Real estate market to boom in 2022 and beyond: Vietnam report | Business

Illustrative image (Photo: VNA)

Hanoi (VNA) – Vietnam’s real estate industry has grown alongside the recovery of the economy after the COVID-19[female[feminine pandemic, and should see brighter and more positive colors compared to 2021 and gradually return to the pre-pandemic trajectory (in 2019), according to the Vietnam Report Joint-stock.

The growth of this industry in the near future is mainly due to the restructuring of business operations and their recovery from the negative impact of the pandemic, as well as the support of stimulus plans.

Thanks to the government’s economic incentives, interest rates remain low, the disbursement of public investments is accelerated, foreign investments continue to flow strongly into Vietnam and remittances remain stable (except those from Russia and Ukraine) .

In the short term, the government’s economic stimulus plan, whatever area it benefits, will have positive effects on the real estate market, thanks to the improvement in the purchasing power of people in general as well as their expectations of future income, according to Vietnam Reportage.

Experts have said that the VND 350 trillion (USD 15.3 billion) economic support package, which is about to be implemented with almost VND 114 trillion allocated to the infrastructure sector, will not only have a direct impact on the real estate market in the short term but also play a driving role in the development of the market in the years to come.

The growth engine of the real estate sector in general, and not only in the post-pandemic period, is also affected by the trend towards urbanization and the rise of the middle class. The increase in the number of passenger cars is also strongly impacting the demand for certain segments of high-end apartments, resort real estate and land.

Vietnam Report quoted Knight Frank’s latest prosperity report as saying that over the next 5 years, the growth of the super-rich in
Vietnam 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 in times to come.

In addition to the support thrust, the real estate sectorin 2022 also faces many challenges and obstacles due to outstanding issues in the pandemic control work of countries around the world and Vietnam as well as economic recovery, such as the rising number of new cases of COVID- 19, the pressure of inflation and the general instability in geopolitics./.