Property market to see strong recovery this year: Vietnam report

VIETNAM, April 16 –

The real estate market is expected to experience a strong recovery in the post-pandemic period. — Stock Photo

HÀ NỘI — Việt Nam’s real estate market is expected to have a better year compared to 2021 and gradually return to normal performance before the COVID-19 pandemic, according to the Vietnam Report Joint Stock Company.

The growth of this market in the near future is mainly due to the restructuring of their activities by the companies and their recovery from the negative effects of the pandemic, as well as the support of the recovery plans.

Thanks to the government’s economic incentives, interest rates remain low and the disbursement of public investments is accelerated. Foreign direct investment continues to flow into Việt Nam and remittances remain stable (with the exception of those from Russia and Ukraine).

In the short term, the government’s economic recovery plan, whatever the area that would benefit from it, will have positive effects on the real estate market, thanks to the improvement of the purchasing power of citizens in general as well as their expectations in future income.

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

The growth engine of the real estate market is not only in the post-pandemic period, but also due to the trend of urbanization and the rise of the middle class. The increase in the number of passenger cars is also having a significant impact on the demand for certain segments of apartments, resorts and high-end land.

According to Vietnam Report, the latest Knight Frank Prosperity Report said that over the next five years, the growth of the super-rich in Việt Nam is expected to reach 26%, on par with Hong Kong and Taiwan in China. This is the basis for many investors to continue to pursue the high end and luxury segment.

According to Vietnam Report, 2022 marks the start of a new growth cycle for the domestic real estate market. Therefore, real estate companies must grasp new market trends and develop appropriate plans to minimize risk, improve business efficiency and meet customer needs.

A recent survey of real estate companies conducted by Vietnam Report recorded some key real estate market trends in the future.

Vũ Đăng Vinh, managing director of Vietnam Report, said the COVID-19 pandemic has accelerated digitalization in many fields, including the real estate sector. Digitization is implemented in activities related to real estate transactions, asset management and the provision of virtual tours for real estate products.

According to the survey, only a few real estate companies have applied digital solutions such as artificial intelligence (AI) tools, cloud computing and automation using robots.

However, in 2022 and the years to come, virtual tours and digital transactions will become more popular for the real estate market. Along with this, innovations related to artificial intelligence and virtual reality will bring a better experience to customers.

Smart facilities

According to Vietnam Report, in 2021, 22.96% of customers used real estate brokerage apps and they planned to continue using this method. By February 2022, the rate had risen to 27.4%.

In addition, more than 85% of Vietnam Report survey customers said they are willing to live in smart homes. Therefore, companies developing future projects should consider requirements for smart facilities such as car charging stations, smart security systems, smart cleaning, smart lighting, and smart energy management. .

The demand for smart facilities is increasing not only in the housing sector, but also in other segments of the real estate market, such as offices for rent. As a result, customers tend to prefer newer buildings with better ventilation systems and modern facilities such as touch systems. All the changes are aimed at ensuring safety during the pandemic period, improving office management and enhancing the efficiency of office operation.

Therefore, in addition to adapting spaces to the trend of flexible working from home and in the office as well as health and safety requirements, real estate companies must invest in tools and technologies to promote the mental health of employees. after the pandemic.

According to Vietnam Report, modern and multi-purpose industrial park models with synchronous utility systems will also become a trend in the future.

In sustainable development strategies, companies favor the choice of green and clean offices and eco-industrial parks and reduce the exploitation of natural resources to limit the impacts on the environment but do not affect the performance of the company. .

Real estate developers are implementing many initiatives and applying green building methods such as solid waste management, water recycling, rainwater harvesting and the use of renewable energy sources. They also have an efficient design to optimize natural ventilation and ensure green infrastructure in buildings.

These solutions have existed in the real estate market for many years, but this year should see more environmentally friendly real estate projects.

However, the real estate market also faces many challenges and obstacles this year due to outstanding issues in the pandemic control work of countries around the world and Việt Nam, as well as economic recovery, such as the increase in COVID-19 cases, inflationary pressure and geopolitical instability. —VNS