Vietnam’s GDP growth in the first half of 2019 was at 6.76% y-o-y, lower than that of 2018, but higher than the same period from 2011 - 2017. During the period, despite of the slow growth of some key export products, Vietnam macroeconomic was stable and inflation was controlled at 2.64% y-o-y.
Condominium market: While new launches in HCMC continued to decrease due to slowdown of licensing process, Hanoi witnessed the highest new launches in a quarter coming from subsequent phases of large-scale townships targeting mid-end buyers. Positive absorption was seen in both markets.
Office market: There was no new supply in HCMC while Hanoi received 29,000 sqm NLA from two new grade B buildings. Both cities are expecting high level of new supply coming up later this year, further stablising rental rates in near future.
Retail market: Limited supply in the CBD area supports strong performances, in terms of rental rates and occupancy rates, in both cities. In the non-CBD area, HCMC welcomed one new project and one expansion while Hanoi welcomed three new projects. More supply is to come online in later of this year and Hanoi’s retail market will surpass one million sqm.