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Vietnam emerges as fast-growing real estate market in Southeast Asia
Residential real estate in Vietnam is still one of the fastest-growing markets in Southeast Asia despite the fact that the COVID-19 pandemic has halted many economic activities, according to experts from property consultant Savills Vietnam.
Troy Griffth, Deputy Managing Director of Savills Vietnam, said that investing in the real estate market in Vietnam continues to be the choice of many investors.
The market still enjoyed an year-on-year increase of 270 percent in the new supplies in the first two quarters of this year.
According to Griffth, the domestic economy would continue to develop and equity would continue to grow and gradually shift to many other activities of the economy. Therefore, real estate will continue to be an attractive investment channel in the near future.
The apartment market in Hanoi recorded an increase in prices for ten consecutive quarters. Notably, the primary price of apartments in Cau Giay district has increased by 14 percent per year since 2017.
In Ho Chi Minh City, the primary supply is limited, but the low-rise real estate segment is still quite good with the secondary price increase of 15-20 percent in Districts 7, 9 and Nha Be.
Office real estate in both Hanoi and HCM City recorded occupancy rates of about 90 percent with the rent for Grade A kept stable at 33 USD and 60 USD per month in Hanoi and HCM City, respectively. These two cities are rated as the best performing office markets in Asia.
According to Savills, the residential and commercial real estate market in Vietnam has grown strongly in recent years and continues to be an attractive investment channel for both domestic and foreign investors. With such favourable factors as political stability, a positive forecast of the economy, increased foreign investment capital, a large population and rising purchasing power and the signing of many free trade agreements, Vietnam’s real estate market is expected to have many development prospects.
Matthew Powell, Director of Savills Hanoi, said that most of the real estate segments in Vietnam have great potential.
The country is embracing many new residential real estate trends with more diversified and high-quality products that suit the tastes of homebuyers better. In addition, the development in the infrastructure system also promotes the trend of suburban real estate in big cities. However, the potential of the market development does not lie in residential real estate, he said, adding that commercial and industrial real estate and retail are promising segments.
Thus, it can be seen that the good prospects of real estate in Hanoi in general and Vietnam, in particular, are not only for the housing segment but also for other segments of the market, Powell said./.
Source: VNA