Southeast Asia Outlook 2024

Southeast Asia Outlook 2024: Opportunity Beckons

CUSHMAN & WAKEFIELD

MARKET STATISTICS

OFFICE (GRADE A&B)

RETAIL (SHOPPING CENTER)

LOGISTICS (GREATER HANOI)

RESIDENTIAL (HIGH-END, LUXURY CONDOS)

84,927

99,486

10,677

Selling Price 6,930,526 psf

Rents Q4 2023 (VND psf pm) 2024 Forecast

X X

X

X

X

X

14.6%

11.9%

29.0%

1,345 units

Vacancy Q4 2023 2024 Forecast

X X

X X

Current Inventory (million sf)

1.1

12.9

22.6

15,825 units

VIETNAM: HANOI MARKET SNAPSHOT

Pipeline Supply (million sf)

0.1

5.7

8.7

22,207 units

Pipeline supply over Current Inventory Ratio

11.9%

44%

39%

140%

X X

Capital Value Outlook 2024

ECONOMY

X

X

X

X

• Vietnam is expected to see robust GDP growth in 2024 with strong foreign direct investment into the country. • Given the expected entries of new Grade A supply across Hanoi, tenants may capitalize on this opportunity to upgrade their office space. • Greater Hanoi’s industrial & logistics sector continued to benefit from the investment wave from large manufacturers, as a part of their supply chain diversification.

Source: Cushman & Wakefield Research

RECENT SIGNIFICANT DEALS

PROPERTY NAME

PROPERTY TYPE

Price (mil USD) / US $PSF

NET YIELD (%)

BUYER

SELLER

DATE

Binh Minh Investment and Trading Development Joint Stock Company Minh Quang Industrial Development Joint Stock Company

Retail Project at Hanoi

USD 50.2 million

Keppel Corporation

Retail

-

Q3 2023

CAPITAL MARKETS ANALYSIS

1. OFFICE: Stable. Most existing and prospective Grade A projects are in the Non-CBD area due to limited land bank in the CBD. The western urban area has been attracting investment interest in commercial sector. 2. RETAIL: The western urban districts are a promising area for retail, especially after the recent launching of a large-scale premium project which attracted more than 20 new brands in Vietnam. At least 2 other retail projects have also been planned in this area by 2030.

3. LOGISTICS : The main focus is still on IP land thanks to their competitive price and available land bank. Several international developers and institutional funds quickly expanding their RBF/RBW portfolio to utilize the investment wave from large manufacturers. 4. RESIDENTIAL: The average primary price is expected to continue to rise due to the lack of new apartment supply and the rise in material cost. Buyers’ cautious mindset regarding unstable market sentiment may drive the vacancy rate to increase.

Khai Toan Joint Stock Company, Boustead Singapore

USD 10.7 million

Land at Yen Phong

Industrial

-

Q4 2023

Land at My Thuan Industrial Zone

Dai Phong Joint Stock Company

Quanta Computer

Industrial

-

-

Q4 2023

Source: RCA, Cushman & Wakefield Research

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