Vietnam Property Market Brief - 1Q21 Research
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Vietnam | April 2021 Research Vietnam Property Market Brief 1Q21 Credit image: Vu Long / EyeEm
Contents
VIETNAM’S ECONOMIC BACKDROP 3
HO CHI MINH CITY 5 HANOI 10
Office 5 Office 10
With new completions, vacancy rises in 4Q20 Two Grade B buildings enter the market
More weakening demand in Grade A than
Negative net absorption recorded across the segment
Grade B
Rents stabilise in 4Q20 Rents decrease slightly across the market
Retail 6 Retail 11
New supply comes from renovated department stores One new completion enters the market
Demand shows signs of recovery with positive
Occupancy rate varies across Prime and Non-Prime malls
net absorption
Rents remain stable Rents remain largely stable in 4Q20
Apartment for Sale 7 Apartment for Sale 12
Limited new supply continues, yet signs of improvement Supply additions drop in 4Q20, following the
are clearer surge last quarter
Affordable and Mid-end segments continue to
Thu Duc City now becomes the market spotlight
lead the sales
Price increment in suburban market records a
Most developers remain confident in their pricing
new high
SOUTHERN [1] 8 NORTHERN [1] 13
Ready-built Landed Property 8 Ready-built Landed Property 14
New Supply volumes return to a low level New Supply volumes return to a low level
Buyers’ sentiment shows strong in the quarter Buyers’ sentiment shows strong in the quarter
Primary Prices remain at a high level Primary Prices remain at a high level
Industrial Land & Ready-built RBF 9 Industrial Land & Ready-built RBF 15
Most of the recent land transactions take place via online Most of the recent land transactions take place
platform via online platform
Southern supply still takes the lead in Vietnam Southern supply still takes the lead in Vietnam
Land prices reach a new peak Land prices reach a new peak
IMPORTANT NOTES
[1] In this report, Southern RBL ma rket a nd Southern Industria l ma rket refers to HCMC, Binh Duong, Dong Na i, Ba Ria – Vung Ta u a nd Long An
ma rkets only. Mea nwhile, Northern RBL ma rket refers to Ha noi, Ha i Phong, Ba c Ninh, Hung Yen a nd Vinh Phuc ma rkets; a nd Northern Industria l
ma rket refers to Ha noi, Ha i Phong, Ba c Ninh, Hung Yen a nd Ha i Duong ma rkets only. .
Since the beginning
COPYRIGHT © JONESofLANG
2021,LASALLE
JLL Resea
IP,rch a pplies
INC. a new
2020. All graReserved
Rights ding system a nd methodology for processing ma rket da ta to better reflect the ma rket
situa tion. This might subsequently result in some cha nges in historica l da ta .VIETNAM’S ECONOMIC BACKDROP
Vietnam continues to record a positive Figure 1: Real GDP Growth (y-o-y)
GDP growth in 1Q21: Vietnam’s GDP
%
expanded 4.48% y-o-y in 1Q21, higher 8
than the 1Q20’s level of 3.8%. This
6
positive economic growth was attributed
4
to the strong performances of all sectors.
2
While manufacturing sector was still an
0
engine of growth (6.3% y-o-y), the
Q1.14
Q1.15
Q1.16
Q1.17
Q1.18
Q1.19
Q1.20
Q1.21
recovery of the services sector was also
noticeable (3.3% y-o-y), bolstered by the Quarterly GDP GDP YTD
strong containment of Covid-19 and the
effective EVFTA. Meanwhile, the Figure 2: Retail Sales vs. International Arrivals Growth (year-to-date, y-o-y)
agriculture, forestry and fishery has
% %
recorded a solid growth (3.2% y-o-
12 80
y)thanks to containment of African swine 9
60
fever and the fairly favorable climate. 40
6 20
0
Amidst the third wave of Covid-19, the 3
-20
positive performance in 1Q21 has shown 0 -40
Jul-19
Jul-20
Jan-20
Jan-21
Nov-19
Nov-20
Apr-19
Feb-20
Apr-20
Feb-21
Mar-21
Mar-19
Mar-20
May-19
May-20
Jun-19
Jun-20
Oct-19
Oct-20
Dec-19
Dec-20
Aug-19
Aug-20
Sep-19
Sep-20
the great effort of the government and -3 -60
-80
enterprises to sustain the economic -6
-100
growth rate. However, in order to achieve -9 -120
Real Retail Sales International Arrivals (RHS)
the target growth rate of 6.5% in 2021,
challenges remain ahead. Figure 3: FDI (year-to-date)
Retail sales show signs of USD million.
40
improvement whereas foreign visitors
30
to Vietnam continue to plunge: Though
20
new variants of Covid-19 has forced many
10
countries in the world into lockdown
0
again, including Vietnam, the country’s
Jul-19
Jul-20
Jan-21
Jan-19
Jan-20
Nov-19
Nov-20
Apr-20
Feb-21
Feb-19
Apr-19
Feb-20
Mar-21
Mar-19
Mar-20
May-19
May-20
Jun-19
Jun-20
Oct-19
Oct-20
Dec-19
Dec-20
Aug-19
Aug-20
Sep-19
Sep-20
retail sales and consumer services still
showed signs of improvement in 1Q21. FDI Registered FDI Disbursement
The total retail sales of consumer goods Source: General Statistics Office
and services in 1Q21 were estimated to
rise by 5.1% y-o-y, indicating that the Vietnam’s FDI bounced back: Total Electricity production and distribution
consumption demand has gradually foreign investment amounted to USD industry took the lead at nearly USD 5
recovered. In tandem, goods 10.1 billion in 1Q21, up 18.5% y-o-y. billion, accounting for 50% of the total
transportation activities in 1Q21 Specifically, FDI disbursement totalled registered investment. Manufacturing
witnessed an increase of 10.2% y-o-y, USD 4.1 billion, up 6.5% y-o-y. Even with USD 3.9 billion ranked in second
whereas domestic travelling was still though the FDI influx has shown a place, equivalent to 39% of the total.
hindered due to the Covid-19 resurgence rebound trend in comparison to the Following by real estate activities with
in late January. Number of passengers previous year, the third wave of Covid- USD 600 million. In terms of investment
travelling domestically declined by 11.8% 19 pandemic sweeping across the partners, Singapore lead in 1Q21 with
y-o-y in 1Q21. globe has forced countries to roll back nearly USD 4.6 billion, accounting for
the plans to ease the restrictions on 45.5% of the total investment. This was
International visitors to Vietnam shrank international travel and thus, hindered followed by Japan and South Korea
by 98.7% y-o-y to just more than 48,000 the global capital movement. with USD 2.1 billion and USD 1.2 billion
as borders remained closed. respectively.
Of the 17 sectors invested in 1Q21, the 3VIETNAM’S ECONOMIC BACKDROP
CPI stabilises: Average CPI in 1Q21 Number of new businesses declines were new and small enterprises who
increased 0.29% y-o-y, the slowest but registered capital records an are the most vulnerable to the Covid-
growth rate over the last 20 years. improvement: In 1Q21, Vietnam has 19 pandemic.
29,300 newly registered enterprises
The CPI increase in 1Q21 is attributed to: In the recent survey, manufacturing
with a total registered capital of more
(1) the rice price increased 8.55% y-o-y enterprises have revealed solid
than VND 447,800 billion, down 1.4% y-
owing to the increasing trend in confidence in the market prospects.
o-y in the number of enterprises but up
exporting price and the peak demand 68.6% of enterprises agreed that
27.5 % y-o-y in registered capital. The
during the Tet holiday; (2) gas price also business performance in 1Q21 has
average registered capital of a newly
saw an increase of 7.58% y-o-y attributed been improved compared to 4Q20,
established enterprise reached VND
to the fluctuation of the global gas price; and 85.1% of them were optimistic
15.3 billion, up 29.3% y-o-y. Meanwhile,
and (3) due to the increase in tuition fee about the economic outlook in 2Q21.
the number of terminated business
accordingly to decree 86/2015/NĐ-CP,
increased by 28.2% y-o-y. Most of them
education cost grew at 4.49% y-o-y rate,
Figure 4: CPI – Overall
which contributed to the overall increase
of CPI. % %
8.0 8.0
In the opposite direction, a number of
6.0 6.0
factors contributed to curbing CPI growth
4.0 4.0
in 1Q21. The demand for travel and
2.0 2.0
tourism went down amidst the epidemic, 0.0 0.0
causing a drop in transportation costs.
Jul-19
Jul-20
Jan-20
Jan-21
Nov-19
Nov-20
Apr-19
Feb-20
Apr-20
Feb-21
Mar-21
Mar-19
Mar-20
May-19
May-20
Jun-19
Jun-20
Oct-19
Oct-20
Dec-19
Dec-20
Aug-19
Aug-20
Sep-19
Sep-20
-2.0 -2.0
Besides, the Government also rolled out
packages such as electricity price cuts to y-o-y m-o-m (RHS)
support enterprises during the outbreak
of Covid-19, which helped to suppress
Figure 5: CPI – Housing & Construction Materials
CPI. A decline of petrol and oil prices in
1Q21 also constrained the CPI growth.
% %
Positive export-import turnover hints 5.0 5.0
trade rebound in 1Q21: Thanks to the 4.0 4.0
3.0
3.0 2.0
new FTAs in 2020, 1Q21 has seen a 2.0 1.0
concrete performance of export and 1.0 0.0
0.0 -1.0
import activities. Despite the gloom cast -2.0
Jul-19
Jul-20
-1.0
Jan-20
Jan-21
Nov-19
Nov-20
Mar-19
Mar-20
Mar-21
May-19
May-20
Sep-19
Sep-20
-3.0
by the new variants of Covid-19 virus, -2.0 -4.0
total export-import turnover stood at
USD 152.7 billion, up 24.1% y-o-y. Of y-o-y m-o-m (RHS)
which, export values were estimated at Figure 6: Merchandise Trade Balance
USD 77.3 billion in 1Q21, up 22% y-o-y,
USD billion %
while imports were at USD 75.3 billion, up 6.0 15.0
26.3% y-o-y in 1Q21. The country 4.0 10.0
remained in trade surplus of USD 2.03 2.0 5.0
0.0 0.0
billion in 1Q21, mainly attributed to the -2.0 -5.0
trade surplus with EU. In terms of trade -4.0 -10.0
-6.0 -15.0
partners, the United States and China
Jul-19
Jul-20
Jan-20
Jan-21
Nov-19
Nov-20
Mar-19
Mar-20
Mar-21
May-19
May-20
Sep-19
Sep-20
were the two largest export partners,
whereas China and South Korea were the Monthly Actual Levels % of Merchandise Exports (RHS)
leading import markets for products from
Source: General Statistics Office, General Department of Vietnam Custom
Vietnam.
4HCMC
Office Market
Rents[1] Tight vacancy persists
USD 30.6 Two Grade B buildings and one Grade C buildings completed in 1Q21, adding nearly 35,000 sqm of
office space to the market. Location-wise, Go Vap District contributed nearly half of the new
per sqm per month,
net on NLA supply with two new buildings, helping expand further the office cluster surrounding airport.
Following the completion of APC Building last quarter, Binh Thanh welcome one more Grade B
building namely CII Building. This project was leased out to one anchor tenant in 1Q21.
Rent Change y-o-y Since most of the new Grade B buildings are small-scale with limited leasable area, coupled with
+2.1% no new Grade A buildings were added in the quarter, Grade A &B vacancy remained tight at 12.4%.
Large leases in new buildings drive net absorption
In 1Q21, Grade A and Grade B recorded net absorption of approx. 500 sqm each, driven by large
lease transaction (greater than 1,000 sqm each) in newly added buildings. Meanwhile, many
longstanding buildings continued to witness negative absorption amid soft demand caused by
Stage in Rent Cycle economic uncertainty. Demand continued to be driven by technology and insurance companies in
Stable 1Q21 and most of the transactions were signed for expansion purpose.
Rents remain resilient
The average rents of Grade A&B market remained stable at USD 30.6 per sqm per month in 1Q21,
inched up 0.5% q-o-q and 2.1% y-o-y. While most districts recorded stable asking rents, District 7,
home to many new completions recently, witnessed the asking rent increase by 2-3 % q-o-q. The
increasing activities in office developments in District 7 recently has gradually shaped a distinct
office cluster in this area with better rental level compared to District 1, the traditional office
cluster of the city. However, amid the currently soft demand, landlords of newly-completed
buildings has been under pressure to lease space and thus often offer favourable rental
concessions and flexible negotiation terms to support and attract tenants.
Outlook: Limited vacancy supports rental growth but at a slow pace
Very limited new supply is expected till 4Q21. Only two Grade B buildings in Non-CBD area will be
completed in the next nine months, adding nearly 20,000 sqm office space to the market. Grade A
market will remain tight since no new addition is expected and all existing buildings have posted
high occupancy rate. As the demand likely stays subdued until the virus is globally contained,
rents expected to grow at higher pace compared to 2020 yet still lower than 2017-19 period.
Figure 7: Office Total Stock Figure 8: Office Average Rents
(‘000 sqm NLA) (USD/sqm/month)
3,000 100% 50
2,500 80%
40
2,000
60%
1,500 30
40%
1,000
20% 20
500
0 0% 10
2013
2014
2015
2016
2017
2018
2019
2020
2021
1Q21
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
4Q21
Grade A Grade B
Grade C Total future supply Grade A Grade B
A&B Occ. Rate (RHS)
Note:
[1] Rents refers to average net rent of the Grade A and B office markets, excluding VAT and service charges.
[2] Flexible space represents a variety of workspaces used by occupiers to increase their portfolio flexibility through short- to medium-term leases.
[3] CBD area refers to District 1. Non-CBD area refers to the rest of the city.
Source: JLL Research 5HCMC
Retail Market
Prime Rents [1] Vacancy rate stays stable with limited take-up recorded
USD 40.5 No new malls was completed in the quarter yet the re-layout work in Van Hanh Mall that enhanced
its ground floor efficiency has helped to add an extra 1,500 sqm NLA to the supply basket. As of
per sqm per month,
net on NLA 1Q21, total retail supply in HCMC stood at 1 mil sqm NLA, combining 40 malls classified as
Community center, Regional shopping center and Super regional center [2]. Of the total 40 malls,
only twelve are considered as Prime properties[1], yet these malls accounted for up to 49% of total
retail space.
Prime Rent Change y-o-y
-0.54% With limited take-up in both City centre and City fringe [3], the vacancy rate remained unchanged q-
o-q, stood at 2.9% and 4.1 % in City Centre and City Fringe respectively.
Retail leasing remains challenging
Net absorption in 1Q21 stood at 1,229 sqm, lower than 2,447 sqm recorded in 4Q20. Since most
high-quality malls posted low vacancy rate, the take-up was limited. Uniqlo continued to open the
Stage in Rent Cycle HCMC’s fourth stores in Van Hanh Mall in the quarter. Sized of 2,000 sqm, this transaction was the
Stable key contributor to the quarter’s net absorption.
Compared to Hanoi, the third outbreak less affected the HCMC retail market. However, challenges
remains to most retailers. The market still witnessed many retailers, especially in lifestyle, toys and
apparel categorises, for instance Mumuso, Funny Land and H:Connect, shutting down their stores
across the malls.
NOTES:
Rents hold stable q-o-q
As the market developed, we regularly review
and update our classification and grading
system as well as the methodology to ensure the Prime rent held steady in 1Q21 at USD 76.8 per sqm per month in City centre and USD 34.5 per
relevance and focus of our research to the
actual market situation.
sqm per month in City Fringe. Led by firming occupier demand and limited availability of quality
retail space, Prime malls kept their rents stable despite prolonged market uncertainty.
Since 1Q21, in this report:
• Supply indicators to cover malls classified
as Community center, Regional shopping Outlook: Retail rent expected to remain resilient
center and Super regional center.
• Performance indicators to cover Prime Socar Mall – the first mall in Thu Thiem NUA is set to open in 3Q21 and expected to bring 38,000
retail properties only (a subset of Supply
basket above). This is one of the highly sqm NLA to the market. Meanwhile, the retail podium of some completed mixed-use
sought-after property types on the market. developments are still looking for tenants and have yet to define the grand opening date.
Please refer to Terminology for detailed
definition of all above new terms.
Vacancy continues to be constraint given limited new supply expected, meanwhile rents hold flat
Subsequently this revision might result in some
changes in historical data. as the impacts of pandemic are still lingering.
Figure 9: Retail Total Stock Figure 10: Prime Retail Average Rents
(‘000 sqm NLA) (USD/sqm/month)
1,500 120% 90
100%
70
1,000 80%
60% 50
500 40%
30
20%
0 0% 10
2013
2014
2015
2016
2017
2018
2019
2020
2021
2021
1Q21
1Q19
2Q19
3Q19
4Q19
1Q19
2Q20
3Q20
4Q20
1Q21
Prime Non-Prime
Total future supply Occupancy rate (RHS) City Centre City Firnge
Note:
[1] Prime rents refer to average net effective rent of the Prime Mall across the city, excluding VAT and service charges. The definition of Prime malls
refer to terminology for more explanation
[2] The classification of shopping mall is provided in details in Terminology.
[3] City Centre refers to District 1. City Fringe refers to the rest of the city. 6
Source: JLL ResearchHCMC
Apartment for Sale Market
Primary Price [1] New legal guidelines drive market recovery
USD 2,468 Inspire of the third Covid wave in February, the new official supply [2] in 1Q21 increased 7% q-o-q
73% y-o-y with total of 3,900 units, thanks to the issuance of new guidelines for legal issues. The
per sqm NFA
new launches was highlighted with the introduction of a Luxury project - Cove Residences with
136 units. Mid-end sector, represented by Vinhomes Grand Park and Sunshine Diamond River
projects, continued to dominate the newly launched basket with 80% in sum.
Price Change y-o-y Lack of land bank in the inner city and the continuously improving infrastructure systems have
0.7% increasingly driven housing demand in the suburban areas.
Demand remained strong
In 1Q21, the total take-up was at 3,932 units, up by 98% y-o-y. The cumulative sales rate for
apartment sector has remained high at over 85% since 2017, showing a strong demand in the
sector with most of buyers was the first-time homeowners who are either the local or outer-
Stage in Price Cycle provincial citizens.
Rising Meanwhile, since Covid 19 has limited the capital flows into manufacturing sector, and lending
rate was kept low to stimulate economic growth, residential segment has appeared to be
attractive for developers/investors, and thus boost transaction activities.
The upward trend still leads the market price
The overall primary price reached USD 2,468 per sqm in 1Q21, stabilized q-o-q, and increased
0.7% y-o-y as the majority supply from the mid-end basket with reasonable prices and
standardized quality favoring by mainstream buyers such as D'Lusso, ST Moritz, Eco Green Saigon.
Notably, in the quarter Masterise Group just soft launched its Grand Marina project at USD 16,000
per sqm, an all-time high level in the market.
Outlook: Bright future for suburban area
DONRE [4] has submitted proposal to resolve legal issues for real estate development , which will
likely boost the total supply in 2021 to between 20,000 to 25,000 units, most of project located in
the suburban area toward the East and the South corridors. Lack of land bank and limited supply
in inner-districts shifted both supply and demand source to the suburban area where has large
land bank and improving transportation network.
Primary price keeps increasing in line with market sentiment. The introduction of integrated
Figure 11: Apartment
development projectsTotal
with Launches [2]
various necessary facilities willFigure
bode 12:
wellApt. Average
for the Primary
creation of Prices
(‘000 units) (USD/sqm)
communities in suburban area, hence, drive the market sentiment toward sustainable mode.
350 100% 10,000
280 90% 8,000
210 80% 6,000
140 70% 4,000
70 60% 2,000
0 50%
0
2013
2014
2015
2016
2017
2018
2019
2020
2021
1Q21
4Q13
4Q14
4Q15
4Q16
4Q17
4Q18
4Q19
4Q20
1Q21
4Q21
Luxury Premium Affordable Mid-end
Mid-end Affordable
Premium Luxury
Future launches Cumulative sales rates (RHS)[3]
Note:
[1] Prices exclude VAT and sinking fund.
[2] Official launch figures. Projects are considered as officially launched when the Sale Purchase Agreements are signed, typically upon foundation completion.
[3] Sale rate is end-of-period figure.
[4] Department of Natural Resources and Environment of HCMC 7
Source: JLL ResearchSouthern[1]
Ready-built Landed property (RBL) Market
Primary Price [2] Improving infrastructure drive the new supply in satellite provinces of HCMC
USD 2,641 The new launch [3] of HCMC remained limited with only 292 units launched in 1Q21, 51% of which
came from Amelie Villa project in the south of HCMC, the others were from small-scale townhouse
per sqm land
projects in District 12 and Binh Tan. Meanwhile, thanks to convenient legal process and improving
infrastructure, the satellite provinces of HCMC now became the spotlight for RBL supply with new
launch of 4 provinces reached with1,656 units. Dong Nai province recorded the highest new
launch, contributing half of the basket. with 828 units, which nearly tripled HCMC’s figures.
Price Change y-o-y
+11.0% Demand continues to be healthy, particularly demand from investors
The total take-up reached 1,937 units, up 45% q-o-q. Despite the Covid-19 outbreak and Tet
Holiday, the first quarter of 2021 still experienced strong demand from both owner-occupiers and
investor buyers. The sales volume primarily came from integrated projects in Dong Nai and BR-VT
(911 and 472 units, respectively), while Binh Duong, Long An and HCMC recorded lower sales
volume due to in tandem with fewer units launched. The majority of buyers were are mainly long-
Stage in Price Cycle
term investors who would benefit from the continuously increasing land price trend.
Prices Rising
Primary Prices keeps increasing strongly
In 1Q21, the RBL average primary price in Southern provinces was at USD 2,641 per sqm land
which is half price of HCMC’s average price. However, the whole Southern area achieved robust
performance in average primary price with the growth of 11.0% y-o-y. The increase was mainly
due to the new launch of later phases in some large-scale integrated projects in Thu Duc City and
Dong Nai province, where the developers have completed several supporting facilities such as
theme parks, international schools, river marina, and therefore successfully established a living
community.
Outlook: Strong demand support price growth in Greater HCMC area
Given that the current legal issues in HCMC will take more time to resolve, the total RBL supply of
HCMC for the remaining of 2021 is subject to uncertainty and will vary from 1,500 - 2,000 units.
Meanwhile, the surrounding provinces will record a total supply of nearly 5,800 units, mainly
located in the radius 30km from HCMC centre, so called Greater HCMC.
The improving infrastructure and limited land banks situation in HCMC expected to draw the
demand toward satellites provinces. Couple with the entering of quality township project, the
primary price of RBL in both HCMC and Greater HCMC is expected to upsurge increase.
Figure 13: RBL Total Launches [3] Figure 14: RBL Average Primary Prices
(‘000 units) (USD/sqm land)
25,000 100% 6,000
20,000 5,000
90% 4,000
15,000
3,000
10,000
80% 2,000
5,000 1,000
0 70% 0
HCMC Binh Dong Long BR-VT HCMC Binh Dong Long An BR -
Duong Nai An Duong Nai VT
[4]
RBL Cumulative sales rates (RHS) Primary Price
Note:
[1] In this report, Southern RBL market refers to HCMC, Binh Duong, Dong Nai, Ba Ria – Vung Tau and Long An markets only.
[2] Prices exclude VAT and sinking fund. Price per sqm land = total unit value / size of the land plot on which the property is built.
[3] Official launch figures. Projects are considered as officially launched when the Sale Purchase Agreements are signed, typically upon infrastructure
completion. 8
[4] Sale rate is end-of-period figure.
Source: JLL ResearchSouthern[1]
Industrial Land & Ready-built Factory (RBF) Market
Land Price [2] Dong Nai & Binh Duong accounted the biggest supply of both sectors
USD 111 No new supply of either IP or RBF was launched into the market in the review quarter. The other
localities still have a long journey to catch up Binh Duong and Dong Nai’s IP supply as these two
per sqm per lease term
are the oldest-developed industrial markets. Whilst in terms of RBF supply, Dong Nai
overwhelmed other provinces due to its well-developed industrial base and sufficient land bank
for RBF developers to penetrate.
Price Growth y-o-y Transacted land acquisitions took place as lingering from last year
+8.2% Industrial properties in Southern area remained significantly desirable for manufacturers to
penetrate, although the pandemic still posting potential postpones to the market. Keeping the
healthy demand momentum, both Industrial land and RBF recorded high occupancy rate at nearly
86% and 82%, increased 0.60% and 0.76% compared to 4Q20, respectively. Of which, industrial
land recorded transactions which have been negotiated since last year, whilst RBF witnessed new
leasing expansions of existing tenants rather than newcomers.
Stage in Price Cycle
Rising Land price and rental rate kept increasing momentum
Industrial land remained the hottest sector for either newcomers or to meet the manufacturing
expansion needs of existing investors, backed by Vietnam’s strong manufacturing fundamentals.
Therefore, most IP developers in Southern markets still maintained the strong momentum to raise
land prices reaching new high at USD 111 per sqm per lease term, up 8.1% y-o-y in 1Q21. Whereas
RBFs rents averaged at USD 4.5 per sqm per month across the region, increased 3.1% y-o-y which
driven by the healthy demands of SMEs as they expanded operations.
Outlook: Strong supply keep pouring into the market
Rents[3]
Overall, the supply for industrial properties in the South is expected to rise further in the next five
USD 4.5 years to capitalise the increasing demand in the region, and further strengthen its leading position
per sqm per month, in terms of supply. By such bright visions, the provincial governments have shown further plans to
net on GFA establish new IPs of roughly 23,400 ha in the future, which all stayed in the exiting notable markets
surrounding HCMC. RBF market also stay buoyant, with the expected new launch of roughly
897,000 sqm RBFs by the end of 2021.
Rent Growth y-o-y
+3.1%
Figure 15: Industrial Land & RBF Total Stock Figure 16: Average Land and RBF Rents
(ha) (sqm) (USD/sqm/term) (USD/sqm/month)
8,000 14 200 6
12
6,000 10 150
4
Stage in Rent Cycle 8
4,000 100
Rising 2,000
6
4 50
2
2
0 0 0 0
Binh Dong BR - Long HCMC Binh Dong BR - Long HCMC
Duong Nai VT An [4] Duong Nai VT An [4]
Industrial Land RBF (RHS) Land Price RBF Rent (RHS)
Note:
[1] In this report, Southern industrial market refers to HCMC, Binh Duong, Dong Nai, Ba Ria – Vung Tau and Long An markets only.
[2] The average land price excluding Infrastructure maintenance, service fees and VAT. Leasing term is the remaining years.
[3] Rents excluding VAT and service charges.
[4[ HCMC Industrial Land total supply and price excluding Saigon High-tech Park and Quang Trung Software Park owing to their special 9
characteristics.
Source: JLL ResearchHanoi
Office Market
Rents[1] No new supply enters the market
USD 18.87 The Hanoi office remained quiet with no new completion was added in 1Q21. A lack of
opportunities in the CBD of the city is forcing developer to explore options further afield.
per sqm per month,
net on NLA Total vacant space of Hanoi Grade A&B office is about 221,000 sqm, an increase of 49% y-o-y. Of
the total vacancy, Grade A office accounted for 51%. The vacancy mainly came from new
completions in 2019 and several old longstanding buildings.
Rent Growth y-o-y Demand slightly recovers
+0.64% In 1Q21, Hanoi Grade A&B witnessed an increase in the occupancy rate at 86.8%, up by 1.07 % q-
to-q. Despite the Covid-19 resurgence in early 1Q21 making tenants hesitate to visit sites, Grade
A&B market still recorded positive net absorption of around 17,915 sqm, much better than the
previous quarter's performance. Notable Grade A buildings with large deals in the quarter is
Capital and Thai Holding Towers. Meanwhile, around 70% of buildings in Grade B achieved
Stage in Rent Cycle positive net absorption, thanks to their more affordable rents. Notably, demand from securities
and technologies showed resilience with many new take-ups in this quarter.
Stable
Rents keep constant across the market
The average net rent of Grade A kept constant at USD 26.7 per sqm per month and Grade B stayed
at USD14.8 per sqm per month. Most existing buildings either kept their asking rents constant or
slightly decreased, mainly triggered by a slowdown in the Grade A rent performance, as its
lingering vacancy led landlords to increase rent incentives by offering flexible leasing terms during
this challenging period.
Outlook: New supply to weigh on rent and vacancy trend
New supply in 2021 in Hanoi mainly from Non-CBD area mainly from notable building namely
Techno Park. With 117,000 sqm NLA, this is the largest office building in Hanoi and contribute up
to 73% of new supply in 2021. Notably, Techno Park aims to enrol in the top 10 smartest office
buildings in the world and this will help the area to appear on the map of new technology centres
of both Viet Nam and the region.
The vacancy rate in Grade A&B market probably continues to increase from a large supply of new
buildings. Hence, the average net rent is expected to remain stable or slightly decreased pushing
up the take-up area in the short to medium term.
Figure 17: Office Total Stock Figure 18: Office Average Rents
(‘000 sqm NLA) (USD/sqm/month)
2,500 100% 30
2,000 80% 25
20
1,500 60%
15
1,000 40%
10
500 20% 5
0 0% 0
2013
2014
2015
2016
2017
2018
2019
2020
2021
2021
1Q21
1Q18
2Q18
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
Grade A Grade B
Grade C Total future supply Grade A Grade B
A&B Occ. Rate (RHS)
Note:
[1] Rents refers to average net rent of Grade A and B office markets, excluding VAT and service charges.
[2] CBD area consists of Hoan Kiem (core CBD), Dong Da, Ba Dinh and Hai Ba Trung. Non-CBD area refers to the rest of the city.
Source: JLL Research
10Hanoi
Retail Market
Prime Rents [1] No new completion enters the market
USD 32.34 Due to the third outbreak of Covid-19 in Hanoi, some community malls[2] had to delay their
opening day to the next quarter. Hence, the market stayed quiet with no new supply coming on
per sqm per month,
net on NLA stream during 1Q21. There are only 14/35 shopping malls in Hanoi was qualified as a Prime mall [1]
standard, yet Prime mall projects accounted for 62% of the total leasable retail space of the city.
Of which, 10/14 Prime mall projects located in City Fringe[3] and targeting to middle-class visitors.
Rent Growth y-o-y Demand shows a slight recovery
+0.4% Most of Prime malls recorded positive net absorption in 1Q21. However, given the sudden
outbreak of Covid-19 in early January, demand slightly recovered with many small-to-medium
new take-up transactions recorded. Therein, occupancy of Prime malls was inched up by 0.37% q-
o-q to around 90.8% in this quarter. Landlords continued to carefully select tenant profiles
following the malls’ concept. Muji – a Japanese lifestyle brand entered the Hanoi market with its
first under construction store at Vincom Metropolis and became the key driver of the net
Stage in Rent Cycle
absorption across the market. Meanwhile, the F&B industry witnessed many weak performed
Stable restaurants had to shut down their business given the affection of the third outbreak wave.
Rents remain stable in 1Q21
Due to the slow recovery of demand, landlords still kept rents stable, as the market still found it
challenging to attract new tenants. The average rent in Prime malls remained at USD 34.32 per
NOTES: sqm per month in 1Q21. Particularly, City Centre and City Fringe stayed at USD 62.1 per sqm per
As the market developed, we regularly review month and USD 28.5 per sqm per month respectively. Given the third outbreak in Hanoi, some
and update our classification and grading
system as well as the methodology to ensure the landlords, especially those in City Fringe who are in difficulty attracting new tenants, are willing to
relevance and focus of our research to the
actual market situation. negotiate with tenants for better leasing terms.
Since 1Q21, in this report: Outlook: Rent to increase moderately
• Supply indicators to cover malls classified
as Community center, Regional shopping
center and Super regional center.
Vincom Mega Mall Smart City plans to enter Hanoi market in 2Q21 which will provide
• Performance indicators to cover Prime approximately 40,800 sqm. This will be the largest shopping centre in Nam Tu Liem District and is
retail properties only (a subset of Supply
basket above). This is one of the highly expected to become a new destination for residents in the area. Given new supply expected high
sought-after property types on the market.
occupancy rate due to developer’s good track record while other prime malls recorded tight
Please refer to Terminology for detailed
definition of all above new terms. vacancy coupled with the expected well-control of Covid-19, Hanoi retail market expects to push
Subsequently this revision might result in some down the vacancy rate to a single-digit level. Demand signs of recovery is believed to be the
changes in historical data.
driving force of the mild rental growth amid limited quality supply.
Figure 19: Retail Total Stock Figure 20: Prime Retail Average Rents
(‘000 sqm NLA) (USD/sqm/month)
1,400 100% 70
1,200
80%
1,000 50
800 60%
600 40%
400 30
20%
200
0 0% 10
2013
2014
2015
2016
2017
2018
2019
2020
2021
1Q21
2021
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
1Q21
Prime Non-Prime
City Centre City Fringe
Total future supply Occupancy rate (RHS)
Note:
[1] Prime rents refer to average net effective rent of the Prime Mall across the city, excluding VAT and service charges. The definition of Prime malls
refer to terminology for more explanation
[2] The classification of shopping mall refer to terminology for more explanation.
[3] City Centre refers to Hoan Kiem, part of Ba Dinh and Hai Ba Trung District. City Fringe refers to the rest of the city. 11
Source: JLL ResearchHanoi
Apartment for Sale Market
Primary Price [1] Supply starts to rebound from a low level in 2020
USD 1,555 A total of 3,645 units were launched across submarkets in 1Q21, marking a notable rise of 36.6% q-
o-q. Major projects in the new supply pool include Panorama Hoang Van Thu in Hoang Mai
per sqm NFA
District, The Zen Park in Vinhomes Ocean Park and Grand Sapphire phase in Vinhomes Smart City,
accounting for 56% of the total. Apart from this, new launches in the quarter came in a small-scale,
ranging from 100 – 300 units each. It was highlighted that most of new supply in the quarter is
close to completion as they have been on the market under pre-launch sales for several quarters
Price Growth y-o-y
but only able to obtain all necessary legal documents to be officially launched in 1Q21.
+7.1% Investment demand remained muted
Sales momentum eased in 1Q21 with sales volume down by 12.6% q-o-q, a result of outbreak
resurgence and Lunar New Year seasonal effect. Investment activities in the premium segment,
particularly for buy-to-let purpose, have been adversely affected by the limited foreign arrivals.
Capital gain investment demand also shrunk as individual investors shifted to landed housing,
Stage in Price Cycle
especially in satellite provinces experiencing land fever, to enjoy a better capital gain given the
Growth Slowing same investment amount. Yet, the market observed increasing transactions of institutional buyers
who look for en-block acquisition or joint venture opportunities in the township projects.
Apartment prices continue to grow, but show signs of slowing
Overall price growth slowed q-o-q, stood at USD 1,555 per sqm in 1Q21. While developers are
unlikely to lower primary market prices, zero interest plans, festival offers, and longer payment
schedule acted as a catalyst to improve sales. This has particularly been the case for higher end
projects since last year and continued in 1Q21 as the market remained relatively unmoved.
Outlook: Market sentiment expects to be sustained
The forecast pipeline for the rest of 2021 might vary around 20,000 -25,000 units, mainly
attributable from low priced segments. Market sentiment is expected to sustain till 4Q21. The
expected resumption of international commercial flights in 2Q21 may push up the investor
demand in high-end segment. Besides, the newly announced Red River Urbanisation project with
imaginable infrastructure upgrade is likely to spike investors’ interest in the city’s Northeast.
Selling price expected to continue to grow but at a slower pace. Projects, which are at advanced
stages of construction, will continue to offer various incentives to attract cautious perspective
buyers to offload inventory.
Figure 21: Apartment Total Launches [2] Figure 22: Apt. Average Primary Prices
(‘000 units) (USD/sqm)
350 100% 5,000
280 90% 4,000
210 80% 3,000
140 70% 2,000
70 60% 1,000
0 50%
0
2013
2014
2015
2016
2017
2018
2019
2020
2021
1Q21
4Q13
4Q14
4Q15
4Q16
4Q17
4Q18
4Q19
4Q20
1Q21
4Q21
Luxury Premium Affordable Mid-end
Mid-end Affordable
Premium Luxury
Future launches Cumulative sales rates (RHS)[3]
Note:
[1] Prices exclude VAT and sinking fund.
[2] Official launch figures. Projects are considered as officially launched when the Sale Purchase Agreements are signed, typically upon foundation completion.
[3] Sale rate is end-of-period figure.
Source: JLL Research 12Northern[1]
Ready-built Landed property (RBL) Market
Primary Price [2] Hanoi still leads the market, but few new launch in satellite provinces
USD 4,227 The new launch [3] of Hanoi reached over 1,000 units, an increase of 25% q-o-q. Main supply
sources came from Vinhomes Ocean Park and Hinode Royal Park, which contributed 88% of total
per sqm land
supply basket. Meanwhile, the Covid-19 outbreak this quarter has impacted the launching plan of
many projects, several of which had were deferred to March or April. As a result, the total supply of
four selected Northern provinces totalled only 142 units coming from four projects in Bac Ninh,
Hung Yen and Vinh Phuc. Plus, Hai Phong province recorded no new launch project launched
Price Change y-o-y
during this quarter.
+14.9% Strong demand towards shophouse type
The total take-up in Hanoi reached 1,173 units with 45% of units sold coming from shophouses in
Gia Lam and Hoang Mai districts. In contrast to the usual demand of Hanoi residents for villa type,
shophouse type took over the trend appeared to be preferred, especially shophouses the one
within large-scale projects, thanks to large number their high number of internal residents, thus
Stage in Price Cycle
leading to high potential to lease back these units as restaurants, offices, coffee shops. Meanwhile,
Prices Rising in line with limited supply, the units sold of the four satellite provinces were recorded at only 177
units. In addition, RBL demand in Hanoi and the surrounding provinces this quarter were highly
contested aligned with demand for land plot due to the land fever emerging recently. Therefore,
investor buyers would prioritize land plot to RBL product.
Primary prices keep on an upward trend
The average primary price in Northern provinces was recorded around USD 4,220 per sqm land,
equaled to 87% of Hanoi’s average price. The whole Northern area achieved a significant increase
of 14.9% y-o-y. On a project basis, the highest growth was recorded achieved (typically 15-20% y-
o-y) at nearly-completed projects in Ha Dong and Hoang Mai District.
Outlook: Supply will improve in 2021
Hanoi will continue to be the main supply source for Northern areas with a total RBL reaching
about 3,000 units, while the surrounding provinces will provide a total of about 1,700 units, mainly
in Hung Yen and Hai Phong province. Thanks to the announcement of the master plan for Red
River Urbanisation and Historic Inner Capital Zone, coupling with good infrastructure system, the
primary price of RBL is expected to enhance further.
Figure 23: RBL Total Launches [3] Figure 24: RBL Average Primary Prices
(‘000 units) (USD/sqm land)
60,000 100% 6,000
50,000 5,000
40,000 90% 4,000
30,000 3,000
20,000 80% 2,000
10,000 1,000
0 70% 0
Hanoi Hai Bac Hung Vinh Hanoi Hai Bac Ninh Hung Vinh
Phong Ninh Yen Phuc Phong Yen Phuc
[4]
RBL Cumulative sales rates (RHS) Primary Price
Note:
[1] In this report, Northern industrial market refers to Hanoi, Hai Phong, Bac Ninh, Hung Yen and Vinh Phuc markets only.
[2] Prices exclude VAT and sinking fund. Price per sqm land = total unit value / size of the land plot on which the property is built.
[3] Official launch figures. Projects are considered as officially launched when the Sale Purchase Agreements are signed, typically upon infrastructure completion.
[4] Sale rate is end-of-period figure. 13
Source: JLL ResearchNorthern[1]
Industrial Land & Ready-built Factory (RBF) Market
No new supply entered the market in 1Q21
Land Price [2]
In 1Q21, no new supply in industrial land and RBF was introduced into the Northern market. The
USD 107 cumulative leasable land area in the market achieved at roughly 9,500 ha, while the total supply of
per sqm per lease term RBF stood at approximately 1.8 million sqm. Bac Ninh and Hai Phong dominated the total supply in
both sectors thanks to their strategic locations, strong footprints in the industrial market and
improving the business environment. RBF supplier has begun to adopt "The generation of
Industry 4.0 Factory” to better support users in facilitating RBF’s exercises. For instance, a “Virtual
Price Growth y-o-y factory” tool to provide clients with RBF virtual tour; or a “Customer service” app to keep clients up-
8.1% to-date with current operation at RBF in a more timely manner.
Occupancy rate remained healthy despite the new wave of Covid-19 infections
The third wave of Covid-19 pandemic swept out the Northern area in late January has led to the
postponement of new investments into the region, especially the lockdown in Hai Duong has
frozen most of the transactions in IPs in 1Q21. Nevertheless, thanks to the strong influx of FDI in
Stage in Price Cycle high-tech industries starting in 2H20, the average occupancy rate of IPs recorded a healthy rate,
Prices Rising reaching 75%, whereas occupancy rate of RBF stood at 98% in 1Q21.
Land price and rent reached a new high
Girven healthy demands, backed by Vietnam's strong industrial fundamentals; combined with IP
developers’ strong confidence in potential long-term investments, land price continued its
momentum to reach a new peak of USD 107 per sqm per lease term in 1Q21, up 8.1% y-o-y.
Meanwhile, RBF rents also showed an increasing trend, at 5.8% y-o-y, of which Bac Ninh recorded
the strongest growth rate of nearly 9% y-o-y fuelled by the launch of high-quality RBFs.
Rents[3] Outlook: Strong pipeline across the region
USD 4.5 Since technology conglomerates continue to eye Vietnam for production relocation, the demand
for industrial land and RBFs remains vibrant. To lure foreign investments, localities in the Northern
per sqm per month,
net on GFA area have shown strong commitment to promote IPs system, with roughly 10,500 ha of additional
supply in the future. In addition to existing markets, second-tier provinces like Hung Yen, Hai Duong
or further North of Hanoi like Bac Giang, Vinh Phuc are emerging as potential destinations for
foreign investors, fostering the rents in those areas to speed up at an expected y-o-y growth of
Rent Growth y-o-y
about 8-10%. In tandem, RBF market remains upbeat, with the expected new launch of roughly
5.8% 332,000 sqm RBFs by the end of 2021, predominantly in Hai Phong and Bac Ninh.
Figure 25: Industrial Land & RBF Total Stock Figure 26: Land Price and RBF Rents
(ha) (sqm) (USD/sqm/term) (USD/sqm/month)
5,000 8 150 6
4,000
Stage in Rent Cycle 6
100 4
Prices Rising
3,000
4
2,000
50 2
1,000 2
0 0 0 0
Hai Bac Hung Hai Ha Noi Hai Bac Hung Hai Ha Noi
Phong Ninh Yen Duong [3] Phong Ninh Yen Duong [3]
Industrial Land RBF(RHS) Land Price Factory Rent (RHS)
Note:
[1] In this report, Northern industrial market refers to Hanoi, Hai Phong, Bac Ninh, Hung Yen and Hai Duong markets only.
[2] The average land price excluding Infrastructure maintenance, service fees and VAT. Leasing term is the remaining years.
[3] Rents excluding VAT and service charges.
[4] Hanoi total supply excluding Hoa Lac High-tech Park owing to its special characteristics. 14
Source: JLL ResearchGeneral Terminology
Chain-linked change
The quarter-on-qu arter ch ange in th e chain-linked basis illustrates th e chan ge in rents o r prices in properties that existed in the basket
during two consecutive quarters. This is different f rom the standard spot chan ge series, which is a weigh ted av erage of all buildings in
the market at that given moment.
The chain-linked chan ge can be u sed across time to show more accu rately the lev el of ren t growth achieved in a stabilised asset that is
acquired and held over that time period.
Property Clock
The clock diagram illustrates where JLL estimates the stage of each property market within its individual ren t/price cycle as at the end
of the review quarter and help to signify the expected RV/CV movements in the short-term, meaning in the next one to two quarters.
The diagram is a convenient method of comparing the rel ative po sition of markets in their ren t/price cycle. Their po sition is not
necessarily representative of the investment o r developmen t market pro spects. Th eir po sition ref ers to the prevailing rent o r price
tren d and its expected movement in the n ext quarter. G enerally, it’s n ormal for markets to mov e from one stage to ano ther; there are a
couple of markets that have previously been swinging pretty wildly.
The Property Clock is divided into four pies:
Rents/Prices falling means the values are expected to start falling and the pace of fall is accelerating
Rents/Prices decline slowing, means the values are expected to still fall, although the pace is slowing down
Rents/Prices rising, means the values are expected to start rising and the pace of growth is accelerating
Rents/Prices growth slowing, means the values are expected to still grow but the pace is slowing down
Figure 27: Vietnam Property Clock, 1Q21
Hanoi Apartment
Hanoi Office GROWTH RENTS/PRICES
SLOWING FALLING
HCMC Office
HCMC Apartment
RENTS/PRICES DECLINE
RISING SLOWING
HCMC RBL
Southern, Northern Industrial Land
Southern, Northern RBF, RBW
HCMC Retail, Hanoi Retail
Source: JLL Research
15Terminology
Office market
Current supply
The total amount of cumulative office space (in NFA terms) that has been completed at a given time.
Future supply
The total amount of office space slated for completion in the future at a given time.
Vacant space
The to tal amount of av ailable office space that remains to be leased by the property owner(s) at a given time. This excludes space
available fo r sub-lease by ten ants (i.e., shadow space), space physically empty but al ready pre-l eased or reserv ed, and space to be
available for lease in the future.
Occupied space
Current supply less vacant space. “Net absorption” refers to the change in the occupied space from quarter to quarter.
Gross floor area (GFA)
The total amount of all covered areas including columns, walls, common passageways, lift, lobbies and toilets.
Net floor area (NFA)
The amount of usable floor areas excluding columns, walls, common passageways, lifts, lobbies and toilets. Net l ettable area o r n et
leasable area (NLA) refers to the amount of NFA that is available for lease.
Net rent
The amount of market rent receivable by landlords after deducting outgoings.
Market practices: Net rents may be quoted on an NLA or a GFA basis.
Outgoings
The estimated costs set aside by landlords for building maintenance that are passed on to tenants in the form of service charges or
management fees.
Market practices: Service charges/management fees may or may not be quoted separately from net rents.
Gross rent
The to tal achievable rent to be bo rne by ten ants, including service charges/management f ees. Gro ss rents equal n et ren ts plus
outgoings.
Market practices: Gross rents may be quoted on an NLA or a GFA basis.
Capital value
The market value or probable price of a property at a given time from a valuation point of view.
Yield
The percentage return on property investment at a given time from a valuation point of view. It is based on current market rents
assuming full occupancy.
Grade A
A Grade A property meets all of the f acto rs in a set of criteria regarding its off erings to a typical sophisticated occupier. Th ese criteria
are broadly concerned with the property’s overall profile, location, amenities, management standards and technical specifications.
Grade B
A Grade B pro perty meets some of th e facto rs in a set of criteria regarding its offerings to a typical sophisticated occupier. These criteria
are broadly concerned with the property’s overall profile, location, amenities, management standards and technical specifications.
Grade C
A Grade C property meets a set of criteria regarding its offerings to a typical non-sophisticated occupier. Th ese criteria are broadly
concerned with the property’s overall profile, location, amenities, management standards and technical specifications.Terminology
Retail market
Current supply
The total amoun t of cumulative modern (as opposed to traditional) retail space (in GFA terms) that has been completed at a given time.
This includes department stores, shopping centres and prime retail space.
Future supply
The total amount of modern retail space slated for completion in the future at a given time.
Vacant space
The total amoun t of av ailable modern retail space that remains to be leased by the property owner(s) at a given time. This excludes
space available fo r sub-lease by ten ants (i.e., shadow space), space physically empty but already pre-l eased or reserved, and space to
be available for lease in the future.
Occupied space
Current supply less vacant space. “Net absorption” refers to the change in occupied space from quarter to quarter.
Net leasable area (NLA)
The to tal amoun t of leasable floo r areas on which ren ts and service charges are based, which exclude common areas u sed for fo ot
traffic.
Net rent
The total achievable rent to be borne by tenants excluding service charges/managemen t fees and VAT.
Market practices: Net rents in the retail market are usually quoted on NLA basis.
Shopping centre
A shopping cen tre is a property housing commercial multi-branded rental units/sto res/establishmen ts and common areas. It is
planned, developed and operated. The property is classified in the hierarchy by function and/or size and by the area served.
Department store
Usually, a multi-level retail property varying in size f rom on e selling a variety of goo ds to one selling a full ran ge of different lines. A
distinctive featu re of a department sto re is that 90% of th e space is under a cen tralised paymen t system and it stocks a significant
number of cosmetics, fashion and household goods.
Supply Basket
A shopping centre is a landlord-developed and operated commercial project. Mo st of th e tenan t sto res hav e dividing walls and
frontage. A shopping centre operato r can lease ancho r space to department sto res/en tertainmen t operators/supermarkets and other
types of retail requiring large floor space.
Under shopping centre, we classified the retail centres in the hierarchy by function and/or size and by the area served as below:
Regional Shopping Centre
Specialty space of more than 30,000 sqm NLA o r 100 stores o r so specialty stores, anchored by one large department store and attract
more than 10,000 customers per day.
Super Regional Centre
Similarly defined as regional shopping centre, but comprising more than one department store.
Community Mall
Range of specialty space between 10,000-25,000 sqm NLA, housing 30 to 100 stores, which are mostly convenience and shopping
stores, targeting local residents.
Neighbourhood Centre
Similar features as community mall but smaller scale, housing 10 to 30 stores.
While Vietnam Retail market is widely diversified with a variety of product types including all types listed above, to stay relevant to our
target readers, since 1Q21 this report will cover Regional Shopping Centre, Super Regional Centre, Community Mall only.
Performance Basket
To ensure consistency in market performance observation, JLL selected 12 out of 40 retail center from Regional Shopping Centre,
Super Regional Centre, Community Mall to the occupancy rate and rental basket. All the demand-related indicators in this report refer
to Prime Mall if no further comments. The definition of Prime Mall was listed in our performance basket as below:
Prime Grade
Represent the High-quality retail space meeting v arious rigo rou s criteria fo r an excellent location & accessibility, developer reputation,
layout & ambience, management quality, and tenant mix.
Non-Prime Grade
Represents retail centres that do not meet our Prime Grade standards in terms of location & accessibility, developer reputation, layout
& ambience, management quality, tenant mix, or a combination.Terminology
Residential market
Commercial apartment for sale or Apartment for sale
The developer-built apartments that are available for sale widely on the market without any restriction on target buyers according to
the market mechanism.
According to JLL in-house classifica tion, the Vietnam apa rtment for sale market is ca tegorised as Lu xury, P remium, mid-end and
Affordable segments. The detailed classifications are provided on the following page.
Ready-built landed property for sale or Ready-built landed property
The dev eloper-built landed properties that are available for sale widely on the market without any restriction on target buyers
according to the market mech anism, where th e products comprise th e houses on their own grounds. The developers provide a land
plot with the necessary infrastructure, and the houses built based on the master plan and the design of the developer.
As per ma rket prac tices, there a re three types of Ready-buil t landed property, namely villa, townhouse and shophouse. The detailed
classifications are provided on the following page.
Branded residence
Refer to th e residential property available for sale on the market that is inco rporated with reco gnizable hotel-operato r brands.
Residences fo r sal e to individual buyers, which could be enjoyed for person al use o r pooled back into th e hotel’s ren tal pool as
investmen t vehicle. It could be eith er standalon e units, o r part of th e mixed-u se development f eaturing a ho tel compon ent. ef er to the
residential property available for sale on the market that is incorporated with recognizable hotel-operator brands.
Current supply
The total amount of supply available fo r sale, eith er throu gh the primary market o r the secondary market, rega rdless of construction
status.
Future supply
The total amount of supply to be launched for sale in the future.
Completed supply
The total amount of supply that has been physically completed and handed over for occupation. Also known as existing supply.
Uncompleted supply
The total amount of supply that h as no t been physically completed and handed over for occupation. Includes supply under
construction and supply planned for construction. Also known as supply in the pipeline.
Primary market
That part of the market comprising first-hand supply available for sale from developers.
Secondary market
That part of the market comprising second-hand supply available for resale from previous buyers.
Launches (Official launches)
The estimated amount of n ew supply (in units) officially launched for sale du ring a period. Projects are only considered as officially
launched when the Sale Purch ase A greements are signed, typically upon the completion of foundations fo r the apartmen t sector and
the completion of internal infrastructure according to the project schedule for Ready-built landed property.
Market practices: Many developers choose to launch their projects in phases which may or may not be publicly announced.
Take-up
The estimated amount of supply (in units) sold during a period. Includes sold units from new supply in the period and supply in
previous periods.
Market practices: Take-up may comprise units sold via capital contributions or sale and purchase agreements.
Total inventory
The total amount of unsold supply that has been launched for sale.
Cumulative sales rate
The percentage between cumulative units sold and cumulative units launched up to the specific time.
Primary asking price
The stock-weighted average asking price in the primary market.
Secondary asking price
The stock-weighted average asking price in the secondary market.
Non-chain-link changes
Q-o-Q and Y-o-Y changes include the effect of supply additions/removals.
Chain-link changes
Q-o-Q and Y-o-Y changes are adjusted to remove the effects of supply additions/removals.Terminology
Residential market (cont.)
Luxury apartment
A luxury property meets all of the facto rs in a set of criteria regarding its offerings to a typical local wealthy hou sehold. Th ese criteria
are bro adly concern ed with the property’s overall profile, location, facilities, amenities and management standards. A majority of
luxury properties are located in or near the CBD of the city under review.
Typical price range: > USD 3,500 per sqm, excluding VAT and sinking fund
Premium apartment
A premium property meets some of the f acto rs in a set of criteria regarding its off erings to a typical local wealthy hou sehold. These
criteria are broadly concerned with th e property’s ov erall profile, location, f acilities, amenities and management standards. A majority
of premium properties are located in new urban areas outside the CBD of the city under review.
Typical price range: USD 2,500–USD 3,500 per sqm, excluding VAT and sinking fund
Mid-end apartment
A mid-end property meets all of the factors in a set of criteria regarding its offerings to a typical local middle-class hou sehold. These
criteria are broadly concerned with th e property’s ov erall profile, location, f acilities, amenities and management standards. A majority
of mid-end properties are located within the inner districts of the city under review.
Typical price range: USD 1,200 – USD 2,500 per sqm, excluding VAT and sinking fund
Affordable apartment
An affordable property meets some of the f acto rs in a set of criteria regarding its offerings to a typical local middle-class household.
These criteria are broadly concern ed with th e property’s ov erall profile, location, f acilities, amenities and management standards. A
majority of affordable properties are located in the outer districts of the city under review.
Typical price range: < USD 1,200 per sqm, excluding VAT and sinking fund
Note: The p ric e ranges provided above should not be understood as the sole and u tmost c riterion based on which p rojects a re assigned
grades.
High-end apartment: including Luxury and Premium segments
Low-end apartment: including mid-end and Affordable segments
Villa
A large and luxurious country house on its own grounds, generally having a maximum of three floors. The plot ratio is usually less than
70%, with a focus on a green area.
Most popular villas are located on 200-300 sqm land plots. Some luxury villa plot areas may reach 500-1,000 sqm.
The popular construction area/Gross Floor Area (GFA) is about 250-350 sqm while the land plot is large. For that reason, all things
equal, the selling price per square metre of land is lower than that of townhouses.
Typically, there are two types of villa, as shown below:
− Detached villa: a single villa built on private land
− Semi-detached villa: a single villa built as one of a pair that shares one common wall; often, each house layout is a mirror
image of the other
Townhouse
A tall, narrow terraced house, generally having three or more floors. The plot ratio is usually more than 70% and is focused on the
construction floor area.
Most popular townhouses have plot areas of 60-100 sqm
The popular construction area/Gross Floor Area (GFA) is about 150-250 sqm
Shophouse
A townhouse opening on to the pavement for commercial purposes.
The construction and design are similar to those of townhouses. The popular construction area/Gross Floor Area (GFA) of
shophouses is about 250-400 sqm, with the upper 3-4 floors for living purposes and the ground floor (or middle floor, if applicable)
for commercial purposes. It is larger than a townhouse.
In one project, all things equal, the selling price per square metre of land is higher compared to townhouses because usually, in
one project, shophouses have better locations and wider street frontage compared to other landed property units, for commercial
purposes.
Note: The product classification provided above should not be understood as the sole and utmost criterion based on which projects are
assigned types.
Integrated project
Refers to a n eighbourh ood o r township dev elopmen t with mixed-u se componen ts such as, residential , retail, institution, leisu re and
more where residents can live, wo rk and pl ay. It comprises multifunctional and interconnected buildings, which focus on the
surrounding environment to ensure harmonious ‘street-scape’ and architecture.
Market practices: As the Vietnam real estate market is g radually maturing, a su stainable wholesome living environment is an important
factor for buyers to consider. Based on our real esta te expertise, the suitable size of an integ rated development should be in exc ess of 5ha
to ensure commercial viable facilities.You can also read
