Key segments of hotel, villa and townhouse saw vibrant growth in HCMC

By Tu Anh - Jan 11, 2018 | 12:20 AM GMT+7

TheLEADERThe hotel sector of Ho Chi Minh City (HCMC) recorded an occupancy rate of 76 per cent, while the villa and townhouse segment witnessed a year-on-year increase of 25 per cent in sales, according to Savills in its newly launched market briefing on fourth quarter of 2017.

Key segments of hotel, villa and townhouse saw vibrant growth in HCMC
A corner of Ho Chi Minh City (Photo by DuyDo/Getty)

Hotel sector gained recovery

According to Savills, the stock of this sector increased by 8 per cent year-on-year to more than 16,500 rooms. One project was upgraded to four-star in the fourth quarter of 2017.

The average occupancy rate peaked at 76 per cent, the highest for the past five years (Figure 4). Thanks to the high season for international arrivals, all three segments saw significant improvements with occupancy rates increasing up to 12 ppts quarter-on-quarter.

The average room rate of all three segments in HCMC was stable year-on-year and still less expensive than in Hanoi.

According to HCMC Department of Tourism, HCMC welcomed 6.3 million international visitors in 2017, increasing by 23 per cent year-on-year. Korea, Japan, and China were the leading source markets.

Villa and Townhouse sector saw vibrant growth

Savills noted that five new projects and one new phase supplied over 1,100 dwellings to HCMC. The primary stock was approximately 2,000 dwellings, increasing by 2 per cent quarter-on-quarter but decreasing by 32 per cent year-on-year. 93 percent of the new supply are townhouses.

Sales increased by 25 per cent quarter-on-quarter and year-on-year. The absorption rate of the market was 67 per cent, up 12 ppts QoQ quarter-on-quarter and 34 ppts year-on-year. Binh Chanh district for the first time led the market with a 48 per cent share, supplying about 700 dwellings (Figure 6).

Savills estimated that ten new land plot projects added 2,000 plots to the primary market. The primary stock was approximately 3,000 plots. The absorption rate reached 65 per cent. In the next two years, the new supply will provide approximately 13,000 dwellings/plots.

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