Residential index up in Hanoi but down in HCM City

The residential index rose sharply in Hanoi in the first quarter of 2024 but dropped slightly in Ho Chi Minh City, according to a recent report released by property consultancy firm Savills Vietnam.

In Ha Noi, the residential index saw a significant increase of 8 points quarter-on-quarter to 142.5, representing a substantial 37% rise since the third quarter of 2019, with average prices at VND44 million ($1,728) per sq m net sellable area (NSA).

Conversely, Ho Chi Minh City’s residential index declined to 123 due to project suspensions and weakened consumer confidence.

Regarding the office sector, the Grade A office occupancy in Hanoi remains stable at 88%, indicating resilience and potential for future growth, according to the report.

Meanwhile, in Ho Chi Minh City, the office index experienced a slight uptick to 98 points, driven by higher rents and strategic developments, suggesting cautious optimism amidst economic uncertainties. The occupancy rate slipped by 1 percentage point quarter-on-quarter and 4 percentage points year-on-year to 90%.

The absorption in Hanoi reached 41% in the reviewed period, up 15 percentage points quarter-on-quarter. The absorption rate in HCM City, however, was down 18 percentage points to 23%.