Real estate

Real estate is the second largest foreign direct investment (FDI) recipient in Vietnam for the past 10 years.

Foreign investment inflows into real estate have accounted for one-third of Vietnam’s total FDI so far this year.

Not only there is an imbalance in the structure of property supplies in the market, but the number of new projects has also been on the decline in the past three years.

A series of financial support measures in the economic stimulus package would help the real estate and construction activities recover.

The average prices of new apartments for sale in Hanoi in 2022 are from VND30 million (US$1,311) per square meter onwards, which target customers of middle- and high-income groups.

Difficulties in getting investment licenses, the imbalance of market supplies due to the investors’ lack of appetite for budget housing projects, and the Covid-19 pandemic have led to a rise in housing prices.

Potential foreign-direction investment flows and large-scale infrastructure linking Hanoi and its environs enhance Asian tenant pools for serviced apartments.

The prefabricated house could soon develop into a new market segment with high potential in the local real estate market, especially in combination with the trend of investing in a second home.

Housing investment is to meet people’s long-term needs and would suffer no impacts from external factors, such as the pandemic.

Speculative investments are causing a waste of land resources and the growing number of vacant residential areas.

While demand for housing remains huge, the market in 2022 will still face supply difficulties as "bottlenecks" in investment, housing, and real estate laws have not been removed.

The first product posted on this system will be the report on the situation of Vietnam's real estate market in 2021 and the Trends and Challenges forecast for 2022.

The real estate group will lose its escrow deposit of VND588.5 billion ($26 million) for unilaterally withdrawing from the purchasing contract.

Despite the ongoing impacts of the Covid-19 pandemic, housing development is still being promoted.

Along with drastic changes in the upcoming Land Law and continued efforts from the Government to push for public investment, there is strong confidence that the real estate market would return to a high expansion rate in 2022.

The average floor area per person in the city is expected to reach around 27.6-29.5 square meters, taking the combined newly developed housing area to 20.44 million square meters and 25,000 social apartments.

Amid severe economic hardship, the Hanoi Southern Supporting Industrial Park continues to attract attention from investors who are looking for locations for their plants.

Building smart homes is the way to go for local property developers to lure buyers.

Experts remain optimistic about the future prospect once the pandemic is fully contained in Vietnam.

Strong inflows in investment capital help improve the suburban landscape and narrow the gap in housing prices between the metropolitan and outskirt areas.