Matthew Powell, head of the Hanoi and Da Nang offices of Savills Vietnam, has noted that the capital city’s hotel market still holds significant short-term recovery potential.

The real estate market in Ho Chi Minh City has witnessed positive changes over the past nine months.

A survey conducted by the real estate agency Savills Vietnam reveals that the country now has more than 400 eco-industrial zones, with the demand for this segment expected to grow in the future.

According to a socio-economic report recently published by the General Statistics Office, retail revenue for the first eight months of the year is estimated at nearly VND3.3 quadrillion (US$130.3 billion), a 7.3% increase year-on-year.

Foreign investors poured a total of US$2.4 billion into the real estate market of Vietnam in the first eight months of this year, five times the level over the same period last year, according to the latest updates from the General Statistics Office (GSO).

Demand for industrial land remains high, especially in the southern region, with ready-built warehouses and factories increasingly attracting investors, according to Savills Vietnam.

Vietnam is described as an ideal location for industrial real estate investment with its economic and demographic factors, and analysts predict it will emerge as a regional leader in this segment.

The hotel industry is lagging amid low occupancy rates, though room rates are almost at 2019 levels in most areas, according to Savills Hotels.

Foreign investors injected more than US$2.87 billion into the Vietnamese realty market during January-July, a year-on-year surge of 78%, according to the Ministry of Planning and Investment (MPI)’s Foreign Investment Agency.

The Hanoi real estate market in the first half of this year saw increases in villa and townhouse prices, although the market was still slow, according to a Savills report into the housing market in the capital released on July 11.