DN Brief 1H2017 EN Final -...
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Savills Market Research Vietnam Market Briefing Da Nang, Viet Nam 1H/2017 First half GDP up 8.1% over 1H/2016. Registered FDI surged 269.5% year on year (YoY) with US$14.3 million disbursed. Nearly 2,400 new businesses were established. Retail sales up 17.1% YoY to US$ 2.1 billion. International visitors up 72.2% YoY to 1.2 million. Total inbounds up 33.2% YoY. 1H/2017 credit growth of 7.5% a 6-year high. Da Nang Macro Indicators 1H/2017 Value YoY Growth Rate GDP growth rate 8.1% N/A Retail sales (US$ billion) 2.1 17.1% Currency exchange rate (VND/US$) 22,800 +2% Trade surplus (US$ billion) 87.4 N/A Visitors (million people) 3.2 33.2% Registered FDI (US$ million) 32 269.5% FDI disbursement (US$ million) 14.3 N/A Newly established businesses (units) 2,400 +9 CPI 4.6% N/A Mortgage rate 11% Stable Credit growth 7.5% +1.2 ppt
Transcript of DN Brief 1H2017 EN Final -...
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Macro Indicators 1H/2017 Value YoY Growth Rate
GDP growth rate 8.1% N/A
Retail sales (US$ billion) 2.1 17.1%
Currency exchange rate (VND/US$) 22,800 +2%
Trade surplus (US$ billion) 87.4 N/A
Visitors (million people) 3.2 33.2%
Registered FDI (US$ million) 32 269.5%
FDI disbursement (US$ million) 14.3 N/A
Newly established businesses (units) 2,400 +9
CPI 4.6% N/A
Mortgage rate 11% Stable
Credit growth 7.5% +1.2 ppt
Savills Market Research
Vietnam
Market Briefing
Da Nang, Viet Nam
1H/2017
First half GDP up 8.1% over 1H/2016.
Registered FDI surged 269.5% year on year (YoY)
with US$14.3 million disbursed.
Nearly 2,400 new businesses were established.
Retail sales up 17.1% YoY to US$ 2.1 billion.
International visitors up 72.2% YoY to 1.2 million.
Total inbounds up 33.2% YoY.
1H/2017 credit growth of 7.5% a 6-year high.
Da Nang Macro Indicators 1H/2017 Value YoY Growth Rate
GDP growth rate 8.1% N/A
Retail sales (US$ billion) 2.1 17.1%
Currency exchange rate (VND/US$) 22,800 +2%
Trade surplus (US$ billion) 87.4 N/A
Visitors (million people) 3.2 33.2%
Registered FDI (US$ million) 32 269.5%
FDI disbursement (US$ million) 14.3 N/A
Newly established businesses (units) 2,400 +9
CPI 4.6% N/A
Mortgage rate 11% Stable
Credit growth 7.5% +1.2 ppt
Market Briefing – Da Nang 1H/2017
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Shopping centre Retail podium
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Hai Chau Thanh Khe Cam Le
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Supply No. of projects
RETAIL: Softer Performance
OFFICE: Increased Rent But Decreased Occupancy
HOTEL: Five-Star Performs Best
FIGURE 1 Total retail stock increased 17.3% YoY with the new F Home
shopping centre entry in Q3/2016 and Nguyen Kim supermarket
reopening in Q4/2016. Hai Chau district remained the largest
supplier with a 35% market share, followed by Thanh Khe district
with 30 percent.
First half average ground floor rent eased -0.2% YoY and
occupancy decreased -1.7 ppts YoY, mainly due to slightly
weaker performance in the retail podium segment.
No supply is expected to the end of the year. Three projects with
22,000 m² are scheduled for 2018. Future supply will be mainly
concentrated in Hai Chau district.
FIGURE 2 Total office stock increased 6% YoY with one project closure and
another opening. Hai Chau district has 74% of stock.
Average rent gained 11% and occupancy decreased -4 ppts YoY
to 87%. Grade C had improved performance but Grade A
softened a little.
In the second half, no new project is expected. Next year, one
project with more than 3,000 m² is scheduled to launch in Hai
Chau district.
FIGURE 3 Total stock from the 86 three- to five-star hotels was
approximately 9,400 rooms. ARR increased 11% YoY. RevPAR
was up 22% YoY.
Average occupancy was 72%, up 7 ppts YoY with five-star the
highest performer, and best performance to date.
Da Nang continues its establishment as one of the leading local
destinations for domestic and international tourists. In 1H/2017,
there were 3.2 million visitors, up 33% YoY. International visitors
were up 72% YoY to 1.2 million.
In 2H/2017, over 1,300 four- to five-star rooms will come online.
Source: Savills Research & Consultancy
Source: Savills Research & Consultancy
Source: Savills Research & Consultancy
Market Briefing – Da Nang 1H/2017
91%
9%
Ngu Hanh Son
Son Tra
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nits
Apartment primary supply No. of projects
APARTMENT | CONDOTEL: Stable Performance
SECOND-HOME VILLA: High Absorption
FIGURE 4 There was one newly launched condotel project in the first half.
Total apartment stock increased 3% YoY with one newly
launched project.
Apartment average absorption rate was approximately 33
percent. Average apartment primary price was US$1,690/m²,
down YoY. By year end, two projects will launch 1,200
apartments.
Condotel absorption was relatively high at around 70 percent.
High and committed yields up to 12% pa and the more recent
developer buy-back commitment is increasingly resonating with
buyers.
Large condotel supply mainly from domestic developers is
expected to year end and into 2018.
FIGURE 5 Total villa stock was 801 dwellings, of which 169 were from the
primary market. Ngu Hanh Son district was the largest supplier
with 728 dwellings, representing a 91% share, followed by Son
Tra district with 73 dwellings and a 9% share.
Market-wide absorption was 81% to mid year. Seven projects
were fully sold. Developer reputation, guaranteed returns and
beach proximity were key success drivers.
Fully finished villa land prices were from US$650/m² to
approximately US$3,000/m².
In the second half 45 dwellings will enter the market.
Source: Savills Research & Consultancy
Source: Savills Research & Consultancy
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