Vietnam: Two Cities Among JLL’s Momentum Index Top 10
Hanoi and Ho Chi Minh City ranked among the Global Top 10 in the recently released 2018 JLL Short-Term Momentum Index. Hanoi and HCM city ranked third and sixth respectively. The index tracks a number of factors to identify cities, which possess attributes for success over the short term.
JLL Momentum Index
The Short-Term Momentum Index identifies urban economies and real estate markets with rapid economic growth. Asia-Pacific cities accounted for 25 of the global top 30, highlighting their rise as destinations for foreign investment, commerce, and innovation.
The key factors to calculate the Momentum Index includes:
- RE Investment
- Property Prices
- Economic Output
- Corporate Activity
- Retail Sales
The Index combines various short-term socio-economic and commercial real estate momentum variables to calculate the rankings:
- Socio-economic momentum, which accounts for 50 percent of the model, includes variables related to changes in city GDP, population, air passengers, and corporate headquarters presence. It also includes projected changes in GDP, population, retail sales, and FDI.
- Commercial real estate momentum, which accounts for 50 percent of the model, includes variables related to changes in office net absorption, office construction, office rents, shopping mall construction, retail rents, and hotel rooms. It also includes international retailer presence, home-sharing listings, and changes in direct commercial real estate investment and real estate transparency.
HCM City and Hanoi
According to the Index, the rapid growth of both the economic hubs, driven by government infrastructure investments, will help them to continue their momentum in the future. Both cities continue to attract significant amounts of FDI and integrate themselves further into the regional and global supply chains, in areas such as high-tech manufacturing. The rapid economic growth in both the cities has led to a growth in income, retail sales, and the number of air passengers.
Going forward, the strong investor sentiment will continue to stimulate the growth momentum of the cities.
India continues to remain at the top of the Short-Term Momentum rankings. It accounts for four of the top five markets. In addition, Chinese cities account for 11 places of the Global Top 30.
Among ASEAN countries, Manila, Jakarta, Kuala Lumpur, Singapore, and Bangkok continue to feature in the top 30, ranking 18th, 23rd, 24th, 26th and 28th respectively.
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