Ho Chi Minh City: Economics Quick Stats
Ho Chi Minh City: Economics Quick Stats
Ho Chi Minh City: Economics Quick Stats
3
perform better than most other 20 Inflation surged
Monetary controls took effect
sectors in 2011; 2.5
CPI (% m-o-m)
15 2
• INDUSTRIAL: Growing interest in
1.5
market
k t ffollowing
ll i theth natural
t l 10
1
disasters in Japan and Thailand 5 Monetary controls
during 2011; on interest rates
0.5
0 0
Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11
The residential
r market made national headlines
Launched
Condominium Supply (units) Completed during
g the fourth quarter as sales continued to
prove difficult for developers and access to capital
30,000 remainned complicated. In the beginning of the
quarte
er a buzz was created when some developers
25,000 appeaared to drop their prices overnight. Some of
20 000
20,000
these offers initially proved to be marketing tactics
rather than firm discounts, but the hullabaloo
15,000 ed brought the question of affordability and
create
deman nd to the forefront of the market.
10,000
Incentives, in various forms, continue to drive sales
5,000 at thee vast majority of projects as developers
continue to strive to maintain their cash flow in the
0 form of
o pre-payments from buyers.
buyers Many discounts
2003 2004 2005 2006 2007 2008 2009 2010 2011P only become
b available during the negotiation for a
sale, therefore,
t achievable prices are likely to be
lower than the reported asking prices.
Luxury
High-end With condominium developers in particular
Asking Price (US$ psm) Mid-end gling for cash flow they have been forced to
strugg
- Secondary Market Affordable
look for alternatives, including leasing out units to
renterss, or the conversion off entire blocks to
$6,000 service
ed apartments. This was evidenced with the
fourth quarter deal between Diamond Island and
$5,000 ed apartment operator The Ascott Limited.
service
$4,000
With buyers also facing difficulties in accessing
$3,000 capital, the upper end of the condominium sector
continued to see difficulties in achieving sales.
sales
$
$2,000
Speculators remained inactive, leaving demand
$1,000 primarily to end-users, who are active only at more
affordably priced products.
$0
2007 2008 2009 2010 2011 End-usser demand that was previously focused on
higherr-end condominiums has shifted to landed
property. Prices for these units have become more
compe etitive
ii and
d end-users
d h
have a preference
f f
for
land, along with the larger amount of livable space
January 2012