vietnam research & forecast report - residential | q32014 (en)
TRANSCRIPT
Accelerating success
VIETNAM 3Q14 Y-O-Y 4Q14FGDP Growth 6.19% 0.7%
Total Registered FDI (US$ billion) 4.33 -4%
Exports (US$ billion) 38.7 12.5%
Imports (US$ billion) 37.6 13.6%
CPI 4.3% -2.7%
Total retail sales (VND billion) 706.5 11.1%
International Visitors (million) 1.05 16.0%
Base Rate 9% 0.0%
Exchange Rate (US$) 21,246 -0.9%
VN-Index 630.34 24.9%
Gold Price (VND million/ tael) 35.9 -6.51%
3Q14 4Q14F*
Primary market
Secondary market
Supply
Sold rate
Positive performance from all segments
During 3Q14, HCMC Primary condominium market saw
positive performance from all three market segments.
Average asking price of Affordable projects recorded 10%
q-o-q gain from 2Q14 while that of High-end witnessed
promosing increase of 3% after prolonged idle period.
PRIMARY MARKET PERFORMANCE BY SEGMENT, 3Q14
Source: Colliers InternationalAffordable segment remains the leader of condominium market No new High-end supply to Primary Market
VIETNAM | 3Q14 | ECONOMIC UPDATE
Regarding positive performance during the first half of 2014,
last quarter saw new release of almost 500 units to Mid-
end and Affordable segments. District 12 is home of most
of the new Affordable residences with average asking price
at US$612 per sq. m while new Mid-end developments are
located at CBD fringe area and released at around US$1,400
per sq. m.
Financial institutions boosting demand
Beside acceptable price that match housing budget of mid-
income buyers, strong support from financial institutions is
accelerating sales activities of local market.
After long cautious period, both international and local
banks have loosen property loan standards by offering
competitive interest rate at longer term. However, they
favor Mid-end and Affordable projects due to lower
amount and better liquidation.
Research &
HCMC | Condominium
Forecast Report
3Q 2014
Colliers InternationalHo Chi Minh CityBitexco Office Building, 7th Floor19-25 Nguyen Hue StreetDistrict 1, HCM City, VietnamTel: + 84 8 3827 5665
Accelerating success
QUANG NGUYENResearch [email protected]+84 938 056 603
YEN NGUYENResearch [email protected]+84 915 478 778
www.colliers.com/vietnam
Publication Coverage Frequency Availability
Research & Forecast Report
Vietnam Cities Quarterly Publicly available
CBD Report HCMC CBD Monthly Publicly available
Asia Pacific Office Report
Asia Pacific in-cluding Vietnam
Quarterly Publicly available
Vietnam Property Market Report
Vietnam cities Quarterly On subscription
Development Recommendation
Vietnam cities At request On subscription
Authors:
No Name of Project Address LocationLaunched
YearGrade Total units
Average asking price (*)
1 Xi Riverview Palace 190 Nguyen Van Huong District 2 2008 High-end 270 2,000
2 Cantavil Premier Ha Noi Highway District 2 2010 High-end 200 1,710
3 Canh Vien 3 Nam Vien Area, PMH District 7 2011 High-end 116 2,030
4 C.T Leman Plaza 117 Nguyen Dinh Chieu District 3 2011 High-end 200 4,460
5 SSG Tower Dien Bien Phu Binh Thanh 2011 High-end 123 1,860
6 The Prince Residence Nguyen Van Troi Phu Nhuan 2013 High-end 282 2,270
7 Icon 56 56 Ben Van Don Phu Nhuan 2014 High-end 312 2,034
High-end developments
1 Everrich 2 422 Dao Tri District 7 2010 Mid-end 3,125 1,330
2 Thao Dien Pearl 12 Quoc Huong District 2 2010 Mid-end 450 1,650
3 Saigon Airport Plaza 1 Bach Dang Tan Binh 2011 Mid-end 242 1,770
4 Tropic Garden Nguyen Van Huong District 2 2012 Mid-end 388 1,170
5 Happy Valley Nguyen Van Linh, PMH District 7 2012 Mid-end 818 1,660
6Sunrise City (Central + North)
Nguyen Huu Tho District 7 2013 Mid-end 1,500 1,550
Mid-end developments
1 Saigon Land D2 Road Binh Thanh 2014 Mid-end 152 1,350
2 Tropic Garden (P2) Nguyen Van Huong District 2 2014 Mid-end 171 1,380
3 The Vista Verde Dong Van Cong District 2 2014 Mid-end 1,152 1,590
4 12 View Tan Thoi Nhat Ward District 12 2014 Affordable 408 590
5 8X Plus 22 Truong Chinh District 12 2014 Affordable 578 640
New launches in 3Q 2014
* US$/ sq. m
Colliers ViewLast quarter saw an official effect of the new Land Law in July offering greater resolution procedures for residents upon
the State’s acquisition of their land. This is ultimately expected to promote investors to enter into Vietnam’s rebounding
real estate market.
With developers speeding up new launches and offering attractive prices and incentives, the sales market for new residential
flats remained strong during 3Q 2014.
The market noticed sign of return from investors who do not purchase apartments for occupying purpose and prefer to buy
at early stage of the project development given discounted price and favored promotions. This return has encouraged the
launch of recent residential projects and is expected to support upward tendency of the market till the end of this year.
KNOWLEDGE REPORT | 3Q 2014 | HCMC | CONDOMINIUM
Copyright © 2014 Colliers InternationalThe information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the materials contained in this report.