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Forecast for Vietnam’s real estate market in 2021

Thursday 18, 02 2021
It is believed that Vietnam’s real estate market in 2021 has been on the recovery and is going to grow dramatically.
Forecast for Vietnam’s real estate market in 2021

Covid-19 epidemic and growth momentum 

"Being able to survive through 2020 would be a success" is what the General Director of a large real estate business in Ho Chi Minh City said. However, he said that the pandemic was an unexpected difficulty, and instead of waiting for this difficulty to pass, his company as well as many others in the same industry have constantly managed to find new ways to get through.

As one of the most established enterprises in the industry, Hung Thinh Land shared that when the Covid-19 epidemic broke out, it was planning to develop dozens of projects which require a long investment process. However, the epidemic has forced this business to reconsider the implementation time and progress.

Covid-19 epidemic and growth momentum

“In 2020 alone, we had 5 projects with about 5,000 products. Besides, regarding the support policy, our products were divided into many different payment packages so that customers can afford to invest and own real estate” said Mr. Nhien - Deputy General Director of Hung Thinh Land.

According to Mr. Nguyen Quoc Bao, Deputy General Director of Danh Khoi Group, 2020 witnessed a great trouble for the real estate market. However, in general, the market is not bad in nature, and the demand is always high. What businesses are worrying about is how to maintain operations, ensure resources and wait for difficulties to pass to seize new opportunities.

Most real estate businesses said that although there were difficulties and challenges in 2020, these are not too shocking. They even thought that the more challenges they face, the better they can prepare for a development plan.

Mr. Pham Lam, General Director of DKRA Vietnam Company, said that the market crisis has opened up competition and the establishment of new brands in the market. This competition is expected to get fiercer in 2021 and it is not for everyone. The diverse participation from big investors to newbies will make the picture extremely vibrant in the coming years. 

Economic recovery and “spring decompression”


The Real Estate Market Outlook for 2021 Report announced by VNDirect Securities Joint Stock Company stated that Vietnam's economy woul recover strongly this year thanks to the return of manufacturing activities, growing domestic and international demand, high GDP growth rate and decreasing inflation.

In particular, development momentum for the real estate market in 2021 also comes from macro factors, policies and planning issued in the previous year, macroeconomic stability and recovery, and social safety when the pandemic is under control and vaccines are available.

Economic recovery and “spring decompression”

In addition, the issuance and adjustment of a number of legal regulations such as Decree 148/2020 / ND-CP, which was issued a few days ago, have made real estate businesses less worried that their project would be stuck because of public land. Moreover, Decree No. 25/2020 / ND-CP which helps to remove many problems about land procedures for real estate projects with the provisions that any project is not eligible for auction shall be bid will be a leverage for the market in 2021.

According to Mr. Tran Le Thanh Hien, in 2020, every real estate business faced certain difficulties partly due to the defensive sentiment in the market, and at the same time businesses did not have enough source of goods for sale. However, he said that "it has also been a good time for businesses to re-contemplate their development strategies" and surely the housing market is still good.

Mr. Ngo Quang Phuc, General Director of Phu Dong Group emphasized that when the problems faced by enterprises have been solved, when the economy regains its growth momentum and people's income increases, the real estate market will return to a growth trajectory. Therefore, real estate businesses have the right to expect sustainable development, contributing to the prosperous development of the country.

“From a positive but prudent perspective, we believe that 2021 is still a year for initiative and flexibility to adapt…”, Mr. Phuc forecasted.

Having a broader view, Mr. Phan Xuan Can, Chairman of Sohovietnam Real Estate Transfer Consulting Company said that at the end of 2020, the need to invest in real estate projects was worth 20,000 billion VND. This capital inflow was mainly from domestic investors and focused on apartment, adjoining apartments - villas, urban areas of 5 - 300 ha, and unfinished mixed projects under construction.

“Some projects have been negotiated and considered by investors. The Hanoi and Ho Chi Minh City market is attracting a lot of attention from investors” Mr. Can said. He also informed that the demand for buying townhouses, villas and houses in large urban areas in the provinces around Hanoi and Ho Chi Minh City is very great.

Source: Vietnamfinance

 

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