Outlook for the real estate market in 2021
According to the survey results recently conducted by Vietnam Report Joint Stock Company (Vietnam Report), economic experts and businesses operating in the real estate field expect that in the first half of the year and for the whole year of 2021, the real estate market will continue to recover and grow, even boom in some certain segments and regions.
Determining that there will still be many difficulties for the real estate market in 2021, Mr. Vu Dang Vinh, General Director of Vietnam Report points out that the biggest limitation and difficulty is the unpredictable development of the COVID-19 pandemic. Next, there is still no policy document for new types of real estate such as Condotel (hotel apartment), Officetel (office apartment combined with hotel), Shophouse (commercial townhouse) etc., leading to differences among localities. The process of licensing, appraising and approving construction investment projects is long, complicated and with multi-stages. Credit restrictions when the circular is not amended, enterprises have difficulties in accessing cheap capital; Taxes and associated transaction tax policies are still complicated, making real estate investors really unsecure.
In this situation, according to Mr. Vinh, there are 6 factors to help enterprises overcome difficulties caused by the impact of the COVID-19 pandemic, especially in 2021. That is, promptly providing scenarios to cope with the epicdemic; building prestige and brand in the market; preparing healthy financial potentials; proactively reviewing, reducing and using costs effectively; focusing on developing new markets and enhancing digital transformation in management and sales., etc.
Accordingly, building the reputation and brand in the market is the most important in helping real estate enterprises overcome the difficulties of the COVID-19 pandemic. It is because in the process of using Media Coding method, Vietnam Report has assessed the reputation of enterprises in the real estate industry through the presence on influential media channels for the period from January 2020 to the end of January 2021. Nearly 54.4% of the enterprises in the study had an average frequency of appearance in the media once a week; in which, Vinhomes is the enterprise with the highest number of Coding units.
It is forecasted that in 2021, the real estate market will continue to recover. Illustration photo: Danh Lam/VNA
Mr. Vinh analyzes that in 2020, the real estate market slowed down. It was due to legal procedures where there were many overlapping laws, especially in the period of 2019-2020. State management agencies and legislative bodies are also aware of this issue, initially issue circulars, decrees and instructions to answer questions and problems from the period of 2019-2020. Therefore, 2021 will have more advantages in terms of legal procedures for the real estate market.
Additionally, the biggest motivation factor is the policy of disbursing public investment. This is considered a lifeline when everything is delayed; the determination to disburse public investment is the strongest policy in 2020 and 2021.
Regarding disease control. When COVID-19 appeared, reducing the purchase power of the whole economy in 2020 in general. The purchase power of the market also decreased significantly not only in tourism, agricultural products, and trade but also in the real estate industry. Except for localities with special developments such as Ho Chi Minh City where the purchasepower was still good despite house and land price increase, in some localities, including Hanoi, real estate was not easily sold even at low prices.
Thirdly, it is economic resilience and recovery ability. As a general rule, the market has ups and downs following a sine wave, in which the market dropped to a very low level in 2020. Research by Vietnam Report shows that, Vietnam's economy is in the recovery phase, Vietnam's GDP in 2020 increased by 2.91%, the lowest in the past 10 years.
Retail market shows positive signs of recovery, and office rents will increase
This comment was standed by CBRE in the report announcing the focus of the real estate market in the first quarter of 2021 on the morning of April 07
Real estate is still an attractive investment channel, trusted by many people
At the Honor Ceremony of the leading real estate brand in 2020 - 2021 and the Spring Real Estate Talkshow recently organized by Vietnam Real Estate Online Magazine (Reatimes) and Vietnam Real Estate Research Institute (VIRES), experts have recognized, evaluated and forecast common problems of the real estate market in the period of 2020 - 2021.
3 driving forces for the office market to grow steadily in 2021
In the context of macroeconomic recovery, the office market maintains stable gross rents and average occupancy rate. Many businesses have changed from fixed working style to flexible one to prioritize efficiency through the requirement of less fixed workspace and many shared areas.
Which real estate segment benefits from macroeconomic indicators
The internal force of the economy is the foundation that promotes the prospect of the real estate market. Accordingly, looking at the current macro indicators, real estate in 2021 will witness very good growth in some segments.
Office rents increase despite the epidemic
The average offer price of Grade B office spaces in Ho Chi Minh City increased sharply in the third quarter, while that of Hanoi only decreased by 1% over the same period last year.
Office market faces difficulties until the end of 2020
In the last coming months of the year, the office market will continue to face challenges when demand decreases and the vacancy rate is expected to increase further.
Retail and commercial premises: Changing strategies to "overcome the storm"
The Hanoi market records an increase in the vacancy rate in commercial centers and prime locations. And for the first time, the market have witnessed lessors negotiating prices with lessees.
The real estate market before a new cycle: After rain comes sunshine
Although starting the new development cycle with depression and difficulties, experts say that these are only objective factors, while the nature of Vietnam's real estate market still has a lot of room and opportunities for investment.
“Real estate will recover fastest compared to other industries”
“The supply-demand mismatch makes it difficult to reduce real estate prices, especially in quality real estate products. It is one of many notable remarks at the conference "Vietnam Real Estate in 2020 - 2021: Ready for a new cycle".
How does office market survive the 2nd time?
In the second quarter, the average rent of the Grade A segment decreased by 4.9% compared to the same period of last year and the vacancy rate increased by 9 percentage points year-on-year, at 11.8%. Grade B office rents remained unchanged without decrease tendency and the vacancy rate increased slightly.
Offices for lease in Ho Chi Minh City: Negative net absorption area was recorded for the first time in a decade
Real estate consulting company, JLL, has just released its Ho Chi Minh City Office Market Report in the second quarter of 2020, accordingly, the net absorption area was recorded negative for the first time in a decade.
