Ho Chi Minh City MarketView Q1 2020
Office: HCMC office market seemed to be less vulnerable from the COVID-19 and more flexible to the economic fluctuation than other commercial sectors. Hence, the market performance is expected to remain healthy in a longer term outlook.
Retail: During the heavy impacts of COVID-19 on retail market, landlords have been proactive in supporting their tenants and maintained good occupancy rates. The outbreak also highlighted the importance of omni-channel strategy and the necessity of a professional management practice.
Industrial: Occupancy rate of southern industrial parks increased rapidly due to limited industrial land supply and rental abatement has not recorded yet. Market outlook in long term remained positive thanks to boosted infrastructure development and newly signed free trade agreements.
Condominium: In the first quarter of 2020, the market observed cautious launching activities from developers. In the context of limited supply, the average selling price in the primary market increased by 4% and 9% y-o-y in Hanoi and HCMC respectively. Headwinds including licensing issues, credit tightening and the COVID-19 outbreak are set to weigh on new condominium supply and demand in 2020.