HCMC office building market sees partial recovery

Grade A office rents in Ho Chi Minh City continued to slip in the third quarter but that of grades B and C increased for the first time since the end of 2009, real-estate consultancy CB Richard Ellis reported.

While average rent for grade A offices fell to US$36.70 per square meter per month from $37.51 in the second quarter, it rose from $19.3 to $20 for grade B offices.

The total area leased in the 3rd quarter was 62,000 sq. m, taking the total for the year to 194,000 sq. m, or higher than in the whole of 2009 when the number was around 154,500 sq. m.

HCMC’s economic recovery, which remains on track, is persuading companies to move to large office buildings.

Banks, schools, and service providers are among the main customers for grades B or C in the downtown area.

Although eight new grade C and one grade B buildings opened in the 3rd quarter with more than 63,000 sq. m of space, the rate is still climbing. On the other hand, no new grade A building came into the market but the rental is still falling.

Another reason for the declining demand and rent for grade A offices is the competition from some tenants who buy space in the buildings at preferential prices and lease it out at 15-35 percent lower than the building owners.

Though the economic recovery will mean higher demand for office space in the coming future, rates will decrease as a result of huge supply coming into the market.

In the final quarter of this year alone, 100,000 sq. m will be available, including at the Bitexco Financial Tower which will have 37,000 sq. m of grade A space.

In the next three years, 1.2 million sq. m of new office space for lease will be available.

Old buildings will face tough competition and, though many are planning to upgrade, will find it hard to maintain current rentals.

Related Articles

• Robust economic recovery in East Asia, says WB
• Swiss businesses eye Hanoi market
• PM foresees bright future for co-operation with Africa
• Market moves up sharply
• Government vows to bail out insolvent shipbuilder Vinashin

Landlords fight for new tenants

HCM CITY — Landlords in HCM City will vie with each other during the third quarter in offering better leasing deals including rent and amenities, according to the latest market review published by real estate firm CBRE.

The firm received 28 per cent more enquiries in the third quarter than the second, but more than 43 per cent of these were for spaces 150 sq.m and smaller, the review says.

The company estimates that around 1.2 million square meters of office space will be put in use over the next three years in the city.

Project owners will face a challenge from long-term tenants of large areas who plan to re-rent a part of their space at prices between 15-35 per cent lower than the standard ones, CBRS associate director of research and consulting Rudolf Hever, said at a press conference on Monday.

He also said (2,000-5,000sq.m) grade C buildings in prime locations would continue to be popular because their value and long-term lease would help tenants have greater control over their investment.

There were no new grade A office buildings on offer during the third quarter, but rents for the segement reduced lightly to a monthly average of US$36.7 per sq.m, which Hever said was due to higher demand for grade B and C spaces.

One grade B building and eight new grade C buildings came on line in the third quarter, providing a total of 63,180sq.m. — VNS

Related Articles

• PM lauds police for keeping public order
• Party reports come in from provinces
• Vietnam says no to foreign military base
• Liverpool change hands after 'penalty shootout'

Vietnam real estate market offers more affordable options

The local residential market is undergoing a positive development: affordable housing is on the rise, according to the consulting firm CB Richard Ellis.

In a report released on Tuesday, the firm found that a wave of low-cost housing projects broke ground in Hanoi during the third quarter revealing a movement toward more affordable residential options.

The report authors also said that a new regulation (which caps the proportion of units sold via capital contribution contracts at 20 percent) is expected to help the market by enhancing transparency, placing pressure on developers with low financial capabilities, reducing the threat of price bubbles, and limiting speculative forces.

In the third quarter, the market was quieter with fewer new projects launched. Only 1,950 units were added to the market compared to last quarter’s 4,600 units, the report indicated.

The capital city expects to see the launch of 3,000 units in the fourth quarter, bringing total new supply in 2010 to nearly 16,000 units, it said. Following the opening and improvement of major infrastructure routes, western and southern districts are attracting new residents with easier access to core urban districts.

‘Pent-up demand’

Meanwhile, the fastest-growing segment of the real estate market in Ho Chi Minh City is also affordable homes.

“Twelve affordable projects were launched in the third quarter with asking prices ranging between US$563 and $923 per square meter,” CBRE said in a separate report, released on Wednesday.

“Despite the up-tick in inflation seen in the third quarter, the base of Vietnam’s economy is strong,” said Marc Townsend, managing director of CBRE Vietnam.

Commenting on the trend toward the affordable segment of the market, Rudolf Hever, associate director of Research and Consulting, said it’s clear that “as the Vietnamese economy continues to grow, and incomes increase, there is pent-up demand from people who were previously priced out of the market.”

He said the government has made a lot of effort to support the residential property market, including measures to increase transparency and increase the availability of loans.

“All these efforts work together, encouraging prospective home buyers to look at new and existing developments as a realistic option,” said Hever. “As these affordable projects achieve critical mass, the availability of facilities and amenities in these areas will increase too.”

Related Articles

• Vietnam real estate market offers more affordable options
• Viet Kieu begin to invest in VN property market
• Sacomreal to list 100 million shares in Vietnam, chairman says
• Amid a flood of mall space, retail hits the skids
• Market moves up sharply

Vietnam real estate market offers more affordable options

The local residential market is undergoing a positive development: affordable housing is on the rise, according to the consulting firm CB Richard Ellis.

In a report released on Tuesday, the firm found that a wave of low-cost housing projects broke ground in Hanoi during the third quarter revealing a movement toward more affordable residential options.

The report authors also said that a new regulation (which caps the proportion of units sold via capital contribution contracts at 20 percent) is expected to help the market by enhancing transparency, placing pressure on developers with low financial capabilities, reducing the threat of price bubbles, and limiting speculative forces.

In the third quarter, the market was quieter with fewer new projects launched. Only 1,950 units were added to the market compared to last quarter’s 4,600 units, the report indicated.

The capital city expects to see the launch of 3,000 units in the fourth quarter, bringing total new supply in 2010 to nearly 16,000 units, it said. Following the opening and improvement of major infrastructure routes, western and southern districts are attracting new residents with easier access to core urban districts.

‘Pent-up demand’

Meanwhile, the fastest-growing segment of the real estate market in Ho Chi Minh City is also affordable homes.

“Twelve affordable projects were launched in the third quarter with asking prices ranging between US$563 and $923 per square meter,” CBRE said in a separate report, released on Wednesday.

“Despite the up-tick in inflation seen in the third quarter, the base of Vietnam’s economy is strong,” said Marc Townsend, managing director of CBRE Vietnam.

Commenting on the trend toward the affordable segment of the market, Rudolf Hever, associate director of Research and Consulting, said it’s clear that “as the Vietnamese economy continues to grow, and incomes increase, there is pent-up demand from people who were previously priced out of the market.”

He said the government has made a lot of effort to support the residential property market, including measures to increase transparency and increase the availability of loans.

“All these efforts work together, encouraging prospective home buyers to look at new and existing developments as a realistic option,” said Hever. “As these affordable projects achieve critical mass, the availability of facilities and amenities in these areas will increase too.”

Related Articles

• Vietnam real estate market offers more affordable options
• Viet Kieu begin to invest in VN property market
• Sacomreal to list 100 million shares in Vietnam, chairman says
• Amid a flood of mall space, retail hits the skids
• Market moves up sharply

Domestic firms gain confidence in business outlook: survey

Domestic firms are pinning high hope on business outlook since Vietnam’s business confidence index (BCI) bounded back in the third quarter, up three points over the last quarter and 37 points against the third quarter in 2008.

The survey, conducted by Vietnam World Vest Base Financial Intelligence Services and PetroVietnam Finance Investment and Consultancy Co, was carried out on 262 companies in 11 domestic key industries, of which over 70 percent were medium and small-sized businesses.

The result signaled a recovery and improved investment potential for Vietnam’s economy in the near future, compared with the first six months of the year.

Over 70 percent of them believed that Vietnam's economy was better than a year ago and nearly 73 percent of businesses believe their profits will rise in the next 12 months. The number of businesses who were optimistic about the prospects for profit growth was around 10.8 percent in the first quarter’s BCI survey.

About 77.23 percent of surveyed enterprises surveyed said that the general economy of Vietnam is now better than the previous 12 months.

When asked to make a forecast about the country’s economy in the next 12 months, 84.35 percent of those interviewed said the economy would be better and none believed they would see a worse economy than during the past six months.

Compared with the second quarter, the number of optimistic businesses increased by 7.19 percent and that of pessimistic ones decreased by 1.85 percent.

As many as 60 percent would increase their employment and invest more in fixed assets while 72 percent believed that their revenues and profits would rise in the next 12 months, the survey said.

But the number of businesses who were worried about revenues and profits were up 0.06 percent and 1.96 percent over the last quarter.

The result also showed that many domestic businesses were still concerned about the adverse effects to their business operations of inflation and fluctuations in the exchange rate between the US dollar and Vietnamese dong.

Related Articles

• Asia travel industry has bright outlook: Abacus CEO
• Market moves up sharply
• Foreign sea leases deprive locals of living
• New Metro wholesale center starts up in Binh Dinh
• PM sets agenda for insolvent shipbuilder

Domestic firms gain confidence in business outlook: survey

Domestic firms are pinning high hope on business outlook since Vietnam’s business confidence index (BCI) bounded back in the third quarter, up three points over the last quarter and 37 points against the third quarter in 2008.

The survey, conducted by Vietnam World Vest Base Financial Intelligence Services and PetroVietnam Finance Investment and Consultancy Co, was carried out on 262 companies in 11 domestic key industries, of which over 70 percent were medium and small-sized businesses.

The result signaled a recovery and improved investment potential for Vietnam’s economy in the near future, compared with the first six months of the year.

Over 70 percent of them believed that Vietnam's economy was better than a year ago and nearly 73 percent of businesses believe their profits will rise in the next 12 months. The number of businesses who were optimistic about the prospects for profit growth was around 10.8 percent in the first quarter’s BCI survey.

About 77.23 percent of surveyed enterprises surveyed said that the general economy of Vietnam is now better than the previous 12 months.

When asked to make a forecast about the country’s economy in the next 12 months, 84.35 percent of those interviewed said the economy would be better and none believed they would see a worse economy than during the past six months.

Compared with the second quarter, the number of optimistic businesses increased by 7.19 percent and that of pessimistic ones decreased by 1.85 percent.

As many as 60 percent would increase their employment and invest more in fixed assets while 72 percent believed that their revenues and profits would rise in the next 12 months, the survey said.

But the number of businesses who were worried about revenues and profits were up 0.06 percent and 1.96 percent over the last quarter.

The result also showed that many domestic businesses were still concerned about the adverse effects to their business operations of inflation and fluctuations in the exchange rate between the US dollar and Vietnamese dong.

Related Articles

• Asia travel industry has bright outlook: Abacus CEO
• Market moves up sharply
• Foreign sea leases deprive locals of living
• New Metro wholesale center starts up in Binh Dinh
• PM sets agenda for insolvent shipbuilder

Vietnam’s business confidence index rebounds

Vietnam’s business confidence index (BCI) rebounded in the third
quarter, up three points over the last quarter and 37 points against the
third quarter in 2008.

The survey was conducted by Vietnam World Vest Base Financial
Intelligence Services (WVB FISL) and the PetroVietnam Finance Investment
and Consultancy Company (PVFC Invest).

After
surveying 262 companies in 11 key industries of the country (of which
over 70 percent were medium and small-sized businesses), the result
signalled a recovery and improved investment potential for Vietnam’s
economy in the near future, compared with the first six months of the
year.

When asked to make a forecast about the
country’s economy in the next 12 months, 84.35 percent of those
interviewed said the economy would be better and none believed they
would see a worse economy than during the past six months.

Compared with the second quarter, the number of optimistic businesses
increased by 7.19 percent and that of pessimistic ones decreased by
1.85 percent.

As many as 60 percent would increase
their employment and invest more in fixed assets while 72 percent
believed that their revenues and profits would rise in the next 12
months, the survey said.

However, over the last
quarter, the number of businesses who were worried about revenues and
profits were up 0.06 percent and 1.96 percent, respectively.

The result also showed that many domestic businesses were still
concerned about the adverse effects to their business operations of
inflation and fluctuations in the exchange rate between the US dollar
and Vietnamese dong./.

Related Articles

• Chambers of commerce join hands for cutting red tape
• Biogas project to provide green energy
• Foreign sea leases deprive locals of living
• Int’l arrivals in high season recover in uncertainties
• PM sets agenda for insolvent shipbuilder

Hanoi commercial property booms

The Hanoi real estate market saw optimistic development in the third quarter and the growth trend is expected to continue to the end of this year, Savills Vietnam real estate agent reported Tuesday.

"Good economic recovery in the third quarter helped the office and retail sectors in the property market," said Pham Thanh Son, Savills Vietnam economics expert.

Hanoi 's office occupancy rate average increased to 91 percent, a 4 percent jump, in the second quarter, according to Savills associate director and head of research and consultancy Tran Nhu Trung.

The average occupancy rate in the city's shopping centres remained high at 94 percent and many new shopping centres opened in this quarter.

The serviced apartment sector average dipped slightly to 91 percent from 92 percent in the third quarter but average rental rates increased by 0.4 percent to US$26 per sq.m per month, Trung said.

Son reported challenges to credit acquisition for the capital property market, which include depreciating dong, high interest rates for loans and Decree 71, which contributed to a decline in mobilised capital.

Son also asserted that the increased price of gold and the higher exchange rate attracted more investors to the financial market so available capital for property projects has declined.

Related Articles

• Banks expected to reduce interest rates
• Banks scramble for mid-level managers
• Vietnam’s banks asked to lower deposit rates to 11 pct
• IFC: Vietnam needs to increase PPP to support economy
• PM sets agenda for insolvent shipbuilder

Hanoi commercial property booms

The Hanoi real estate market saw optimistic development in the third
quarter and the growth trend is expected to continue to the end of this
year, Savills Vietnam real estate agent reported on Oct. 5.

"Good economic recovery in the third quarter helped the office and
retail sectors in the property market," said Pham Thanh Son, Savills
Vietnam economics expert.

Hanoi 's office occupancy
rate average increased to 91 percent, a 4 percent jump, in the second
quarter, according to Savills associate director and head of research
and consultancy Tran Nhu Trung.

The average occupancy rate
in the city's shopping centres remained high at 94 percent and many new
shopping centres opened in this quarter.

The serviced
apartment sector average dipped slightly to 91 percent from 92 percent
in the third quarter but average rental rates increased by 0.4 percent
to 26 USD per sq.m per month, Trung said.

Son reported
challenges to credit acquisition for the capital property market, which
include depreciating dong, high interest rates for loans and Decree 71,
which contributed to a decline in mobilised capital.

Son
also asserted that the increased price of gold and the higher exchange
rate attracted more investors to the financial market so available
capital for property projects has declined./.

Related Articles

• Parkson to manage Saigon Paragon shopping mall
• Banks scramble for mid-level managers
• Thousands await relocation
• Greenback firmer on signs of rising demand
• Good response to reforms of People's Councils

Ha Noi commercial property booms

HA NOI — The Ha Noi real estate market saw optimistic development in the third quarter and the growth trend is expected to continue to the end of this year, Savills Viet Nam real estate agent reported yesterday.

"Good economic recovery in the third quarter helped the office and retail sectors in the property market," said Pham Thanh Son, Savills Viet Nam economics expert.

Ha Noi's office occupancy rate average increased to 91 per cent, a 4 per cent jump, in the second quarter, according to Savills associate director and head of research and consultancy Tran Nhu Trung.

The average occupancy rate in the city's shopping centres remained high at 94 per cent and many new shopping centres opened in this quarter.

The serviced apartment sector average dipped slightly to 91 per cent from 92 per cent in the third quarter but average rental rates increased by 0.4 per cent to US$26 per sq.m per month, Trung said.

Son reported challenges to credit acquisition for the capital property market, which include depreciating dong, high interest rates for loans and Decree 71, which contributed to a decline in mobilised capital.

Son also asserted that the increased price of gold and the higher exchange rate attracted more investors to the financial market so available capital for property projects has declined. — VNS

Related Articles

• Hanoi commercial property booms
• Hanoi T&T win first V-League after scoreless draw
• NA Chairman cuts inaugural ribbon at Hanoi Museum
• Chau Doc’s curried fish vermicelli: Bun nuoc ken
• Saigon-Hanoi charity caravan heads north

Computer market grows 19 percent

The Vietnamese computer market is predicted to see a year-on-year increase of 19 percent thanks to a dramatic increase in laptop sales, according to market research firm International Data Corporation (IDC).

In the second quarter of this year, computer sales marked a 12 percent increase on Q1, the IDC reported.

The increase was attributed to Vietnamese consumer preferences for laptops rather than desktop based PCs, it said.

In Q2, the number of laptops imported to Vietnam rose by a dramatic 38 percent over Q1, and 33 percent over the same quarter last year.

Laptop sales in the second quarter totalled 462,407, the corporation said.

It believes that the start of the new school year in August, combined with sales promotions, would give computer manufacturers a well-needed shot in the arm, ensuring that they were likely to achieve their turnover targets.

With manufacturers looking to clear old models, free accessories and big discounts are likely to be offered to consumers, it said.

The brand-name laptop market grew 38 percent in the second quarter, with Dell, HP, Acer, Lenovo and Asus doing well.

Dell became the market leader for the first time, with an 11 percent share of the market thanks to efficient distribution and competitive prices.

HP cut imports due to high stock levels and was second with a 10.5 percent market share. They were followed by Acer with 9.9 percent, Lenovo with 5.1 percent, and Asus with 4.8 percent. While the laptop market recorded good business results, the PC market showed a distinct downturn.

In the second quarter, the IDC reported, only 273,101 PC units were imported, down 8 percent over the first quarter, just a 1 percent increase compared with the same period last year.

It said almost all computer companies had recently faced challenges caused by lower demand and over-stocking of personal computers.

This would become more serious when demand dropped, and Government projects cut IT spending.

IDC spokeswoman Phan Yen said the Vietnamese computer market in the first half of this year had faced many challenges because of lower demand, which was predicted to slacken towards the year-end.

The recent depreciation in the dong was not likely to help matters, she added.

 

Related Articles

• Intel to fund high-tech computer lab at RMIT
• Vietnam more competitive in global market: report
• Market moves up sharply
• Credit card growth sluggish despite incentives
• Credit sluggish as banks prefer bond purchases

Computer market grows 19 percent

The Vietnamese computer market is predicted to see a year-on-year
increase of 19 percent thanks to a dramatic increase in laptop sales,
according to market research firm International Data Corporation (IDC).

In the second quarter of this year, computer sales marked a 12 percent increase on Q1, the IDC reported.

The increase was attributed to Vietnamese consumer preferences for laptops rather than desktop based PCs, it said.

In Q2, the number of laptops imported to Vietnam rose by a
dramatic 38 percent over Q1, and 33 percent over the same quarter last
year.

Laptop sales in the second quarter totalled 462,407, the corporation said.

It believes that the start of the new school year in August, combined
with sales promotions, would give computer manufacturers a well-needed
shot in the arm, ensuring that they were likely to achieve their
turnover targets.

With manufacturers looking to clear old
models, free accessories and big discounts are likely to be offered to
consumers, it said.

The brand-name laptop market grew 38 percent in the second quarter, with Dell, HP, Acer, Lenovo and Asus doing well.

Dell became the market leader for the first time, with an 11 percent
share of the market thanks to efficient distribution and competitive
prices.

HP cut imports due to high stock levels and
was second with a 10.5 percent market share. They were followed by Acer
with 9.9 percent, Lenovo with 5.1 percent, and Asus with 4.8 percent.
While the laptop market recorded good business results, the PC market
showed a distinct downturn.

In the second quarter,
the IDC reported, only 273,101 PC units were imported, down 8 percent
over the first quarter, just a 1 percent increase compared with the same
period last year.

It said almost all computer
companies had recently faced challenges caused by lower demand and
over-stocking of personal computers.

This would become more serious when demand dropped, and Government projects cut IT spending.

IDC spokeswoman Phan Yen said the Vietnamese computer market in the
first half of this year had faced many challenges because of lower
demand, which was predicted to slacken towards the year-end.

The recent depreciation in the dong was not likely to help matters, she added./.

Related Articles

• Intel to fund high-tech computer lab at RMIT
• Vietnam more competitive in global market: report
• Touchscreen chipmakers tap tablet boom
• Touchscreen chipmakers tap tablet boom
• Market moves up sharply