Vietnam GDP              HCMC GDP            Hanoi GDP                VN-Index
         7.38% y-o-y                      7.64% y-o-y                    6.98% y-o-y                      63% y-o-y

*Arrows indicate change from the same period of the previous year.

• The first quarter of 2018 witnessed a remarkable performance of Vietnam economy, which was fueled by the strong growth of manufacturing sector and an export boom. Vietnam’s GDP growth rate was 7.38 % y-o-y, which was the best Q1 performance observed in the last decade. Export turnover grew by 22% y-o-y, while VN-Index reached an 11-year high, which was among the world’s top performing markets.

• Condominium market: Launch activities continued to be buoyant in Q1 2018, with 8,800 units launched in Hanoi and 9,503 units launched in HCMC. Absorption continued to be positive for both cities, while average primary prices in both HCMC and Hanoi witnessed a slight decrease due to stronger focus on mid-end segment. At the same time, concerns about safety issues emerged in during the quarter, which may affect sentiment of certain buyers, whilst creating opportunities for developers with good track records.

• Office market: There was no new supply in the office markets of both Hanoi and HCMC in Q1 2018. Amid stability in supply, average asking rents as well as occupancy rates improved for both cities, especially for HCMC. Looking forward to the rest of 2018, office market continues to be landlord-driven for HCMC, while for Hanoi the demand is also warming up.

• Retail market: In Q1 2018, there was one shopping mall coming into operation in the non-CBD area of HCMC, while in Hanoi total supply has remained flat since Q2 2017. Flexible leasing strategies are being leveraged by landlords to attract tenants, especially at non-CBD locations areas where the level of competition is higher.