Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Property  >>   Vietnam property market declines
NEWS UPDATES Asean Affairs           8   August  2011

Vietnam property market declines

Related Stories

May 8, 2010
Vietnam: Investors focuses on low cost apartments

October 25, 2008
Vietnam: Real estate keeps attracting retail investors

October 15, 2008
Temasek's unit to build business park in Vietnam

September 3, 2008
Vietnam: Property woes begin to show 

July 22, 2008
Vietnam: Real estate admin procedures to be simplified

Efforts by the Vietnamese government to control runaway inflation coupled with signs of an economic slowdown are starting to have a negative effect on the property market, according to the multinational property services firm CB Richard Ellis (Vietnam).

CBRE said the adverse economic headlines that were witnessed during the first quarter continued throughout the second, notably two upward adjustments to the refinancing rate, ending the quarter at 14 percent; one adjustment to the rediscounting rate, leaving it at 13%; and two upward changes to the reserve ratio for banks.

All of these signs emphasised the concern over the state of the macroeconomy. Thankfully, the tightened monetary policy now appears to be having an effect, with month-on-month inflation showing its lowest increase this year in June at 1.09 percent even though the same month saw year-on-year inflation of 20.8 percent, the agency said in a research report.

The office sector continued a long-term trend of rents across all grades declining during the quarter. The rental slide in the period ranged from 1.9 percent in the Grade A market to 1.4 percent for Grade C.

"This is a result of the softening in demand that has been witnessed as both foreign and Vietnamese enterprises maintain a cautious approach to expansion in 2011 and as new supply continues to come online, albeit at a slower rate than in in the first quarter," said senior manager Adam Bury.

He said that during the first half of last year, net absorption totalled 130,000 square metres across all three office grades, while this year absorption in the first half was 67,000 sq m. Mr. Bury said softening demand is affecting rental prices. However, it is notable that some landlords are able to hold onto existing rental levels.

The most obvious example is in the established Grade A market, where the mature buildings have all reached sustainable occupancy levels of at least 90%. In these properties, landlords have held rents at existing levels, knowing that potential tenants have few options should they desire Grade A space.

Besides supply side pressure, demand side pressure conspicuously continues to influence rents. The second quarter saw 37,865 sq m of new supply come online, a respectable amount despite being down from 42,000 sq m in the first quarter.

Mirroring the office sector, residences saw a continued softening of asking prices in the second quarter, said CBRE.

Data that also take into account asking rates, suggests prices across all sectors fell by 1% or less.

However, buyer confidence remains low, and actual transaction prices are believed to represent significant discounts. This means residential selling prices in the secondary market will keep dropping in the second half.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    8  August  2011 Subsribe Now !
• Three churches burned in Indonesia Subcribe: Asean Affairs Global Magazine
• Delay in asylum transfers to Malaysia   Asean Affairs Premium
• Asean is 44
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Administrative reform called for
• Thai small business push needs Asean focus
• Poor Thai link to airport criticized
• Vietnam property market declines

Asean Analysis    8  August  2011

Advertise Your Brand
• Cambodia civil progress remains slow Sponsor Our Events

Asean Stock Watch   August  2011

• Asean Stock Watch-August 8 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand