The real estate market in Vietnam will have many opportunities to recover. (Photo: VietnamPlus)Hanoi (VNA) – Real estate is expected to continue to be an attractive investment channel between now and the end of the year, according to experts.
Insiders said there are four prerequisites to help the property market maintain its "heat" to investment: demand, infrastructure, macro policy and investor.
Half the way of the real estate market in 2020 has passed. Besides uncertainties due to the impact of COVID-19 pandemic, the housing market has also received some positive signals from policies to expect a breakthrough in the coming period.
According to Robert Vu, CEO of Batdongsan.com.vn, in the last months of 2020, the real estate market in Vietnam will have many opportunities to recover, thanks to positive movements.
Giving more details, Robert Vu said that with the rapid urbanisation and population growth, especially in big cities like Hanoi and Ho Chi Minh City, Vietnam needs tens of thousands more apartments every year. Therefore, the potential of this market is very huge.
Currently, many public investment projects in infrastructure being implemented in cities and provinces not only increase regional connectivity but also open up opportunities to form potential economic regions, thus attracting international investment and creating growth opportunities for the housing market.
Especially, over the past time, the Government support has proved positive. The extension of land rent payment, reduction of loan interest rates, disbursement of public investment, and many positive amendments to the construction law have also contributed to easing the "burdens" taken by businesses and home buyers.
Besides, investors have chosen e-commerce, used big data, and offered promotions and discounts; while focusing on increasing sales and marketing.
The real estate expert also stated that compared with other countries in the region, Vietnam's economic growth is still very positive. Along with the push from infrastructure, services and housing demand, real estate is still a "bright" investment channel.
Sharing the view, Nguyen Thi Van Khanh, Senior Director of Capital Markets at JLL Vietnam, said that one of the factors to promote Vietnam's real estate market is FDI. In the past 10 years, this source of capital has grown steadily, but it slowed somewhat in the first 6 months of 2020 due to travel restrictions and investors tending to evaluate their investment portfolios.
She also expressed her belief that if the COVID-19 pandemic is controlled, the FDI will increase again in the last six months of the year.
Illustrative image (Photo: VietnamPlus)
“Currently, Singapore, Japan, the Republic of Korea, and Thailand are leading investors in Vietnam. There are many positive signals from the market as the Europe-Vietnam Free Trade Agreement (EVFTA) was signed, and foreign investors have been confident in the Vietnamese market, which is a bright spot for investment compared to other countries in the region,” said Khanh.
Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry, said that real estate-construction is one of the sectors that generate the most jobs in the economy. Therefore, it has the pervasive effects on the development of each country.
However, the real estate market is in a difficult period. So, it is necessary to have solutions to develop it, thereby contributing to activating the economic recovery in the last months of the year.
According to Loc, the first thing needed is to promote the implementation of existing support packages, because this is the time to expand the scale of support resources, as well as launch new packages, especially medium and long-term credit packages for core projects.
“We welcome foreign investors but need more development of local businesses. Therefore, new support packages should be implemented to aid domestic enterprises,” he stressed.
According to industry insiders, the real estate market was indeed picking up in the second quarter. Transactions in the high-end segment increased 38 percent against the first quarter while those in the mid-range segment rose 33 percent.
The recovery was driven not only by the resumption of “business as usual” nationwide but also by strong growth in online transactions./.
