Distinguished resilience in Vietnam
The Vietnamese real estate market is witnessing a burst of activity with interest from both foreign and local investors intensifying. The country’s economy is a highlight within South East Asia and has demonstrated a distinguishing resilience that has allowed for consistent growth despite the fluctuations in the global market. Recovering admirably from the housing bust of 2009-2013, and aided both by a booming economy and the Vietnamese government’s reformed laws on housing and real estate. The new laws allow foreign investors to legally own, sell, and transfer property. Real estate prices within Hanoi and Vietnam continue to climb while real estate investors are continuing to build. The approach has paid off, as foreign investments abound – with 493 new real estate projects slated for 2018.
In the segments of office, residential and retail real estate, Vietnam has been described as a “rising star” by international assessment firm JLL. According to leading research the rapid expansion of Vietnam’s consumer market in conjunction with an economic shift towards high value activities has led to a dramatic flux of capital foreign investment in the office, retail, hotel and residential sectors, each, rushing to meet changing demands.
Both domestic and international real estate firms are changing track to attract more buyers, focusing their investments on low to mid end residential developments. This shift targets the city’s young work force, a market segment that accounts for the majority of the population of Hanoi and the country itself. Reflection of this shift can be found in the building trend in Hanoi turning towards smaller units with a few key criteria. Competitive pricing, ease of accessibility, wide ranging amenities and favorable payment terms are distinguishing the consumer demand for residential real estate in Vietnam. This reflexive market movement is predicted to sustain Hanoi’s growth trend of upward mobility.