Vietnam’s real estate market is expected to remain stable with growth in three areas — green real estate, resort & tourism real estate, and houses & apartments.
The strong rise of the housing sector will lead the property market this year.
Following a successful 2018, when the real estate market was stable thanks to strict control, transparent policies and clear investment capital flow, the market is expected to continue to perform well this year.
The current conditions and the government’s economic targets, including GDP growth rate of 6.6-6.8 percent, an inflation rate of below 4 percent, and credit growth rate of 14 percent, are giving strong support to property market development.
Vietnam Report, a credit rating firm, predicted three outstanding tendencies in the market, including the development of green works, resort real estate, and housing projects.
Regarding green real estate, the number of construction works meeting Leed certificates remains modest, accounting for a very small proportion of total works. However, people are willing to spend more money on safe, comfortable and smart living spaces. Green real estate is expected to become a major trend in the time to come.
The resort & tourism real estate market segment has cooled down in comparison with last year, but analysts believe opportunities still exist.
The latest report of BCG said Vietnam collected $8.3 billion in 2017 from international travelers, much lower than Indonesia’s $12.6 billion, Singapore’s $18.4 billion and Thailand’s $52.5 billion.
However, the number of foreign travelers to Vietnam increased sharply in 2018, and the figure reached a record high of 3 million the first two months of 2019.
Meanwhile, the development of high-end entertainment complexes, shopping centers and resorts has not matched the tourism development potential. Therefore, investors have been encouraged to continue to develop shophouses and condotels.
Housing and apartment real estate is the busiest sector. According to CIA World Factbook, in 2017, the urbanization rate in Vietnam was 35 percent, but the pace of urbanization was 2.6 percent, the highest in Southeast Asia.
The increase in the number of foreign engineers and staff coming to Vietnam to work in international projects has also led to higher demand for houses and apartments in large cities.
The CEO of HSBC Vietnam, Pham Hong Hai, said the housing demand for low and mid-income families will continue to rise as a result of the move of labor from rural areas to cities.
Mid-end and affordable apartments will lead the market because of high demand. Luxury apartments will also attract foreign investors because the prices in Vietnam are lower than in other regional countries.
According to a report on Vietnamnet