      3. 5.1.3 Industrial

      4. 5.1.4 Logistics

      5. 5.1.5 Multi-Family

      6. 5.1.6 Hospitality

    2. 5.2 By Key Cities

      1. 5.2.1 Ho Chi Minh City

      2. 5.2.2 Hanoi

      3. 5.2.3 Quang Ninh

      4. 5.2.4 Da Nang

  6. 6. Competitve Landscape

    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Vingroup

      2. 6.2.2 Dat Xanh Group

      3. 6.2.3 FLC Group

      4. 6.2.4 Toong

      5. 6.2.5 Nam Long Investment Corporation

      6. 6.2.6 Sun Group

      7. 6.2.7 Colliers International Vietnam

      8. 6.2.8 Savills Vietnam

      9. 6.2.9 CBRE Vietnam

      10. 6.2.10 JLL Vietnam

      11. 6.2.11 Vietnam House

      12. 6.2.12 Full House Vietnam

      13. 6.2.13 Luxstay

      14. 6.2.14 Mytour

      15. 6.2.15 Vntrip

      16. 6.2.16 Ivivu and

      17. 6.2.17 Vietnambooking

      18. 6.2.18 Others (Vincom JSC, Bitexco, Lilama Land, Phat Dat Real Estate)

    3. *List Not Exhaustive
  7. 7. Future of the Market and Analyst Recommendations

  8. 8. Disclaimer

  9. 9. About Us

**Subject to Availability

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Frequently Asked Questions

The Commercial Real Estate Market market is studied from 2016 - 2026.

The Commercial Real Estate Market is growing at a CAGR of 14.89% over the next 5 years.

Vin Group, Dat Xanh Group, FLC Group, Toong, Nam Long Investment Corporation are the major companies operating in Commercial Real Estate Market.

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