The real estate market will be strong in 2022: analysts

“The Vietnamese economy is expected to grow 6-6.5 percent next year,” economist Can Van Luc said at a real estate conference on December 13. “If the economic stimulus programs are well implemented, the GDP can grow by 6.5 to 7%. Economic development will help increase real estate demand.”

Other contributing factors include the national housing development strategy 2021-2030 being finalized, investment in infrastructure, which is considered one of the three strategic advances, acceleration of public investment, resolution regular legal issues affecting real estate development and rapid urbanization, he said.

As of September 30, the outstanding bank loans to the sector had increased by 6% for the year to reach 2000 billion dong (nearly 87 billion dollars), representing 19% of the total outstanding loans.

In the first 11 months of this year, nearly $ 2 billion of FDI went into real estate, the third highest of any industry.

Meanwhile, real estate companies issued corporate bonds totaling VND 436 trillion, the highest of any industry.

Luc said: “Real estate remains an attractive investment channel. The prices of real estate shares are rising faster than the market and are becoming a positive point on the stock market ”.

Nguyen Quoc Anh, deputy general manager of the real estate site Batdongsan, said a recent survey by his company of 1,000 real estate investors found that 92% planned to continue investing in real estate next year, with 44% saying they would buy a home in one to two years and 32% in the next three to five years.

However, things would depend on Covid-19 situations, with larger investments if Vietnam is in control of the pandemic well and vice versa, he said.

Nguyen Hoang, R&D director of real estate service provider DKRA Vietnam, said VnExpress that: “In the first half of 2022, real estate supply and demand will remain similar at the end of this year or will increase slightly. In the second half of the year, the market will become more rigid”.

But if the pandemic remains unchecked, the market could collapse as it did in June-September of this year, he said.

“If social distancing measures are imposed again, even if they are less restrictive, there will be a sharp drop in demand.”