Property market to grow and flourish moving forward
VOV.VN - Vietnam's real estate industry has developed alongside the recovery of the economy following the COVID-19 pandemic and is predicted to enjoy a brighter picture compared to 2021 before gradually returning to its pre-pandemic trajectory, according to the Vietnam Report Joint Stock Company.
The growth of this industry in the near future can be put down to the restructuring of companies and their operations, their recovery from the negative impact of the pandemic, along with support provided by stimulus packages.
Under the terms of the Government's economic incentives, interest rates remain low, the disbursement of public investment will be accelerated, foreign investment will continue to flow strongly, and remittances will stay stable, with the exception of those from Russia and Ukraine.
Over the short term, the Government's economic stimulus package will bring positive effects to the local real estate market, largely due to the improvement of people's purchasing power in general, as well as their future income expectations, according to the Vietnam Report.
According to experts, a VND350 trillion, equal to US$15.3 billion, economic support package, which will see roughly VND114 trillion for the infrastructure sector, will not only have a direct impact on the property market in the short term, but also serve as a driving force for the development of the market over several years.
Furthermore, the growth engine for the real estate industry in general, not just in the post-pandemic period, will also be affected by the trend of urbanization and the rise of the middle classes. The increase in the number of privately-owned cars also greatly impacts the demand for some segments of high-end apartments, resort real estate, and land plots.
Vietnam Report quoted Knight Frank's latest Prosperity report as saying that over the next five years, the growth of the super-rich in the nation is forecast to reach 26%, on par with Hong Kong (China) and Taiwan (China). This is the basis for many investors continuing to pursue the high-end and luxury segment moving forward.
Alongside the supportive push, the real estate industry this year also faces many challenges and obstacles due to outstanding problems in terms of pandemic control work globally, as well as in economic recovery. Factors include increasing numbers of new COVID-19 cases, pressure caused by inflation, and general instability in matters of geopolitics.