| Vietnam Commercial Property Market |
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The Vietnam commercial property market is currently recovering from the global financial market crisis. Demand and availability varies across the different grades of office space but further increases in confidence of local and foreign companies will cause upward pressure on the Vietnam commercial property market. Following is information on the Vietnam commercial property market and the comprehensive services provided by Healy Consultants: | ||||
1.
| In Vietnam, foreigners are permitted to invest in the Vietnam commercial property market by forming i) a joint venture company with a local partner ii) a wholly foreign-owned company iii) a Build, Operate and Transfer (BOT) company or one of its variants.
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2.
| Real estate agents in Vietnam’s two biggest cities are optimistic about property prices with almost half believing they are set to see a mini boom in coming months A survey by research firm Vietnam Report, shows that 43% of agents in Hanoi and Ho Chi Minh City said that real estate prices in big cities would surge, while the rest said they are likely to remain unchanged. | |||
3.
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Savills Vietnam indicates that the commercial rental market is near bottom. It is predicted that Grade A rentals would start to increase in early 2011 at a steady pace and the Grade B rate would take longer to recover because of ample supply. | |||
4.
| Grade A office supply is low according to Savills and average rents in 2009 saw a significant decline of 19% quarter-on-quarter (q-o-q). Lower grade property has been more severely affected. However, Office supply is expected to grow significantly in Ho Chi Minh City by 2011 with new office blocks in various Ho Chi Minh City areas. The main growth areas for new office buildings in HCM City are in suburban areas such as District 7, Binh Thanh and Tan Binh.
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5.
| The legal atmosphere in Vietnam has increasingly been put under the microscope as they step on to the world stage, this has lead to improving legal framework and greater transparency. The foreign investment environment has matured and will continue to assist the real estate market in Vietnam. | |||
6.
| With few malls in Vietnam, there is limited competition in this retail sector for global brands. However, with a relatively young population
and the changes to regulations governing foreign ownership of Vietnam commercial property, popular international brands are being attracted to the opportunities in Vietnam. As support to this, A.T. Kearney's Annual List of Most Attractive Emerging Market Retail Destinations had Vietnam on top of their survey. Vietnam leaped from fourth in 2007 to be ahead of India, Russia and China. | |||
7.
| Healy Consultants assists international entrepreneurs and investors have peace of mind over their Vietnam commercial property market investment by providing efficient property management services. Such services include: | |||
i)
| Arranging for reliable contractors to undertake any property maintenance requirements. | |||
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| Organizing property insurance for the commercial premises to secure structure and contents of the client's new asset. | |||
iii)
| Determining what security measures are required and implementing these to protect the premises, employees, company hardware and IT requirements. | |||
iv)
| Appointing and supervising an experienced agent to manage the process of finding tenants. | |||
Contact Us | ||||
For further information on Vietnam commercial property market, please contact us at our Singapore office at (+65) 67350120 or email us at email@healyconsultants.com
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