Mixed outlook for real estate investment in 2022

There will be many opportunities for real estate investors in 2022 but also risks, analysts believe.

2021 was an eventful year for Vietnam’s real estate market, with prices rising in almost all segments, primarily in land.

Data from the Ministry of Construction shows that, nationwide, real estate prices were up against 2020, with land plots increasing 20-30 per cent followed by landed houses with 15-20 per cent and apartments with 5-7 per cent.

In Hanoi, the primary selling price of apartments rose 13 per cent, with the high-end segment posting the highest increase, followed by the mid-end and affordable segments. In Ho Chi Minh City, meanwhile, the primary selling price of high-end apartments was almost flat, while affordable and mid-end prices increased slightly, by about 6 per cent. Super luxury apartments, conversely, fell sharply.

Most transactions were concentrated in the land segment, which accounted for 60 per cent of all transactions in 2021, while 39.6 per cent were apartments and landed houses. Hanoi and Ho Chi Minh City were two vibrant markets attracting attention from investors and where 91 per cent of transactions took place.

Assessing the market outlook in 2022, Mr. Pham Anh Khoi, General Director of FINA, said real estate investment opportunities will remain even though prices increased throughout 2021.

Real estate also has a correlation with inflation, and once inflation increases, then real estate prices tend to follow, as it is considered a “safe haven” for investors. “There are always opportunities to invest in real estate at any stage,” Mr. Khoi emphasized.

He also mentioned the two main types of risks investors need to pay attention to. The first is the project and the investor, and the second is the market.