Vietnam - a fast-growing real estate market in Southeast Asia
VOV.VN - Although Vietnam was badly impacted by the COVID-19 pandemic in the first two quarters of the year, its real estate market has still received 500,000 new supplies, representing an annual increase of 270%.
According to Troy Griffiths, deputy managing director of Savills Vietnam, the domestic economy will continue to develop, while equity will continue to grow and gradually shift to many other activities, creating conditions for the real estate sector to represent an attractive investment channel in the near future.
Hanoi has seen an increase in the price of the apartment market for 10 consecutive quarters. Most notably, in Cau Giay district since 2017, the primary price for apartments has increased by 14% per annum.
Meanwhile, residential primary supply in Ho Chi Minh City remains limited, however, the low-rise real estate segment is still performing well, with the secondary price increase ranging from 15% to 20% in District 7, District 9, and Nha Be District.
Furthermore, in both Hanoi and Ho Chi Minh City the office market has recorded occupancy rates of approximately 90%, with Grade A rents remaining stable at US$33/per month and US$66/per month, respectively. As a result, the office market in both cities are among the best performing in Asia.
The Vietnamese real estate market is expected to develop significantly fuelled by favourable factors such as political stability, positive economic forecast, an increase in foreign investment, an increasing purchasing power, and the enforcement of various free trade agreements.
Matthew Powell, director of Savills Hanoi, affirmed that most of the local real estate segments boast great potential, noting Vietnam is embracing many new residential real estate trends with high-quality products that suit the taste of domestic home buyers.
He said that demand for industrial real estate has increased rapidly in recent years, with many new types such as data centre, logistics centre, and cold storage facilities.
