savills portfolio

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ABOUT SAVILLS IRS SERVICE OUR PORTFOLIOMARKET OUTLOOK PURCHASE GUIDELINE

S A V I L L S

PORTFOLIOresidential sales

Welcome

OUR TEAM

Dear Valued Client,

We are pleased to present Savills Residential Portfolio showcasing mid to high-end residential developments in Ha Noi together with in-depth analysis and a broad range of market insights.

Ha Noi Real Estate is forecast for further opportunities in 2021 and beyond. The Government’s commitment to business and economic stability was underlined by the swift pandemic response which led to Viet Nam being one of the few economies with GDP growth in 2020.

We hope you find our Savills Residential Portfolio useful. Savills is the leading full service Real Estate consultancy in Vietnam. From investment to development and management advisory to fully supporting private buyers we provide all our clients thorough support throughout. Your property investment decision will be backed up by Savills data, research and advisory insights that provide the bigger picture - Vietnam Real Estate development continues and not just in Residential. There are capital growth opportunities in the leading economy in Asia. This is a good time to make your move. To find out more, give us a call on +84 96 356 1661 or email: [email protected].

Looking forward to speaking with you.

Matthew PowellDirectorSavills Hanoi

Mr. Matthew PowellDirectorSavills Hanoi

+84 90 640 7475

[email protected]

Mr. Them, Nguyen DucSenior ManagerInternational Residential Sales

+84 93 638 9238

[email protected]

Mr. Linh, Nguyen VietSales ConsultantInternational Residential Sales

+84 97 636 8897

[email protected]

4

TABLE OF CONTENTS

PORTFOLIO | RESIDENTIAL SALES

Contents

ABOUT SAVILLS& IRS TEAM

06

OUR SERVICES

14

KEY PROJECTS

MARKET OUTLOOK

18

42

NEW RESIDENTIALHOUSING LAW

38

MARKET HIGHLIGHT

08

LOCATION MAP

16

INVESTMENT TIPS

SALES ACTIVITIES

36

44

TAX & FEES

40

ABOUT SAVILLS & IRS TEAM

PORTFOLIO | RESIDENTIAL SALES6

SAVILLSSavills is a global real estate service provider, offering specialized advice, management and transactional services. We are established throughout Americas, Europe, Asia, Africa and the Middle East, with over 600 offices across the world.

The International Residential Sales celebrates its 5th anniversary in 2020 and continues to be the premier service for international buyers looking to invest in Vietnam. Vietnam introduced new housing laws in 2015, relaxing regulations for foreigners looking to own residential properties. Investors recognized the value of the teams’ ability to provide consultation in various languages in addition to the full range of property investment related services. We have assembled our team by bringing on some of the most talented, knowledgeable, and professional individuals who are committed to exceeding client expectations. Our team consists of English, Korean, Chinese, Japanese and Vietnamese native speakers.

Savills Vietnam is the longest running property consultancy in Vietnam, establishing itself here since 1995. In Vietnam alone, Savills has 2,000 employees across the country, making it the largest property consultancy company.

SALESTEAMinternational

vietnam

MARKET HIGHLIGHT


MAR

KET

HIG

HLI

GH

TH

A N

OI

NEWS

SERVICED APARTMENT

APARTMENTS

HOTEL

VILLAS & TOWNHOUSE

TOTAL SUPPLY3,360 km2

FDI: US$3.72 billionGRDP: US$44 million (+ 3.98% YoY)CPI: + 2.67% YoY

8.1 millionSource: General Statistics Office

Source: Hanoi Institute for Socio - Economic Development Studies

Source: Savills Vietnam Research

Foreign investors pump over US$28.5 billion into

Vietnam in 2020.

Ha Noi Metro Line2 & 3 conducts debut

trial run.

In 2021, Hanoi is expected to focus on urban planning and development, at the same time allocating

resources to address issues of climate change andenvironmental pollution.

The UKFTA agreement brings many

commercial benefits to Vietnam and the UK.

Vietnam is one of the few Asian countries where we

continue to forecastpositive growth.

US$25/m2/month

US$1,480/m²

US$70/night (Q4/2020)

US$4,300/m²

US$4,830/m²

US$8,000/m²

Rental price

Average asking price in 2020

Average room rates

Villa average primary price

Townhouse average primary price

Shophouse average primary price

Rents in grade A and C were up while those in grade B softened.

Average primary prices remain stable during the pandemic.

There were signs of recovery in Q4 about international visitors.

SERVICED APARTMENTS

HOTEL

APARTMENTS

VILLA/ TOWNHOUSE

4,620 units

5,380 units (+ 17% YoY)

9,950 rooms

10,020 rooms (+ 2% YoY)

29,200 units

27,100 units (- 19% YoY)

1,853 dwellings

1,546 dwellings (+ 20% YoY)

H1.2020 H2.2020

S

MARKET HIGHLIGHT


DAI MO

BAC TU LIEMDISTRICT

TAY HODISTRICT

CO LOA

BAC NINHPROVINCE

XUAN DINH

RED

RIV

ER

DUO

NG

RIVER

HOANG MAIDISTRICT

THANH XUANDISTRICT

HA DONGDISTRICT

TO HUU

TRAN PHU

TAM

TR

INH

PHA

P VA

NLINH NAM

ME TRI

TAY

MO

PHUC LA

NATIONAL HIGHWAY 32

THANG LONG BOULEVARD

LONG BIENDISTRICT

GIA LAMDISTRICT

WEST LAKE

CHUONG

DUONG

BRIDGE

DO

NG

TRU

BRIDG

E

NH

AT

TAN

BR

IDG

E

THA

NG

LO

NG

BR

IDG

E

VINH T

UY

BRIDGE

THANH T

RI

BRIDGE

DONG DADISTRICT

BA DINHDISTRICT

CAU GIAYDISTRICT

HAI BA TRUNGDISTRICT

NAM TU LIEMDISTRICT

HOANKIEMDISTRICT

NH15

NH23

AH14 NH23

HW07

NH3

HW07

HW07

NH3

SOUTH THANG LONG INDUSTRIAL ZONE

KIM CHUNG NUA

NH

AT TA

N - N

OI B

AI R

OU

TE

NOI BAI AIRPORT

HW01

NH1A

NH1A

NH1B

NH18

NH18

NH18

NH2A

AH14

DO DUC D

UC

LE D

UC

TH

O

THA

NH

NIE

N

PHAM

HUNG

NG

HI TAM

XUAN DIEU

KIM MA

LIE

U G

IAI

CAT LINHHAI BA TRUNG

LE T

HA

NH

TON

G

HW01

To Noi BaiInternationalAirport

DIS

TRIC

T O

VERV

IEW

HA

NO

IHOAN KIEM: This is central Ha Noi, home to the largest local and foreign companies, financial institutions, and famous tourist destinations. This district commands the highest per square meter prices in Ha Noi.

CAU GIAY: One of the top performing areas in Ha Noi, home to numerous Grade A office buildings and prestigious institutions. The District will also benefit from the under-construction Metro Line 3 and the highly anticipated ring road 3 together with the Thang Long Bridge upgrade. Cau Giay District is planned as the new CBD of Ha Noi.

BA DINH: The political centre of Ha Noi and Viet Nam, formerly called the "French Quarter" for its numerous French-styled buildings, some of which now house foreign embassies. Most government offices and key organisations are located here.

TAY HO: Located in north central Ha Noi. Close proximity to the city centre, airport, and the famous West Lake. This District has extensive high-end residential areas, hotels and serviced apartments serving the largest population of expatriates in Ha Noi.

DONG DA: One of the four original urban districts of Ha Noi. Bordered by Ba Dinh to the north, Hoan Kiem to the northeast, Thanh Xuan to the south, and Cau Giay District to the west. One of the most populous Districts of Ha Noi, home to various enterprises, prestigious universities; and multiple cultural sites.

NAM TU LIEM: Formed in late 2013, when rural Tu Liem District was split into two urban districts: Bac Tu Liem and Nam Tu Liem. Becoming known for its many new urban and office developments this is also becoming a preferred HQ location for large-scale businesses. Major event centres in the District include My Dinh National Stadium, and the upcoming F1 Track.

THANH XUAN: Although mostly residential, Thanh Xuan District also has several universities. It also has one of the biggest shopping malls and entertainment centres in Ha Noi. The under-construction Metro Line 2 leads directly to the airport.

HA DONG: previously the capital city of the former Ha Tay Province, in 2018 this district had the second highest population of all Ha Noi Districts. Extensively invested in transport infrastructure including Metro Line 2. Expats are gradually shifting to this area as living standards improve and more job opportunities crop up.

HOANG MAI: The largest residential area in Ha Noi, where life moves at a much slower pace than in the city centre. This family-friendly district is designed for modern living with its wide selection of landed properties and high-end residential compounds. Extensive amenities, shopping facilities, and some great international schools.

Savills Vietnam International Sales team is able to assist you in finding the ideal property in Ha Noi.

MARKET HIGHLIGHT


KEYFINDINGS

2020 ends with activity increasing as confidence returns. The pandemic slowed international visitors. However, local demand remains steady, particularly for affordable units. Developers have started focusing on the suburbs and surrounding provinces.

SIGN OF RECOVERYNew supply of approximately 5,500 units from ten launches and the next phases of eight existing projects was up 79% QoQ but down -59% YoY. Primary supply of 27,100 units was up to 1% QoQ, but down -19% YoY.

Pent-up demand has supported performance. Total sales of nearly 6,700 were up 27% QoQ with average absorption of 25% up 5 ppts QoQ. Performance improved in Grades B and C.

Annual performance affected by the pandemic saw sales decreasing -43% YoY to their lowest in 5 years. Grade B with 64% of sales remained the lead performer.

INFRASTRUCTURE BOOSTEDUnit prices are set to benefit further from infrastructure upgrades. Average asking prices have increased 4% pa over the last five years. Infrastructure development eases living farther out. The Metro and ring roads when complete will see this trend accelerate. The framework for Public-Private Partnerships framework was simplified in 2020. Political stability and speedier decision making will see greater spending on key infrastructure projects. The GSO estimates for every 1 ppt increase in public investment, GDP moves up 0.06 ppts.

OUTLOOKIn 2021, approximately 25,000 units from 25 projects launches and two next phases will enter. Grade B with 78% will continue to lead. Leading suppliers will be Tu Liem district with 57% of supply, Hoang Mai and Gia Lam districts with 12% each.

Real estate investment activities have new brand names entering and others expanding portfolios in Viet Nam. Proptech development and growth is being driven by momentum in the real estate market.

Do Thi Thu HangSenior DirectorAdvisory ServicesSavills Hanoi

APARTMENT SEGMENT

OUR SERVICES


AN INTERNATIONAL PROPERTY INVESTOR?

Maximize your property’s value and manage the transaction smoothly with full services for purchase and ownership of property.

Savills.com.vn+84 96 356 [email protected]

INTERNATIONALRESIDENTIAL SALES YOUR VIETNAMPROPERTY EXPERT

English, Korean and Vietnamese speaking sales consultant

Help arrange client’s schedule for Vietnam property site tour

Act as liaison between banker and client for bank opening process

Instruct clients how to purchase properties in Vietnam

Follow up client with payment schedule

Assist client for handover

Connect client with other Savills’ services such as resident leasing, resales service solutions

Are you

LOCATION MAP


BAC TU LIEMDISTRICT

TAY HODISTRICT

XUAN DINH

RED

RIV

ER

RE

D R

IVE

RHOANG MAI

Yen SoStation

Yen NghiaStation

DISTRICT

THANH XUANDISTRICT

HA DONGDISTRICT

TO HUU

TRAN PHU

TAM

TRIN

H

PHAP

VAN

LINH NAM

ME TRI

TAY M

O

DAI MO

PHUC LA

NATIONAL HIGHWAY 32

THANG LONG BOULEVARD

LONG BIENDISTRICT

GIA LAMDISTRICT

WESTLAKE

CHUONG

DUONG

BRIDGED

ON

G TRU

BRIDG

E

NHAT TAN

BRIDGE

VINH T

UY

BRIDGE

THANH T

RI

BRIDGE

DONG DADISTRICT

BA DINHDISTRICT

CAU GIAYDISTRICT

HAI BA TRUNGDISTRICT

NAM TU LIEMDISTRICT

HOANKIEMDISTRICT

LOUIS CITYHOANG MAI

ECOPARK

LANDMARK 72

EUROWINDOWRIVERPARK

THE MANORCENTRAL PARK

Ring Road 3

Ring Road 2

Metro Line 2

Metro Line 3

Cat LinhStation

Xuan ThuyStation

NhonStation

To Noi BaiInternationalAirport

KEY PROJECTS


THE NINE09 PHAM VAN DONG, CAU GIAY DISTRICT, HA NOI

INTERNATIONAL RESIDENTIAL SALES+84 96 356 [email protected]

PROJECT INFORMATION

Developer: GP.INVEST

Scale: 3 basement levels 6-level Retail & Office podium 24 residential levels with 350 apartments

Unit type: 2-bedroom units (75 - 87 m2) 3-bedroom units (91 - 162 m2)

Expected Handover: Q1/2022

Ownership: Freehold for Vietnamese buyers 50-year ownership for foreigners

Being at a strategic gateway on Pham Van Dong street, The Nine owns a very con-venient location in the heart of the West of the capital. Besides having 6 floors of commercial areas, within walking distance from the project, there are also many

public amenities such as shopping malls, MRT Line 3 station, grade A offices, etc.

Located on the Ring Road 3Only 200m to Ha Noi Metro Line 3 stationSurrounded by extensive and modern infrastructureReputable developer with building experiencesShopping centre and grade A officeSky garden, Gym -Sauna, Basketball court, Kindergarten and Fine-dining restaurant

(from the issue date of Ownership Certificate)

KEY PROJECTS


Developer: Trung Thuy Group

Scale: 4 basement levels 27-level tower with 252 apartments

Unit type: Studio (42.99 - 49.19 m2) 2-bedroom units (89.53 - 90 m2) 3-bedroom units (103.72 - 104.29 m2) Dual key units (89.53 – 89.79 m2)



PROJECT INFORMATION


Convenient location intersecting Ba Dinh, Dong Da, and Cau Giay District boundaries makes for easy connection with major city roads, surrounding areas and the airport. This luxury project

converges modern design, premium utilities, and services, with a clear legal framework. Developed by prestigious investor, Trung Thuy Group, Lancaster Luminaire promises ideal living in the heart of Ha Noi.

In a complex with shopping mall and officesModern single boutique building designHigh quality Property Management from Lancaster brandOnly 200m to Ha Noi Metro Line 3 station 1150 – 1152 LANG ROAD, DONG DA DISTRICT, HA NOI

LANCASTER LUMINAIRE

KEY PROJECTS


Developer: MIK GROUP

Scale: 4 basements Two 44-level towers with 740

Unit type: 2-bedroom units (85.88 - 86.85 m2) 3-bedroom units (110.57 - 112.44 m2) Dual key units (111.67 m2)



PROJECT INFORMATION


Close to Chau Van Liem and Thang Long Highway, The Matrix One occupies a super-premium site located at the heart of the new administrative and commercial centre of Ha Noi. The project is also nearby leading-edge education and healthcare

facilities, and great shopping.

Direct panoramic views of the Me Tri ParkPremium apartments with high-quality handover specificationsFacilities: gym, dance studio, yoga, sauna, spa, pool, water fountain, sky garden, kindergarten and international school

ME TRI RD & LE QUANG DAO RD INTERSECTIONNAM TU LIEM DISTRICT, HA NOI

THEMATRIXONE


apartments

KEY PROJECTS


KINGPALACE 108 NGUYEN TRAI, THANH XUAN DISTRICT, HA NOI

PROJECT INFORMATION

Developer: ALPHANAM GROUP

Scale: 3 basement levels Two 36-level towers with 410

Unit type: 2-bedroom units (81 - 82 m2) 3-bedroom units (95.73 - 126.27 m2)



King Palace is located right next to Metro Lines 2 station and Hanoi Royal City - one of the largest commercial complexes in the capital. The project is well supported by new infrastructures, helped travelling

easier to the main districts.

24/7 Reception & ServicesShops & Offices

Gym and outdoor pool Maple Bear Canadian Preschool


apartments


KEY PROJECTS


Developer: BRG GROUP

Scale: 5 basement levels Two 35-level residential towers 662 apartments

Unit type: 2-bedroom units (43.5 - 47 m2) 3-bedroom units (61 - 68 m2) 4-bedroom units (74.6 - 79.8 m2)



BRGDIAMONDRESIDENCE 25 LE VAN LUONG ROAD, THANH XUAN DISTRICT, HA NOI

PROJECT INFORMATION


The BRG Diamond Residence is a twin-tower mixed-used complex located at the intersection of Le Van Luong and Hoang Dao Thuy Streets. This dynamic and emerging area has multiple amenities nearby the project.

Only 15 minutes driving to the CBDLocated on the arterial route of the Western areaReputable developerAll facilities at your doorstep: 5-level shopping mall, Supermarket, BBQ Garden, Sky Bar, Pool and playgrounds, Restaurants, cafes, gym and sauna


KEY PROJECTS


Developer: MASTERISE HOMES

Scale: 6 residential towers with 27 - 33 floors 3837 apartments

Unit type: 1-bedroom units (43.5 - 47 m2) 2-bedroom units (61 - 68 m2) 3-bedroom units (74.6 - 79.8 m2)



PROJECT INFORMATION


Masteri Waterfront is a prime located subdivision of the Vinhomes Ocean Park project adjacent to 2 main traffic routes of the project. Developed by leading HCMC investor Masterise Homes.

Pools and luxury loungesA 6.1ha salt-water beach Gym, Yoga, Spa, Sauna, and Beauty SalonShopping Mall and Cinema

VINHOMES OCEAN PARK, GIA LAM DISTRICT, HA NOI

MASTERIWATERFRONT


KEY PROJECTS


Mipec Rubik360 occupies a leading Ha Noi location with immediate access to Ring Road 2, 2.5 and 3. The project provides high standard living with many resident focused facilities complemented by thoughtful apartment designs

which optimize natural light and living space.

Event, wedding palaceInternational schoolOutdoor swimming pool

10 sky gardensCommunity squareOnly 100m to Ha Noi Metro Line 3

MIPEC RUBIK360 122 – 124 XUAN THUY ROAD, CAU GIAY DISTRICT, HA NOI

PROJECT INFORMATION

Developer: MIPEC GROUP

Scale: 3 basement levels 2 adjoining 35-level towers with

Unit type: 2-bedroom units (53.3 - 85 m2) 3-bedroom units (94.1 - 109.8 m2) 4-bedroom units (123.5 m2)



976 apartments



KEY PROJECTS


Developer: UDIC LTD.

Scale: 2 basements 3 towers with 17, 20 and 23 floors 408 apartments

Unit type: 22-bedroom units (84.3 - 85 m2) 3-bedroom units (116 - 126.27 m2) 4-bedroom units (147.9 - 168.10 m2)

Expected Handover: Available now

Ownership: Freehold for Vietnamese Buyers 50-year ownership for foreigners

PROJECT INFORMATION


Udic Westlake Apartment overlooks the West Lake in Tay Ho District on Vo Chi Cong Street, a key road connecting to Noi Bai Airport and central Ha Noi. The project has a full range of internal amenities.

As part of a complex in Ciputra Nam Thang Long urban area, there are also many public facilities nearby.

Three-level shopping mall20 shophouses for daily essentialsIndoor Pool and GymUp to 4,500 m2 of green areaWestlake panorama view LOT CT04, CIPUTRA URBAN AREA PHASE III, TAY HO DISTRICT, HA NOI

UDIC WESTLAKE



INVESTMENT TIPS

36

GUIDELINE

INVESTORS IN VIETNAM

for

Full services for purchaseand ownership of apartment

5

2 Sign Deposit Agreement

Payment according to schedule

Visit Vietnam & Open a Bank Account

Help arrange client’s schedule for Vietnam tripAccommodation recommendation

“Places to go” in Vietnam recommendation

Act as liaison between banker and client for bank opening process

Help clients prepare necessary documents

Accompany clients to the bank

Follow-up with the bank for any client concerns

Signing SPA

On behalf of developer, answer all enquiries from clients

Suggest lawyer to consult if requested by clients

Instruct clients how to sign SPA following regulations in Vietnam

Collect SPA for clients

Courier SPA to clients living overseas

Payment According to Schedule

Payment reminder to clients

Assist clients both with developer and banker communications

Follow up with developer for confirmation of payment receipt

Assist Clients for Handover

If clients cannot come to Vietnam, Savills Vietnam can be authorized by clients to receive a handover of units on their behalf

If clients come to Vietnam, Savills will assist clients to receive handover

Assist clients to check handover condition and sign handover minutes

On a behalf of clients, work with developer to handle all issues

INVESTMENT TIPS

36

1

4

Booking & deposit for unit

Sign Sale & Purchase Agreement 6

3Open a local bank account in Vietnam(if possible)

Clients will be notified before handover

7 Savills to assist clients for handover, legal documents, and leasing process of the unit


NEW RESIDENTIAL HOUSING LAW

38

Who?

Purpose

Foreigners who areWORKING inVietnam for at least

ONE yearand meetother criteria

Self-occupation / Self-use

Foreign individuals who arepermitted to enter to Vietnam

Properties

Only1 apartment

Residential properties(apartments and landed houses)

• 30% of total units in one apartment development

• 10% of total landed project(villas and houses) in a landed project or 250 landed property units in one administrative ward

Duration

years only50no extension

50 years and can be extended, subject to the authority’s approval

Occupying, sale, lease,inheritance, mortgage, donation

Before After July 2015

NEW RESIDENTIAL

HOUSINGLAW

Vietnam provides a vibrant backdrop for real estate investment as a dynamic and rapidly developing nation. The potential for Vietnam real estate appreciation is bolstered by strong economic fundamentals such as rising GDP, growing population, large - scale infrastructure improvements, and supportive new residential housing laws.

TAXES & FEE


A foreigner may either directly or authorize a third party (by power of attorney) to declare and pay Tax at a District level tax bureau at the District where the property is located.

For payments scheme, when buying o -plan, the first installment is not over 30% of the property value, the next payment needs to follow construction process and payment schedule. Generally, for projects under construction, the payment scheme is decided by developers and agreed with purchasers. Housing laws limit the maximum collection before handover to be up to 70% for local Vietnamese developers, and up to 50% for foreign developers. The law also stipulates that 5% is to be collected upon issuance of the pink book.

A default interest shall be applied as agreed in the SPA (commonly the default interest rate is at 1.5% per month of the late amount). If this violation exceeds the time given in the SPA, the developer has the right to unilaterally terminate the SPA and forfeit an amount. At a common practice, the forfeiture amount is roughly 20% to 30% of the apartment selling price.

What AreThe Payment Schemes?

Upon the completion of the building, the developer shall serve a Handover Notice to the buyer to indicate the date of handover for the units and the outstanding amount to be paid before taking over the units.

The buyer pays the outstanding amount as per the Handover Notice.

On the handover date, the buyer will check the unit and take over the units by signing the Minutes of Handover. Subject to the Developer, the buyer will also sign the application for a pink book, electricity, water, and telephone contracts with supplier at the handover date.

What IsThe Handover Process?

The method of collecting rental income is a commercial decision agreeable by the landlord and tenant. Typically, the landlord will request 2 months of deposit. The landlord retains the right to instruct the management of the building to cut o water and electricity provision to the unit if the lessee fails to pay rent.

The owner can appoint Savills Vietnam to help lease out or resale their unit.

How DoBuyers Find A Tenant?

How DoBuyers CollectRental Income?

Foreign investors shall to set up a local bank account to transfer payments for their apartment to the Developer’s bank account.

How DoBuyers Make Payment?

What AreThe Taxes and Fees Involved?

(VAT)

VALUE ADDED TA

X

PURCHASE

10% VAT is taxed on any sale of property.

A minimal e administration fe

may be involved.

0.5% registration tax for obtaining the

Certificate of land use right, ownership of

residential housing and other assets attached to the

land onthe apartment value

The maintenance fee is a fee contributed by buyer and/or developer to maintain the commonly owned areas of the apartment building in order to preserve its quality. According

to the applicable laws of Vietnam, the maintenance fee is 2% of the

apartment price before VAT.

FEEADMINIS

TRATI

ON

SIN

KING

FUND

RE

GISTRATION TAX

FOR O

W

NERSHIP

MA

INTE

NANCE FEE/

LEASING

The person, who have the annual income earned from the lease of apartment/house as 100 million VND or less, shall not be incurred the PIT, VAT and licensing fee.

If such annual income is higher than 100 million VND,- PIT is 5%- VAT is 5%- Licensing is in accordance with the laws.

TAXESANDFEES

RESALES

If personal income is earned through the assignment or resale of apartments or houses, a 2% personal income tax has to be paid on the transacted value.

PERSONALINCOME

TAX

4242

MARKET OUTLOOK


RESIDENTIAL MARKETFIVE-YEAR REVIEW

(2015-2020)

2021

&

OUTLOOKThe last five years have seen the Vietnam residential market evolve rapidly.

There has been significant growth in housing demand, which in turn has pushed supply to even higher levels of quality.

Nguyen Duc ThemSenior ManagerInternational Residential SalesSavills Hanoi

2 HOW HAS SUPPLYDISTRIBUTION SHIFTED IN HA NOI OVER THE PAST FIVE YEARS?

Over the past five years Ha Noi has been under rapidly increasing supply. The West-ern area, considered as the new CBD of Ha Noi, with a 60-70% supply share was the most dynamic area. In 2019 and 2020, there were strong supply increases in the Eastern area mainly due to two major projects Ecopark, and Vinhomes Ocean Park. Supply to remaining areas made up negligible proportions.

1 HAS THE HOUSING MARKETCHANGED DRASTICALLYOVER THE PAST 5 YEARS?

Over the past five years, the housing market has been through two clear phases. From 2015 to the end of 2018, all segments recovered well, especially low-rise housing and branded residences. Good absorption rates were driven by local and overseas purchasers. However, since early 2019, performance has soft-ened under limited supply and tightened financial policies. And in 2020, the effects of pandemic slowed whole market per-formance, affecting investors, sellers and launch planning.

3 HOW DID THE PANDEMIC SHAPE THE HOUSINGMARKET IN 2020?

The pandemic continues to affect everyone. In the second half of last year, absorption of 25% was down - 7% compared to 2019, af-fected by extremely high job losses, increas-ing buyer caution and low primary supply.

In 2020, whole market new supply of about 5,500 units, was-59% down on year. Sales were mainly recorded in the first and fourth quarters. Foreign investors were hindered by travel restrictions, which in tun affect-ed FDI levels, project planning, launches, and of course, sales. The enforced social restrictions in the first half also put a brake on Real Estate market development.

4 HOW DO YOU EVALUATE THE PROSPECT OF RECOVERY IN 2021 AFTER THE MORE POSITIVE LAST QUARTER OF 2020?

The end of 2020, and 2021 will see the housing market start to recover. However, how extensive the recovery will be depends on many factors. Of particular concern is the pandemic still raging in many countries, many of which are strategic partners of Vietnam.

However, the pandemic has been con-tained well here. Moreover, the economy by maintaining GDP growth of an estimated 2.91% in 2020, has positively affected Real Estate. In 2021, scheduled supply for entry is about 25,000 new apartments from 2 projects. We expect selling prices to remain stable. However, the recovery of the hous-ing market will also be partly affected by other industries recovering such as tourism, garment making etc. The ideal situation for Real Estate is synchronized recovery across all industries.

5 WHAT IS THE OUTLOOK ON APARTMENT PRICES IN 2021?

Apartment supply is scattered. In Ha Noi, and HCMC for that matter, there have been problems with legal transparency and administrative procedures, which in turn has slowed new supply to market. After Con-gress, development procedures are expect-ed to be to speeded-up which will enable more consistent supply to market. However with limited supply, pricing has been pretty good. Besides, with such a great deal of equity and growing wealth in market, we do not anticipate overheating, or a real estate bubble. In Ha Noi, Grade B stock domi-nates, but, with so much supply in market, it remains to be seen whether these suit the mass. We will have a much better idea of market prospects after Congress and the anticipated regulatory changes.

MARKET OUTLOOK


SALES ACTIVITIES


salesACTIVITIES

As the market is changing rapidly, Savills keeps investors updated through multiple events. Our dynamic team

presents the latest market trends and newly developed projects, supports investors with in-depth advices on

opportunities, etc.

UK Property introducing eventsPrivate sales consultancySavills Webinar series

Hanoi Market Report: 2020 Recap - 2021 Reimagined

Savills Vietnam is the largest and most experienced real estate practice with offices in Hanoi and Ho Chi Minh City. The company provides comprehensive property services such as: Residential Sales, Commercial Leasing, Residential Leasing, Research & Consultancy, Valuation & Feasibility Study, Banking & Corporate Services, Investment Brokerage & Advisory, Retail Consultancy & Leasing, Property & Asset Management, Tenant Advisory & Representation, Industrial Consultancy & Leasing, Marketing & Creative services. Savills Vietnam had been continuously recognised in prestigious and credible property award programmes before stopping its participation in 2017 and redirecting the award fees to “Savills Cares” fund as a part of Corporate Social Responsibility (CSR) campaign to better benefit local people and charities.

Currently, Savills Vietnam consists of over 2,000 experienced and professional staff nationwide and keep expanding further.

This publication is solely for general informative purposes. It may not be copied or quoted in part or in whole nor may it be used as a basis for any other document without prior consent. Whilst reasonable care is taken to ensure that the information contained in this publication is accurate, Savills shall not be responsible for any loss or damage whether direct or indirect, incidental or consequential, arising from or in connection with the contents of this publication and shall not accept any liability in relation thereto. The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Vietnam. This publication is solely for general informative purposes. It may not be copied or quoted in part or in whole nor may it be used as a basis for any other document without prior consent. Whilst reasonable care is taken to Commercial Leasing.

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