Knight Frank Vietnam - notes from Q4 '23
2023 is a year many seem happy to see the back of. But what lies ahead for 2024 is a difficult one to call.
Knight Frank is looking forward to the coming year; we will continue to grow our team and service lines and cover a wider geography as the year passes (with a few public roles listed here on LinkedIn).
12 months ago, we highlighted key trends following: anti-corruption push (going well), bond & credit market squeeze (banking groups excluded), affordable housing (a lot of talk but not much action), slower GDP/IPP (obvious), office vacancies increase/rent decrease and capitalisation rates expanding particularly in industrial.
All of these trends played out. Our ‘miss’ was that affordable housing is still largely restrained by prohibitively high land values and borrowing costs.?
I anticipate 2024 will see more of the same, with the exception that we are now looking at a larger wall of debt maturity pressure as a hangover from 2023. Many bonds have been extended for 12-24 months, but we also will have those falling due from 2021 (typically a three-year maturity).
That said, there is much to be optimistic about, the main difference being a return to GDP growth.?
Commercial markets remain robust, with good demand through office, industrial and retail sectors. Rents have come off in some areas due to increased supply, but net demand is good. Supply is required in all sectors.
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FDI flows are positive, particularly Asian capital viewing Vietnam as a solid market. Our new capital market inquiry total in Q4 hit US$145m vs. US$60m in Q3, and we have potential buyers for all commercial asset types and residential land – please get in touch to discuss any opportunities for this year or beyond.
Wishing you the very best for 2024 and the coming Year of the Dragon.??
Chúc m?ng n?m m?i!
AC
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1 年Hi I live in a property let out by Knight Frank The complex has a lot of Asian investors. It has come to light that there has been potentially huge misbilling by the Freeholder. When this was addressed to Knight Frank in London it was ignored. Out of sight out of mind. Is it Knight Frank policy not to inform their overseas investors of huge misbilling especially when given evidence Why does Knight Frank not adhere to good practice and instead turn a blind eye.
2017 & 2022 Past President of Greater Los Angeles CCIM Chapter
1 年Alex, I’m coming with a big group from the United States from the Asian American real estate Association. We should talk about you getting involved. The event is February 26 through the 29th in Saigon. Please contact me at 1 818-731-7385 on Zalo.