JLL optimistic about Vietnam real estate market in 2016

The highest representatives of the Group of Jones Lang Lasalle (JLL) Vietnam - Stephen Wyatt, general manager, said that the real estate market in 2016 will remain positive.

Stephen Wyatt analyzed in first 3 months of 2016, although GDP growth rate is lower than the same period in 2015, but generally still higher than the 2011-2014 period. It is still too early to say the economy has leveled off this year or not, because the economic growth of Vietnam is characterized by rising towards the end of the year.

In addition, FDI disbursement as well as new subscribers in the 1st quarter of 2016 increased over the same period last year shows that Vietnam continues to be attractive destinations for foreign investors.

Specifically, in Q1-2016 there are 40 countries and territories investing in Vietnam, in which South Korea takes the lead with 513 million registered capital, followed by Singapore with 449 million and Taiwan with 386 million dollars. Real estate is the second largest sector in attracting FDI with total registered capital of nearly US $ 240 million from 11 projects.

Tourism activities have a very good start with the number of international visitors to Vietnam reached a record: more than 2.4 million in the quarter, up 19.9% ​​compared to the same period of 2015. In particular Chinese visitors to increase to 65.9% Vietnam over the same period last year, the number of tourists from South Korea rose 30%. The market benefited from visa-free policy grew from 6% - 28% in the quarter 1-2016.

These positive signals have a positive impact on the operations of most of the real estate segment. On the housing market, both HCMC and Hanoi are continuously reported positive operating results when there are nearly 20,000 apartments open new units in the quarter, the total volume of apartments sold approximately 18,000 units also - an impressive figure compared to a few years ago.

It can be seen that the market is continuing 1-2016 quarter trading trends of 2015, many of the projects recorded sales rate reached 90% right out of the sale. Apartment price continued to rise 1-2% QoQ. "We believe the market is still developing in this direction in the near future," said Stephen Wyatt assessment.

On the office market, in both cities, the amount of absorption area are closed higher, with many successful transactions in the quarter with over 1,000m2 area each lease. In the next 12 months, JLL said that due to the central office supply is quite limited, so the office relocation to suburban areas will continue. Office rents forecast tends to increase at the central location.

The retail market will be more difficult due to the competition between domestic retailers and international as well as a new supply of competitive pressure are stiffer for the existing retail centers. In 2016, the market is expecting more in the presence of Takashimaya, one of the leading retailers from Japan, promises to bring a new experience for shoppers Vietnam.

"The real estate market Vietnam has experienced nearly 25 years of development with various ups and downs. Currently, the market is growing and maturing at a faster rate than ever before. The parties to the market from project developers, investors and banks to the authorities of the state are more alert and careful in every action and its role.

JLL quite confident in the development of real estate market in the near future, and specifically in 2016 will continue to be a promising year despite difficulties ", the highest representative of JLL Vietnam confirmed.

(According to Tuoi tre online)