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Condo market set for bumper 2021: expert

Condo market set for bumper 2021: expert

Hanoi, Ho Chi Minh and Da Nang are the most popular cities in Vietnam. All of these cities are located in the northern, central and southern regions of Vietnam respectively.

The capital city of Vietnam is Hanoi. Hanoi is also the largest city in Vietnam, with a population of 6.3 million people. Hanoi is the political, economic and cultural center of Vietnam. The city has a long history, and was first mentioned in the 11th century. Hanoi is a popular tourist destination, and is home to the many historical sites like the Hanoi Citadel, the Dong Xuan market, and the Thang Long Water Puppet Theatre. Besides, the city has a lot of arts and entertainment venues, and is home to a number of museums and galleries. The city is also famous for its cuisine and street food.

HÀ NỘI — The local condominium market is expected to maintain growth in the amount of information about property products posted on batdongsan.com.vn and the level of interest in 2021, said Nguyễn Quốc Anh, chief business officer (CBO) of the batdongsan.com.vn

Next year, apartment prices would continue stability in Hà Nội while it is forecasted to increase by 9 percent year on year in HCM City, Anh said.

The level of interest in private houses and townhouses is set to decrease, driving down rental prices, while the asking price for private homes in Hà Nội is forecasted to grow by 5 percent in 2021.

Anh said investors are most interested in landed property, but due to the COVID-19 pandemic, interest has decreased.

Infrastructure projects that started in 2020 are expected to increase the level of interest in this segment in the near future, Anh said. Of which, the level of interest in information about property in Thủy Nguyên District, Hải Phòng City, and Bảo Lộc City, Lâm Đồng Province surged in November after the approval of a project establishing Thủy Nguyên City and a project building the Tân Phú – Bảo Lộc expressway, respectively.

For industrial real estate, Anh said it was a bright spot this year and that would continue into 2021 due to free trade agreements and plans to relocate production plants to Việt Nam from many foreign corporations.

“This is a chance for Việt Nam, but whether Việt Nam can take the chance or not is another story. The development of this property segment does not stop at the construction of industrial parks for foreigners to rent. It must have a comprehensive development strategy for this segment,” Quốc Anh told the Vietnam Real Estate Conference held by batdongsan.com.vn on Tuesday in Hà Nội.

In the first six months of this year, only one industrial park was established, showing while there is much talk about the potential of industrial real estate, little gets done in reality, Anh said.

In the third quarter of 2020, industrial real estate showed impressive growth in searching for information about industrial zones.

In the third quarter, the country had 369 industrial zones to be established, up 33 industrial parks compared to the second quarter and 280 industrial parks were put into operation, an increase of 19 industrial parks compared to the second quarter.

This year had 10 new major transport projects to be started nationwide, including five in the central region.

“Along with moving investment to Việt Nam, these large transport projects will have a strong impact on the domestic real estate market. Therefore, the market will have positive changes in 2021,” Anh said.

In addition, with a lot of positive information about the COVID-19 vaccine, the resort property segment is also expected to recover next year, he said.

At the seminar, Nguyễn Hồng Vân, Market Director – JLL Vietnam Real Estate Services Company, said the price and occupancy rate of industrial real estate in Viet Nam will continue to increase in the next few years. Of which, two industries leading the number of companies investing in industrial zones are electronic components and logistics.

According to Vân, the region with the most opportunities for real estate development in industrial zones is in the north, especially Hải Phòng City, due to large land area, competitive price, convenient transportation and synchronous development of infrastructure.

“So, along with traditional industrial real estate, the demand for modern logistics will also be an opportunity to help the northern industrial real estate market thrive in the near future,” Vân said.

However, it would face a number of challenges such as hot development leading to a shortage of labour, limited infrastructure conditions such as energy, wastewater treatment and support services for the development of manufacturing logistics and housing.

The investment to industrial zone is a long term performance within 30-50 years but not only 3-4 years, Vân said, so investors should study carefully this investment.

If they are unable to do that investment, they can put capital to construction of houses or satellite urban areas around industrial zones for workers to buy or rent, she said. — VNS

Source: VietnamNews

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