Ho Chi Minh City Figures Q4 2023

Office: 2023 marked the most significant surge in HCMC office market supply since 2019, as nearly 170,000 sqm NLA were completed. While the asking rent of both grades showed little variation compared to 2022, CBRE's statistics indicated that HCMC absorbed nearly 80,000 sqm of office space in H2 2023, with over 90% of this absorption stemming from four newly completed Grade A buildings.

Retail: In 2023, Vietnam's retail sales saw a growth of 9.6%, lower than the 19.8% growth observed in 2022. Nevertheless, Vietnam's retail sector demonstrated a more positive trajectory than other regional markets. The retail market experienced solid rental growth, driven by the expansion of high-end and luxury brands. Prime retail space with high quality remains limited in Vietnam, even in the two biggest cities..

Condominium: Most new supply in Q4 2023 came from the West. The absorption rate improved in the second half of 2023 thanks to more diverse sales policies, whereas selling prices in primary and secondary markets tended to stabilize.

Industrial land: In 2023, industrial land in the Southern market experienced a decrease in net absorption, with just over 500 hectares, reflecting a 32% decline compared to 2022. This decline can be attributed to the limited availability of industrial land banks in the Southern market. The absorption rebounds in H2 2023 thanks to flexible leasing policies. Despite the increase in supply, RBF occupancy rates slightly increased to 85%, and RBW segment occupancy rates remained stable in the South.