Like the property market in HCMC, Hanoi and recently Danang, where high demand has kicked off strong development in the residential, office building and retail space segments, the Mekong Delta city of Can Tho has witnessed its property market heat up in all sectors as demand is on the rise. Among the segments, the land plot sector is dominating the emerging market, according to a report of the property market research firm Savills Vietnam.Savills says available land plots in the Can Tho market have exceeded the number of villas, townhouses and apartment units, as the former are recorded at around 15,600 units, nearly seven times higher than the total number of villas, townhouses and apartment units of about 2,300 units.

Cai Rang District in the South Can Tho Urban Zone, where most of the projects are located, is the most sought-after area for residential development thanks to its location, some three kilometers from the city center and separated by the Can Tho River. For instance, the total number of land plots put up for sales in the primary market in Cai Rang District is nearly four times higher than in Ninh Kieu District.

The market research company says among sold-out projects, there are about ten merely offering land plots with nearly 7,000 pieces. Meanwhile, in the secondary market, three projects are for villas, townhouses and apartments for sale with a total of 900 units.

“Due to high economic growth combined with a slow but steady growth in population, there may be considerable demand for medium quality finish housing from local residents in Can Tho,” the company foresees the market in the southern city.

According to the report, the average primary price for the villa and townhouse sector was much higher than for land plots. The average asking primary price for villa or townhouse in the whole market in Can Tho was recorded at US$705 per square meter, three times higher than the average price for land plots, which was recorded at US$235 per square meter in November.

Savills records a total of 26 residential projects covering a total area of over 1,000 hectares to be launched in Can Tho market in the next few years. This forthcoming supply would be a huge supply to a market with a population of around one million people like Can Tho.

The office building sector is witnessing non-state enterprises dominating the market, implying potential demand for office space in Can Tho from the private sector.

The company says as of the third quarter this year, there are no new office buildings in Can Tho, and six existing office buildings provide 15,000 square meters of net area. The central district of Ninh Kieu has the most office buildings which dot main streets such as Tran Hung Dao, Hung Vuong and Cach Mang Thang Tam.

The average office rent in Can Tho was recorded at US$8.60 per square meter, equal to half of Grade C rents in HCMC, which were averaging US$22 per square meter as of last quarter. This segment sees average occupancy of 87%, according to Savills.

The company cited the Can Tho Department of Planning and Investment saying there will be more office projects in the city, mainly in Ninh Kieu District.

Can Tho’s retail space segment offers 65,500 square meters, a low figure for a city of around one million people. All supermarkets and wholesale markets in the city are in Ninh Kieu District.

Savills predicts demand for international-standard retail centers will rise in the next three years, and some 61,000 square meters of retail space is expected to come online in the period. The Tay Do Plaza with a total area of approximately 3,500 square meters is expected to open at the end of this year.