"Vietnam Real Estate Report Q2 2011" is now available at Fast Market Research

April 27, 2011 - PRLog -- Vietnam's commercial real estate market has been overshadowed by a property glut. Rental rates fell by  double-digit rates through 2009 - in each of the three cities for which we gathered data (Hanoi, Ho Chi  Minh City and Da Nang) and across all three sub-sectors. Vacancy rates are generally running at around  30%.    Normally, in an economy that has been growing so quickly that the authorities are tightening both fiscal  and monetary policy in order to curb inflationary pressures, rents and capital values would fall until much  of the vacant space is absorbed.  Although the government intervened to re-regulate the commercial real estate sector in early 2010, it was  not clear that this process of adjustment was under way in Vietnam. At present there are clear signs that  the market is stabilising but uncertainties still remain. Our in-country sources indicated that Da Nang  office and Hanoi industrial rents had increased dramatically since 2009. Elsewhere, rents tracked  sideways or rose by single digit amounts. Looking forward, our sources anticipate that rents will continue  to move sideways through 2011 before picking up towards the end of the forecast period in 2015. They  are less optimistic about the prospects for higher rents in Hanoi than in Ho Chi Minh City or Da Nang.  Our view is that the government has allowed market forces to operate in at least some of the market. One  of the key findings from our mid-2010 interviews was that yields had risen sharply in the office and  industrial sub-sectors of Hanoi and Da Nang. The implication is that there has been a major adjustment in  these sub-sectors - in the form of a slump in capital values.  It may well be that 2010 comes to be seen as the year in which the key trends in Vietnam's commercial  real estate sector became much clearer. A substantial over-supply of property is being absorbed -  although official intervention is still preventing across the board adjustments in rents, yields and capital  values. Conditions in particular sub-sectors remain volatile - but yields are in general likely to move  sideways or downwards over the coming four years.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.