Vigorous legal changes regarding real estate investment and construction are set to beef up the realty market in the Year of the Buffalo.

The industrial market is the only real estate sector that has enjoyed positive progress in both rental rates and occupancy rates during the COVID-19 pandemic.

In 2020 the Vietnamese real estate market, just like across the globe, was heavily impacted by the COVID-19 pandemic and that remains the case today. There are, however, some bright spots in the market and if the virus is fully controlled, this year should recover and also see stronger liquidity.

There was an increase in interest in Ho Chi Minh City which ranked sixth among Asia Pacific investors’ most preferred property markets for investors, according to a survey by market research firm CBRE polling more than 490 Asia Pacific-based investors in November and December 2020.

The real estate inventories of listed companies increased significantly in the fourth quarter of 2020 over a year ago because many projects were stagnant due to the impact of the COVID-19 pandemic, legal bottlenecks and limited financial capacity of the developers.

Foreign investors had poured US$1.51 billion into Vietnam as of January 20, a 4.1% increase over the same period last year, according to the Ministry of Planning and Investment (MPI).

While 2020 is believed to have changed the real estate industry, trends in the sector this year are forecast to sustain or be aligned with demand in the market.

Real estate sales will be another key driver of credit growth, as apartment supply and sales are likely to pick up in 2021.

Traditional investment channels such as stock or real estate markets are set to continue to be the focus for investors in 2021.

Real estate prices in 2021 are expected to increase by 10% over the previous year, said Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VNREA).