In September, VinaLand Limited, the real estate investment fund by Vietnam-based asset manager VinaCapital, transferred their stake in VinaSquare, a mixed use 3.1-hectare development site, in a prime District 5 location in Ho Chi Minh City, which they had acquired around a decade ago, to Tri Duc Real Estate for a total consideration of US$41.2 million. In addition, their 182-hectare My Gia Project, one of the largest township projects in Nha Trang, Central Vietnam, also changed hands for over US$11 million from VinaLand to a local developer In August, Anpha Holdings, a Vietnamese real estate development firm, acquired Novaland’s 99.98% stake in Nova Galaxy, a subsidiary of the listed developer. Galaxy 9 project, located in District 4, Ho Chi Minh City with over 500 apartments, is part of this recently acquired company.
Pic: FLC Group, won the bid for the land use rights of the 6.4-hectare DM1 land plot, located in Nam Tu Liem District
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The overall Vietnam property market is trending upward, across all sectors, with a particularly positive outlook for the office market. Despite an 8% increase YoY in new supply, Ho Chi Minh City continued its robust trend with high average occupancy at approximately 95% and average grade A rents up 8% YoY. Hanoi has also started to catch up with significant improvements in net effective rents and occupancy rates for Grade A and B buildings. The total office stock in Hanoi was approximately 1.6 million sqm with occupancy rates at 93%, an increase of 6% YoY. Market rental rates for both Grade A and Grade B have increased slightly at approximately 2% and 9% QoQ respectively. With continued strong demand on the back of healthy FDI and robust GDP growth, we expect to see an extremely low vacancy rate across all office grades and an average rental growth of approximately 8.4% per annum in the next three years.
