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.
Real estate contributes greatly to GDP growth
Notably, the latest research of VIRES shows that the contribution of the real estate market currently accounts for 13.6% of GDP. In particular, real estate has the potential to spread to more than 40 other important economic sectors, especially directly related industries such as construction, processing manufacturing, tourism, accommodation - catering and finance - banking.
Sharing at the talkshow, Dr. Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council, said that in the construction sector, in 2020 there was a very good growth, the added value of the whole industry increased by 6.5%, significantly contributing to GDP. It was forecasted that in the first quarter of 2021, real estate stocks would increase by about 15%, partly due to the resonance of the land rush situation.
Sharing at the talkshow, Dr. Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council, said that in the construction sector, in 2020 there was a very good growth, the added value of the whole industry increased by 6.5%, significantly contributing to GDP. It was forecasted that in the first quarter of 2021, real estate stocks would increase by about 15%, partly due to the resonance of the land rush situation.
Dr. Can Van Luc, Member of the National Financial and Monetary Policy Advisory Council.
Meanwhile, Mr. Nguyen Manh Ha, Vice Chairman of Vietnam National Real Estate Association, former Director of Housing and Real Estate Market Management Department (Ministry of Construction) admitted: “Despite the land rush in the market, it also shows that the real estate market is still attractive to investors. In my opinion, real estate is still an investment channel much trusted by Vietnamese people, following gold and stocks.
Policy and legal bottlenecks should be removed
Also at the Talkshow, experts said that it was legal bottlenecks that made projects delayed or impossible to be implemented, leading to increased costs and higher house prices compared to income of the people. Along with that, difficulties in administrative procedures prevented many enterprises from launching new projects, etc.
Sharing about this story, Mr. Dang Viet Dung, Chairman of the Vietnam Federation of Civil Engineering Associations said that the impact of the Covid-19 epidemic on the construction industry was visible, but not as great as the real estate industry or tourism industry. In fact, in 2020, the contribution of construction enterprises to the country's GDP was very large. This achivement was thanks to the space of enterprises many years ago, along with the State's public investment, which had promoted construction activities to develop.
Mr. Dang Viet Dung, Chairman of the Vietnam Federation of Civil Engineering Associations.
“In order for industries to develop sustainably in the coming time, I think it is necessary to continue to build a 'constructive government', reduce administrative procedures so that real estate businesses can operate smoothly, thereby they can also operate well.
In addition, the overlapping of laws related to real estate and construction also needs to be removed. For example, some real estate products, such as condotels, are facing legal problems, which also partly causes difficulties for the market. In 2021, if the above difficulties can be removed, the construction and real estate industry will have many favorable conditions for development," Dung suggested.
Furthermore, Dr. Phan Huu Thang, Vice Chairman of the Vietnam National Real Estate Association also recommended that, in the future, Vietnam needed smooth policies, a favorable legal system, and favorable conditions for investment and foreign businesses pouring capital into the Vietnamese market.
In addition, experts also agree with the view that the market will continue to witness a better year of recovery, healthier development and no "rush" or "bubble" will happen to the market.
According to Reatimes
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
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.
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.
