Hanoi Real Estate Market Insights Q3 2022 (EN)

Q3 2022 in Review

Grade B welcomes a new office project in the West area (Cau Giay District, 22,000sqm NLA), resulting in a slight increase in average rents and vacancy rates in Grade B segment.

HANOI OFFICE MARKET

Market Performance, Hanoi Office, Q3 2022

Improvement in both rents and occupancy rates across both grades

Vacancy rates in Grade B are rising as market welcomed a new building.

Flight to Quality

Vacancy rates in Grade A

CBD are rising as tenants relocated from older Grade

A buildings in the CBD to newer buildings elsewhere, while rents in all areas tend to rise slightly,

Market Performance, Hanoi Office, Grade A, By Cluster, Q3 2022

HANOI OFFICE MARKET

HANOI OFFICE MARKET

Net Absorption, Hanoi Office, Q3 2022

Net Absorption Remains Moderate

Due to Limited New Supply

HANOI OFFICE MARKET

Notable Transactions by Purposes, Hanoi, Q3 2022

Rising Desire For Expansion

Market Performance, Hanoi Office, 2019 – 2023F

Retail Market

HANOI RETAIL MARKET Hanoi Retail, Asking Rents, Q3 2022

HANOI RETAIL MARKET

Breitling

The 1st Boutique Flagship stores in Vietnam

61 Ly Thai To, Hoan Kiem, Hanoi September 2022

56 Trang Tien, Hoan Kiem, Hanoi September 2022

Berluti

The 1st store in Vietnam

57 Ly Thai To, Hoan Kiem, Hanoi September 2022

Marc Jacobs

HANOI RETAIL MARKET

Aeon MaxValu Supermarket

Lyn – Fashion Accessories

Uniqlo Fashion

Jumbo Seafood F&B

Boutique Coffee

F&B

Tops Market Supermarket

HANOI RETAIL

HANOI RETAIL MARKET

HANOI RETAIL MARKET

Market Performance 2022 – 2024F, Hanoi Retail Market Outlook

HANOI RETAIL MARKET

Market Outlook Consumer experience a top priority Inflationary pressures may dampen outlook

Prime assets to remain well sought after

With limited new supply and demand for prime locations remaining firm, space in city centres and along prime high streets will remain keenly sought-after in the coming time.

Physical retail stores will focus on facilitating consumer experience by integrating in-store utilities and enhancing online order fulfilment capabilities, a trend already evident within the F&B sector

Concerns about challenges and inflationary pressures in the coming time may affect the recovery of retail sector as costs of raw materials, production costs and consumer goods prices expect to increase further, affecting consumer spending and consumer confidence especially for non-necessities.

Residential Market

Hanoi Condominium:

Snapshot

new supply allows for

absorption during the quarter albeit primary prices

to set new heights.

Research

Primary Price: US$

regardless of being

(excluding

during the

and quoted on

for

during the

HANOI

HANOI RESIDENTIAL MARKET

New Supply from Highend Segment Surpassed Mid-end’s for Three Consecutive Quarters

Most of products in township developments offered in high-end price range

Condominium, New Launch, Q3 2022

No new affordable project launched over the past 5 quarters

Luxury High-end Mid-end Affordabl e Ultra Luxury

Source: CBRE Vietnam Research & Consulting, Q3 2022

High-end segment covered 61% of new launch in 9M 2022

Condominium: Secondary Prices Continued to Increase at a High Rate for Three

Consecutive Quarters

This is the third consecutive quarter that the market recorded annual secondary price growth of 9% and above –higher than the period before 2021 when the movements were typically between 2-4% yo-y.

Source: CBRE Vietnam Research & Consulting, Q3 2022

*Average Secondary Price: US$ psm (excluding VAT and quoted on NSA). This index tracks all projects available for sales during the review quarter, regardless of being launched during the quarter or previously.

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HANOI RESIDENTIAL MARKET

Condominium: Sold Units

Sustained at a Similar Level to New Launch

Absorption remains on par with supply volume, but both numbers lagged behind pre-COVID levels.

Condominium, Sold Units, Q3 2022

Source: CBRE Vietnam Research & Consulting, Q3 2022

Condominium Projects

Property Project

Market Outlook

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RESIDENTIAL MARKET

Landed Property: New Launch Supply Remained at a High Level

Similar to previous quarter, Q3 2022 also recorded a significant large volume of new units launched, the majority of which came from the launch of Vinhomes Ocean Park 2 (VHOCP2) – The Empire.

Units launched from VHOCP2 during Q2 and Q3 alone was almost 89% of the total units launched over the 4-year period from Q1 2018 to Q1 2022. Out of the new launches, townhouses accounted for the largest proportion of 53%.

Landed Property, New Supply, 2018 - 2022

VS.

HANOI RESIDENTIAL MARKET

Landed Property: Primary Prices on the Rise

primary prices of Q3 2022 recorded significant increases due to several new launches coming from high-end projects and by reputable developers (such as Vingroup, Bitexco).

HANOI RESIDENTIAL MARKET

Hanoi Landed Property, Villa Secondary Price Index by District, 2018 - 2022

Landed Property: Secondary Prices also Climbed Up Significantly

Secondary prices remained its upward trend over the past 4 years, indicating strong demand of investors for landed products, along with the prominent future investment value of the properties.

HANOI RESIDENTIAL MARKET

Landed property, New launch vs Sold Units, 2018 - 2022

Landed Property: Strong Market Absorption

Q3 2022, together with Q2 2022, recorded a significant amount of sold units compared to previous quarters, following strong launching volume from mostly Vinhomes Ocean Park 2 –The Empire project.

Landed Property: Market Outlook

The upward trend in secondary price is expected to continue but at a slower pace especially as macro factors are shifting quickly. New supply volume will moderate after 2022, but expects to remain at a high level compared historically.

HANOI RESIDENTIAL MARKET

Thank