vietnam-real-estate-invesment-market-overview-and-outlook-2022

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VIETNAM REAL ESTATE INVESMENT MARKET OVERVIEW AND OUTLOOK Q2.2023

PERFORMACE

The rent remains at a steady level.

Stable rental prices were observed in the office market of Ho Chi Minh in Q2 2023.However, the occupancy rate slightly decreased compared to the previous quarter, with Grade A offices reaching 92% and Grade B offices achieving 75%. Additionally, the average rental prices remained relatively unchanged, with Grade A offices ranging from 41-67 USD/sqm/month and Grade B offices around 36 USD/sqm/month. New projects entering the market in outer CBD areas showed a promising occupancy rate of approximately 20-25%. Furthermore, investor are actively seeking tenants, and it is expected that the occupancy rate will increase in the near future.

Source: Colliers (Vietnam)

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HCMC office market set to become tenant-favorable in 2023

Ho Chi Minh City’s office market is likely to witness a transition from a landlord-favorable to a tenant-favorable sector in the new year, according to data released Friday by Knight Frank Vietnam. Capping off a year that proved solid for landlords, this fourth quarter saw moderate year-on-year rent increases for Grade A landlords to the tune of 2.6%, and a positive net absorption mostly coming from the Saigon South sub-market in HCMC, Vietnam’s largest economic hub, according to the real estate firm.

Việt Nam's economic growth forecast at 7.5 per cent in 2022

Việt Nam’s GDP growth is forecast to surge from an estimated 2.6 per cent in 2021 to 7.5 per cent in 2022, with resilient manufacturing and a robust rebound in services serving as the driving forces for economic recovery.

VIETNAM NEWS HIGHLIGHTS - NOVEMBER 2021

The Vietnamese economy is actively recovering with a rebound in industrial production and retail sales, continued trade surplus and stabilized credit growth, a World Bank (WB) update says.

Vietnam to Increase Regional Minimum Wage from July 2022

Vietnam will increase regional minimum wages by approximately 6 percent from July 1, 2022. The increase varies from US$140 to US$202 depending on the living expenses in a particular region. Businesses should prepare their budgets given the short notice and incorporate the increased HR costs from July 1 and beyond going forward.

OFFICE MARKET OVERVIEW Q4.2024 AND 2025 OUTLOOK

What Does “Hybrid Work” Really Mean?

Use the right hybrid work tools The best way to support employees in a hybrid work model is to offer them the right tools. By understanding that each person works differently, hybrid managers have a better chance to avoid a toxic productivity environment and improve employees’ mental health when they work from home. For example, managers can run a survey asking for peoples’ preferred working-hours. Another challenge in hybrid work is decision-making. A project can go badly if employees working from home are not considered in the process. Having a transparent way to communicate across departments can improve team accountability. After all, the main goal is to help people to stay motivated and focused at work.

CJ BUILDING

2 Bis - 4 - 6, CJ BUILDING

No. 6 Le Thanh Ton street, Sai Gon Ward, HCMC

Tel: +84 28 6255 6800 | Fax: +84 28 6255 6801

Email: leasing@cjbuilding.com.vn