Vietnam's real estate market in major boom Options

[Johannjs]

Vietnam Business News

Vietnam's real estate market in major boom
Friday - Oct. 22, 2004

Vietnam's real estate market is bracing for a major boom in coming years, with many large projects on the horizon and a sustainable demand in major cities, US-based firm CB Richard Ellis (CBRE) has reported.

CBRE, which manages a dozen high-rise building projects across Vietnam, said last week that Hanoi and Ho Chi Minh City were experiencing "unusually" high occupancy rates compared with the rest of Asia. The company expects this trend to continue over the next three to four years. "The outlook of the local property market is very good if you look at the number of projects and the very unusual high occupancy rates in Ho Chi Minh City and Hanoi," said Marc Townsend, CBRE's managing director.

"Vietnamese developers are obviously leading the race; they have capital, energy, determination and some excellent sites. This is a very promising market place compared with the rest of Asia."

According to CBRE's latest market updates, Hanoi's office occupancy rate has reached an average 88 per cent, while Ho Chi Minh City's has climbed to 84 per cent.

Office rental prices in Hanoi stand at US$26.67 per sq.m and at $26.2 per sq.m in Ho Chi Minh City. Vietnam's office rental costs are even higher than places like Hong Kong where the equivalent price is US$23.8, US$25.5 in Singapore and US$12 in Bangkok, said Townsend.

"This could be explained by the current shortage of office space, but new supply in the next two years will soften the rental rates, particularly in Grade B buildings," he added.

Regarding the retail market segment, Townsend said the future market boom would be partially caused by an influx of international retailers over the next few years.

"New retailers are coming; big brand names like Mango, Dunhill, Prada and Benetton are opening their shops in town. This new trend will mean the presence of hypermarket operators, department store chains, and fast food restaurants. While some retailers have been operating locally for some time, many will come to Vietnam for the first time," he said.

Italy's garment retailer Benetton last week announced the group would soon open its first store in Hanoi, in the newly developed Vincom City Towers, following the opening of two retail stores in Ho Chi Minh City.

"We like locating our stores in the shopping malls, and we hope the Vietnamese will know about our brand," Amaury L Blan, Benetton's chief representative in Vietnam told Vietnam News.

Townsend said the market for residential homes was also growing rapidly. "The residential housing market is going to be very competitive". (VNA)

=====
Vietnam is attracting more and more new international businesses, and the real estate market booms.

This post has been edited by Johannjs: Oct 22 2004, 12:17 AM

[unattractiveguy]

Can you sum it all up for me.Thank you.

[Johannjs]

It's much cheaper elsewhere (Hong Kong, Thailand...), but businesses keep coming to Vietnam, and thus, demands are rising...

[unattractiveguy]

You seem so dedicated on to abreviating our current status on Vietnam.In your opinion what is need to be done inorder to bring out Vietnam current estate and into broader economy like other Asian countries etc..( Korea, Japan)

This post has been edited by unattractiveguy: Oct 21 2004, 11:59 PM

[Johannjs]

Well, in fact, just keep on the good track... stay open, work hard and well, and "allow more time to time itself!"

Vietnam is now a very young country with a median age at 24. Lots of young people there... a whole new generation. Change must come, because they have a lot of new needs to satisfy...

It takes more time to build a country (than to destroy it; but hopefully, the war is shifting elsewhere).

[bluewaters]

wow thats definitely good news! thanks for posting