DKRA: Hospitality real estate still in favor

New supply and absorption see rapid rises in Q2 according to consultants DKRA.

New supply and absorption for hospitality properties in the south of Vietnam saw a dramatic change in the first half of this year, both for ocean villa and condotel products, according to real estate consultants Danh Khoi A Chau (DKRA)’s Ho Chi Minh City Residential Real Estate Q2/2019 report released recently. The report also reviewed elsewhere in the southern region.

Southern real estate market in Q2

DKRA: Hospitality real estate still in favor

The southern market welcomed six new hospitality projects in the second quarter, supplying 1,734 ocean villas, up eight-fold against the first quarter. The rate of new supply reached 93 per cent (1,614 units), an increase of 19-fold. This supply came mainly from a major project in south-central Binh Thuan province, which alone accounted for about 68 per cent of supply and about 87 per cent of the market’s primary absorption.

For condotels, DKRA Vietnam recorded three new condotel projects for sale to the market with 3,824 units, equaling 218 per cent quarter-on-quarter and 164 per cent year-on-year. The absorption rate reached 74 per cent, equal to 217 per cent quarter-on-quarter. This is the best number in more than two years. Primary supply and absorption rate are concentrated mainly in coastal cities and provinces of Binh Thuan, Khanh Hoa, and Da Nang.

Ho Chi Minh City’s real estate market in the second quarter received plentiful new supply in the hospitality real estate segment, with a positive absorption rate. Townhouses and villas saw slight growth, while the land segment was maintained at a stable level, with not many signs of sudden changes. Supply of apartments continued its downward trend and reached a new bottom since 2016.

DKRA Vietnam’s figures show 12 projects providing 2,559 apartments in the second quarter of 2019, including three new projects and nine existing projects implementing subsequent phases, equal to 95 per cent of the previous quarter, 29 per cent year-on-year, and 22 per cent of the same period in 2017. New supply is at its lowest level for four years, since 2016. Absorption of new supply reached 80 per cent (about 2,047 units), equal to 88 per cent quarter-on-quarter and 28 per cent year-on-year.

The Grade A and B apartment segments continued to account for a large proportion of new supply in Ho Chi Minh City. The east and the south of the city are still leading in new supply and the absorption of new supply. Secondary trading was quite good, with average selling prices increasing 5-7 per cent quarter-on-quarter due to pressure from a long-lasting supply shortage.

Forecasts for 2H 2019

 
DKRA: Hospitality real estate still in favor

According to DKRA Vietnam, land plots will continue to be the top investment selection channel. New supply may increase but not exceed 2018.

In the apartment segment, supply and demand may increase but will be not strong. The east and south still account for a large proportion of supply. Grade A and Grade B apartments continue to lead the market, while the supply of Grade C apartments is scarce when there are not many new projects ready to the market.

Da Nang, Khanh Hoa, Phu Quoc Island, and Binh Thuan are still familiar destinations for hospitality real estate investments. Following the momentum from the second quarter, the supply of ocean villas and condotels in the next six months will increase.

The integrated resort model has received great attention from customers, in which the townhouse / shophouse segment is well received by the market. VN Economic Times

Hong Nhung

Vietnam real estate firms issue bonds to raise capital

Vietnam real estate firms issue bonds to raise capital

As the State Bank of Vietnam (SBV) has ordered tight control over real estate loans by credit institutions, property firms and developers have to seek alternative ways to raise their capital.

EVFTA gives Vietnam’s industrial real estate market a lift

EVFTA gives Vietnam’s industrial real estate market a lift

The EU-Viet Nam Free Trade Agreement (EVFTA) will have a positive impact on Viet Nam's real estate market, especially the industrial real estate, experts said.  

 
 

Other News

.
Vietnamese artists talk about live streaming performances
Vietnamese artists talk about live streaming performances
FEATUREicon  30/08/2020 

Many notable artists discuss the advantages and disadvantages of the online theater trend with VietNamNet.

Veteran diplomats remember Vietnam’s 75 years of diplomacy
Veteran diplomats remember Vietnam’s 75 years of diplomacy
FEATUREicon  29/08/2020 

Senior diplomats who have directly contributed to many milestones of the diplomatic sector shared valuable industry lessons at a recent seminar "75 years of Vietnamese diplomacy: Lessons and direction”.

Vietnam’s position in the eyes of a Japanese scholar
Vietnam’s position in the eyes of a Japanese scholar
FEATUREicon  30/08/2020 

Vietnam’s upper class, whose net worth is invested in more than $30 million, has increased to 13 percent in the past five years, surpassing 10,000 people.

It is impossible to impose human rights criteria of one country on another: NA member
It is impossible to impose human rights criteria of one country on another: NA member
FEATUREicon  31/08/2020 

Major General Nguyen Thanh Hong, standing member of the National Assembly's National Defense and Security Committee, told VietNamNet that the Law on Cyber Security was created to ensure human rights and citizenship.

Freedom on the Internet must ensure human rights in cyberspace
Freedom on the Internet must ensure human rights in cyberspace
FEATUREicon  28/08/2020 

Vietnam’s consistent view is not to prohibit the development of Internet, but its 'reverse side', which is contrary to cultural identity, national customs and traditions, and hinders social development.

Korean woman impressed with free Internet services in Vietnam
Korean woman impressed with free Internet services in Vietnam
FEATUREicon  27/08/2020 

On Youtube, Kim Hye Ri, a former student at the Vietnamese studies faculty, Korea University of Foreign Languages said that she used to think South Korea was paradise for Internet and wifi, but she changed her thinking after a visit to Vietnam.

Meeting with PM Phan Van Khai opens way for Internet to enter Vietnam
Meeting with PM Phan Van Khai opens way for Internet to enter Vietnam
FEATUREicon  26/08/2020 

The Internet was introduced to Vietnam quite late compared to other countries in Southeast Asia. 

Breaking the monopoly: key to the power industry development
Breaking the monopoly: key to the power industry development
FEATUREicon  25/08/2020 

Vietnam needs an electricity power policy under which the market rules, investors make a profit, and the poor can afford electricity.

Aviation traditions crumble as airlines take on new restructuring approaches
Aviation traditions crumble as airlines take on new restructuring approaches
FEATUREicon  29/08/2020 

It is undeniable that the aviation industry has contributed greatly to the development of the global economy, accounting for roughly 3.6 per cent of total global GDP. 

Baby on the way, long jump champ Thao eyes competition
Baby on the way, long jump champ Thao eyes competition
FEATUREicon  29/08/2020 

Vietnam’s top long jumper Bui Thi Thu Thao is about to become a mother, but she already has her sights set on competing next year.

Stone collectors with valuable objects of prehistoric time
Stone collectors with valuable objects of prehistoric time
FEATUREicon  22/08/2020 

For the past 30 years, Van Dinh Thanh has travelled widely to collect ancient stones, which have helped scientists and ordinary people understand more about prehistoric times.

The highs and lows of Hanoi Chairman Nguyen Duc Chung
The highs and lows of Hanoi Chairman Nguyen Duc Chung
FEATUREicon  20/08/2020 

Hanoi Peopel's Committee Chairman Nguyen Duc Chung, who has been suspended from duties, over the years has engaged in a number of memorable activities and made impressive statements as the Hanoi Police Director and Hanoi Mayor.

Are live-streaming theater performances viable?
Are live-streaming theater performances viable?
FEATUREicon  23/08/2020 

The pandemic crisis has had a devastating effect on the performing arts. Watching theater, opera, and dance without leaving home sounds promising and is a good way to support artists. The show must go on…line!

Vietnam raises contributions to global effort to respond to climate change
Vietnam raises contributions to global effort to respond to climate change
FEATUREicon  07/08/2020 

The updated NDC of Vietnam identifies mitigation measures for the 2021-2030 period, and strategic adaptation tasks and measures to minimize damage caused by climate change that are specific to each sector.

Young people involved in Vietnam’s fight against COVID-19
Young people involved in Vietnam’s fight against COVID-19
FEATUREicon  04/08/2020 

Young Vietnamese at home and abroad are striving to contribute to the country’s fight against COVID-19 in their own way, believing that everyone has a role to play for the sake of their homeland.

From member to chair: 25 years of Vietnam in ASEAN
From member to chair: 25 years of Vietnam in ASEAN
FEATUREicon  28/07/2020 

Vietnam became the seventh member of the Association of Southeast Asian Association of Nations (ASEAN) on July 28, 1995, marking a milestone in the country’s integration into regional affairs as well as in regional co-operation.

Footsteps on a well-worn path
Footsteps on a well-worn path
FEATUREicon  03/08/2020 

Visitors to the Ho Chi Minh Museum on Ngoc Ha Street in Hanoi are able to take home a special, very Vietnamese souvenir -- rubber sandals made from old car tyres.

National dress deserving of UNESCO recognition
National dress deserving of UNESCO recognition
FEATUREicon  02/08/2020 

Some years ago, Tran Doan Lam, director of the World Publishing House, felt a little uneasy when attending an event during a business trip abroad, where delegates were asked to wear their national costume.

Vietnam – a proactive, responsible and leading member of ASEAN
Vietnam – a proactive, responsible and leading member of ASEAN
FEATUREicon  28/07/2020 

Since becoming a member of ASEAN 25 years ago, Vietnam has developed into an important member of the group and has significantly contributed to elevating the bloc’s position and consolidating the centrality of ASEAN within the region.

Former enemies heal the wounds and become friends
Former enemies heal the wounds and become friends
FEATUREicon  28/07/2020 

In March 1968, Ho Dai Dong and Stephens Nash Edmunds were on two sides of the battle in Chu Tan Kra Mountain.

 
 
 
Leave your comment on an article

OR QUICK LOGIN