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).

Real estate developers are actively restructuring their products towards mid- and low-end segments to be more suitable to the real demands of the market.

Investing in apartments to capture short-term gains has not been attractive to investors due to high prices caused by limited supply, according to experts.

The central city of Da Nang has focused on recovering the pandemic-hit tourism to continue boosting the sector’s sustainable development, focusing on high-end services in association with resort real estate.

Experts gathered at a recent conference in HCM City to discuss measures to develop a transparent and sustainable property market in Vietnam in the next 10-15 years.