GDP growth reached 6.9%, the highest 9M/2018 growth in eight years. In 2018, the government forecast GDP growth to reach 6.7 percent. Manufacturing and processing grew 13% YoY and continued to be a key GDP contributor.

Strong export momentum continued up 15% YoY to US$179 billion, delivering a US$5.4 billion trade surplus. The US remains the largest export market with US$35 billion, increasing 13% YoY.

Total registered FDI reached over US$25 billion, while FDI disbursement increased 6% YoY to US$13.3 billion with Japan being the largest contributor.

CPI growth was well controlled at 3.6%, approximately 4% under the limit.

International visitors strongly grew 23% YoY to 11.6 million, Asian tourists continued to be the main source market.

  1. RETAIL: RENT CONTINUES TO RISE

Total stock was over 1.3 million m², up 2% quarter-on-quarter (QoQ) and 4% year on year (YoY) due to the entry of one shopping centre and one retail podium providing 27,400 m².

Average ground floor gross rent increased 4% QoQ and 12% YoY whilst occupancy was stable QoQ and up 1 ppts YoY. The shopping centre segment had the most improved performance YoY.

In the last quarter of 2018, nine new projects will provide 68,400 m². In 2019, eight projects suppling 319,500 m² will come online.

2. OFFICE: INCREASING GRADE A PERFORMANCE IN THE CBD

Total stock was nearly 1.7 million m², up 3.4% QoQ and 6.7% YoY with the entrance of one Grade B project. Over the past five years, stock has grown 7.2% pa.

Average gross rent increased 0.2% QoQ and 5.4% YoY whereas average occupancy was down -0.2 pptsQoQ and up 0.8 ppts YoY. Grade A buildings in the CBD saw upsurges in rent and occupancy despite weaker performance in other areas. Grade B is the only sector with increases in both rent and occupancy.

In Q4/2018 there will be six new projects supplying 109,000 m²; most are fitting out and located in the West. In 2019, 145,000 m² from 17 new projects will enter.

For more information, click 09102018 – Savills Vietnam reports on Hanoi real estate market Q32018 and  09102018 – Savills Việt Nam báo cáo tình hình thị trường BĐS Hà Nội Q32018


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