National Macro Indicators

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 National Macro Indicators

GDP increased 6.8% in H1/2019 and was more stable compared to the previous year. Manufacturing and
processing continue to be the key economic drivers. CPI was 2.6 %, the lowest H1 increase in three years.
Total exports increased 7% year on year (YoY) to reach US$122.7 billion. The USA and the EU continue
to be the main export markets. The $34 million trade deficit was mainly down to higher import costs.
Registered FDI was over US$18 billion with China and Korea the largest contributors. Disbursed FDI
reached US$9.1 billion, up 8% YoY.
International visitor numbers continue to increase with 8.4 million arrivals, up 8% YoY.

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 QMR Brief - Danang

RETAIL: FIGURE 1

NEW SUPPLY INCREASED RENT Avg. gross rent Occupancy

Total stock was approximately 212,000 m², up 20% year-on-year 700 100

(YoY) after the entry of three new projects in Hai Chau and Ngu Hanh 600
80

Thousand VND/m²/mth
Son Districts.
500
Average ground floor gross rent rose 8% YoY while occupancy eased 60
400

%
-1 ppt YoY. The retail podium segment had the most improved
300
performance after the entry of new projects. 40

200
Retail sales were VND 27.4 trillion, up 13% YoY. In 2H/2019 and
20
2020, 96,000 m² will enter, mainly in Ngu Hanh Son District. 100

0 0
Department store Shopping centre Retail podium

Source: Savills Research & Consultancy

OFFICE: FIGURE 2

GRADE A MOST IMPROVED Avg. gross rent Occupancy

700 100
Total stock was approximately 94,000 m², stable YoY. In the past five
years, stock increased by an average 7% pa. Approximately 75% is in 600
80
Thousand VND/m²/mth

Hai Chau District. 500

Average gross rent increased 1% YoY while occupancy was down -5 400
60

%
ppts YoY. Grade A had the most improved performance.
300
40
There were 2,594 newly registered enterprises, up 8% YoY. One new
200
project will launch in Hai Chau District in H2/2019 and another in 20
100
2020, cumulatively providing 13,000 m².
0 0
Grade A Grade B Grade C

Source: Savills Research & Consultancy

HOTEL: FIGURE 3

INCREASING STOCK No. of rooms No. of hotels

Stock was approximately 15,400 rooms from 121 three to 5-star hotels, 6,000 90

up 20% YoY. There were 2,000 new rooms in H1/2019; average

5,000 75
occupancy fell -3 ppts YoY and ARR down -9% YoY.
Hotels
Rooms

4,000 60
International arrivals to Da Nang of 1.8 million increased 26% YoY,
the average length of stay was 2.7 days. 3,000 45

From H2/2019 onwards, more than 8,000 rooms will enter.

2,000 30

1,000 15

0 0
5-star 4-star 3-star

Source: Savills Research & Consultancy

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 QMR Brief - Danang

CONDOTEL: FIGURE 4

SLOW PERFORMANCE Primary stock Secondary stock

4,000
Total stock came from 15 projects. One project entered in H1/2019,
Ngu Hanh Son district led with 50% of supply. From 2019 onwards, 14
3,000
projects will come online.

Units
2,000
In H1/2019, market-wide absorption was 90% due to limited primary
supply; prices ranged from US$2,100/m2 - US$4,800/m2.
1,000

0
Ngu Hanh Son Son Tra Hai Chau

Source: Savills Research & Consultancy

APARTMENT: FIGURE 5

LIMITED NEW SUPPLY Primary Stock Secondary Stock

The next phase of a single project provided approximately 110 units. 2,500

Total stock was over 5,300 units from 20 projects. Ngu Hanh Son led
2,000
the primary market with a 52% share. In H2/2019, more than 900 units
will enter from two projects. 1,500
Units

1,000
In H1/2019, absorption was high at 94%, the average asking price was
US$2,500/m².
500

0
Son Tra Ngu Hanh Son Hai Chau Thanh Khe

Source: Savills Research & Consultancy

COASTAL VILLA: FIGURE 6

HIGH ABSORPTION
Total villa stock was from 17 projects. Ngu Hanh Son district was the
largest supplier, representing a 92% share from 14 projects. In H2/2019, 8%
Ngu Hanh Son
45 dwellings will enter.

Limited new supply and stable demand resulted in market-wide high

Son Tra
absorption. Developer reputation, guaranteed returns and beach
proximity were key success drivers.

92%

Source: Savills Research & Consultancy

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QMR Brief - Hanoi

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Savills Property Price Index (SPPI) - Hanoi