Potential in place for real estate to develop in 2022

Vietnam’s real estate market is forecast to have a lot of potential to develop in 2022, with the greatest demand being in urban areas, according to real estate analysts.

New supply in Hanoi will come from large urban projects with significant land sources as well as the city’s housing market possessing strong infrastructure. Infrastructure will also be further developed, increasing links between the central area and neighboring areas.

The supply of residential real estate in Ho Chi Minh City, meanwhile, will also improve and many new projects in the mid-end segment will be seen, mainly in the east and the city’s suburban districts, according to Mr. David Jackson, General Director of Colliers International Vietnam. Central land sources will be given priority to develop luxury and high-end housing, and housing prices in many segments are expected to maintain average growth of 3-7 per cent in 2022.

Industrial real estate will remain vibrant next year. Production shifts from China as well as Vietnam signing a number of free trade agreements (FTAs) have increased demand for industrial land around the country. “Factory and warehouse services, accompanied by strong growth in e-commerce, and logistics services also promise great potential for the real estate market,” Mr. Jackson said.

With a policy of turning tourism into a spearhead economic sector and striving to attract at least 35 million international and 120 million domestic visitors by 2025, demand for tourism real estate will develop further, according to Mr. Nguyen Manh Ha, Vice Chairman of the Vietnam National Real Estate Association (VNREA).