Property market to thrive in 2022 and coming years: Vietnam Report

Illustrative image (Photo: VNA)

Hanoi - Vietnam’s real estate industry has developed along with the recovery of the economy after the COVID-19 pandemic, and is forecast to see brighter and more positive colours compared to 2021 and gradually return to the pre-pandemic trajectory (in 2019), according to the Vietnam Report Joint Stock Company.

The growth of this industry in the near future is mainly thanks to companies’ restructuring of their operations and their recovery from the negative impact of the pandemic, along with the support of stimulus packages.

Under the Government's economic incentives, interest rates remain low, the disbursement of public investment is accelerated, foreign investment continue to flow strongly into Vietnam, and remittances stay stable (except for those from Russia and Ukraine).

In the short term, the Government's economic stimulus package, no matter which area would benefit, will bring positive effects to the real estate market, thanks to the improvement of people's purchasing power in general as well as their future income expectations, according to the Vietnam Report.

Experts said that the 350 trillion VND (15.3 billion USD) economic support package, which is about to be implemented with nearly 114 trillion VND allocated for the infrastructure sector, will not only have a direct impact on the real estate market in the short term but also work as a driving force for the development of the market in the coming years.

The growth engine for the real estate industry in general, not just in the post-pandemic period, is also affected by the trend of urbanisation and the rise of the middle class. The increase in the number of privately-owned cars also greatly impacts the demand for some segments of high-end apartments, resort real estate and land plots.

Vietnam Report quoted Knight Frank's latest Prosperity report as saying that in the next 5 years, the growth of the super-rich in Vietnam is forecast to reach 26 percent, on par with China’s Hong Kong and Taiwan. This is the basis for many investors to continue pursuing the high-end and luxury segment in the coming time.

In addition to the supportive push, the real estate industry in 2022 also faces many challenges and obstacles due to outstanding problems in pandemic control work of countries in the world and Vietnam as well as in economic recovery, such as increasing number of new COVID-19 cases, the pressure from inflation and the general instability in geopolitics.