The ‘trends’ drive the real estate market in 2021

Minh Hoàng
April 26, 2021

(Chinhphu.vn) – Vietnam’s real estate market has witnessed difficulties in the first half of 2020. However, the year-end period has seen a “speedy” recovery, not only firmly standing.

Photo: VGP / Thuy Chi

Successful transactions of 74,500 products
– Looking back at the real estate market in 2020, Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokerage Association assessed that the real estate market has fallen into depression in the first half of the year and regained rapid recovery. from the third quarter of 2020. In the second half of 2020, there were 74,500 successfully traded products, equivalent to 50% of successful transactions in 2019.

– Regarding the movement of the market, Ms. Hoang Nguyet Minh, Deputy irector of Investment Consulting Savills Hanoi, said that the year 2020 witnessed a lot of changes in the real estate market. The retail, resort and hotel real estate segments suffered heavy losses from the COVID-19 outbreak; Office, land, and apartment buildings are less affected. Meanwhile, industrial real estate is the “bright spot” of the market in attracting capital from foreign investors thanks to free trade agreements and the trend of shifting production chains in the world.

– Notably, despite the impact of the epidemic, real estate prices in 2020 will continue to increase. According to Mr. Ha Quang Hung, Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction), the price of luxury apartments increased by about 0.5%; mid-end apartments increased by about 2-3%; land plot increases by 3-5%, in some cases up to 10%. In addition, the market also witnessed an imbalance in real estate supply-demand when the demand for housing for low, medium and middle-income people is quite large but the supply is limited.

The real estate market in 2021 will be more sustainable

– Evaluation of real estate market prospects in 2021, PhD. Su Ngoc Khuong, Senior Director of Savills Vietnam said that the real estate market in general and in Hanoi in particular is expected to explode when many new projects will be opened for sale and housing is still essential. . For the real estate market in general, the housing market always attracts the attention of investors and customers and is likely to be a more developed segment compared to 2020. Meanwhile, Van rooms, commercial centers, serviced apartments, and hotels will be more difficult.

– According to Mr. Khuong, industrial real estate continues to be the “bright spot” of the market, however, this is just the time to prepare resources including land fund, infrastructure … to attract new investors when the epidemic is under control.

– Agree with TS. Khuong, Mr. Nguyen Van Dinh said that the real estate market in 2021 will be more sustainable than 2020, because the economy grows at a good rate, the demand is still strong. Real estate prices in 2021 may increase by more than 10% compared to 2020.

– Meanwhile, TS. Can Van Luc, a financial expert, said that there are a number of “plus points” that promote the real estate market to develop in 2021. Typically, the market has adjusted quickly according to the disease situation as well as pressure. use technology in sales. In addition, the laws are amended and supplemented such as: Enterprise Law with many significant reductions; The Securities Law came into effect from the beginning of 2021 with the regulation on raising capital from funds will be the driving force for businesses.

– In addition, the shift in foreign supply and production chains in the context of international businesses seeking new, safer and cheaper land has created opportunities for Vietnamese industrial real estate. Another “plus point” is the rapid disbursement of public investment, contributing to the overall growth of the national economy. Besides the issue of interest rates, this is the lowest interest rate period in the past 15 years, so families and young people will have favorable conditions to buy houses or invest.

– Forecasting real estate trends in 2021, experts from Jones Lang LaSalle Group (JLL) said that the trends this year will maintain development or change to match the demand. current bridge. According to experts from JLL, there are 5 trends leading the real estate market in 2021.

– The first trend is that “urban in urban” or “integrated property” is often used for large-scale projects. The real estate market is gradually maturing, homebuyers are more and more concerned with a healthy and sustainable living environment to settle in than a simple living space. Therefore, developers began to seek ways to attract buyers by creating well-planned residential areas with many amenities, to help future residents avoid the nuisance of rapid urbanization and Public infrastructure is lagging.

– The second noted trend is remote office work trials. This change is conducted in many enterprises and “accelerated” by the translation of COVID-19.

– Another trend is e-commerce boosting logistics and warehousing, becoming a big driver for the market. Vietnam is currently one of the fastest growing e-commerce markets in Southeast Asia. In recent years, the supply chain is increasingly focused on serving consumers, the speed of delivery is one of the main factors in the buying decision.

– Compared to traditional logistics operations, e-commerce uses three times more labor and requires three times more warehouse space. That is part of what is driving the growing demand of investors for industrial real estate around the world.

– Notably, the fact that businesses still keep the “green” and sustainable direction is the 4th trend leading the real estate market in 2021. According to analysis, when financial funds become tight, protection initiatives The environment is one of the first to be crossed out in many companies’ development plans. But despite the tough times ahead, companies and investors are expected to still offer “green,” options for a better and more sustainable future ahead.

– The fifth trend identified is the fact that investors are turning to the healthcare and healthcare industry. By 2021, investor interest increases in key areas of the health crisis. Both domestic and international investors have targeted health and medical logistics and are in need of cold storage locations closer to customers to serve the growing demand for sensitive products. with temperatures such as vaccines, cosmetics, food, pharmaceuticals …

– In order for the real estate market to develop stably, to overcome the supply-demand phase difference, Deputy Minister of Construction Le Quang Hung said that in 2021, the Ministry will continue to study and build mechanisms, policies and solutions. to encourage and attract foreign investment into the real estate market; to attach importance to encouraging the development of real estate products to meet the great demands of society such as social housing, low-cost commercial housing. At the same time, regularly follow the market situation, promptly adjust and remove difficulties, limitations and shortcomings of mechanisms and policies, especially the impact of the COVID-19 epidemic to ensure an unreasonable market. real estate development is stable and healthy.

The real estate market in 2021 is expected to have ‘bright spots’ thanks to the Government’s promulgation of many policies to support the business community. Decree 25, issued in February 2020, stipulates that land allocation to successful bidders will be implemented immediately after compensation is completed; Decree No. 41 extends the time limit for paying taxes and money; Circular 21 of the Ministry of Construction stipulating minimum apartment area not less than 25 m2 shall take effect; Resolution 164 legalizes real estate projects. In particular, when Decree 148 amending and supplementing a number of decrees detailing the implementation of the Land Law takes effect from February 8, 2021 with important contents on rescuing thousands of projects with intercropped land. The congestion is expected to remove the bottleneck of supply shortage, “blowing a new wind” into the real estate market.

Source: Thuy Chi