The residential index rose sharply in Hanoi in the first quarter of 2024 but dropped slightly in Ho Chi Minh City, according to a recent report released by property consultancy firm Savills Vietnam.

In Ha Noi, the residential index saw a significant increase of 8 points quarter-on-quarter to 142.5, representing a substantial 37% rise since the third quarter of 2019, with average prices at VND44 million ($1,728) per sq m net sellable area (NSA).

Conversely, Ho Chi Minh City’s residential index declined to 123 due to project suspensions and weakened consumer confidence.

Regarding the office sector, the Grade A office occupancy in Hanoi remains stable at 88%, indicating resilience and potential for future growth, according to the report.

Meanwhile, in Ho Chi Minh City, the office index experienced a slight uptick to 98 points, driven by higher rents and strategic developments, suggesting cautious optimism amidst economic uncertainties. The occupancy rate slipped by 1 percentage point quarter-on-quarter and 4 percentage points year-on-year to 90%.

The absorption in Hanoi reached 41% in the reviewed period, up 15 percentage points quarter-on-quarter. The absorption rate in HCM City, however, was down 18 percentage points to 23%.