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Trends that shape VN property market

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Toong’s 68 To Ngoc Van office in Tay Ho district’s in Hanoi in 2016. Flexible workspaces are becoming more popular. VIET NAM NEWS

Trends that shape VN property market

THE Vietnamese real estate market remains strong this year since the economy continues to grow robustly and there is a lot of investment flowing into infrastructure, thus attracting both domestic and foreign investors.

According to real estate and investment management services firm Jones Lang Lasalle (JLL), the mid-priced and affordable segment will dominate the market this year.

In Ho Chi Minh City, the supply of finished apartments in all segments has reached 160,000 units, corresponding to a rate of 17 apartments per 1,000 people.

“If this rate is high, we should invest in high-end apartments, but if this is low, we should focus on the mass housing market. This is the segment with real demand for apartments,” said JLL Vietnam director-general Stephen Wyatt.

At the same time flexible workspaces are becoming more and more popular around the country, largely due to the limited supply of traditional office space in sought-after locations.

Flexible workspaces up

The market is still in its infancy though the first serviced office, Regus, has been operating since 1999.

Flexible space is often considered the answer to small companies and start-ups’ needs rather than traditional offices because of reduced costs due to sharing space and facilities.

With the strong growth in e-commerce, JLL predicted technology companies would continue to hunt for ideal office buildings and quickly become the main tenant category, providing an opportunity for investors who can build offices in time to keep up with demand.

For technology companies, their office location must be able to attract talent and have convenient transportation with live-work-play facilities integrated into the surrounding environment.

“The logistics industry will grow along with e-commerce,” Wyatt pointed out.

In Vietnam, online shopping activities are increasing in step with the rapid growth of smartphones and 4G networks.

There is thus increasing pressure on logistics systems, supply chains, distribution and retail channels, and factories and warehouses.

Compared to other countries in its neighbourhood, Vietnam’s logistics market is still in its infancy.

The final trend, a “hotel” lifestyle, is expected to be popular with millennials, or people born between 1980 and 2000.

People of this generation are unlikely to stay with their parents and prefer to have their own space. VIET NAM NEWS/ANN

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