The Vietnamese real estate market has high development potential thanks to positive economic prospects, a strong foreign direct investment flow and suitable monetary policies, according to a research of Savills Vietnam.
Illustrative image (Source: VNA)
The firm predicted that supply is likely to rise in major cities to meet the market demand.
With a population of 94 million people, the third largest in ASEAN, but the lowest urbanization rate at about 36 percent, Vietnam’s real estate market has greater potential over regional countries, it noted.
Hanoi and Ho Chi Minh City, home to 17 percent of the total population of the country, have greatly contributed to the market’s growth.
According to Savills, in the 2014-2018 period, the transaction of apartments in Hanoi and HCM City increased sharply, with an average growth of 44 percent annually in HCM City. Budget apartment for low-income groups accounted for 60 percent of the total transactions in five years.
In 2018, housing transactions in Hanoi rose 20 percent over 2017, with the medium segment making up 61 percent.
The firm forecast that in 2020, the majority of supply sources in HCM City will be for low-income group, while supply for middle-income group will still lead the market in Hanoi.