In the first 3 months of the year, real estate businesses spent nearly 1 billion USD to acquire projects, nearly equal to the number recorded throughout 2017 and 2018.
Cushman & Wakefield's report on investment capital markets in the first quarter of 2022 shows that the total volume of M&A transactions across the country is close to 1 billion USD . Although only recorded for one quarter, this number is about 10% higher than the whole of 2019 and only about 10% lower than the whole year of 2017, 2018 - the period before the pandemic appeared.
The largest contribution to this total transaction value is the transfer of the Capital Place office building (Ba Dinh, Hanoi) worth USD 550 million from CapitaLand Development to Viva Land.
The office segment also recorded the majority of deals at the beginning of the year, accounting for 58% of the total transaction value, followed by industrial real estate (28%) and residential property (13%). It is worth mentioning that this is the first time that office buildings have been transferred with such a large total value.
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Source: Real Capital Analytics, Cushman & Wakefield
Ms. Trang Bui, General Director of Cushman & Wakefield, assessed that the recent emergence of the office market in Vietnam goes against the general trend of the world. While the pandemic has spurred a global wave of working from home, office building projects in Vietnam are still focused on investment.
"The reason is the shortage of office supply in Vietnam. Currently, the total office space for lease in Ho Chi Minh City is only half of Bangkok, not to mention most of the products are grade B and C, which have not met the demand. of FDI enterprises are flocking to and expanding their operation scale," explained Ms. Trang Bui.
She said that this quarter, the market only recorded new supply from CMC Creative (District 7) and Pearl 5 (District 3) projects. Net absorption in the quarter came mainly from these 2 buildings. The average occupancy rate of the whole market reached 90%, up 2 percentage points over the same period last year with the rental price stable at 39.6 USD /m2/month, up slightly from the previous quarter.
By 2025, the city is expected to have more than 400,000 square meters of new office space from prominent projects such as Cobi Towers I & II, Techcombank Tower, The Sun Tower, IFC One, Hallmark and The Nexus.
Sharing with Zing , Ms. Trang Bui emphasized with the potential for economic growth in the context of limited office supply, especially Grade A offices, this segment will continue to attract the attention of investors. private. The biggest barrier is that the land fund in large urban centers such as Ho Chi Minh City and Hanoi is increasingly depleted.
Considering the period from 2017 to now, Ho Chi Minh City, Hanoi and Dong Nai are the localities where the largest number of M&A transactions have taken place in the country. In which, the housing projects are transferred actively in Ho Chi Minh City, Dong Nai, while the hotel M&A is concentrated in Hanoi, Khanh Hoa and Ho Chi Minh City. Particularly, industrial real estate in Bac Ninh, Dong Nai and Binh Duong is the most interested by investors.
By Zingnews.vn