By Shabnam Muzammil:
Vietnam’s
property market has shown signs of optimism in the first quarter of
2013 as its state bank continues monetary easing efforts, noted CBRE.
Moreover,
property stocks performed better as an investment option in Q1, with
the Ho Chi Minh City Stock Exchange ending 12.5 percent higher than last
year.
“Lowering interest rates and an improving stock market
gives the real estate market hope, especially residential developers who
have faced the brunt of the negative sentiment which has prevailed
within the market. In past cycles we have noted how profit taking from
the stock market and the availability of financing are key to driving
residential sales. Whilst sentiment does remain icy, there is light at
the end of the tunnel,” said Marc Townsend, Managing Director of CBRE
Vietnam.
However, there is still a need for macroeconomic policy
to stimulate economic growth without impacting inflation, the
consultancy said.
The office sector saw a number of major
transactions, while rents across the Grade A and B segments either
remained flat or rose moderately. Grade A rental rates increased 1.0
percent to US$31.36 (S$38.83) psm as of end-Q1 while vacancy rates
declined 13.1 percent. Meanwhile, Grade B rents moved up by 3.5 percent
to US$18.11 (S$22.43) psm.
“As predicted in the previous
quarter, office rentals have temporarily reached a bottom. We now expect
no new Grade A and Grade B supply to be completed until at least the
first quarter of 2014, thus there is little reason to suggest any
softening in rents and reason to believe some landlords positions may
strengthen,” said Dung Duong, Senior Manager of Research and Consulting
for CBRE Vietnam.
Shabnam Muzammil, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email shabnam@propertyguru.com.sg
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